Young driver: Why is the price so high?
Young drivers may find it contradictory to pay more because their financial resources are usually very limited. A driver’s license and road safety inspector have also officially validated their ability to drive. So why is it that young drivers pay more than other drivers?
A tariff that is proportional to the risk
Most auto insurers consider young drivers especially predisposed to speeding or other offenses, and thus to cause traffic accidents.
Insurance companies believe that young drivers are more at risk than older drivers, which is why insurance prices for young drivers are so high.
The numbers are tilting in their favor: according to the 2018 assessment of National Interministerial Observatory of Road Safety, 18-24 year-olds would be involved at 19% of fatal traffic crashes
Overpressure for young drivers
Overpressure can be applied for young drivers. This causes an increase in your insurance premium, which can reach 100 percent in the first year. This process continues to evolve with the driver’s experience, until it is completely gone after 3 years of no responsible accidents..
This premium is also charged by auto insurers to drivers who have not had insurance for three years.
Evolution of the premium for young people during probationary period
|First year||100% Increase|
|Second year||50% Increase|
|Third year||25% Increase|
|Fourth year without an accident||0% Increase|
The choice of insurance formulas
The price of your young driver’s insurance will be determined by the formula you choose. These are the most popular offers from major insurance companies:
- The third-party formulation: It is the cheapest and most protective formula. It is often recommended for cars that are used.
- The extended third party formula: This insurance is half-way between all-risk and third-party insurance. It usually includes flight insurance, as well as fire insurance and broken-ice insurance.
- The “all-risks” formula: It is the most cost-effective, but also the most protective.
- Drivers who do not plan to use their car a lot should consider the kilometer formula or “pay-as-you drive” option.
The average cost of auto insurance for young drivers
Young drivers are often concerned about their budget when it comes to auto insurance. Learn the average price for auto insurance for young drivers.
Accompanied driving: Expect to pay less
Auto insurance pricing is based on the risk you are presenting to the insurer. Experience on the road is a major risk factor.
This is why accompanied Driving offers a non-negligible edge: The young person who has received accompanied Driving Training must logically be able to control the vehicle and road.
The numbers are clear: Young apprentices have between 4 and 5 times fewer accidents compared to novice drivers who have completed formal apprenticeships. Insurers decided to lower the price for young driver auto insurance because of this observation.
Did you know that? A young person who is accompanied driving drives on average 3,000 km before he gets his license.
The benefits of accompanied Driving
- A more attractive tariff than that of the young drivers contract: 50% premium for year 1, 25% for years 2, or even total elimination of premium.
- Greater ease in finding an insurance company
- You will see a significant reduction in your auto insurance premium.
How to save money on your young driver’s auto insurance
Are you a young driver looking to reduce the cost of your car insuring? There are several ways to cut your car insurance budget.
Here are 5 top tips to lower the cost of young driver insurance.
- Comparing auto insurance quotes to find the most competitive prices is a way to increase competition
- Declare yourself as a secondary driver
- Bet on the occasion
- Begin driving with a small car.
- Get third-party insurance.
1. Compare insurance options for young drivers
Young drivers have an incentive to compete for the best car insurance prices. Prices can vary greatly depending on the insurer selected and the guarantees taken. A car insurance comparison can help lower your bill.
2. Register as a secondary driver
Did you know it was possible to register as a secondary driving on the vehicle of your parents? A young driver can be designated as the secondary driver even if he is not driving the vehicle.
If you agree in advance with the insurance company, one or more of your relatives can make you a young driver under his contract. This tip will save the young driver from unnecessary pressure and allow him to take the time to become a licensed motorist (3 years according to insurers).
The primary driver must occasionally drive the car. The insurance company can cancel the contract if he is in fact the main driver.
The insurer may choose to increase the insurance premium for contract holders. This solution is not a panic situation, but it’s relatively cost-effective for the person who agrees that you be added to their car contract.
The benefits of secondary driver status
- To gain experience, you may take advantage the main driver’s auto insurance.
- You can avoid paying high insurance premiums for young drivers.
3. Buy a used vehicle
Driving a new vehicle can increase the cost of young driver insurance. You will be less likely to worry about your insurer and can enjoy a lower price.
Many used cars are available for sale on small classified sites. Second-hand parts are also much cheaper in the event that an accident occurs.
4. Begin driving with a small car
The price of young driver insurance depends on the car you drive. In fact, the car’s value and its power are key factors in determining how much auto insurance premium you will pay. The premium you will receive from an insurer will be higher if your car is more powerful and expensive. It is because a smaller model will be more affordable to insure.
5. Third party insurance is an option
Third-party insurance is a better option than all-risk to protect your first vehicle. This type of insurance may be sufficient to cover a low-value vehicle.
This page was written by Julie. Your opinion will help this article improve.