Are you a young driver? After the joy of obtaining the driving license that finally allows you to drive alone, it’s time for disappointment with the price of young driver car insurance! In the auto insurance market, insurance companies have indeed gotten into the habit of charging higher rates for new license holders.
Before moving on to best car insurance for young drivers, did you think of the term “young driver” reserved for teenagers entering adulthood and have just obtained their driver’s license? Think again! For insurance companies, a “young driver” has several definitions:
A young driver refers to a person who has just obtained his driving license for the first time and this, regardless of his age. This definition includes all motorists who have held a driving license for less than 3 years.
Motorists forced to retake their driving license following a cancellation of the latter, also become a young driver again despite their extensive driving experience. They have to start from scratch.
“Young driver” also refers to people who have never been insured. They cannot provide their insurer with information statements to justify their background.
It is less known, but the term young driver also includes drivers who have not been insured for more than two years.
If, for one reason or another, you have not purchased auto insurance for at most 24 months, be aware that you will again be considered a “young driver”, despite all the experience you have. You will therefore have to go through the “young driver” box, with the young driver car insurance rates associated with it.
Young Driver Auto Insurance: Why are the Prices so high?
It is no secret. For many years now, the price of young driver auto insurance has been (much) higher than the price of experienced driver auto insurance. Reason: young drivers (especially new license holders) display a particular driver profile that seems to scare away traditional insurance companies. Indeed, the inexperience of young drivers explains the reluctance of some insurance companies to ensure this profile.
This situation is not without posing some problems insofar as, after having invested substantial sums to obtain your driver’s license, you thought to opt for first cheap car insurance! This search for a quote for cheap young driver insurance is also a lot of those who after two years without taking out any insurance, are legitimately looking for car insurance that can protect them properly without compromising their budget.
To offer young drivers quality car insurance without breaking their budget, an offer adapted to beginner drivers, whoever they are: if you just got your driver’s license if you passed your license after having followed accompanied driving if you haven’t driven for more than 24 months.
Finding cheap car insurance for young drivers is unfortunately quite a difficult task. This is because most companies are reluctant to insure them, mainly due to the high accident rate that falls on this group. However, if you search about insurance providers, you will be able to know in just seconds which insurers would be willing to cover you, including a detailed analysis of coverage and prices. We have done part of the work and have analyzed the car insurance for young people and how to choose the right for you.
What insurers offer specific insurance for young people?
Among the companies that operate in the auto industry, some offer young people a specific product, designed especially for them. But also those who promise to adjust the price of their policies to young people, offering them the same guarantees. These are some of the details of best car insurance for young drivers that you can find in the market:
Young people, especially those between the ages of 18 and 25, bear the highest insurance premiums, which can be up to 400% higher than those of older drivers in the same circumstances.
The rationale is that youth insurance is the one that generates the highest cost per policy for insurance companies. According to statistics, the recklessness and lack of experience behind the wheel of those less than 25 years of age increase the probability of having a traffic accident. These young people are not only the ones who have the most accidents, but they are also the ones who have the most serious accidents and, therefore, the most expensive for the insurer. However, in this age range the premiums also vary a lot based on factors such as the age of the driving license, the number of years you have been insured or the technical characteristics of the vehicle to be insured.
If you are a young driver (less than 25 years old) and novice (less than two years with a driving license) it will be very difficult and expensive for someone to ensure you. In this way, it can be affirmed that those users who are less than five years old will pay more for insurance than other more veteran drivers. For example, Third Party insurance with the same coverage costs a driver less than 25 years of age 20% more than another fewer than 30 years of age. The difference can amount to 40% if we speak of risks.
Ways to lower car insurance for a young driver
There are other ways to lower car insurance for a young, new driver, but they are not recommended. One of them is that the young and new driver does not appear anywhere in the policy and, nevertheless, drives the vehicle insured by it. This is possible if a family member is placed as the insurance holder and driver of the car without actually being one.
Since the holder is a veteran driver, the insurance will be cheaper but this trick has its counterparts. One of them is that by not appearing as a regular driver, you will not enjoy the points for good driving, so that, in the future, any other insurance will be more expensive. Another drawback is that if you have an accident, it will fall on the accident history of your family member. The young person benefits from a lower price but hurts others.
Keep in mind that insurance contracts make it clear that the actual driver of the vehicle must be declared. The insurer may interpret this concealment as bad faith and void the policy. Thus, the accident bill will be fully borne by the driver.
Another trick is for the young person to appear as an occasional driver on the policy and yet drive the vehicle mostly. Many companies already apply an extra cost to these situations, as a way of penalizing them. The insurance will be cheaper than if you appear as the main driver, but they are the same inconveniences as in the previous ruse.
Drive well and tell the truth
The most convenient thing, therefore, is, to tell the truth. If you are the usual driver, you should appear as such, despite being young and new. In this way, you can avoid very complicated situations such as, for example, being left without insurance because the company determines that you have acted in bad faith. Consequently, you will have to take care of the consequences of an accident in which you are at fault without the coverage.
