Why is car insurance for young people more expensive?

For young people under 24, car insurance is significantly more expensive on average. The differences can be very large. This is caused by the fact that they are generally less experienced and more fickle in traffic. Especially for this group, comparing car insurance can be very rewarding financially.

Young people have accumulated few or no claim-free years yet. For car insurance, it makes a big difference whether you have, say, ten claim-free years or none. Young drivers up to 24 years of age are also penalized for their age. Insurers apply surcharges for these young people. It sounds logical because they have little driving experience. On the other hand, you can say the same thing about a thirty-something who just got a driver's license. We were curious about the premium differences. We calculated what car insurance costs for a VW Polo assuming a 20-year-old and a 30-year-old driver.

Sample calculation

For the calculation, we used the following data:

• VW Polo 1.2 TDI from 2010
• Policyholder (male) and regular driver lives in Overijssel.
• Claim-free years: zero
• How insured: WA Casco
• Mileage per year: 12,000
• List value of the Polo: €16,290
• Date of birth calculation 1: 01-05-1996
• Date of birth calculation 2: 01-05-1986

The cheapest insurance for the 20-year-old is: €158.04
The cheapest insurance for the 30-year-old is: €74.70

The differences among the more expensive insurers run even higher in some cases. Among the more expensive insurers, some even emerged with premiums well above three hundred euros per month for the 20-year-old. This shows that comparing car insurance pays off!