Providers say New Drivers more Expensive to Insure


Sources from the auto insurance industry called on inexperienced motorists to find better ways to slash premiums in the face of higher insurance rates. According to experts, providers usually slap on higher premiums on younger drivers because of the risk they present. Because insurance companies determine rates based on several factors, most importantly risks, inexperienced motorists tend to garner more costly insurance.

Providers say New Drivers more Expensive to InsureProviders also categorize policyholders according to their age groups, with some age groups more expensive to insure than others. Analysts point out that drivers aged 16 to 25 are notoriously costly to insure because of the lack of driving experience plus the higher chance of initiating aggressive driving behaviors. In fact, statistics suggest that the leading cause of fatalities among young Americans are car crashes.

Rising medical costs are also forcing insurers to drive up premiums, especially for age groups and policyholders who are more likely to seek medical help after an accident. Older drivers aged 60 and above also present more of a risk to other motorists on the road because of diminished senses and slower reflexes. Younger drivers, on the other hand, also get into more crashes with the potential for physical injuries.

Based on gender, younger male drivers are also more expensive to insure, says experts. They add that because male motorists are more likely to speed and ignore road conditions and signs, they are more prone to get into car accidents, hence the higher premiums. Statistics also play an important role since data collected by research firms and government agencies suggest that men, on the average, get more traffic tickets and citations then women. The presence of traffic violations on driving records can also lead to higher premiums, especially if younger motorists are just beginning to build up their driving records.

However, there are some ways that younger drivers can do to slash their car insurance premiums significantly, experts point out. For one, inexperienced drivers can boost their driving knowledge by attending defensive driving classes. Most major insurance companies have certified driving programs that allow motorists to improve their driving skills and in the process, get substantial discounts on their policies.

Motorists still studying can also qualify for “good student” discounts by simply doing well in school. Academic performance is sometimes used as a basis by many insurers because research shows that drivers who perform well in their academics are less likely to get involved in accidents.