Why Insurance Rates for Young Drivers is High

So there’s a new driver in the house and the next thing on anyone’s mind is, “Why is every insurance quote so high for my child?” The main reason; about 48% of accidents that occur are by drivers between the ages of 16 and 25 which brings an awareness to the insurance companies that young drivers are a large liability. There are a few other reasons that insurance companies have as well.

Drivers that are under the age of 25 are typically less experienced and are more likely to be distracted when they are on the road. Inexperience, coupled with the probability that young drivers may not have any credit compiled yet makes insurance companies uncomfortable. Insurance quotes are typically based on good credit history and if there is no credit history to gather they will charge the same way they would someone that has poor credit history.

There are ways to bring the cost of insurance for a young driver down over time as they show a clean driving history and even begin to build their credit. There are also ways to find cheaper insurance for a young driver as long as you are willing to take the time to look and sift through the possibilities. New drivers make up 12% of the driving population and each one finds insurance one way or another.

Car Insurance, Cheap Insurance for Young Drivers

Car Insurance, Cheap Insurance for Young Drivers

At some point in every persons life car insurance will need to be purchased. Like with any form of insurance, it is extremely important to have but can be tricky to figure out which will be best for you. People need to be insured to legally drive on the road; unfortunately there are many people that are not insured!

Every state has minimum requirements, these requirements are very important to know when getting ready to purchase auto insurance. Some state may just require liability, where some may require more; this varies from state to state as well. It is important for drivers to be properly covered to avoid any legal problems.

Not only does insurance provide protection for drivers, it helps protect your pocket in the long run. There are many great drivers, who may never get into an accident, but you don’t need to always worry about yourself driving, you have to worry about others as well. An accident can leave someone penniless; someone can lose every possession they have from getting into an accident and not having the correct coverage. This is just food for thought.

Cheap Insurance for Young Drivers and the Elderly

The most expensive age groups to insure when it comes to driving is young drivers and the elderly. Young drivers often have higher rates because of their inexperience driving and the perception that teenagers are irresponsible. There are very few discounts to get into young drivers until they create some sort of driving history.

One of a few ways they can save money on car insurance is by being a part of their parents policy. Many insurance companies will allow the discounts that parents have earned to reflect the cost of their child’s insurance rates.

In addition to that there is a good student discount also offered by a variety of insurance companies. This discount can be given to students in high school or college let received above a certain grade point average or are in the top 25% of their class. While the rates might not drop drastically there will be a decrease and any money saved is positive.

Your Kid is 16 What to do About Insurance?

While turning 16 and getting a car may be the most exciting part of the teenage years for children is not quite the same for their parents. Insuring a young driver is usually much more costly than insuring an experienced driver.

This is because the factors that contribute to car insurance quotes usually include driving records driving history, none of which teenage driver have. There are a couple of tips and tricks that parents can use in order to lower their young drivers insurance costs. One of the most unknown ways is by utilizing a multicar policy and adding a young driver has a secondary driver.

This is done by placing a parent or older driver as the primary driver on the car and putting the new driver as a secondary driver if there is more than one car on a policy. The most money will be saved at the teenage drivers but as a secondary on the car that costs the least amount of money and is the oldest.

Cheap Insurance for Young Drivers

Some of the highest rates in auto insurance can be found in those given to young or new drivers. This is an area that is hard to find discounts for because many discounts are based on driver experience and having a clean driving record.

Young drivers are unable to provide either of these factors and that is what contributes to a high rate in auto insurance. There are a few ways that young drivers can lower their auto insurance rates, One of the ways that many auto insurance companies offer is through good student discounts for young drivers in high school and college that demonstrate a GPA of over 3.0 or are in the top percentage of their class.

Auto insurance companies will give discounts to good students because they believe it provides them proof that the drivers are responsible and hard-working. Another way to lower young driver insurance is by taking additional drivers education classes.