Why is it getting harder to find car insurance for young drivers?

A number of car insurance providers have ceased to cover less mature drivers, so it is now essential to search around for car insurance for young drivers. A spokesman for the ABI, The Association of British Insurers stated that the reasons that certain companies had ceased to insure younger drivers was simply that they were far more likely to make a claim than older drivers.

These claims accounted for a disproportionate amount of money paid out by insurance companies when compared to more mature drivers, this according to ABI representative Malcolm Tarling.

UK government statistics show that back in 2004 there were over one hundred and fifty deaths of drivers who were aged sixteen to nineteen.

As a result of what insurance company’s see as a greatly increased risk, they have steadily increased premiums to match that risk, but now many companies are simply turning their backs on providing car insurance for young drivers, and not issuing them with policies.

It has been very well documented that younger drivers are considered by insurance companies to be very high risk, they are not only more likely to be involved in accidents, and they are also more likely to be involved in accidents resulting in injury and death. Younger drivers are known to statistically drive at higher speeds, not obey traffic regulations, and drive in a more reckless manner than people of their parents age.

Over the past 30 years the number of young people driving on the countries roads has increased several times over, and with this has come an increase in risk to the insurance companies, this risk has been passed on in the form of higher premiums for
car insurance for young drivers, which is often paid not by the young person but by their parents.

The ABI has urged the government to take steps to protect young drivers such as imposing a mandatory one year learning period before obtaining a full licence.

The organisation also strongly suggests that parents should avoid taking out car insurance for young drivers using the old ploy that the young driver is an occasional user of the vehicle, when in reality they are the main driver, a young driver should only be added to the parent’s policy in this way when they are in fact, an occasional user of the vehicle.

The ABI say, that it is false economy to make such an addition to their policy as the younger driver is likely to make a claim, therefore, hurting the parents standing with the insurance company.

They went on to say that it is important that if the young person is the main driver, they should take out a policy in their own name, which may be more expensive at first, but if that young person is responsible driver they will over a period of years establish their own insurance record, thus reducing the premiums over time.

Therefore the bottom line is, car insurance for young drivers is becoming harder to find, and when you do find it, it will probably be more expensive, so it pays to shop around for the best deal available.

Insurance premiums are calculated according to several risk factors. These are the factors identified by the insurance company as most likely to have an impact on the insured against risk occurring. Insurance is a significant cost associated with the item insured and should not be rushed into. It is always a good idea to shop around for the best price available. Insurance premiums will vary considerably from insurer to insurer so do your homework.

Shop Around

Look up the various insurance companies you are interested in and ask them for a quote. They can usually give you a rough estimate fairly quickly and even more exact quotes should also be possible if you provide more details and wait. You should also look up insurers online and get instant quotes from their website. This is a very fast and effective way of shopping around. You will get a good idea of what prices to expect. You can also experiment with the quotation websites to see what effect it makes to your premium price if you select different options. With all insurance policies you will have a number of options that affect the price of the policy.

Therefore you should think about these options and if there are risks that you do not wish to cover then let the insurer know as your premium should become cheaper.

You should also try to make sure you do not double insure. It is a principle of insurance that you cannot benefit from the insured events occurrence. So you cannot get paid twice even if you have two insurance policies. So if a risk is already covered by one policy, again let your insurer know so they can remove it from their calculation.

Factors

Car insurance premiums usually depend on factors such as what kind of car you are driving, how old it is, how big the engine is, what make and model it is? What type of insurance you require also plays a part, do you need only liability, or also comprehensive? What use you will make of the car, for example will you commute to work and how many miles do you plan on driving?

Your driving history will be a strong factor in determining your risk, and linked to this will be the age of the driver, with younger drivers being significantly more at risk of being involved in an accident. If you are young, your sex will also be an important risk factor, however if you are older sex usually becomes less significant.

Car insurance rates are prohibitive nowadays. Many families really struggle to pay the car insurance bill each month. And car insurance rates vary all the time. So if car insurance cost is an issue for you, what can you do about it?

