With a good, clean driving record and a safe, family sedan that you are insuring you have not done anything wrong, however you are still considered an inexperience driver at the age of 19. Insurance rates are based upon statistics. Traditionally, less experienced drivers have shown significantly higher losses resulting in higher rates.

Imagine one young recent quote in our system: a high value vehicle in urban New York and multiple violations, his rate is: $3,497.01 down with 6 payments of $1,712.75. We try to find the best rates and we have found a company at $1,728 and payments of $986. I hope that is a little incentive to do all the right things to keep your rates low.

According to the Insurance Institute for Highway Safety, for each mile driven, the risk of being involved in a crash is four times higher for teens aged 16-19 than for older drivers. These statistics give insurance underwriters a reason to charge the highest premiums for young drivers.

Your incentive to stay insured is that it allows you to operate your vehicle on the roadways. In most all states financial responsibility is required to register and legally drive a car. Most motorists obtain car insurance as the way in which to prove their financial responsibility to the state.

Insurance is there to protect your assets by paying claims on your behalf up to your limits with regards to liability coverages and if you have physical damage coverages then to also protect your vehicle. Following the law by carrying insurance does not necessarily mean that you should be rewarded however it should keep you from having your assets at risk and from facing citations and penalties for driving without insurance.

For example in California the DMV requires that you take financial responsibility for owning and operating an auto in CA. If you are caught driving without liability insurance in California you will be charged hefty penalties. Violators can face up to hundreds of dollars in fines for a first time offense. Also, if you are involved in an accident and do not have liability insurance, your license may be suspended whether or not you are at fault.

In Texas driving without auto insurance is also against the law. A law enforcement officer will require you to show proof that you have auto insurance during any traffic stop. You could face a fine of $175 to $350 for a first offense. If you are stopped again without proof of insurance, you could be fined up to $1,000, your vehicle could be impounded for 180 days, and you could have your driver’s license suspended.

Legal issues aside, as we mentioned earlier insurance is a way to protect yourself in the case of an accident. Your coverage cannot stop an accident from happening, but it can help to put you back in the place you were before an accident occurred. It can also protect you from financial hardship if you are at fault and hurt someone else or their property in an accident.

While state insurance laws and insurance companies’ rating factors vary, in general an auto premium is based on primary and secondary rating factors. Primary factors typically include items such as how long you have had your license, how many miles you drive in a year and how many accidents or tickets you have. So you are doing well on the latter factors and in time will be out of the "young driver" phase.

As you know auto insurance costs more for people who have little driving experience. Accident statistics show that newer drivers and drivers who are teenagers and young adults have an increased likelihood of accidents. As you get older and gain more driving experience, your premium will go down. So if you continue to keep a clean driving record, meaning no convictions for any type of moving violation like speeding, and are not involved in any accidents the cost of your car insurance should begin to go down.

Some insurance companies drop rates when a driver reaches the age of 21 while many others wait for a big rate drop when the driver turns 25. These rates are again based upon statistics showing at these ages drivers are more mature and experienced and thus are less of a risk to the insurer.

Comparison shopping is the best way to save money on auto insurance. Another way to save money is by taking larger deductibles and lowering limits. The more you are willing to pay out of pocket for claims, the lower your premiums will be; however, make sure that you are not putting your financial future in jeopardy by choosing low limits and high deductibles.