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If you have just gotten your driver's license and are responsible for paying for your car insurance, you need to be prepared to pay more for your car insurance than your parents do. Insurance premiums for young drivers are usually higher than it is for adult drivers, for a variety of reasons. Read on to learn more.
Reason #1: Your Personal Record Is Blank
When it comes to determining your risk as a driver, new drivers are basically an unknown factor. You don't have a driving history that insurance companies can use to determine what type of risk you will be as a driver.
Instead of giving you the benefit of doubt, insurance companies charge you more until you establish a driving record. After a couple of years, once you have a driving record that you can be judged on if you established a good record, your rates will fall.
Reason #2: Young Drivers Don't Have Lots of Experience
Second, insurance companies charge more because young drivers don't have a lot of experience. It takes time and many hours, beyond what's required to obtain to get your driver's license, to become a good driver who knows how to drive defensively and avoid risk. It can be easy to make a poor judgment call, or over-correct, when you are just starting out, which is another reason why insurance costs more for young individuals.
Reason #3: Young Driver's Tend to Get Into More Accidents
Third, insurance companies charge young drivers more because although they may not have a lot of data on your driving record, they do know (based on years of gathering data) that new young drivers get into more accidents.
Due to the history of young drivers getting into more accidents, young drivers traditionally have a high insurance premium.
Reason #4: Young Drivers Take More Risks
It is well-known that your brain continues to develop into your twenties, in fact, one's ability to measure risk is not fully developed until your early 20s. That is why teenagers are willing to engage in risker behavior that they wouldn't even consider a few years down the road.
Teen drivers are more likely to engage in risky behavior, which is yet another reason why insurance is more expensive as a teenager and young adult.
If you are expected to pay for your own car insurance as a teenager or young driver, expect to face a high premium. You can help lower your premium by not getting into accidents, not getting tickets, and getting good grades in school. You may also find your premium more affordable if you avoid sports cars and instead stick to a standard car for your first few years on the road.
To learn more about car insurance coverage, contact an agent near you.
Share22 June 2020