On the other hand, if you are a good driver, you will accumulate points that will reduce the cost of insurance progressively. Therefore, driving well will not only lower the insurance but will also limit the damage you can cause, save you money on fines, car repairs, gasoline, and other advantages!
Insurance is more expensive for modified cars
Modified or personalized cars do not go unnoticed and that has a drawback: they also attract the attention of insurers. Although there are specific products for modified cars – more expensive than a conventional policy – practically all insurers are wary of these customizations. Especially if the modification has affected the engine and made it more powerful than the standard vehicle, and body of the vehicle.
A change of this size may prevent the insurance company from taking over the consequences of a claim because it considers that a key transformation of the car covered by that policy has been hidden from it. Besides, an increase in the power of the car or the modification of the aerodynamics makes the insured think that this will multiply the chances of suffering an accident.
Insurers think that modified cars have a higher risk of accident and theft
There is yet another reason for the distrust of insurers: modified cars have a special value, added parts, sophisticated stereo or multimedia equipment, and other incentives to suffer more theft than a conventional vehicle.
If you want to tune the car, or insure the already personalized vehicle, notify the insurer in advance. Include accessories in the policy, including tires and paint, not just audio equipment, even if that makes it more expensive. Also pay close attention to theft coverage, especially if you don’t have a garage. Compare offers, including those specifically for modified cars, and try to get the best quality/price ratio.
In conclusion, if you belong to the group of novice drivers or those best car insurance for under 25 are looking for cheap car insurance, we encourage you to discover which company offers you the best price.
Best car insurance for under the age of 25
Policies for drivers under 25 years of age have higher premiums because for companies they are customers with a higher risk profile. Although the offer of car insurance for young people is growing and more and more companies are betting on attracting younger drivers, it is still the most limited.
If you have just gotten your driver’s license and you are under 25 years old, here are some tips so that you can hire the best car insurance for young people, either because you want a new policy or want to change your insurance company. The main disadvantage of these policies is that many insurers do not have insurance for young people because they consider this group of high risk (due to the high accident rate that it registers. Car insurance premiums for young people are more expensive than experienced drivers.
Third-party policies are the cheapest car insurance on the market, although the price difference between a driver without much experience and a more senior one is quite considerable.
Finally, the all-risk modality is the most expensive of all, since it will cover the damages also in cases in which you have been the culprit of the accident. The price of these policies doubles the premium of the cheapest insurance, something that is aggravated in the case of the best insurance for young people. A driver up to 25 years of age who wants to take out this type of policy will pay 146% more than a 35-year-old, and 248% more when compared to a driver of up to 50 years.
Car insurance for young people: less and more expensive
The first problem that those who want to take out best car insurance for 18 year old drivers will find is the price of car insurance. Why are they demanding much higher amounts? Companies set their rates based on accident rates, and young people are at higher risk of accidents than more experienced drivers. The higher prices also affect those who have obtained their license in the last two years.
In this context, many young people believe that it is best to deceive the insurer and get a better price. When searching best car insurance for 20 year olds or best car insurance for 21 year old, the most common recourse is to put someone with experience as the policyholder. This error can be very expensive, as many companies specify in their contracts that 20-year-old drivers are not covered. Therefore, it is best, to be honest, and declare who will be the real policyholder or if there will be an occasional driver, even if it means assuming a higher expense.
Another obstacle that young people often run into when purchasing their policy is the lack of offers. Indeed, many companies are not willing to cover these clients, which is paradoxical: it is mandatory to have insurance, but companies can deny you it.
Although age is an important factor, it must also be borne in mind that lack of driving experience and age are not the only things that determine the calculation of the premium. The characteristics of the vehicle, especially its age and power, also affect the policy, so if you are looking to save on the premium you must bear in mind the reasons why your car insurance increases.
Few questions answered to young drivers
Is it good to take out comprehensive car insurance when you’re young?
Deciding on best car insurance for first time buyers, depends a lot on the safety you have at the wheel and the characteristics of the vehicle. If, for example, you show yourself insecure when you drive and you have just bought a car or it has been given to you, it is best to get fully comprehensive car insurance, even though the premium amount is higher.
How long are you young when you take out car insurance?
The price depends not only on your age but also on the years of experience you have driving. It is not the same to have obtained the license at 18 than at 25 when calculating the annual premium.
Should you buy a new or recent car when you are a young driver?
More secure (often equipped with airbags and abs), a new car is also very expensive to buy and to insure. Indeed, insurers take the characteristics of the vehicle into account in their price.
Whether it is a recently used or a new vehicle, to protect your investment, it is preferable to take out comprehensive insurance. More expensive, it is necessary to cover your material damage in the event of a responsible accident. If your car is declared a wreck, comprehensive insurance will allow you to compensate you for the value of your car to buy an equivalent vehicle.
A young driver should turn to a small used city car. Investing in a used car is a more accessible way for young drivers to acquire a car, especially for a gasoline car whose price and maintenance are affordable. An old used vehicle will also be cheaper to insure since third party insurance may be sufficient. Be careful not to ignore essential guarantees such as individual driver protection.
Be careful when buying your old used vehicle. Less expensive to purchase and to insure, you may have to face major repairs afterward due to its age.
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