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Why Is Car Insurance So Expensive For New Drivers?

why is car insurance so expensive for new drivers

When it comes to new drivers, auto insurance companies typically consider four groups of individuals: teenagers who obtain their first driver s license immediately after turning sixteen years old. These groups include natural born teenagers who do not have any previous driving convictions on their records. Adults who begin driving later on in life, especially those who come from non-English speaking countries. Teenagers who obtain a driver’s license within a short period of time after turning sixteen, are considered “young” drivers by auto insurance companies. These drivers have to pay higher rates because they have a higher likelihood to have accidents.

Teenagers who obtain a driver’s license within a short period of time after turning sixteen, are considered “young” drivers by auto insurance companies. These drivers must pay higher rates because they have a higher probability to have accidents. Teenagers who have been involved in a car accident more than five times prior are considered “risky”. They have to pay higher rates.

Some insurers offer new driver discounts if the teen gets good grades in school or completes a safe driving program. The discount could save money and provide some incentive for the teenager to drive safely. A teenager who is good at sports could also be eligible for a discount on car insurance. The insurer would look favorably upon them if they participate in a team sport, or are good at performing well in competitive sporting events.

There are also discounts available for teenage females. Auto insurers may offer lower rates for female teens than for males, or they could offer lower premiums, but give lower coverage. A new driver may qualify for these discounts if he or she plans on getting married in the future, has a teenage son or daughter, or if they will be driving other people’s cars. Women usually qualify for more insurance than men do.

The cost of car insurance depends on your age, driving experience and how far you drive each day. For example, a twenty-five year old new driver who makes five thousand dollars a year can expect to pay about three hundred dollars a month for insurance. A sixteen year old who makes six hundred dollars a year could expect to pay between one hundred fifty and three hundred dollars a month for insurance. A twenty-five year old could make as much as one thousand dollars a year. This is a very big difference.

Defensive driving courses could help someone get cheaper car insurance. New drivers should take a driving course even if they have not yet passed their driving test. They could save money in the long run by not having to pay for their tickets out of pocket. Defensive driving courses are available at most local driving schools.

Some drivers save money by shopping for the best coverage they can afford. Many new drivers find that if they put some time into researching the best policy they can find, they can save a lot of money. Some car insurance companies give discounts to student drivers who drive less than fifteen hours a week and have no accidents or citations on their driving record. Some companies will also offer a discount if a driver gets more than two years of safe driving experience. You can save money this way too.

Car insurance companies like to encourage new drivers to get good grades and take a driving class. This is a great way for them to promote responsible driving and minimize their risk of an accident. If they can show you that you can handle the responsibility of driving a vehicle, they may be able to offer you a discount on your premium. Some car insurance companies also offer a bonus when you take a course in defensive driving. Taking these extra steps toward good driving can save you money and time on the road.