Why is Car Insurance So Expensive For Young Drivers?

Well, it’s no surprise why you’re here. You’re a young driver who’s frustrated over the fact that you can’t find cheap car insurance anywhere. You’ve searched on Google for the answers and you’ve wound up on our page. We won’t delay you for much longer, so let’s jump straight into it.

A recent study says that young drivers think the insurance industry is “greedy and corrupt”. But it’s true what they say - you won’t get cheap car insurance if you have little experience, and the only way to get more experience is if you get on the roads. With the inexperience that comes with being a young driver, this forces them to pay through the nose when it comes to insurance.

The first thing you have to understand about the insurance industry is that everything is calculated on risk. It isn’t anything against you and insurers are fully aware that not all young drivers are bad drivers. Unfortunately for you, there is decade’s worth of statistics that show that drivers under-24 are more likely to have an accident compared to those in other age groups and insurers base their quotes on this.

According to research from the RAC, 1 in 5 young drivers will have a crash within the first six months of driving. Similar data from road safety charity Brake shows that a quarter of 18-24-year-olds will crash within 2 years of passing their driving test.

Unfortunately, this evidence plays into the insurer’s hands and shows to them that younger drivers are more at risk than more experienced motorists. It stands to reason, then, that insurers charge younger drivers more for cover because there’s a greater chance they’ll have to pay out for a claim.

Another thing to keep in mind is that the reason insurance providers charge young drivers more for their insurance isn’t solely down to the fact that they’re more likely to have an accident, but also because the average cost of their claims is much higher than that of the average motorist.

Do you want to know what the average cost of a claim for a 17-24-year-old is? £3,667.

That’s nearly £1,500 more expensive than the average claim for someone who’s more experienced. This is due to the fact that younger drivers are more likely to have more serious accidents, which will result in higher repair bills and more expensive claims for personal injury.

If insurance providers have to pay out larger amounts for younger drivers, it only makes business sense that they charge more for the insurance in order to offset the costs.

However, there are ways to battle this. If you’d like tips on how to save money on your car insurance as a young driver, click here to read our article on money-saving tips.

And remember, if you’re a young driver who needs help with finding car insurance, Kompare is here to help. We work with insurance experts from all over the UK to give you competitive prices instantly. By filling out our quick and easy application form, you will receive your quote in seconds. Furthermore, if you would like to talk to one of our agents about getting a quote offline, you can call us on 0800 812 1000.