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Car Insurance – Why do young drivers pay higher premiums?

Why do young drivers pay higher car insurance premiums? Well, the main reason is that they are considered by the insurance company to be higher risk than any other age group for having an accident. Then they would need to make a claim on the insurance policy and that then cost the insurance company a lot of money which they don’t want to fork out and pay to repair your car and injury costs.

With insurance it’s all about risk and the younger you are the more of a risk you are, it’s that’s simple, and of course the facts prove this. The young driver, especially under twenty five years of age will struggle to pay a low premium because they are considered to be an inexperienced driver with little experience of driving on the road. You need to build up their no claims status as quick as you can so you can get one of the many no claims discounts. This can make a hug difference on the price of the policy with up to 70% discounts with some insurers it is a major factor for obtaining a cheaper car insurance quote. That’s why you find many motorists paying extra to protect their no claims status. It’s that important to getting a low cost premium.

There are a few things that a young motorist can do to reduce the cost of their insurance premium such as taking out a third party, fire and theft policy rather than a full comprehensive policy. Also if try purchasing a cheap car and one that has a low engine cc, you don’t want to be trying to insurer a sports car or a big 4X4 vehicle, because that will just put the cost up. You need to perhaps add your parents as a named driver, because if they have a good no claims bonus and clean driving licence then it will help to reduce the price a little.

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