Car insurance for young drivers – Why so expensive?

Many of the visitors to CarInsuranceGroups.co.uk are younger drivers, keen to check how much specific cars might increase the cost of their insurance.

As we get older, not only do we tend to have more disposible income, but we also build up a no-claims history which can substantially limit the cost of insurance premiums.

Young drivers however are typically on tight budgets, and have no evidence or whether they’re good drivers or not.

With this in mind, choice of car become very important in managing the cost of your insurance.  It’s one of the few variables you can actually control!

Insurance is all about balancing risk.  The more risky an individual is deemed to be, the more they have to pay for their insurance.  Simple.  A 35-year-old man driving a 1.1l Corsa might typically claim for a minor car park prang causing just cosmetic damage – a relatively low financial cost to the insurer.  However, an 18-year-old driving a Toyota Supra is much more likely to cause a far more serious – and costly – accident involving injury to themselves or others.

The problem is not that all young drivers are bad – far from it.  However in this case, a couple of bad eggs really can spoil things for everyone.  With no other data to base things on, insurers simply lump young drivers together.

A solution?

One solution currently gaining traction in the marketplace is the use of telematics devices to help insurers further break down the young driver category and assess individuals based not on their age, but by factoring in how they drive.

Some insurers place curfews, preventing young drivers being on the road at night (statistically the most dangerous time to be driving).  Others impose mileage limits.  However these two methods are fairly restrictive.  The more advanced telematics insurance solutions are assessing driving style in greater detail, giving young drivers greater freedom without such limitations.

As these products gain momentum, and young drivers become less wary of having a device fitted to their car in favour of the financial benefit, we could see young drivers find a way back into the market.

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