Why do young drivers pay more?
Published Wed, Nov 27, 2013 Updated Tue, Feb 16, 2021
It is generally accepted that the younger you are, the more you have to pay for your car insurance. On the face of it, it seems pretty unfair – you have just started driving, passed a test that proves you are capable of being on the road and yet you are already being punished for mistakes you haven’t even made. Unfortunately, there is little that you can do about this discrimination. Younger drivers are statistically a bigger risk than older drivers.
How Your Premiums Are Calculated
Premiums are calculated on a number of different factors, but as a new driver, the insurance companies actually have very little to go on. You may think that you are a brilliant driver, but with little history to prove that fact the insurance companies will put you in the same category as your peers. Insurance companies simply look at which types of drivers make which types of claims. When you look at the numbers, the inescapable conclusion is that younger drivers are much more likely to have accidents and make claims. Worse still, young drivers tend to drive faster and when they do make mistakes the resulting damage is often more expensive for the insurance company. In other words, younger drivers crash more often and make bigger claims when they do.
So What Can You Do About It?
Well the only way to really bring those premiums down is to build a history – and get older; both of which will happen in time. This really spells out the value of driving carefully to make sure you get that all important first year’s no claims. Other than that, you can do a few little things to save a little bit of money, such as taking the PassPlus course, driving fewer miles etc… But ultimately, your premiums are going to be painfully high for at least a couple of years yet.