Car Insurance for Young Drivers

car insurance for young drivers - shieldwise
by shieldwise

If you have just gotten your driving license or are younger than 25, it’s very likely the premium on your car insurance is going to be higher than for older adults. Car insurance for young drivers is more expensive because younger drivers are statistically more prone to making mistakes and cause accidents while driving.

So, the probability of them making a claim on their car insurance is higher. The bright side is here we discuss what coverage young drivers get from their car insurance, how the insurance premium is calculated, and tips on how to save money on car insurance for young drivers.

What types of coverage are available for car insurance for young drivers?

These are the three main types of coverage available:

Third party

This is the most basic form of car insurance. The premiums for third party coverage are generally less than what you will pay for the other forms of coverage mentioned in this list.

Third party car insurance will only cover the damage done to other cars if you are involved in an accident. This also covers the passengers in your car too.

Third party fire and theft

The third party fire and theft cover is similar to third party car insurance except it is also insuring your car from third party fires or theft.

Comprehensive car insurance

This provides the best cover out of the three cover options. It covers all of the above and will even cover the damage done to your car if the accident was your fault. The premiums for comprehensive car insurance are the most expensive.

Why is third party car insurance not always the cheapest option available?

Third party cover provides the least amount of cover out of all of the three available types of car insurance for young drivers. But the premiums for this type are mostly cheaper but in some cases, they may not be.

Since the third party option is the cheapest, it is often chosen by more reckless drivers. The insurance companies have seen an increase in claims on third party car insurance.

They did the math and saw third party insurance has a higher probability of going through a claim. So, they increased the premium for it, as the risk percentage for third party car insurance is higher.

The reason young driver insurance is expensive

According to surveys, young drivers are paying a higher premium than other drivers. The reason for it is simple, the insurance providers see young drivers as less experienced and associate a higher percentage of risk involved with them.

The chances of a young driver making a claim are higher and as a result the premium offered to them is also higher.

Plus, there are no claims bonuses available on insurance policies, and likely, young drivers can build up their no claims bonus because they just got the insurance.

How insurance premiums are calculated

Insurance premiums are calculated based on your age and occupation. The insurance providers calculate the risks involved based on your situation.

If you are young which is between the ages of 17-25 you are more likely to make a claim because drivers in this age group are mostly new and some are reckless.

The occupation lets the insurer know how much you will be on the road. For example, if you are a salesperson, your job may require you to be on the road for longer periods.

Whereas if you have an office job which does not require you to travel with your car very much, the premium will be lower. It is a good option to inquire about car insurance for young drivers.

Tips to save money on your insurance

Research and compare

I cannot stress enough how research and comparing insurance policies can help you save money. This is specifically important when getting car insurance for young drivers because the premiums are going to be higher.

Get quotes from multiple insurance companies and use comparison websites so you can see which coverage is the best option for you.

Get additional courses

Within the first year of your driving license, you can get additional driving courses, which can help reduce the premium for your insurance.

 Add an experienced driver

On your insurance policy, you will need to mention the names of all drivers who will be driving your car, so the policy covers them. Anyone out of the policy will not be covered.

To get a lower premium you can add an experienced driver as your third or second option.

Our goal is to help find car insurance for young drivers. Plus, give them the necessary information which will help them get a lower premium. Share your opinion in the comment section below.

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Categories: Car Insurance