Why is insurance so expensive under 25?

The reason car insurance is higher for a person under 25 years old is because younger drivers are statistically more likely to have an accident than older drivers, making it riskier for companies to insure them. Because young drivers are likely to be more reckless and distracted behind the wheel, insurers charge them higher rates. Car insurance for first-time drivers can be double or even triple the rates paid by the average driver. While young people tend to pay more for car insurance on average than older drivers, they are also entitled to some unique discounts.

Since then, she has worked as a news writer in the insurance industry and has gained in-depth knowledge of state and national insurance laws and rates. Unfortunately, new drivers have little or no driving history, making it impossible for insurers to judge their driving behavior. Because of a lack of experience on the road and the greater risk of causing an accident, younger drivers pay more expensive car insurance premiums. Accidents will increase car insurance rates at any age, but young drivers will experience the highest increases.

Even if you're over 25 years old, your insurer may still consider you a high-risk driver because of something else in your profile. Even after you turn 25, you may be able to reduce the cost of car insurance by taking a defensive driving course, choosing to pay your bills electronically, or bundling more than one type of coverage with the same insurer. Looking up prices and comparing quotes from different providers can help you make sure you get the best car insurance rates. In general, young drivers pose a financial risk to auto insurance companies because of their lack of experience behind the wheel.

The best thing young drivers can do to reduce their insurance costs is to practice safe driving habits. Consequently, insurance companies will reduce rates as drivers age and will maintain a clean driving record that shows that they are less likely to have an accident. Insurance companies consider several factors when determining the cost of auto insurance policies for individual drivers. In addition, many insurance companies offer discounts to drivers who want to complete a defensive driving course.

While most drivers pay less for car insurance once they turn 25, some people may still have high rates. After age and gender, your driving record completes the three main factors that affect car insurance rates. Young drivers can get cheaper car insurance quotes if they take a defensive driving course and keep a clean record.

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