So your insurance bill keeps skyrocketing over the years, and you are definitely asking yourself why this keeps happening. You keep asking the same question every time you get a new bill, like, Why is car insurance so expensive, especially for young drivers? Now if this is you, come closer and let me tell you more. Funny enough, there isn’t just one reason why your car insurance prices are so expensive. So, besties, in this article, we will be reviewing the various reasons why car insurance is so expensive. Let’s get into it.
Why Is Car Insurance So Expensive?
Outlined below are some of the reasons why your car insurance might be expensive; it’s not all, but it’s some of them.
#1. You’re a High-Risk Driver
So firstly, your car insurance might be expensive because your insurance provider considers you a high-risk driver. This may be because you have had recent accidents where you were found to be at fault; it might also be because of moving violations or convictions like driving under the influence on your insurance record.
According to car insurance providers, drivers who have violations like these in their history are more likely to be law offenders.
Because car insurance companies provide coverage for damage and lawsuits from accidents for clients, it’s only normal that the car insurance coverage they provide is more expensive because the drivers are high-risk drivers.
The average driver pays $409 more each year if they have a minor speeding ticket on their history and $1,461 more each year if they have a DUI.
#2. You’re a Young Driver
Age is another motivating factor as to why your car insurance coverage is so expensive. Basically, 18-year-olds pay an average of $5,000 each year for individual insurance coverage.
Car insurance premiums are most expensive for teenagers and young adults because these age brackets have a higher risk of car accidents and traffic violations.
#3. Your Location Can Influence Your Insurance Rate
Your location plays a major role in determining the amount you’ll pay for insurance coverage. Scantily populated locations have higher percentages of accidents, traffic infringements, and theft, so the standard cost of car insurance is more expensive.
Furthermore, if severe weather or a natural disaster destroys a lot of vehicles in your area, insurance providers can raise prices to cover increased claims.
Different states also have various car insurance requirements and fees for claims. States have various levels of uninsured drivers, and insured motorists pick up the tab. That increases overall costs.
#4. Your Car Is Expensive To Cover
Now, car models that have race-spec engines and various advanced technologies, or even luxury cars, tend to be more expensive. You’d definitely be paying more for insurance coverage if your vehicle falls into any of these categories.
#5. Poor Credit
Another contributing factor to why your car insurance is so expensive is because you have poor credit.
A lot of states permit insurance providers to use their insurers’ holders’ credit scores to determine their coverage fee. Insurance companies are permitted to charge holders with poor credit scores more insurance fees. This is due to the fact that claim filing is more common among those with less-than-stellar credit histories.
#5. You Have an Expensive Car Insurance Company
Lastly, you just might have an expensive car insurance company compared to other alternatives. According to the information we have gathered, the standard price for good drivers is somewhere between $1,000 a year for the most affordable companies and approximately $2,000 a year for the most expensive ones.
If you compare car insurance rates from various companies, you may get cheaper coverage.
Why Car Insurance Is So Expensive for Young Drivers
Funny enough, there is no particular reason as to why car insurance can be so expensive for young drivers. Instead, insurance coverage for inexperienced drivers has increased because of several contributing factors.
Inexperience and Driving Record
Being an inexperienced driver and your driving record are major factors in determining insurance prices. Insurance companies consider teen drivers high-risk since they are inexperienced and more likely to crash. Being inexperienced can make your insurance coverage more expensive, and you might even have problems getting insurance coverage.
Bear in mind that as an inexperienced driver, you are more inclined to make little mistakes like neglecting to check blind spots or overseeing, and these are common reasons for accidents and insurance claims. Therefore, your insurance coverage would be more expensive to make up for the added risk associated with inexperienced drivers.
Aside from not having experience, young drivers are more inattentive while driving. They are likely to get distracted either using their mobile or any other form of technology, and this can make their insurance premium more expensive as compared to other drivers.
Low Credit Scores
Credit scores are also another major reason why your insurance coverage is expensive. Teenage drivers may not have a substantial credit history, so insurance providers may incorporate other factors to determine their risk level and coverage.
Your credit score is a major factor in determining your insurance fee because insurance providers may evaluate your record of paying bills and handling debt. Drivers with poor credit scores simply imply higher levels of risk.
Higher Risk for Insurance Providers
Insurance companies always consider teenage drivers at higher risk because they are more likely to be involved in accidents and poor decision-making. These two reasons make your car insurance coverage more expensive as a young adult. Therefore, these additional risks make your insurance premiums more expensive.
Why Car Insurance Is So Expensive for Young Male Drivers
In recent times, there have been a lot of contributing factors that determine the cost of young male driver insurance premiums.
