Car insurance can be a difficult burden for many youngsters but now if you are below 25 years of age and looking to buy it, you can save a lot by shopping around. Insurance premiums for automobiles do tend to vary from one provider to the next. This does not mean that you cannot save on it if you know how to. When you are a young driver, the differences in prices offered by companies are really huge and considering this variable might make all the difference in cutting the costs.
From data available on different websites, there is clearly as much as over $1000 dollars saved when someone below 25 takes some time out to compare insurance costs. For those in the adult or senior category, the differences in costs by shopping around are lower at $456 a year being the trend seen.
What’s more astonishing is the fact that this is not the difference between the lowest quote and the highest, but between the second lowest and the highest quote in the market for the same individual.
The number crunching insurance executives set premium rates many a time and the $1000 per year difference is how the varying opinions between actuaries are measured.
The biggest factor that sets the rate for insurance rates for younger people is still their driving records and other reasons are still unclear according to Pete Moraga of Insurance Information Network of California. Young drivers just don’t have the records or experience behind the wheel to prove to potential insurance companies that they are safe drivers. This makes it difficult to bank on them.
Each company has its own methods to assess the risks of the young candidates. For one company, it might be good grades that make a kid eligible for big discount while for others grades are less than important. There is no common rule that specifies what the parameters are.
A lot of companies also tend to be less inclined to do business with young drivers and instead offer higher rates than competitors to specifically ward them off.
For many drivers, the first few years are the most crucial and believed to be of high risk. This makes it difficult for most insurers to offer reasonable rates to 16 year olds who just have gotten their car. Adding a driver to the family policy is also a good way to cut down on costs and for this also some amount of research does make it worth the while.
