Why is Young Drivers Insurance More Expensive?

Car insurance is calculated using a number of complex factors. Insurers use extensive data based on the comparative risk factors of motorists and their vehicles. As a result, many drivers are automatically categorised in a 'high risk' group regardless of their individual driving standards - this is particularly true for young motorists.

A common line of thought is that with age comes experience - this is certainly an adage that insurance companies work by. Therefore, the more driving you've done in your lifetime, the less likely you're going to get involved in a serious incident. This means that if you're a teenager who has just passed their test, the insurers have nothing to judge your experience by - only the statistical data about others in your age group, which isn't particularly positive.

The unfortunate truth is that younger drivers are more susceptible to crashes and claims. Whether this is directly caused by their inexperience or is pure misfortune, the insurance premium is based on a law of averages and unfortunately they stack up against young drivers.

New drivers haven't had the opportunity to prove their ability over any concerted period of time. Insurance companies are looking for customers who won't make claims remember. As soon as somebody has an incident that results in a claim, they have to pay out and that costs the business money. Therefore they have to find ways of compensating those who have proven to be reliable over time; this is why there are no claims bonuses.

On the flip side of this though you find all those drivers who have either made a claim recently or are young. Whilst experience is rewarded, inexperience certainly is not. As you're seen as a significantly greater risk to the insurer, you won't get any form of discount. This means that you pay the full insurance rate, which could be several hundred pounds for basic coverage.

Whilst the cost will come down in future years, this certainly can be a daunting prospect for young drivers who have just passed their test. There are some insurance companies who are better able to offer a more competitive quote should you require it, particularly if you are seeking the lowest form of insurance that is legally available - third party.

The key for young drivers therefore is to simply shop around various insurance providers and see which one is able to offer the best price.

Paying a premium just for your age might seem unfair, but unfortunately it has always been a part of insurance calculations. It's a similar issue to the disparity between men and women. On average female drivers will pay less for the same policy as a man will, simply because they don't claim as much. This doesn't necessarily suggest that they're safer drivers, just that they make fewer or less costly claims.

Therefore if you're a young male driver you'll possibly have to pay even more than a female of the same age. This isn't personal to you though, it is a cost shared by thousands of motorists.

Insurance calculations are simply based on assumptions and factors used by the insurers themselves. Smaller engine cars are cheaper to ensure than powerful cars for instance - expensive classics aside of course. This is because they are far less likely to be involved in a high speed collision, which could result in a huge payout by the insurance company. This doesn't mean that it won't be written off of course, but the insurers see it as far less likely.

Young drivers are simply bearing the brunt of what others have done before them. As they are statistically more likely to be involved in a collision, insurers have to face the prospect of bigger payouts as a consequence. This cost is then passed down onto the consumer.

As previously mentioned, the only way that you can overcome this hurdle (apart from getting insured on your parents' policy at their expense) is to get the cheapest price you can and start earning your no claims bonus. It can be costly, but it is something that all motorists face at some stage. Do your homework if you want to find a cheap young driver insurance quote.