If you want a true shock in pricing try shopping for young drivers insurance. Young drivers insurance premiums are the highest when it comes to age groups obtaining car insurance. Data has shown that many young drivers obtain insurance quotes that are more expensive than the car they drive. It often is asked why young drivers are faced with such high insurance premiums, especially when they are likely to be a secondary driver on a car that is primarily driven by a parent. The answer lies in the risk involved by the car insurance provider to offer insurance coverage to a young driver.
Young Drivers Insurance is expensive because of driver inexperience
Some young drivers are experienced and have been driving for several years while others may be new drivers having only recently obtained their license. Some young drivers may be new at driving a particular car or type of car that is different from the one in which they learned. Still others may be driving in conditions in which they have no experience at all such as snow or rain. Others may be driving in heavier traffic than they are used to driving. Over and over young drivers will be tested and be faced with driving conditions in which they are not experienced and when that happens if they are not totally involved in being a safe driver then accidents can occur.
Young Drivers Insurance is expensive because Young Drivers are higher risk
Unfortunately there are other reasons as well for young drivers being a high risk for accidents. They are more likely to become distracted and that can come in all forms. From leaning over to change a music selection in a CD player to answering a mobile phone call or texting there are many distractions that can occur with a young driver on the road. Many young drivers think they are capable of handling the demands on the road as well as the distractions they are used to being in command of when off the road. However, travelling in a car while texting is certainly not the same as standing in one’s bedroom while texting or while walking down the street. Over and over young drivers prove they believe they can handle distracted driving only to be involved in a major accident and many times those accidents are fatal. Statistics overwhelmingly show that young drivers are more likely to be in an accident than an adult.
If a young driver is likely to be involved in an accident then there is a greater chance that every time an insurance provider approves a policy on a young driver that they will be paying out to cover an expensive accident. Often that will be in the first year of a young driver getting their license. The insurance company will therefore pay out much more than the driver has paid in to their young drivers insurance policy. To make it financially possible to insure a young driver when the odds are great that they will have a claim filed in the near future an insurance company must charge more for the premiums for car insurance of a young driver.
Adding into the fact that young drivers are usually the most inexperienced drivers on the road they also have a lifestyle that involves more risk while on the road. They are more likely to have a lot of people in the car which will lead to more people injured as well as it being a possible distraction. They are also more likely to be driving at night as they go out to clubs or on dates. Young drivers insurance rates are higher too as young drivers are also more likely to be partying and drinking which will lead to impaired judgement while behind the wheel.