by admin
Finding out how much it will cost to provide insurance to a new driver, especially a 16 year old, can almost be jaw dropping. Insurance companies have decided that because these 16 year olds haven’t had much experience on the road, they will most likely be involved in some type of incident that will result in filing a claim and statistics can prove this. Because of the high chance of this occurrence, insurers go ahead and charge 16 year old drivers a high rate even before they’ve had a chance to prove they will be a safe driver. It’s just the way it goes! However, if you know what goes into deciding the rates of the new driver, you can also learn what to do to help lower the rates.
Determining The Rates What exactly goes into determining the rates of a 16 year old driver you might wonder? It’s the same as how an insurer determines the rates of any driver, honestly. First, the insurance provider will look at the age and gender of the driver, coupled with the residential location and the driving history of the driver, if there is any. These factors are all put together to figure out the “risk level” of the new driver. The younger the driver, the less experience they have and the more risk they have of being in an accident. Young male drivers have statistically shown to be more reckless than young female drivers, and the males are charged higher rates since they are part of more accidents than their female peers. The residential location affects the premium in the sense that if the car is parked in a high crime area, there is a higher chance it will need repairs due to theft or vandalism.
All drivers, both experienced and new, can always be working on keeping their driving record clean and free from accidents and tickets, which will keep rates lower. Learning to always obey the speed limits and traffic signs will help aid them in keeping a clean record. Newer drivers have the disadvantage of not being able to have already proven their ability to drive safe the way an older driver has. There are 16 year olds on the road who do their best to drive safe and not have distractions in the vehicle with them. This is good practice to help them learn the importance of safety and it will also keep them focused on the road and their surroundings instead of a conversation or changing the radio station. Keeping a driving record clean is about the only thing a 16 year old driver can do to help keep their premium charges low. They can’t necessarily change their age, gender, or address which also affects their premium, but they are in control of their driving record.
...16.07.10
The cost of car insurance has soared by almost a third in the past year. The average yearly premium for comprehensive cover is now £599, according to the latest Confused.com/EMB Car Insurance Price Index.
The biggest rise came in the last quarter, with the average cost of comprehensive cover climbing 14.2 per cent between April and June – far higher than rises of 4.3 per cent and 6.3 per cent in the two previous quarters.
Parents aged between 41 and 55 faced the heaviest increases in the cost of comprehensive cover, reflecting a generation of people putting their children on their policies. Women suffered most from this, with those aged 41 to 55 having to pay 14 per cent extra for having named a driver other than their husband.
Why are premiums climbing so quickly? There are a number of issues forcing prices to sky-rocket, according to those within the insurance industry. The first that premiums have been kept artificially low in recent years by fierce competition in the market; motor insurers have effectively bought in masses of new business by slashing their profits to the bone.
Source: Independent
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