You're done being a kid and ready to step into the real world. What's more, you've snagged a driver's license and enough money to buy a car. Before spending all that money in one place, it's a good idea to check out car insurance options. Even if you're already covered with your parents' policy, there are more than a few ways to save money on insurance premiums.

Age
Being a young'un can work in your favor. Many insurance carriers allow high school and college students to remain on their parents' coverage plans, and joining an established plan can mean lower rates. Also take advantage of driver's education classes, even if they're boring. It turns out they can help cut costs too. Some carriers have special requirements to get this discount, such as age limits (the driver may have to be under 21) or other restrictions (married women may not be eligible--weird, we know, but true), so check before assuming the discount is guaranteed.

It's also worth investigating student discounts. Different carriers have different
rules for rates and age ranges, but most students with a GPA of 3.0 or higher are eligible. Talk to your carrier and find out their eligibility guidelines.

Risk
For a moment, think like an insurance carrier: they assess a driver's risk and adjust the rates accordingly. Statistics show that a young driver is more likely to get in an accident – especially if they drive a highperformance car--than a mom driving a kid-carrier. The premium is higher for the young driver because of the greater potential risk.

Keep in mind that safety features like airbags can not only save lives, but can also save money. Carriers may offer discounts for the safety equipment in a vehicle, as their risk (read: potential medical payout) is lessened by the presence of these modern wonders.

Installing theft-prevention and tracking devices in your vehicle can also lower insurance premiums. Some providers offer discounts to drivers who install car alarms, keyless-entry systems, tracking devices (e.g. LoJack), or who use steeringwheel locking devices (e.g. The Club). Depending on the carrier and which security measures are taken, discounts range from 2% to 30%. Check with the carrier to see what discounts they offer to help you make the most costeffective decision. Something as cheap as a $50 keyless-entry system could save hundreds of dollars over the life of the policy.

Also, if you're a good driver and don't have any accidents or tickets, ask about a safe-driver discount. Embracing enviable commuting habits could end up saving cash--money that can then be used to buy bumper stickers daring the cops to pull you over (though that isn't recommended).

Save now or later
A quick rule of thumb: higher deductibles generally mean lower premiums. That means if you agree to pay a larger portion of a claim when something bad happens, you won't have to pay as much per month. Of course, this could come back to bite you if an accident occurs, but it's a good way to keep monthly costs down if money is tight.

On the other hand, you might consider paying extra now to save money in the event of an accident. Most auto insurance policies have about $250,000 in liability coverage, but that may not be enough to cover a major event that includes a settlement or (if it goes to court) judgment. An umbrella liability policy extends this liability coverage. Expect to pay about $300 a year for $1 million in coverage. Consider this extra protection when living in a wealthy town (where you could be an easy target for a big settlement), if you travel a lot, or if the extra coverage would make you feel more comfortable.

Like always, shop around. Don't fall for the first smiling voice you hear on the phone. Check out websites like edmunds.com, which has links to insurance carriers with free quotes, and visit local agencies. Finally, don't be afraid to ask if there are any other discounts available.
 

Sources: edmunds.com; gsa.gov; msn.com; iii.org; moneycentral.msn.com; nationwide.com; statefarm.com; mint.com; publicradio.org; allinsuranceinfo.org; allstate.com