Young drivers under 25 years looking to buy or renew car insurance policies receive higher quotes than experienced drivers. The significant difference in the premiums is due to the fact that older drivers are considered less risky to deal with than the younger lot by car insurers.
Also, vehicle insurers determine premiums based on individual risk profiles. Simply put, an insurer will compute a premium after carefully examining a vehicle owner’s profile, type of vehicle to be insured, and other factors they deem important.
So, for the same driver profile and vehicle, the premiums can vary across cheap car insurance providers in NSW. Therefore, to purchase the most suitable plan, it is always best to request and compare quotes online before signing up.
Young drivers considering purchasing car insurance in NSW must also remember that higher risks attract higher premiums. However, they can make substantial savings on their premiums by learning why vehicle insurance for young people usually costs more and following the tips mentioned below.
Why does vehicle insurance for young people cost more?
Not all young drivers are reckless while driving on-road, but many are. Young males are especially more susceptible to car collisions and other road mishaps involving a car. Some of the most common reasons for classifying young drivers into the high-risk driver category are –
- They are inexperienced.
- They are less aware of, or don’t understand, driving risks.
- They may drive at hazardous speeds, in dangerous zones, or at unsafe times.
- They can get quickly distracted while driving.
- They are more inclined to drive under the influence of alcohol or drugs.
- They are statistically more likely to get into car accidents than older, more experienced drivers.
These are the top reasons for insurers regarding young drivers as a group of people most likely to meet with accidents and/or get involved in fatal crashes compared to middle-aged drivers.
Tips to lower a young driver’s vehicle insurance premiums
We can’t change the fact that young drivers pose a great risk when weighed with older drivers who share a more or less similar profile otherwise. However, young drivers can reduce car insurance premiums by effectively managing a few factors under their control.
- Buying a lower value vehicle. (Insuring high-end cars is a lot more expensive compared to regular hatchbacks)
- Choosing a vehicle with a top safety rating. (A highly secure vehicle is less vulnerable in accidents and to theft activities.)
- Parking the vehicle in secure areas like a garage instead of a driveway or carport.
- Staying claims-free.
- Selecting higher excess.
- Utilizing discounts given by the insurer. (For instance: loyalty discounts, annual payment discounts, claims-free discounts, additional discounts for buying a policy online, etc.)
Young drivers can implement the tips mentioned above to get vehicle insurance protection and comparatively lower premiums simultaneously. Plus, with a little shopping around, a young driver can hopefully get the best deal for their profile and driving circumstances.
Also, car insurance NSW premiums depend on the type of policy chosen. While cheap car insurance policies are affordable, a comprehensive car insurance policy can be costly because of its broad coverage. So, a young driver must assess their driving circumstances, vehicle usage, and the policy benefits to purchase a reasonable car insurance plan.