Why do young people pay more on their car insurance?

Posted on by Guest in Guest Posts, Insurance, Saving Money & Finances

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This is a guest post

It’s a well-known fact that young people are far more likely to have to pay more for their car insurance than older people. But why does this happen and is there anything that young people can do to help lower their car insurance costs?

One of the main reasons young people have to pay more for car insurance is because they are a largely unproven entity. A young person might have passed their driving test, but they still have a relatively small amount of practical experience on the road compared to more experienced drivers. They won’t have been out driving on their own until they pass their test, and the experience of driving as a qualified driver is different to when you are driving with an instructor sitting in the seat next to you.

This means that younger drivers often pose a greater risk and are more likely to make a claim on their insurance policy than older drivers, because they are statistically more likely to have accidents. The same is true of all new drivers, no matter what their age, but it does seem as though drivers under the age of 25 are more likely to be involved in accidents than those who are older. As discussed above, this is often down to experience, but it can also be because young people commonly drive faster than others, amongst other factors.

As young drivers get more experience, though, their car insurance premiums should go down as they’ll been seen as less of a risk by insurers. This means that one tactic for young drivers looking to pay less for car insurance is simply to bide their time, wait and drive safely in the meantime. Another option is to shop around for car insurance: often premiums vary significantly between insurers, so if you’re looking to get cheap car insurance, you’re more likely to find it by doing some research and comparing deals rather than simply going for the first quote you get.

Another factor that affects car insurance quotes is the car you drive. Cars with big, powerful engines always cost more to insure, but this is especially true if a young person will be driving them. Generally speaking, smaller, safe cars are a good bet for young people as they are less likely to cause accidents in them and therefore hopefully less likely to make a claim on their insurance. Smaller cars are also usually more efficient in terms of how they operate and the amount of gas they use, which can bring more cost benefits in terms of fuel savings.

Young people could also consider going on an advanced driving course to enhance their skills and prove that they know how to drive safely in a range of different conditions. Some insurance companies might look on this favourably and offer a lower car insurance quote as a result.

Overall, it will always take a while for the costs of car insurance to come down for new and younger drivers, but driving safely and sensibly will definitely help: if you start building up a good driving record while you’re young, this will have benefits for your car insurance quotes when you’re older. It might not be ideal, but it’s definitely a worthwhile trade-off.

Tags: car insurance, insurance