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Insurance For Young Drivers Does Not Have To Be Expensive

It is often said the car insurance for a young driver can cost far more than the car the young person wants to drive. This sounds ridiculous but it can be true. It is fair to say that some insurance companies are just not interested in insuring young people and their prices reflect this. The reasons are fairly straightforward. The statistics show that young people are a far higher risk than more experienced drivers to the chances of the insurance companies having to pay out on claims is that much greater. They are in business to make money not lose it, so they have to charge young people much more to ensure they still make a profit after paying out on all those extra claims.

 

This basic principle in unlikely to change and any insurer who offered the same rate for young drivers as for older ones would not be in business long, because the fact show very clearly that young people do have, and cause, far more road accidents.  That does not mean that there are not other ways you can bring down the cost though.

 

The worst possible combination for insurance purposes is a young driver and a powerful car. Evidence shows that the chances of an accident are very high, and that the costs involved in claims are also high. You therefore have no chance of reasonable insurance if you set your sights too high in terms of fancy cars.

 

The things that push insurance costs up are the size of the engine, the cost and value of the car, the age of the car and the insurance group that the car belongs to. You can bring down your premium costs with a reasonable insurance company by choosing the car that the young driver will have very carefully. You should go for an older, smaller vehicle, which is preferably from one of the lowest insurance groups. This may not be attractive to the young person who wants to look good in a sporty car, but it will at least allow them to be able to drive, which might not be possible with a more expensive vehicle.

 

The other factor that can affect how much you pay, is of course the type and extent of insurance cover that you ask for. You do not have to do fully comprehensive and you can make a big difference to the cost of premiums if you just stick with third party insurance. By combining these various factors you should be able to bring down the cost of young drivers insurance enough to at least get behind the wheel. Once you have established a record as a safe driver, you can then start to go for slightly more impressive cars.

 

 

Find out more about where to get low price insurance young drivers on the authors website, which offers a range of information including how to reduce the cost of young car drivers insurance, how to get a provisional driving licence and advice on drink driving laws, learning to drive, etc.

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Why Is Young People’s Car Insurance More Expensive?

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You’re 18. You’ve just passed your driving test. You’ve got your dad’s old car and the keys. Still though, there’s one more thing you need before you get on the road for the first time - insurance.

Unfortunately, young people’s car insurance is a little unfair. Often – well, always – it’s substantially more than what an average driver would expect to pay. There are a few reasons for this. You may not agree with them but your only available form of protest would be to not buy insurance. Which would be illegal, get you arrested and get your car taken off you. So probably not a good idea.

Anyway, moving on; one big reason that young people’s car insurance is more expensive is because you don’t have an established driving history. However, as mentioned, if you pass your driving test at 25 you’ll still get a cheaper insurance than an 18 year old. Why? Because of statistics.

Insurance is, for the most part, based on your risk as a statistic, rather than as an individual. Newly qualified drivers get charged more because the statistics say that in the first two years of passing your test, you’re far more likely to have an accident. One in five will have one in their first year on the road.

Of course this doesn’t explain why younger people have to pay more than older people. Again, the answer is statistics.

According to statistics published by the Association of British Insurers in 2008, 18 year old drivers caused an average of 50 collisions a day. The ABI claim that an 18 year old driver with a year of experience (so someone who was pretty quick off the draw on getting their license) is still twice as likely to make a claim on insurance than a 30 year old driver with the same length of experience.

Then there’s the fact that nearly a third of fatalities on UK roads are caused by young drivers between the age of 17 and 25. Without dwelling too much on that morbid figure – and without being too callous over it either – it’s worth considering that fatal accidents tend to be very expensive ones. Beyond the cost in human life, an insurance company will generally have to pay for compensation, repairs/replacements, as well as possibly legal costs.

On a less tragic note, young drivers are also statistically more likely to experience theft, fire and vandalism on their vehicles. Why, no one knows - but the figures are there and they equate to more claims on insurance in the end.

One of the reasons that’s often put forward for the statistics is that teenagers and other young drivers are more likely to have passengers when driving than older drivers. It’s not a huge stretch of the imagination to assume that most people who pass their driving test at 18 – and have a car – will end up giving lifts to their younger or less mobile friends.

Anyway those are the reasons. It may seem unfair if you’re an 18 year old, sober, sensible driver and you never make a claim in your life. The only thing you can really do is get a policy where you can start building a no-claims bonus ASAP.

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Mathew Cooper regularly contributes articles on young persons car insurance. To know more visit http://www.selectercarinsurance.co.uk

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Car Insurance For Teenagers: Why Is It So Expensive?

As parents, you might be just as excited as your son or your daughter when buying their first car. And so you go to the car dealer, get the model you want for your son or daughter and prepare to sign a check for it. But when you learn about the car insurance premium you are to pay, you get shocked and ask, “Why is the car insurance for teenagers almost worth as much as the car itself?” Well, your son or daughter is 16 years old. That alone is a big factor to consider.


Your choice of a car for your teen driver determines part of the auto insurance premium you have to pay. You can buy him a brand new sedan, a sports car, or a run-down vehicle. It’s your choice. But the insurance costs would vary greatly with each vehicle.


Other than being a young, new driver, insurance companies can’t make an exact assessment as to how well your teenager drives. This forces them to bestow the highest possible premium they have on their charts. Everybody knows that drivers with no accident and traffic violation history enjoy low premiums. However, those who frequently visit car repair centers due to collisions have no choice but to pay for sky-rocketing costs every month.


Going back to the car you will give to your teenager, the insurance provider would check the car’s safety features first. Is the car totally safe to drive? Does it have features that can protect the driver and its passengers? Is the car easy to handle and isn’t too fast for a teen driver? Is the vehicle new and is not likely to be sent for repairs any time in the future? These are the things that determine the price of car insurance for teenagers. Now that you know them, you can do your best to get the premium lowered.


The driving knowledge and habits of your young driver is also a factor to consider. But again, since insurance providers don’t have enough data to support this fact yet, they would use your son or daughter’s report card to assess their attitude on the road. Studies show that teenagers who perform well in school tend to become a more responsible driver that those who are getting low grades. And so teens who have a general weighted average of B or higher in school is given lower premiums that those whose grades are lower.


These are just some reasons why car insurance for teenagers gets a little expensive. Parents concerned about premiums can now look for some work around in the assessment process of providers. But then again, parents should be more concerned of their teenager’s safety on the road rather than the amount they have to pay annually for the policy.

Sal provides expert advice on car insurance for teenagers by writing articles about auto insurance rates for teenagers and other topics.

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