Common Car Insurance Problems Young Drivers Face

Young drivers continue to face an uphill task when it comes to taking out auto insurance. While there are a number of considerations that will inevitably drive up the cost of a policy, such as age and accident statistics, there are actually a number of other factors that unreasonably punish motorists less than 25 years of age.

Initially, a young driver will be given a rating when they first apply for a new policy. However, most insurance companies will also make an evaluation made on every vehicle driven within the same household. From there, a premium will be established based on the most expensive vehicle owned by a family instead of the one being primarily used by the young driver.

As an example, the young driver may be using a vehicle with a value of $500 that’s approximately 10 years old. However, a parent may be driving a new $30,000 SUV and the insurer will provide a premium based on that particular vehicle even if the young driver has no intention of actually using it. This penalizes a potentially careful motorist on the basis of age and new motorists should be aware of this type of risk assessment before comparing policies.

Furthermore, young male drivers will be further penalized simply because of their gender. Statistically, a young female driver stands a 53% chance of receiving a traffic violation while an equivalent male driver sees that risk increased to a level of 78%. Even if the young male driver is responsible, cautious and determined to drive safely, he can still expect to be assessed accordingly and receive a higher policy price.

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