Liability Car Insurance – The reason that companies increase car insurance prices for young and new people is that you are part of a group with a higher loss ratio. The insurance premium is set depending on the profile of the driver and the car.
Therefore, if you are under 25 you will get a higher price than if you were older. It is possible that your driving instructor told you that you were driving very well, but you have to admit that you are more likely to have an accident than someone who has been driving for years.
In this driving “experience is a grade”, and young people, along with those who have no experience, have a higher accident rate not only for the lack of practice but also for the imprudence associated with the first years in which a person gets behind the wheel.
Factors that make Car Insurance more expensive
Insurers set premiums depending on several factors, but 2 of them are fundamental and refer to the driver:
Age of your driving license
The statistics indicate that the low age and lack of seniority pose a high risk of suffering a loss, which will make it either cost more than usual to hire a car insurance or not accept you in your client portfolio.
According to a study by the Mutua Madrileña Foundation on accident trends and the seriousness of the injuries caused by traffic accidents of those between 18 and 25 years old, 320,000 accidents are caused each year by them. In recent years, the number of incidents caused by people in that range has decreased, although for now insurers do not reflect this in their prices.
In addition, there are proportionately more men who produce accidents than women, however you are of the sex that you are, there will be no difference in terms of the premium that you will have to pay, because since December 2012 there is a regulation of the European Court of Justice that prohibits making said distinction. So insurers no longer use the sex criterion in the calculation of premium prices, and can only do so in the event that actuarial and statistical data indicate that it is an important factor when assessing risk of the driver.
Insurers follow a premise in fixing their premiums: the younger you are, the more likely you are to have an accident. As you increase in age, the loss ratios decrease due to the fact that your risk perception, in general, is greater. If you adopt reckless behavior and have an excess of confidence you will undermine your capacity to respond to unforeseen traffic situations, but if you prove to your insurer that you are a good driver you could get a better price when it comes to renewing it, although in the first hiring you get a very high price.
The insurers that market this type of policy not only offer high prices to those under 26, but also to newbies. That is, regardless of age, those drivers with less than 2 years of license also suffer from the increase in their car insurance. This produces a logical relationship, those who have more seniority as drivers pay less than novices. And if together the 2 things the conclusion is simple: if you are young and new you will find it more difficult to find insurance, and when you get it the price will be significantly higher.
Pony or herd of horses?
Accept it, you are not born learned, so you will not drive like an expert from the first day, simply because you have not had time to become one. Do you love speed and want to feel the power in your feet? The union of inexperience and speed can play a trick on you and end in a sinister, with the consequent rise in the price of your insurance in the next renewal. Also, if your car has many horses, the your insurance quotes online will notice (regardless of whether you are young or not). That is, the more displacement your car has, the more expensive it is for insurance, an additional cost that is added to the one that you have in itself for being a new driver.
Some drivers are more skilled and others more clumsy, however, the statistics are in terms of prices, so that when you buy the first car, whether new or second hand, do not launch a “supercar” or a large car if you do not want to pay too much in your car insurance. If for the first few years you opt for a common vehicle and you show that you are a good driver without taking losses your insurer will grant you bonuses that will lower the policy while you get seniority. After a few years you can secure a big car in your name without getting a big hole in your pocket.