You got your license at an early age, and after months of driving you’re more confident than ever behind the wheel. The only problem is that your insurance rates are still higher than the average driver’s. A lot of people already know that teenagers are charged more for vehicle coverage because they lack experience and are involved in more accidents than any other age group. But when do teen drivers start to see more reasonable rates?
Although a young driver may feel that they are the most careful motorist on the road, insurance companies need to see proof in the form of a clean driving record. After going at least three years with no accidents, claims, or moving violations, younger motorists are likely to see a small drop in coverage costs. Rates should keep going down slightly as the driver gains more experience, as long as he or she keeps a clean record. And by the time drivers are 25, they’re likely to start seeing much more reasonable rates than when they first got behind the wheel.
For most companies, three years of driving is a reasonable amount of experience behind the wheel. Because most insurers only look at the past three years of driving experience when setting rates, a complete record that is free of claims or moving violations is often favorable, and will likely lead to lower rates. In California, all drivers who have a completely clean record and have been driving for at least three years are entitled to a good-driver discount.
Information from the Highway Loss Data Institute (HLDI) shows that car insurance losses drop as drivers age and that they file claims at a much lower rate by the time they’re 25. When the HLDI compared claim frequencies among different age groups, it found that the rate at which 20- to 24-year-olds filed property damage claims was 35 percent lower than that of 16- to 19-year-olds. And the rate for 25- to 29-year-olds was another 30 percent lower than the rate for 20- to 24-year-olds.
The exact amount that insurance costs may decrease over the years is dependent on the policyholder’s claims history, as well as the policy provider. While some companies are more than happy to hand out savings to responsible drivers, others may only make minor adjustments. If a younger driver manages to go years without a single rate reduction, they may want to consider switching insurers.
Although most young motorists try their best to avoid filing a claim, accidents happen. If a teenager is forced to file a claim, it doesn’t necessarily mean that they’ll never be able to find affordable coverage ever again, it only means that they need to go a few more years without any driving-record blemishes.
Despite what many people may say, it is possible to find cheap insurance for young drivers, especially for teens that have gone at least three years without a single accident or moving violation. While younger motorists may not find the prices that many 30-year-olds may find, drivers can still shop around for the lowest-priced policy that is available.
Source: http://www.onlineautoinsurance.com/teenagers/cheapest-young-drivers/
