If you are newly licensed, you might be wondering why the auto insurance premiums you have been quoted are so high. As you are retrieving a variety of quotes from leading insurance companies, you need to understand just why young drivers pay more for insurance, and how young drivers can keep their premiums affordable. While there is plenty of information on auto insurance ratings for young drivers, this article compiles all of that information so that it is useful and easy to understand. Here is a brief explanation of auto insurance for young drivers so that you can make the chore of finding the best insurance easier.
Why Do Insurance Companies Charge More Based on Your Age?
You may be wondering how an insurance company can justify charging drivers more for insurance because of their age. Based on statistics, young drivers under the age of 25 tend to take more risks on the road. Drivers in the lowest age range, typically between 16 and 25, have the highest accident rate, with males having significantly more accidents than females.
Insurance actuaries believe that young drivers have more accidents because of their inexperience on the road. They have not developed the same defensive driving skills that other more experienced drivers have gained over the years. In some states, like California, drivers cannot be rated by their age. Rather than using age, the company will use the number of years licensed to determine experience ratings. This is how some young drivers can actually be adults who were licensed later in life.
Tips on Finding Cheap Auto Insurance for Young Drivers
Now that you understand that the statistics do not work in your benefit as a young driver, you need to take the time to find the best insurance policy that you can. Insurance may be a state requirement in virtually every state, but that does not mean that you have to pay thousands of dollars a year just to keep your driving privilege and comply with the law. The best way to find low rates is to comparison shop for your car insurance. You might that that sounds like a daunting task, but with the right online comparison tools it can be done in just minutes. Comparing rates will show you which auto insurance companies want to insure young drivers and which companies have priced premiums high to stay out of that market.
Make sure to take advantage of all of the discounts that you can receive as a young driver. Drivers under the age of 25 can typically receive the Good Student discount for earning good grades as a full-time student, and a driver safety training discount if they take the time to complete a voluntary class. Be sure to set aside enough time to compare your coverage options, and build a policy that provides adequate protection. If you use an online comparison shopping tool that gives you instant access to several quotes, you will see that you can find cheap auto insurance for young drivers.