The Reason Why Young Driver Insurance Can Cost So Much ££s
08 April 2019
In 2017, it was estimated that the average cost of insurance for a 17-20-year-old here in Northern Ireland was an eye-watering £2,430 – and that’s only one part of the whole driving process!
That’s a lot of money which can make it difficult for young people to get on the road, with some being put off learning to drive altogether by the high cost of insurance. However, there are many myths and misconceptions about why young driver insurance is so expensive.
Why does it cost so much?
The insurance industry is all about calculating risk. The amount that your insurance provider charges you for your policy depends on all sorts of different factors, but above all it’ll depend on how likely they think you are to make a claim.
It’s important to stress that this is nothing personal but unfortunately, decades’ worth of statistics that insurers base their quotes on all show that drivers under 25 years old are more likely to have an accident than those in any other age group.
Ultimately, this all boils down to experience. From the moment you pass your test, young drivers are less experienced and therefore more likely to have an accident. Consequently, they’re more likely to make a claim on their insurance and insurance providers increase the cost to offset this.
The same will apply to any first-time motorist, who will experience much higher insurance costs than someone who’s been driving for a while, regardless of their age. But it’s younger drivers that are hit with the highest costs due to the fact that statistics show they’re riskier on the road overall.
Are young drivers really more likely to have an accident?
This is by no means indicative of your own abilities as a motorist. Every single one of us is affected by the same statistics in some way, but there is a significant wealth of data which shows that drivers aged between 17 and 24 are more likely to have an accident, and more likely to be seriously injured in a car crash.
According to research from the RAC Foundation, 20% of young drivers will have a crash within the first six months of driving. Similar data from road safety charity Brake shows that 25% of 18-24 year olds will crash within two years of passing their driving test.
Research also shows that younger drivers are less able to accurately assess hazards due to their inexperience, are more likely to engage in high-risk behaviours like speeding and are more likely to be over-confident in their driving abilities than drivers aged 25 and above.
Stats like this go on and on, and even though in Northern Ireland the number of young drivers killed on the roads has decreased in the past few years, people aged between 17-24 still make up a disproportionate number of those seriously injured in car accidents.
How can I save money on the cost of my insurance?
However, there are several ways to save on your car insurance as a first-time driver. Important things to consider would be the car itself, for example a sports car worth £30,000 is likely to be considered a higher risk. It’s important to remember a car with a lower insurance group can lower your insurance premium. Some insurers will also give you a discount if you have completed a Pass Plus course.
Another way round saving money on your car insurance is by taking out a telematics policy – a device that monitors driving behaviour that can offer discounted insurance in return. You can find out more information at chillidrive.com.