There are many things that influence the rising costs of car insurance for young drivers. Statistics show that younger drivers were far more likely to make a claim than older drivers. These claims accounted for a disproportionate amount of money paid out by insurance companies when compared to more mature drivers.
As a result of what insurance companies’ see as a greatly increased risk, premiums have steadily increased to match that risk. Now some companies are turning their backs on offering car insurance for young drivers and not issuing them with policies.
Younger drivers are thought to be high risk by insurance companies. Not only is it more probable that they will be involved in accidents, they also have a higher probability to be a part of accidents causing injury and death. Statistically younger drivers drive at higher speeds, don’t follow as many traffic conventions, and drive more frantically than more experienced drivers.
More drivers on the road mean an increased risk to the insurance companies. The cost of this risk has been handed down to young drivers in the form of higher premiums, which is usually paid by the young person’s parents.
Don’t fall victim to this bad advice. Some people believe that they should avoid taking out car insurance for their children of driving age and say the young person is “only an occasional user of the vehicle.” Really, though, they are the main driver and parents do this to save money. This actually can work against you as a mature driver because any accident your child (who is, statically more likely to get into an accident) gets into, will be accounted for under your individual policy with the insurance company. This will create a bad standing with your policy provider and may up your rates in the long term.
The bottom line is, car insurance for young drivers is becoming harder to find and pricier as more drivers hit the road and younger people are involved in accidents. It is, however, a worthwhile investment that will save you money in the long term if you go ahead and get a auto policy now for the younger driver in your life. And, the sooner your child gets auto insurance, the faster they can build a responsible record and reduce auto insurance rates.
Call us today to get a quote for Austin car insurance for teens at (512) 222-8805.