Why Young Driver Insurance Is Costly

By David Lenton, Young Driving Editor, Car Insurance Comparison

Car insurance companies have to look at that statistics. When it appears that one group of people is causing more accidents than another, car insurance companies will put this group into a high risk category. Unfortunately, young drivers can fit into several groups that are causing a lot of car accidents on the roads, and are deserving of high insurance premiums.
Inexperience

One big reason that car insurance companies charge high premiums is because of inexperience. The one thing that most young drivers have in common is that they are inexperienced, and car insurance companies take this for granted. With inexperience comes a high likelihood of causing an accident, and the statistics have shown this to be true. 20 percent of all new drivers will be involved in a car collision within the first six months of receiving their driving licenses.

High Fatality Rate Due to Car Crashes

Car insurance companies also will charge high premiums for anyone who is in a demographic that is more likely to die in a car collision than others. Young drivers fall into this category as well. 25 percent of the people who die in a car crash in the UK are young drivers. This can create expensive medical bills that will need to be paid by the insured young drivers’ car insurance companies and the company charges higher premiums for this reason.

Young Drivers Require the Most Car Repairs 

Along with bodily injuries, car insurance companies have to consider which groups will be the most likely to need to file a claim to have their vehicles fixed because they have been damaged in a car collision. This describes young drivers as well, and gives car insurance companies another reason to charge them the higher premiums. Someone who is 18 years old will be three times more likely to either cause a car crash or be hit by another driver than someone who is 48 years old.

The Young Male Driver

Some young drivers have an even harder time finding affordable car insurance because they are males. All inexperienced drivers are high risk for car insurance companies, but young male drivers are even more dangerous than the females and will be quoted higher premiums than the girls. The reason is because they are the cause of most of the accidents that occur on the roads. If a young male is under 21, he is going to cause a car collision 10 times more often than male drivers over the age of 34.

Comprehensive Car Insurance

The policies that cover bodily injuries and damages are called Comprehensive. Under the personal injury cover, policyholders receive a certain amount of money for medical bills. The comprehensive cover will also pay for any repairs that will be needed on a vehicle. If the cost of a car’s repairs exceeds its present market value, the car will be written off and the policyholder receives a replacement vehicle.

Paying medical bills, repairing vehicles and replacing them when their clients have been involved in a car collision can all be very costly for car insurance companies. Generally, car insurance companies favor people who are the least likely to cause them to need to spend so much money. Young drivers, as has been demonstrated above, generally do not cost the least money, and this is why they very often receive the highest quotes.

Finding Cheaper Young Driver Insurance

Young people often believe that they are being discriminated against because of the actions of their peers. This may be the case, but they can combat the negative impression they are giving their car insurance companies by driving very safely. By driving within the speed limits, they will have less of a chance of causing a car collision. Without any collisions, there won’t be any claims and they can begin to earn their no claims discounts.

It also pays to seek quotes from more than one car insurance company. Young drivers have discovered that they can find car insurance companies that have tailored policies just for them that are less expensive than the comprehensive policies that companies sell to older drivers. After young drivers find the right insurance company that is offering a good price, they can receive even more off of their premiums if they can qualify for discounts.