The Reality of Car Insurance for Young Drivers
April 24, 2013 Insurance
In the western world, teens are eager to get behind the wheel and drive their own car once they reach the age of 16. It’s considered a rite of passage for them although not every teenager is able to fulfill this wish. Only those who belong to families that have the financial capability to buy a car are lucky to make their wish come true.
Parents need to have sufficient funds in order to get their teens a car of their own. Other than buying the car, additional expenses are involved such as getting an appropriate insurance policy for the vehicle.
Unfortunately, car insurance rates for young drivers are high and could double that for experienced drivers. The premium can be higher when the car involved is of a higher quality and at times, it can even be more expensive than the purchase price of the vehicle. That’s the shocking truth that continues to be a major concern among parents and young drivers in the United Kingdom.
Why the High Premium?
There are various factors why car insurance premiums can be sky-high. Firstly, insurance providers consider teens and young drivers a risk. Their reasons are these youngsters can easily get into accidents particularly as some can be carefree while on the road and some may still insist to drive even when under the influence of alcohol.
In the U.K., reports from the AA showed that car insurance premiums for the 17-22 year-old age group went up by 12 percent in January 2011. In July 2010, the rate rose by almost 15 percent for this age group and 40 percent overall in the entire year alone.
Statistics from AA revealed that young male drivers below the age of 21 are 10 times more likely to get into a car crash compared to those who are 35 years old and above. In terms of claim value, those below 21 showed three times greater claim value than those aged 30 and older.
Insurance providers are very particular about the driving behavior of youngsters. They can increase premiums by 50 percent or more when young clients are found guilty of driving under the influence of alcohol and speeding among the other offenses.
Today, young drivers in the U.K. are still struggling to get an appropriate car insurance policy. Those below 23 years old need to gain driving experience first before they can get a reasonable quote from providers. This being the case, it should be their responsibility to behave while behind the wheel and to always follow traffic regulations whether they’re cruising together with many vehicles on the road or with none at all.