Young Drivers Can Save on Insurance Premiums By Shopping Around
Driver under the age of 25 can save thousands of dollars each year by shopping around for their insurance premiums. It is a fact that insurance premiums can vary slightly from company to company but if you are a young driver the variation in insurance rates can be quite startling.
By shopping around a young driver can expect to save somewhere in the region of an incredible $1200 per year. This is a huge amount of money when you compare that a 55 year old can save approximately $450 dollars per year. That saving is nearly doubled for young drivers who shop around.
It should also be noted that these statistics aren’t taken from the highest and lowest quotes, these are in fact averages and with this in mind, young drivers really should look at all options when it comes to purchasing insurance.
Part of the reason that rates vary for young drivers so much is because of their driving record, or lack of it, as the case may be! Many young drivers simply haven’t put enough hours in behind the wheel, therefore insurance companies find it hard to be convinced that they can be safe and careful drivers.
Whilst one insurance company might consider one particular young person as a safe driver, they will then consider another young person as not being a safe driver. There is little or no consensus; neither young person has had a long enough period of time to prove how safe they are behind the wheel.
It has even been suggested that some insurance companies to actively discourage young drivers by charging them sky high insurance premiums. This is in part due the fact that, statistically speaking, drivers are most at risk from having an accident whilst driving.
One way in which some young drivers could save money on their insurance costs is by being added to a family insurance policy. But this in itself can be costly and it is still wise to shop around as these costs can also vary considerable from company to company.
The reason behind these degrees of varying costs is unclear. However, some insurance companies work out there rates on young drivers at the cost of adding them to the most expensive car registered to that address. Other insurance companies allow the driver to state which car policy they want to be added to.
There are so many variables when it comes to car insurance for young drivers that it make finding a suitable insurance policy somewhat difficult, to say the very least. For this reason young drivers can have great problems when it comes to getting insured on their first vehicle.
Parents and young drivers alike should be aware of the importance of shopping around in order to find an insurance policy that will not cost them the earth. These types of policies do exist; you just have to be prepared to search high and low for them. Searching online can be a good place to start.