Why is car insurance more expensive for young drivers?
Young drivers up to 24 years old are considered a high-risk group for car insurance by many insurers. So insurers charge a higher premium for these drivers. Fortunately, not all insurers charge sky-high premiums for young drivers.
Car insurance premiums depend heavily on the number of accumulated claim-free years. But there are more risk factors that insurers pay attention to. These include your zip code and the type of car you drive. These factors are dwarfed by some insurers compared to the surcharge they charge for young people up to 24 years old. Even young drivers with multiple claim-free years have to pay deep premiums due to their age.
Why is car insurance more expensive for this group?
Insurers set their own premium policies. And this is evident when you compare car insurance policies. Did you know that the most expensive car insurance sometimes costs multiple of the cheapest car insurance? This certainly applies to car insurance for young drivers as well. Research shows that they cause proportionally more damage due to recklessness and inexperience. Playful behavior in traffic creates additional risks for insurers. As a result, not only is the likelihood of damage higher, often the damages are on average large.
Why are the differences so great?
Insurers' premium policies allow them to steer their portfolios. Insurers who want few young drivers on their books apply a high surcharge. Insurers that charge a low surcharge for this group, proportionately, take out a lot of auto insurance policies with young drivers. So it is partly explained by insurers' policies.
Is there age discrimination here?
Insurers may not discriminate on the basis of age. They may do so if there is a demonstrable difference. Young drivers demonstrably cause more damage on average, so a difference in premium is allowed.
Put car in parents' name?
You can avoid a higher premium by putting the car in the parents' name and insuring it. Unfortunately, that's not going to work. Premiums depend on the regular driver. Parents who designate themselves as regular drivers are committing fraud if that is not true. The result may be that the insurer can terminate the insurance immediately and will not pay claims. In practice, this is difficult to prove, but it is possible.
Also, if young people insure the car in their parents' name, they do not build up claim-free years. As a result, young people continue to pay comparatively high premiums for car insurance even when they are older.
There are some insurers that specifically target young people, but that is not the solution. When buying insurance, you want the best insurance at the lowest premium. You get this by comparing.
Important to build claim-free years
For young drivers, it is important to build up claim-free years. At a young age, there is often only enough money for an older car that is insured WA. Later in life, there is usually more money available and more expensive cars are bought. The more expensive cars are WA cascade insured. In a WA car insurance policy you can often build up valuable claim-free years relatively cheaply. As soon as a more expensive car is bought, a high discount is already built up in the form of claim-free years.
Never underinsured
Put together your own package
A wide range
We compare all insurers for you, saves time again
Help from our experts
Can't figure it out? Our experts are always ready to help you
We can be reached via chat, WhatsApp, phone or email
Questions? Contact us if you want to know more.
We are here today until 6 p.m.