Reader’s Question:

Why is it that car insurance for young drivers are very expensive?

Dan

Detroit MI

You have probably noticed that young people pay more for their vehicle insurances. This is because young people are considered risky drivers by insurance companies especially for those who have only gotten their licenses and are only honing their driving skills. An age group considered high risk is given higher premium rates because they could put insurance companies in a lot of financial obligations due to accidents. This unfavorable record has been established as a result of accidents wherein young drivers have been involved in many of them. Those accidents have exposed insurers to a lot of financial liabilities. If a person is below 25, he is usually included in the category of high risk drivers.

While the initial quote may be high, there are ways for a young person to enjoy discounts. A young drivers car insurance need not be priced very expensively. Discounts can be obtained when the young person maintains a good average in school, commits no driving or traffic violations, and the car he is insuring only has a four-cylinder engine. A student whose average grade in school is at least a B usually gets a good discount from a car insurance company. This average is attainable if a young driver gives time to his studies. A driver should be careful when driving to avoid being in an accident or getting cited for a violation in traffic rules. A good driving and traffic record will give a good impression on insurers, which translates to better rates. Lastly, consider driving a car that is not too fast on the road. It may not be your ideal car but settle for it. You may be tempted drive very fast when your car’s engine can do so. Doing this can endanger your life. Insurers know the dangers associated with fast cars, hence, the high premium rates.