I am 21, and I am paying extremely high car insurance prices. Can you tell me when my rates will go down?

One of the things that young drivers find most unfair about auto insurance is that those who are the least able to afford insurance - students and young professionals - end up paying the highest rates. From an insurance company standpoint, though, charging more for young driver insurance makes perfect sense - drivers under the age of 25 cause many more accidents than older drivers.

As you gain more experience, your insurance company will gradually reduce your rates. With some companies, you will qualify for a lower age factor when you turn 23; for other companies, the magic number is 25.

When you turn 30, you will see another dramatic reduction in your auto insurance rates. Drivers between the ages of 30 and 45 enjoy some of the lowest insurance rates of any age class.

In the meantime, though, there are a few other things you can do to reduce your car insurance costs. You can opt for a “family car” instead of that sports car you've been eyeing - insurance companies see sedans as safer vehicles and will typically charge less to insure these cars than they charge for “high performance” models.

Also, make sure you keep your driving record clean. A single speeding ticket can raise your rates as much as 15%. If you cause an accident or two, your rates might be nearly double those a perfect driver will pay.

Finally, sticking with the same car insurance company will usually help reduce your car insurance rates. Many companies will provide a discount for each policy term you keep your policy in force, as long as you don't have any accidents or claims. If your company offers a 5% discount each term, then you will pay 20% less for the same coverage just two years from now.