Why Is Car Insurance So High For Young Drivers?
Car insurance has always been more expensive for young drivers, but what is the reason for this to happen? What are those important features that make it expensive? Or what is the price difference? All of them are questions that arise and that have their variables at the same time. It is clear that time is an important factor when it comes to Car insurance. Historically, younger drivers are the ones who pay the most for their lack of experience. Is this justified or is it an issue that should be changed?
Car insurance is high for young drivers simply because;
- Young drivers have a greater tendency to exceed speed limits.
- Young drivers are less likely to realize that they are in a serious situation.
- Young drivers are more likely to follow the car very closely in front of them.
- Young drivers are less likely to wear their seat belts every time they drive.
Inexperience is paid
This lack of experience referred to in the previous paragraph significantly penalizes the annual insurance premium of the vehicle, so that, according to a study carried out by insurance comparator, a driver under the age of 25 pays on average one 158 percent more for its insurance than one of forty years.
So much so that the extra cost that companies apply indirectly to the young can double the cost imposed on a driver between the ages of 26 and 35. It can even triple the price (182 percent) than those applied to an insured between 36 and 50 years.
Abysmal differences in comprehensive insurance
The mode of insurance that registers the greatest inequality is all-risk insurance, according to the report above. The average price of this insurance for the youngest is £3,283, while drivers between 26 and 35 years pay £1,510 on average and 36 to 50 years, £1,160. Figures that reveal that the youngest pay up to 182 percent more for their insurance than the most experienced drivers.
In the other two types of insurance, third-party basic and third-party extended, the gap is reduced although it remains high, about 80 percent over-cost for those under 25 years.
- The basic third party insurance for a young driver costs an average of £709.74, 83% more than for a driver between 26 and 35 years, who pay on average £386.25 for the same insurance.
- Young drivers who take out extended third party insurance pay an average of £752.13, 84.6 percent more than the driver between 26 and 35 years.
This study finds that, as drivers add years to their driving license, the price of insurance is reduced. Thus, one who has taken out the license less than five years ago paid in the last quarter of 2015 an average of £1,445 for his car insurance, while those with between fifteen and twenty years of experience got an average premium of £557.4, down 159 percent.
Is Accident Rate, One Of The Reasons For The Increase?
The reason why car insurance has always been more expensive for younger people, paying more than twice as much as those with greater experience at the wheel, is because the accident rate of this group is higher. Companies assume a higher cost for the younger insured since they often suffer more accidents than the rest of the age brackets.
This higher cost means that some companies avoid securing young drivers to prevent such accidents from affecting their income accounts and, in many cases, very high premiums are offered to ‘avert’ these drivers Risk insured.
Young People Have Up To 4 Times More Accidents
In fact, this higher accident rate is observed in a study carried out by the Fundación Línea Directa in collaboration with FESTIVAL and Centro Zaragoza, which shows that young drivers under 25 years of age quadruple the number of accidents, 65 years old.
The report, which analyzes all accidents and infractions between 2009 and 2014 by age group, indicates that motorists under the very age of 25 have an accident rate up to 4 times greater than that of those over 65.
Another study on accidents and recidivism carried out also shows that children under 30 years of age have almost four times more injuries than those over 60 years of age. The inexperience in the driving and the less prudence behind the wheel are the main reasons for this circumstance, according to the study. Also, drivers under the age of 30 suffer nearly 280 percent more injuries with injuries than drivers over 60.
Are They Are Also The Most Recidivists?
The report points out that young drivers between the ages of 18 and 29 are the least likely to learn from their mistakes at the wheel, which could lead to more than two accidents in three years. They are even 75 percent more likely to relapse than the rest of the population.
However, young people are not those who present a greater range of seriousness in accidents, but drivers between 40 and 50 years, because that experience in driving is sometimes counteracted by overconfidence and by a greater relaxation in the compliance of the norms of circulation, like for example consume alcohol during the meals of work. Also, the fact of decanting in that age range by more powerful and expensive vehicles increases the severity of the mishaps as well as the cost of repairing it.
Teenagers are more likely to have accidents because of their inexperience compared to mature drivers. These are what make Young drivers insurance higher than normal insurance. But there are certain insurance brokers out there akin to Arkwright Insurance Brokers that delivers all kind of traditional insurance coverages, services, and products and even employing the very best and newest technologies to offer their customers the kind of info and services they should have on any insurance even for the young drivers.