Insurance premiums for young drivers are more expensive than matured drivers. Drivers with the age of 16 – 19 have the highest frequency claims and average loss per claim, according to a study from Highway Loss Data Institute. The age group has the highest loss as to collision, property damage liability and bodily injury coverage. Age group 30 – 59 has lesser losses, three times lesser than the teenage group. Drivers aging over 70 have the least overall losses because of their increased concern about their driving.
Younger drivers are posed to have higher risks than older drivers. Insurance companies use this as their basis for policy pricing to balance the risk and the premium. The more a driver is exposed to risks on the road, the more they charge for premiums.
Reasons why young drivers pay more than matured drivers may be due to driving experience. Most drivers start at their teenage years and obviously, beginners are more likely to bring accidents than expert drivers. People also accuse immaturity as a reason for the accidents. Young people aren’t aware much about the laws and they prefer to become more adventurous and very interested with the life on the roads. Unlike older men, who are most likely to have their family with them, young drivers want to explore more and try things on their own with friends or just by themselves. Men aged 20 to over 50 have high fatality rates when driving nighttime while those over 60 have very low fatality rates, especially for women.
Gender is also a factor for determining the insurance price. Highway Loss Data Institute reports that claims from males are higher than claims from women. In the institute report, seventy-one percent of crash deaths were all males in 2008. The highest fatality rates among men with ages 20 – 59 involve motorcyclist deaths with 91%. Overall, males within the 20-24 age range have the highest fatality rate.
Other reasons pointed out are the use of cellular phones and hand-held devices while driving which is very frequent in younger age groups. Seatbelts are also part of the picture. Drivers and passengers not wearing their seatbelts are prone to more injuries and higher risks of death than those who instinctively use them. Driving at nighttime is another reason. Older drivers restrict their own driving and probably prefer not to drive during night or dark. Alcohol can be a driving risk factor since they are also common causes for crashes. Under the alcohol cause category, men aged over 20 to 50’s have the highest fatality rates than teenagers and women drivers.
The states have already started taking up safe driving measures to reduce the fatality rates and damages caused by car accidents. Bans on cellular phone use while driving have started to take place. Seatbelts law and alcohol laws are also being implemented. Driving education for teenagers and beginners are building up and curfew hours are also limited and updated. With these measures, the risk will be lessened and the probability of paying lower premiums is at hand.