Car insurance for young drivers is an insurance policy made for drivers with ages ranging from 16 to 25 years old, to provide financial protection against physical damage and/or bodily injury caused by traffic collisions and against the resulting liability from that circumstance. Also know as car insurance under 25.
Based on statistics, teenage car drivers are involved in more accidents than the experienced ones. This is not anymore surprising due to the fact that youngsters lack driving background. Apart from the pursuit of thrills, the most common factors of teen car accidents include inattention, carelessness, failure to search for and recognize risks, and failure to use safe operating procedures.
Car insurance companies charge higher premiums to the young drivers because they have higher risk of being involved in car accidents compared to the mature drivers. Car insurance premiums are calculated based on the possibility of the driver being involved in an accident and the possible cost of the claim if that happened.
Benefits of Car Insurance under 25
One advantage of buying car insurance for your young ones is that it saves you from financial catastrophe when they meet with an accident that may cause financial damage. It is expensive to pay for a young driver’s car insurance premium, but just imagine if your youngster will be involved in a traffic accident that injures some pedestrians. You will be held liable for that.
But with the young driver’s car insurance, the insurance company will pay for the damages. You and your family will be saved from financial ruin. This is the main advantage of car insurance. You paid a few bucks in exchange of a thousand benefits.
Another advantage of Car Insurance under 25 is that you and your family are saved from the mental anguish of having to face all the problems and issues, just in case the juvenile member commits an accident that will cause injury to other people and damage to properties.
You will be spared from the worries of seeking out legal help for solving the problem. The insurance company will take care of the essential documentation and legal representation on your case. You are passing on the risk and the worry to the insurers and getting security just for paying a young driver’s insurance policy premium.
Disadvantages of purchasing Car Insurance under 25 policy
The chief disadvantage of car insurance for young drivers is its expensive premium. Statistics show that due to inexperience, young drivers are more likely to be involved in accidents and traffic violations than mature drivers.
The insurers perceive that the young driver car insurance market is a high risk demographic. So, they charge high premiums for this type of insurance policy. This is unfair because there are many young drivers who are responsible and safe. Insurers also charge an even higher rate to young male drivers because they drive more miles and they are considered to be more reckless than young women.
Other reasons why insurers charge higher premiums are the following: the car to be insured is a sports car or any high end car; the driver to be insured has a poor driving record; and, driving in or near large metropolitan areas.
Guidelines on how to get a cheaper car Insurance:
We cannot change the fact that car insurance rate for young drivers is much higher than for the experienced ones. Luckily, there are some things that can be done to allow us purchase cheap car insurance for our young ones. Not as cheap as for the ones with years of driving experience and clean driving record, but even so, still reasonably affordable.
Avoid buying a sports car, a high performance car, or a modified car. These types of cars will only cause you to pay a high-priced premium. If possible, buy a car with small engine. This will help lower the premium you are quoted. Also, do not buy an expensive top of the range car. Go for the less expensive car that is in good running condition. Cheaper car may mean cheaper premium payments.
Put into consideration an accredited driver safety course for new drivers like Pass Plus. This can earn you discount of up to 35% with some car insurance companies. This move is a double win because aside from the car insurance discount, it will most likely turn the young inexperienced driver into a safer driver inside the process.
Maintain a clean driving report. Even a single DUI record can multiply a young driver’s car insurance coverage premium by an element of 10. The young driver will be charged of an enhanced annual premium and may take effect for up to 3 years. This will entail a big amount of money taken out from your pocket.
Sometimes, maintaining good grades can help reduce the premium of the car insurance for young drivers. Some insurance companies believe that a good academic performance entails good driving skills. This would help minimize the risk of the young driver to be involved in a car accident.
Even though it is cheaper in the short term to be added to a parent’s car insurance policy, it is better to apply for a separate insurance policy and start building up a no claims discount. This will lead to even greater savings in the future.
Car insurance is expensive especially for the young drivers. But the possible benefits one can get from purchasing car insurance policy for young drivers outweigh its disadvantages. In addition to this, there are certain things that you can do to reduce premiums for young driver car insurance policy.
So, high-priced rates would not be much of a problem anymore. Persistence and careful analysis would help one find a way on how to lower premium rates. Just do a little research and save big bucks.