Why Insurance Rates for Young Drivers is High

Insurance for Young AdultsSo 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.