Young male drivers aged between 16 and 20 illustrate a large number of clients purchasing car insurance for the first time, and this is another reason why auto insurance providers charge them so much. As these numbers continue to soar, it doesn’t seem like the numbers will be reducing anytime soon.
Luckily, you can impact these factors as a young driver with parental participation and new state laws. So outlined below are some of the factors that influence the price of young male drivers’ insurance coverage.
Young Male drivers are Thrill Seekers
Young male drivers indulge in overseeing, and this is a form of thrill-seeking. As compared to female drivers, they take part in various risky activities, and this makes their insurance more expensive. In fact, the California Department of Motor Vehicles demonstrates how indulging in overspeeding as well as being an inexperienced driver has resulted in several fatal accidents every year.
Young drivers tend to be much more overconfident because they have a driver’s license and think they can deal with emergencies. This leads to worse behavior, such as violating various dangerous traffic laws.
Moreover, they disregard traffic signals and proceed recklessly when the light is red. They also tailgate more often.
They Don’t Usually Use Seat Belts
Young male drivers also don’t use seat belts, concluding airbags will soften the blow of a head-on crash, and side impact airbags will handle the rest of the impact. Contrary to popular belief, this is a misconception that many believe to be valid.
When in actuality, the airbags are put in place in tandem with seat belts, not as a stand-in. Not more than 20% of young male drivers use seat belts often and out of that small percentage, only about 10% use them as they should be used.
The standards would fall significantly if young male drivers were to follow even the most basic safety practices. Seat belt use would minimize destructive collisions and lower motor insurance costs in two to five years.
They Usually Carry More Passengers
Another reason young drivers’ car insurance is so expensive: they always carry more passengers than young female drivers. In 2010, the state of New Jersey established a law called, Kyleigh’s Law, named after a 16-year-old teenager who was murdered by another young driver.
Although the law does not directly deal with the issue of carrying too many passengers in a car, it does assist police officers in recognizing drivers below the age of 21 by just looking at their license numbers.
Several other states within the country are beginning to create identical laws to provide awareness of these types of tragedies. If this bill receives approval, it might reduce insurance premiums for young male drivers and ultimately save lives.
In the past, it was hard to deduce the age of a driver with more than one passenger in the vehicle, particularly when it’s dark; but, with these types of regulations in place, safety can now be sighted.
Alcohol Consumption is Usually an issue
Young male drivers with beards can be mistaken for an adult and they can proceed to buy alcohol for their peers. Young male drivers are usually also the designated drivers more often than young female drivers. When lack of experience and alcohol are connected the results are often devastating.
Unfortunately, these statistics continue to skyrocket every year and this is one of the main reasons why car insurance fees are so expensive for young male drivers between the ages of 16 to 20.
Various states have also started imposing much higher fines for alcohol sellers who persist in selling alcohol to underage drinkers.
Teen Boys Are Not as Focused as young female drivers
Women are pretty good at doing more than one activity at once as compared to men. Men on the other hand are more focused on completing one activity before proceeding to accomplish the best.
The same can be said for young male teen motorists. While distracted driving is clearly a concern for all auto insurance providers, female teen motorists are less inclined to lose control when an unexpected object appears on the road.
Statistics indicate that out of the accidents associated with distractions, such as cell phone use, young male teen drivers can occasionally become too invested in the conversation and fail to see any unexpected object on the road.
Texting while driving, also, carries the same weight of distraction since their eyes are temporarily peeled off from the driving path and fixed on the cell phone. This is one of the reasons why a lot of states have placed prohibitions on texting while driving.
What car costs the most for insurance?
Luxury cars, sports vehicles such as the Porsche 911 and Mazda MX-5, and high-end electric vehicles like Teslas are some of the most expensive cars to insure.
Who pays most for car insurance?
Men usually pay more for car insurance than normal because they’re statistically more inclined to be involved in accidents and to have major injuries.
At what age is car insurance most expensive?
Car insurance prices are highest for teens and seniors, on average, because they are deemed high-risk because of the increased probability of accidents.
Now you know the answer to the question that has been playing on your mind. The various reasons outlined in this piece are the answer to the question of why is car insurance so expensive.
Why Car Insurance Is So Expensive FAQs
What car is the cheapest with insurance?
Mini cars are the cheapest cars to insure with insurance at $2,209 a year or $184 monthly.
What is the cheapest Toyota to insure?
The Toyota Camry is the cheapest car to insure with insurance for a new Toyota Camry at $225 a month for a 30-year-old.