Why Car Insurance Is So Expensive For Young Drivers And What They Can Do About It?

This article details why the insurance premiums for younger drivers tend to be so high. It then follows with what young drivers can do in order to get lower car insurance rates.

Car insurance rates for young drivers is typically quite expensive. Insurance companies determine the premiums to charge on their policies by how risky a situation is. In the case of auto insurance, companies will base their policy costs on how risky they see the driver and the vehicle being insured. Younger drivers, especially teenagers in the 16-18 year ago group, historically have some of the highest rates of getting into motor vehicle accidents. This means drivers in this age group are deemed so risky by insurance companies, they normally have to pay much more than drivers in other age groups who are insuring the same kind of vehicle.

Are Young Drivers Bad Drivers?

It's not necessarily that younger drivers are "bad" drivers. It's that because of their age, they simply lack enough experience behind the wheel. With any type of behavior, the longer a person does it, the better he will be at it. Younger drivers also tend to get distracted more often then other drivers. Cell phone usage, especially "texting," is very common among young drivers. Unfortunately, they are using their cell phones while driving and this can drastically slow down their reaction times. Young drivers also usually drive with young passengers. This can also cause the driver to have additional difficulty keeping their eyes and mind focused on the road. All of the these reasons result in younger drivers having above average premiums for their car insurance.

What Can Younger Drivers Do To Pay Lower Car Insurance Rates?

Although drivers in the 16-25 age group do pay high auto insurance rates, there are a few things that they can do to to bring down that cost.

1. Their Parents' Policy. One quick and easy way to get pay lower insurance rates is to have young drivers sign up under their parents' auto insurance plan. The insurance firm will use the parents' risk factor and loyalty in deciding on how much for the young driver tol pay. This can turn out to be a significant difference.

2. Take Driver's Ed. Most high schools offer some type of driver's education class. Younger drivers who take this type of class can present their completion certificate to the insurance company to get a 10-15% discount on their insurance rates.

3. Get Good Grades. The ability to maintain good grades in school shows an insurance company that a student driver is responsible. This doesn't mean that a driver needs to be a genius or get straight A's on their report card. Most insurance firms will give students who have a B average a healthy discount on their insurance policy. Drivers with good grades just need to provide the necessary documents, like a report card, to the insurance company for verification processes.

Younger drivers pay a lot for their insurance policies because they tend to get into a higher percentage of accidents compared to other ages. Lack of experience and being easily distracted are the main causes for this reality. Fortunately, younger drivers can reduce their car insurance premiums by signing onto their parents' policy, taking a driver's ed class, and getting good grades.

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