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Why car insurance for young drivers is so expensive

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ZTSG 31/12/2021 Hatchback 205
An important milestone in every young person’s life is obtaining a driver’s license. For young people, getting a driver's license is a big step towards adulthood. Although driving a car means more fre...

An important milestone in every young person’s life is obtaining a driver’s license. For young people, getting a driver's license is a big step towards adulthood. Although driving a car means more freedom, responsibility and independence, it also brings a lot of costs, especially the cost of car insurance. Young drivers, especially young young men, face high auto insurance quotes. The reason why young drivers tend to get higher insurance quotes is that insurance companies rate them as high-risk drivers.

High risk drivers are drivers that are at a higher risk of making a claim or having a claim filed against them. When insurance companies rate drivers, they will rely on statistics to determine their risk. For instance, a 2005 report by the CDC revealed that “although teens accounted for only 10% of the population, 12% were involved in fatal motor vehicle accidents. As well, 4,500 teen deaths were a result of injuries sustained during an automobile accident and 400,000 teen drivers suffered nonfatal injuries.” Much of the reasoning behind such high statistics is a teen’s lack of driving experience, increased likelihood of taking more risks while driving, and they tend to violate more traffic laws such as speeding. Therefore, the car insurance quotes reflect the risk.

Although it may seem disheartening to learn that young drivers receive higher car insurance quotes there are a number of measures that can be taken to reduce the costs of young driver auto insurance. Below are a number tips to reducing young driver car insurance quotes:

Online Auto Insurance Quotes: The internet is a great source to locating cheaper auto insuranc

e for teens. There are auto insurance resource websites and insurance websites that provide a free online insurance search tool that allows users to acquire several insurance quotes from a number of different auto insurance providers. Users just submit some personal details such as their ZIP code, age, gender, make, model, and year of the vehicle. Once they have “clicked” the submit button, it is just a matter of seconds before they receive several auto insurance quotes.

Auto Insurance Discount Incentives: When purchasing car insurance, it is important to take advantage of all discount offers. Such insurance policy incentives can include: a discount for teen drivers who have taken and completed a defensive driver’s program, a discount for maintaining a high grade average such as an ‘A’ average, a discount for maintaining low mileage, fuel efficient vehicle discount such as driving a hybrid car, discounts for installing anti-theft devices and safety devices such as airbags and motorized seatbelts.

Type of Vehicle: The type of car that young drivers drive will affect the cost of their insurance premiums. For instance, cars that are at a high risk of theft such as sports cars will cost more to insure. Teens can lower their insurance premiums by driving an older car that is at a low risk of getting stolen.

By taking the time to figure out the factors to consider when determining car insurance prices, adopting policies to mitigate these factors, researching insurance options, and taking advantage of available discount incentives, young drivers can greatly reduce their payments for car insurance the price of.