It's a known fact that young college students pay very high premiums for auto insurance. It's all about statistics - young drivers cause more accidents than older drivers, get more tickets, drive more recklessly, etc.
Younger car drivers, particularly males between the ages of 16 and 24, are in for an expensive time with their car insurance in those earlier years. Young males are regularly involved in auto accidents, which in turn means that the insurance premiums rise.
Nevertheless, there are ways to lessen the burden on the younger driver. Let's consider a few of these now.
Comparison shopping is very important for everyone who is looking to avail themselves of lower priced auto insurance, and especially so for younger drivers.
In your first year of driving it's very important to drive safely and within the rules of the road. The more points you have on your license, the more costly will be your car insurance.
A variety of insurance companies are now offering a black recorder box which is fitted to the vehicle. What the box does is monitor aspects of your driving such as speed, breaking, and a few other key driving skills. This data allows insurance companies to tailor prices to your driving skills rather than to your age group.
High performance and fast cars equate to a rise in insurance premiums. The same can be said for those cars that have been modified in some way. A less powerful vehicle with no modification is best in order to keep insurance premiums more affordable.
For example, here are some small, but, fast cars that are expensive to insure.
1.Subaru Impreza WRX 4WD
4.Mercedes CLS class 4dr
6.Honda Civic Si
By increasing your deductibles you are in effect taking a larger proportion of the risk on your shoulders. But at the same time, you will be able to lower your insurance premium.
Check with a variety of insurers in order to find out how much you can save if you increase your deductible. It is possible to save as much as 40% on comprehensive and collision in exchange for a $1,000 deductible.
In a number of states around the U.S. auto insurance companies provide discounts to those younger drivers who complete a training program. The level of discount will vary however, so it's wise to conduct some comparison shopping to find the best deal.
Not only do good school grades open up avenues for further education but they also can mean sizeable savings on car insurance. Some insurers offer discounts for those students who achieve a 3.0 GPA or better at school. However, any traffic offence will void a discount awarded for being a good student.
If you drive an older car, you should consider dropping comprehensive and collision coverage altogether. The reason being that you will only get the current car value should you be involved in an accident. To obtain the current value of the car you drive, visit this website: Kelley Blue Book – used car prices.
There are a few reasons as to why younger males pay more for their car insurance premiums. Records show that younger males in particular are higher risk because of “certain driving characteristics”. And of course, along with higher risk comes a higher price tag.
Young male drivers between the age of 16 and 20 represent an above average proportion of customers looking for first time car insurance. With the level of risk that this age group poses, added to the increasing numbers of them wishing to drive, the insurance companies have little choice but to ensure that their own profit margins are protected.
Interestingly, The National Institute of Health have statistics to prove that when young male drivers have a more mature passenger alongside, they generally drive more responsibly. This could be because the driver feels more secure, and also more wary of doing anything wrong whilst at the wheel. The question must be asked then, is it possible to implement a law whereby young male drivers must be accompanied by an older adult whenever they are driving a car?
Let’s move on to a few more issues as to why male drivers – particularly the younger generation – are charged higher insurance premiums.
Young males take far more risks behind the wheel (and in life in general) than do their female counterparts. They break the speed limit far more often (37% of male drivers in the U.S. between the ages of 15 and 20 were speeding at the time of a fatal crash in 2008) and are also inclined to drink drive more than females do. As the Department of Motor Vehicles in California stated, speed in combination with inexperience plays a part in the number of fatal accidents each year.
Young male drivers also have a tendency for overconfidence. They make assumptions that they can handle difficult situations on the road, which then leads to traffic violations and aggressive behavior. Young males often run red lights, and feel pleasure and excitement from tailgating.
Even for more mature males who have little to no driving experience, they are perceived as a far lower risk category than younger males because they have less desire for thrill seeking and are far more responsible.
Younger male drivers have less inclination to use seat belts. Again, it comes down to over-confidence in their own ability regardless the fact that other drivers on the road may be even more incapable than they are. They place too much trust in air bags where in actuality, air bags are meant to be used in tandem with a seat belt to lessen the danger of bodily harm and possibly death. According to statistics (http://drivesteady.com/teen-driving-statistics) 55% of teenage males killed in car crashes were not using their seat belts.
Young male drivers are known to carry more passengers than young female drivers do. Particularly when those passengers are also young, it’s unfortunately true that more fatalities occur. Young passengers tend to distract the driver more. Young passengers also often lead to the car driver
taking more risks.
Statistically, two or more young passengers equates to five times the normal risk. (http://www.drive-safely.org/PDF/10pts/point%207.pdf).