It is a well known fact that automobile insurance for new or younger drivers is more costly than to older drivers. There are a couple of factors that make these rates even higher. Drivers under the age of 25 usually have higher rates. The cost of automobile insurance for males is typically higher. It is believed that young male drivers might take more chances on the road.
Another reason for the high rates for young drivers is their lack of actual experience. If extraordinary road conditions exist such as snow, freezing rain or high winds, the young driver must know how to handle the situation. This is where the experience factor comes in and impacts their coverage rates.
When a young driver gets behind the wheel, emphasis should be given to the importance of the automobile that they are operating. They must understand that they need to pay attention to their driving at all times. It is also wise to reinforce to them that it is the law to follow the rules of the road. At the same time, their confidence needs to be encouraged so they are not frightened behind the wheel.
Insurance differs based on five basic reasons: driver's residence, driving record, whether they are a male or female, the car being driven and the type of insurance. Each of these will factor into the price of automobile insurance. Many times auto insurance is higher in a city than a town or village.
Many times young drivers will not be able to take advantage of the safe driver discounts. A safe driver discount is usually not offered until there are three consecutive years of driving without an accident or violation. However, if the state in which the driver resides has a legal driving age of 16, they could possibly be considered for this discount at age 19. A short driving distance to school or work will usually lower the rates as will good grades at school. Many times a transcript is requited as proof.
Rates will increase if there has been an accident, suspension of the license or a ticket issued. Some insurance agencies will raise premiums by half or more for one of these problems. Also, new cars typically have a higher rate due to requiring collision insurance on the vehicle.