Car insurance costs the most for drivers under the age of 25 because they have the highest accident rates in all age brackets. Statistically, teenagers cause around 25% of all car accidents so if you're a first-time driver under the age of 25, tough luck as you're considered potentially dangerous behind the wheel. That and you'd pay higher insurance premiums in order for your car to be insured.

Don't get disheartened with the thought of bills drying out your funds for fun. There are several ways on how you can save on automobile insurance costs. Follow these and you can make mom and dad proud (and possibly give you a raise on your allowance):

Ask your parents if you can join in on their car insurance policy. It's almost always cheaper just to add another car into an existing insurance policy rather than applying for one separately. Premiums are usually withheld until a teenager becomes a licensed driver. Ask your parents to inform their car insurance agent about adding you into their policy because hiding it can merit offenses.

Maintain a good average in school, at least a B average. This will help you in getting at most a 25% discount on car insurance policy from most companies. So study hard!

Get some really good driving experience. You're supposed to log at least 50 hours with an experienced driver. Don't fret though because this pays off since you're eligible for a 10% discount from a lot of car insurance companies.

Drive safely or else, the consequences can hit you hard. Most teens get into an accident because of alcohol. Just remember that when you have a ticket for DUI, it's either your car insurance will get revoked or you have to pay a higher premium for 3 to 5 years (depending on the gravity of your DUI incident). Not only DUI tickets but “accidents” that you cause and other citations will affect your standing – and expenses – with your car insurance company. More than four of those and you're out of their sight. Always remember to sober up and drive safely!

Be careful in choosing the vehicle you'll drive. The more prone the car is to theft or the higher performance it is, the more premium you'll pay. You can always ask your agent for quotes on the cars that you want and see which best fits your budget.

Just because a car is old doesn't mean its insurance premium will be cheaper. In relation to the tip above, old models have a higher chance of being unsafe – not to mention breaking down. Newer models have more safety features and discounts are given for makes that have airbags, automatic seatbelts and the like.

Don't jump on the first insurance offer that you get. Different automobile insurance companies offer different rates for teen drivers so don't be afraid to browse and ask for offers and the discounts that you can get. You'll save hundreds of dollars just by being picky.

Try to consider the safety programs that are offered by some companies. There are car insurance agencies that will help parents track their kids with the help of GPS. Your parents will be able to monitor your speed and know where you are at all times. There are also other companies that install cameras within the car to see whether you're alone, drunk or just driving happily on your way to school. Don't take this the wrong way kids, your parents are concerned about you!