The car insurance industry is a massive industry. It is also a highly competitive one, and car insurance rates vary over time as car insurance companies compete for business. Car insurance rates are often highly fluid.

It is entirely possible to lower the cost of your auto insurance rates by altering your behaviour, and you can do this by having a better understanding of how the rates are assessed.

Car insurance rates are based on an assessment of risk. Whilst insurance companies vary their rates to compete with other insurance companies, they also vary their rates based on their assessment of the risk posed by a particular driver driving a particular car. They do this because there is no point in buying business with low car insurance rates and then insuring high risk drivers at these rates. This is a recipe for losing money.

So, if you lower your risk, you lower your car insurance. How do you
lower your risk? Well theres a number of ways that your own driving and car behaviour can affect your car insurance rates.

Have a look at the car you drive. Is it suitable for your current needs? If not then would it be worthwhile to consider a change?

Different cars attract different auto insurance rates. Sports cars, high powered cars and cars at greater risk of theft attract higher rates. How long have you had your car and would it be wise to think about another one that would be cheaper to insure and more useful to you?

Are you a safe driver? Do you stick to the speed limit? Are you at risk of other driving offences? Many people do not think about some of the consequences of speeding tickets and driving offences until after they have seen their subsequent car insurance bill.

Your risk profile is a direct result of your driving record. A clean driving record and you will be rewarded by cheaper rates. A poor driving record and you will be penalised, usually for quite a while.

Are you willing to attend driver training courses? Many car insurance companies offer specific discounts for drivers who have attended a course. Why? Lower risk.

Are you willing to drive less? Could you car pool or use public transport to get to work? Car insurance companies look at the amount of driving their clients do when assessing their car insurance rates. Why? Lower risk. Less miles driven equals less risk. And youll save on other car costs too.

So if auto insurance costs are an issue for you and your family there are things you can do. These are just a few of those things, there are many more. Car insurance rates are not set in stone.

Affordable car insurance is difficult to find these days. But if you are patient and diligent enough to scour the horizon for that perfect car insurance, you might just be lucky enough to find one.

You will have to do your homework though: canvassing, weighing the options, considering how much premium you can afford to pay and how protected you want to be.

Once you have decided which among the offers you have considered is most responsive to your needs and capability to pay, then that should be what is affordable for you. Remember that the term is relative. Thus, an affordable car insurance is only so, based on what you are able and willing to shell out and risk.

Affordable Car Insurance – Weighing the Options

The spirit behind insuring is to buy protection even before you need it. Insurance should give you peace of mind (and this commodity does not come cheap most of the time) so that when you need help, you are assured to get it. Car insurance is required in 47 states. This gives you an idea how important it really is.

Laws vary across the country as to how much protection you should get. It is wise to check your state’s minimum requirements. Then if you can afford, you might want to consider optional coverage for extra protection.

You have to consider several factors when deciding which affordable car insurance you want to get. Know that your driving records affect the premium insurance companies will offer you.

If your car is equipped with better, more sophisticated security and safety features, that can also affect the worth of your policy. Of course, the most important consideration is how much you are willing to pay. You will be able to determine this if you read at the fine print, so to speak, of the policies you are being offered.

The insurance packages you will most likely find vary in the protection they offer from mere liability, to collision and on to comprehensive. There are even policies that include medical expenses in case you get hurt in an accident, and help with your car in case an uninsured or underinsured motorist causes the damage.

Affordable Car Insurance – Making the final decision

It is ideal that you get comprehensive coverage for your car insurance. After all, if you want protection, why not go for the most complete? There are comprehensive insurance policies out there that will not bust your pocket. Again, you should be patient and should know where to look.

There are also some insurance companies that offer discount packages if you get both your home and car insurance from them. If you have more than one car to your name, look out also for multi-car discounts.

Do not forget the real reason why you are looking for an affordable car insurance – to save money. But if you are too keen on penny pinching without giving due consideration to what might happen if you are under-insured, you are needlessly putting yourself in a financial risk. Again, an affordable car insurance is only so, based on what you are able and willing to shell out and risk.