Do I Pay More in Car Insurance if I’m Young?

Will I Have to Pay More for Insurance Because I’m Young?

In general, the answer is no. However, there are situations where premiums may be higher due to factors incidentally related to a prospective insured’s age. These things are generally related to perceived risk like experience and insurance history.

For some policies, like commercial or boat insurance, the experience of the owner or operator greatly affects their premiums. While experience is not necessarily tied to age, it is typically related.  Somewhat related to experience, in many cases, a first-time buyer of a particular type of insurance or someone with little to no claims-free history won’t be able to secure the best discounts on their policy.

Statistics

Statistics show that inexperienced drivers (both male and female) are more likely to file a claim or get a traffic violation, such as a speeding ticket. Because of this, most insurance companies make people wait until they are 25 years old until they start normal, “adult” insurance rates.

Overall, young drivers are deemed to be high-risk and inexperienced (and rightfully so). Because of this, young drivers, especially young male drivers, have the highest auto insurance rates in America.

Types of Drivers

Men typically pay for more for car insurance than women, in general. This difference in rates is based purely on statistics. For example, statistically, male drivers younger than 25 are more likely to:

1. Rack up traffic infractions;
2. Avoid wearing their seatbelts;
3. Choose faster, flashier vehicles;
4. Drive with more passengers; and
5. Drive more often than do females.

What to Do

However, it doesn’t matter if you are 16 or 86, there are always ways for you to save on auto insurance.  There are ways teens can get affordable auto insurance.  Male drivers who take advantage of money-saving offers, including keeping clean driving records, can get low rates, too.

There are several ways you can get more affordable car insurance as a teen, such as:

1. Choosing a safe vehicle;
2. Getting on your parents’ insurance policy;
3. Opting for higher deductibles;
4. Completing driver’s education;
5. Getting good grades in school;
6. Keeping your driving record clean; and
7. Leaving your car behind when you go to college.

Talk to Your Insurance Agent

Remember, these are just a few money-saving options. Always talk to your car insurance agent about additional ways to save money on coverage.