Car Insurance
for Younger Drivers
One of the
biggest worries that parents today face is when their teenagers
reach the age where they are allowed drivers licenses. Unlike other
countries, in the US, the teenager is allowed behind the wheel of
the car at a tender age of 16. Most other countries wait till
either 18 or 21. One of the greatest problems with younger drivers
is the amount of insurance that you have to pay for them. Most of
the time these teenagers would not have enough money to pay for
this insurance and will rely on their parents to settle their
insurance needs. Let’s look at the reasons why insurance for
younger or teenage driver is so high.
The first and
probably most obvious reason is that youngsters lack driving
experience. For most insurance companies, the driver will need at
least 3 years of driving history so that they are promoted to the
status of “normal driver”.
The next problem
that younger drivers face is simply their age. This is purely down
to the risk profile that they represent. It has shown that if you
are younger you are more likely to take risks and this is reflected
by the increase premium. As an offshoot of this, young male drivers
will sometimes have to pay at least double the premium compared to
a similar age female driver. Again this is down to the risk that
they represent to the insurance company.
Another problem
for younger drivers is the impression that they feel a sense of
independence with their new found “wheels”. The problem is that
there is a mismatch of expectations. For most, getting behind the
wheel means that they have to take on more responsibility. For
youngsters it actually means freedom from the confines of their
family structure and a beginning of their new lives as
adults.
In addition to
their already high insurance rates, it is vital that you convey to
your youngsters that they have to be extremely careful on the road.
Even the most minor traffic offence like a speeding ticket or even
a parking ticket will mean a doubling or even a tripling of their
already high insurance rates. It is generally a good idea to have a
deal with your youngsters. If they want to drive you will
cover them with the basic insurance. If there is increases in the
insurance because of something they have done then you will charge
them for the increase.
Another important
thing to understand is that the type of car that your youngster is
allowed to drive will have a very big influence on the cost of
insurance. The factor of impact is normally double what is felt by
a normal driver. Youngsters normally a restricted to driving slow
cars and should not be allowed to driver sports cars or large SUVs.
The rates for youngsters in sports cars or large SUVs is normally
extremely high, so high that it becomes impractical to even
consider these vehicle types.
An important
thing to do is to instill in youngsters the importance to keeping a
clean driving record. How defensive driving should be used and why
it is better for them. Why it is the logical thing to do. One way
to get this message over is to not pay any of their fines,
insurance rate increases etc. This way they will better appreciate
that driving is not a right, rather it is a privilege that can be
taken away by the government.
We all were
youngsters once before. We know that it was a time filled with
wonder and excitement. Everything was new and beautiful. Driving
granted huge amounts of freedom but also meant that we got
ourselves into a lot of trouble. Our youngsters will be exactly the
same. Even with all the excitement, we should try to convey the
basic importance of driving safely and the concept of car insurance
to them.
|