If you’re a young driver, there’s a good chance that you’re paying more for auto insurance than your older counterparts. But why is that? The short answer is that your lack of experience on the road makes you a statistically higher risk than those who’ve had more years behind the wheel.
But let’s go a little deeper. In addition to delving into the reason for expensive insurance, we’ll discuss how a car insurance cost estimator can help you find the best rates and go over a few ducks you can put in your row to reduce insurance costs.
Top Reasons Insurance Agencies Charge Young Drivers More
Higher Likelihood of Accidents
Car insurance is one of your most important investments as a young driver. After all, you’re more likely to be involved in an accident than an older driver, and if you are, you’ll want to be covered.
Moving Traffic Violations
Young drivers are more likely to get speeding tickets and other traffic violations, and this is because they’re often inexperienced behind the wheel and still learning the road rules. As such, they’re seen as a higher risk to insurers and thus charged higher rates.
Youth Are More Distracted Behind the Wheel
Car insurance rates for young drivers tend to be higher because they are considered at higher risk for distractions as new drivers. This is because statistics show that younger drivers are more likely to get into accidents due to friends in the car, changing the radio, or trying to text or talk on their phones while driving.
Assumption of Responsibility
Fourthly, there’s the fact that young drivers often have to pay higher rates simply because they’re young. Auto insurance companies usually charge younger drivers more because they assume they’re less responsible and more likely to take risks.
Ways to Reduce Insurance Costs for Young Drivers
You’re not without hope for a decent insurance rate, however. You can do things to reduce your costs and benefit your budget regarding your car expenses.
Defensive Driver Courses
Most insurers will give you a break on your rates if you complete a defensive driving course. This is because it’s assumed that you’ll be a safer driver if you take the time to learn more about how to avoid accidents.
Good Student Discounts
Many auto insurance companies offer good student discounts if you’re still in school or even if you’ve just graduated. All you have to do is maintain a certain GPA, and you could qualify for a lower rate.
Shop Around for Car Insurance
One of the best ways to reduce auto insurance costs is to shop around and compare rates from different companies. Don’t just go with the first quote you get; take the time to compare rates and coverage from a few other insurers to ensure you’re getting the best deal.
Join Your Parent’s Policy
If your parents have a good driving history, you may be able to get a break on your rates by joining their policy. This is because you’ll be less at risk when added to an existing policy with a good history. Further, your parents may also qualify for a multi-car discount with your vehicle on the policy.
In Summary
There are several reasons why young drivers pay more for auto insurance than older drivers. The most common cause is that young drivers are inexperienced and more likely to get into accidents. Other reasons include moving traffic violations, youth distractions, and the assumption of responsibility. However, there are ways to reduce your rates as a young driver. These include defensive driver courses, good student discounts, shopping around for car insurance, and joining your parent’s policy.
By following these tips, you can be sure you’re getting the best possible rate on your car insurance as a young driver. And remember, if you ever have questions about your policy or how to file a claim, your insurance company will be more than happy to help.
Of course, the best way to save on auto insurance is to be a safe and responsible driver. So whether you’re young or old, always remember to buckle up, obey the speed limit, and never drive under the influence. Do this, and you’ll enjoy many years of safe driving on the open road.
If you’re looking for ways to save, talk to your insurance agent and ask about ways to save. This is just one step in forming habits to achieve financial security and budgeting success.
There you have it: five reasons why young drivers pay more for auto insurance. If you’re a young driver, remember to shop around for the best rates and take steps to be safe and responsible. Doing so will help you keep your rates down and ensure you’re adequately protected on the road.