Young Drivers and Auto Insurance

The cost of insuring younger motorists is usually much more expensive than any other age groups; those between the ages of 16 and 25 are usually considered to much riskier to insure than their older counterparts. Although, a 16 year old motorist will usually pay more than a 24 year old due to experience, given that they have a similar driving record. Though there is no way to determine that a driver aged sixteen is a worse motorist than a twenty-four year old, in the eyes of insurers experience goes a long way and statistics do not help either; most insurers utilize similar formulas to determine rates and charge an applicant base on the risk that they pose for causing a potential risk. From a statistical standpoint, the chances of operators between the ages of 16 and 25 being involved in an accident are exceptionally high and carriers may charge them accordingly.

Other major reasons these youths may be charged more is because they have the tendency to practice bad driving habits, are more likely to be distracted behind the wheel and have accounted for a major percentage of collisions over the past several years. According to a recent study, during the years of 2001 and 2007 this age group was involved in 25.9% of all crashes despite the fact that they are only 11% of motorists occupying the road. These figures are staggering and quite frightening for our younger generation, but by both parents and children realizing the importance of driving safely, it can lead to less accidents and cheap car insurance for young drivers can be obtainable.

Cheaper Car Insurance for Young Drivers

It cannot be stressed enough how important it is for younger motorists to shop around and compare the of various different insurers to find cheaper rates before purchasing a policy. This should be done in two ways, shopping for coverage on an individual policy or see how much it would be cost to be added on to a parent’s existing one. Each insurer will charge a different amount based on their prior profits and losses with these younger drivers and when being added to a parent’s current coverage, their parent’s current provider may not be the cheapest when they add their child; it may be wise to shop the same companies with only the child and compare the same insurers when a parent will be the primary insured to see which will be more cost effective.

Consumers should also keep in mind that the vehicles also play a big part in the price of premiums; if a parent owns a high end or sports car it may not be a good idea to add the youth since it would only drive up the cost of coverage substantially, but it still may be worth a try to compare, especially if the teen will be operating said vehicles. If purchasing an automobile for a younger motorist, it is suggested that a safe and economical vehicle be considered since they are usually much less expensive to insure and if possible, buy an automobile that will not need Comprehensive and Collision coverage which will practically double insurance costs.

As with most consumer guides and government tips, the North Dakota Department of Insurance suggests that any discounts available should be addressed and utilized when purchasing policies. There are very many carriers that offer discount for those who are a good student (“B” grade point average or higher) and for completion of an approved driver education course (proof may need to be submitted to the insurer). One should also keep in mind that once a driver has had three years experience behind the wheel or has turned 25 years of age, premiums will usually be reduced; this may be a good time to start comparing various insurers to ensure that they are still getting the best rate.

http://car-insurance.onlineautoinsurance.com/articles/young-drivers-auto-insurance/