To the misfortune of youthful motorists and parents as well, the price of automobile coverage is in most cases, going to be a tad more costly than that of older and more mature vehicle operators. Many do not see this as being fair since there is no way to prove whether or not a particular younger driver is responsible behind the wheel, but the fact of the matter is that insurers base rates on various factors and to the dismay of youths, age is one of them. In the eyes of auto insurance carriers, a motorist under the age of 25 is considered a higher risk to insure and this comes with good evidence which proves this assessment to be true.
Younger individuals lack the experience behind the wheel that a seasoned motorist may have; not to say someone who has been licensed for many years is a better driver than a younger one, but statistics show this being the case. For example, a study done by the North Dakota Department of Transportation conducted between 2001 and 2007 showed that this age group accounted for 25.9% of all crashes although they only made up 11% of motorists. Since statistics are not easy to argue with, finding cheap car insurance for young drivers can be a difficult task since insurers need to charge higher premiums to protect themselves from the increased potential of suffering a loss when insuring these individuals.
The first step that should be taken to locate affordable auto insurance for a younger motorist is to determine whether or not it would be cheaper for the youth to be added on to a parent’s existing policy or obtain coverage on their own. In some cases adding the child can save a good amount of money and would be the best option, but one must keep in mind that the parent’s current provider may not be the most affordable for young drivers. Before deciding not to become insured together on one policy, parents and youths should shop around to see if they find a company that would be more inexpensive than the current carrier. Keep in mind that if the parent owns a high end or sporty vehicle then the chances are that rates will probably increase substantially once the youth comes into the equation, but if the child will be operating the vehicle rather than one of their own this could still be the best option.
Another way to save is to compare rates before purchasing a vehicle. Yes, young motorists want to get behind the wheel of a hot rod and look good as they drive around town, but insuring such automobiles can be as costly as the monthly car note. Unless it is within budget, younger drivers should refrain from getting a vehicle that may cost a ton to insure and if possible stay away from autos that require comprehensive and collision which can nearly double premiums. Most state departments including the North Dakota Department of Insurance suggest that any discounts available should be taken advantage of. If the young driver is a current student, whether in high school or college, maintaining a “B” grade point average can provide a nice discount. Discounts are also offered for taking a defensive driving class and having multiple vehicles and drivers on a single policy. Taking the time to shop around and shopping diligently can end up saving hundreds if not thousands in the long run; it is in one’s best interest to do so.
Source: http://www.onlineautoinsurance.com/teenagers/cheapest-car-insurance-young-drivers.htm
