Drivers under 25 have less driving experience than older, more experienced drivers. To compensate for the increased risk of causing an accident, car insurance companies typically charge a higher rate for recently licensed drivers. Young drivers often pay the highest rates due to the fact that statistics show that they are often more reckless and distracted behind the wheel. Car insurance rates for first-time drivers can double the rates of the average driver. There are factors that influence the rates, and you need to shop for auto insurance discounts. Here are a few reasons why the rates are high and a few tips on what you can do as a new driver to reduce your risk.

How Gender Affects Car Insurance Rates For Young Drivers

On average, men pay 6% more for full coverage car insurance than women. But between ages 16 and 20, rates for men are 9% to 11% more expensive than for young women. Until the age of 21, men pay an average of 10% more than women for full coverage insurance. The gap shrinks after age 30 when men begin to pay 1% less than women until age 50.

Young Drivers Have An Unproven Record

Your driving record affects your car insurance rates. New drivers come with little to no driving history, and this makes it impossible for insurers to judge their driving behavior. Inexperienced drivers are likely to panic or overcorrect a situation when they face a difficult circumstance on the road. This can cause an accident and raises the risk of filing a claim.

Young Drivers Are More Likely To Drive While Distracted

According to government statistics, drivers aged 15 to 19 were involved in a whopping 16 percent of all fatal car accidents caused by distraction. Teen drivers are more likely to text, send emails, and talk on the phone while driving. They are more likely to talk to friends, put on makeup, eat in the car, and read the GPS directions. Due to this increased risk, teens are more likely to be a risk and have increased rates.

Young And Restless

Teen drivers are 3 times more likely to be involved in a road crash. Teen drivers tend to be more reckless behind the wheel and 60 percent of teen drivers killed in a crash were not wearing a safety belt. Teens who buckle up significantly reduce their risk of dying or being seriously injured in a crash. Speeding is a factor in nearly 30 percent of fatal crashes involving teen drivers. A recent AAA survey of driving instructors found that speeding is one of the top three mistakes teens make when learning to drive. The top distractions for teens include talking to other passengers in the vehicle and interacting with a smartphone. Distraction plays a role in nearly six out of 10 teen crashes, four times as many as official estimates based on police reports.

Most Teens Do Not Have A Credit Score

Your credit score affects your car insurance premiums much the same way your driving record, marital status, and payment history can. Teens and drivers under the age of 25 are less likely to open a line of credit. Drivers with low credit scores are considered more likely to file a claim. So, insurance companies consider drivers with no credit to be high risk.

Tips For Finding The Cheapest Auto Insurance For Young Drivers

Young drivers need to shop at auto insurance companies to find the most affordable rates.

To get an accurate quote, you’ll need the following information:

  • Driver’s license number
  • Make, model, year, and vehicle identification number (VIN)
  • Any accidents or tickets that might be on your driving record

Rates and insurers differ in every state. Compare insurance quotes from at least three companies before buying your insurance.

The following are ways for young drivers to obtain discounts:

  • Young drivers can take advantage of good student discounts and safe driving discounts to lower insurance rates.
  • Students away at school, without a car, earn a discount since they only drive when they’re home.
  • Many auto insurance companies offer discounts of up to 15% for active and retired military members and their families. Expected savings include military and deployment discounts.
  • Adding a teen driver to car insurance is much cheaper than buying a new policy.
  • Go to driving school.
  • Adding alarms and etching your VIN into the windshield can earn a 5% to15% discount.
  • Avoid accidents and speeding tickets.

Remember that each insurance company chooses what discounts to offer and the savings amount attached to each. So, while one company may offer a 25% discount, another company may only provide a 10% savings or no discount at all. When you shop for auto insurance, compare discounts, rates, and coverages. Discounts may make the difference in which company is cheaper for you.

Contact us (859-781-7283) for more information or get a free quote!

About Rollins Insurance 

Rollins Insurance is an independent insurance agency providing our clients the best prices with the most coverage possible since 2008. We represent multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio. We find that most people are under-insured and over-paying when we meet them. We love what we do and our primary business is Personal Auto, Homeowners, and Life and Health insurance. We are a family-owned and managed business that specializes in providing needs-based insurance services.
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