Young car insurance buyers are charged some of the highest rates for coverage of any demographic group. There are a few reasons why newly-licensed drivers pay more for their insurance.
One of them is that young people lack experience behind the wheel. Car insurance companies know that they are more likely to be involved in accidents than drivers who have been licensed for a few years. Although teens and young adults pay higher rates for their car insurance coverage, rates for good drivers should start to come down by the time the policyholder reaches his or her mid-twenties.
Another reason young people pay higher rates for coverage is that they are more likely to be involved in risky behavior than older adults. A number of them behave as if they are invincible, and it is this lack of appreciation of consequences that makes them a higher risk when buying car insurance.
One way that young people can present themselves as a lower risk for car insurance purposes is to complete an approved driver’s education course. The curriculum will teach them the rules of the road and how to operate a vehicle correctly and safely.
Maintaining good grades will also help a young person qualify for lower rates on his or her car insurance coverage. Young people who have a “B” average or higher are demonstrating to the insurance provider that they have the maturity and work ethic required to do well in school, which also means they are likely to be responsible drivers.