The youngest drivers in the UK are also the most inexperienced so they have high premiums for their motor vehicle insurance. The age group for this portion of the population is from 18 to 25 years old. Many in this age group find anything car related expensive, if they choose to enter the motor trade business and are under 25 or 23 they will need to search to find an affordable under 23 or under 25 trader’s policy
Reasons those between 18 and 25 pay High Insurance Premiums
Drivers from the age of 18 to 25 are considered the most inexperienced on the road. Because of this inexperience, statistically they are involved in more motor vehicle accidents. This makes them high risk. This risk is all done to inexperience and sites like http://hazardperceptiontests.co.uk/ can help build real world driving experience.
Males between 18 and 25 years old are considered the highest risk and have to pay the most in terms of premium costs because of it. Men in this age bracket are involved in more vehicle accidents than any other group of drivers. Because the number of claims and amount that has to be pay out by an insurance company is high, so are the premiums for these drivers to help cover the cost of covering these high risk drivers.
Young men are also more likely to take an increased number of risks when operating a motor vehicle. This can be from being overconfident or peer pressure and leads to them being categorized as high risk.
The inexperience of young drivers includes the lack of knowledge of properly identifying a hazardous situation. The hesitation of just a second of two can be the difference between a close call and an accident and is another reason for them to be classified as high risk.
Ironically once a man reaches 25 his rates will be lower than women in the same age group.
Ways to reduce the cost of premium for drivers under 23
Type of motor vehicle
The type of vehicle is a factor in the cost of the insurance premium just like the age of the driver. Each type of motor vehicle is categorized according to risk and how often this type of vehicle is involved in an accident. The higher the risk, the more the premiums will be.
Economy cars are the lowest risk.
Sports cars and convertibles are the highest risk
Increasing the Excess
By increasing the out of pocket amount a driver will pay if a claim is made will reduce the cost of the premium.
Installing a Black Box
This is a recording device that tracks the speed, distance and frequency the vehicle is operated by a driver. This will provide evidence the young driver is a safe driver.
If a driver is reckless, it will also provide the insurance company with evidence that justifies the increasing of the insurance premium.
Modifying the appearance or performance of a vehicle will make it higher risks with higher premiums. This includes but not limited to alloy wheels, spoilers and a larger more powerful turbo.
By installing and using a dashboard cam, a young driver can reduce their insurance premium. This will provide evidence on how well the driver can operate a vehicle safely.
Paying the Premium
The lowest premiums will be paid by those that pay annually. With monthly payments there is interest added that will increase in price attached each month to the premium.
The young drivers are the least experienced on the roads and are classified as high risk. In the insurance business sector, premiums are determined by the amount of risk. This is why these drivers between the age of 23 and 25 have the highest premiums.