Car Insurance for Young Drivers

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A lot of people are unaware of the fact that driving is not only a right but it is also a social responsibility. Thankfully, the law is strict enough in order to protect even the most reckless drivers as well as their possible victims. Car insurance is mandatory in the United States of America, with the exception of a few states such as Virginia, New Hampshire and Mississippi, which have some fee and bond alternatives to car insurances. Most car insurance premiums are quite affordable, but they do vary according to each driver and car. Young drivers are particularly affected by expensive premiums, especially if they have a bad driving record.

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Why are the premiums so high on car insurance for young drivers
Insurance premiums are calculated according to the level of risk presented by a person. In the car insurance field, statistics are the main element that contributes to determining the level of risk. According to multiple statistics, young drivers are far more likely to be involved in traffic accidents. Furthermore the cost of insurance claims filled against young drivers are generally higher than the cost of the claims filed against older drivers. The reason for this is the fact that accidents involving young drivers produce more damages as they are generally caused by high speed. Furthermore young drivers haven’t got the opportunity to accumulate no claim bonuses which means that they rarely get any discounts.

Telematic car insurance
If you are one of the many people who think that it is unfair to pay expensive premiums based on the bad driving records of other people, then you might be interested in a telematic life insurance. Such an insurance policy works in a very simple manner. You start by paying the average premiums for car insurance for young drivers. Once you buy such an insurance policy, you have a telematic device installed on your car which measures your driving skills (speed and corners count a lot). If you prove to be a responsible driver, at the end of a pre-established period, you can get back some of the premiums that you paid during that year and your future premiums are also modified as your level of risk has decreased.

No claim bonus
As a young driver, when you buy an insurance you are forced to pay ridiculously high premiums. However if you prove to be a responsible driver and you are not involved in any accidents, those premiums will be cheaper as you grow older and you will also receive considerable discounts. When you are shopping for an insurance policy, make sure that you pick one with variable premiums as well as no claim bonuses.

As you can see, there are ways in which you can save money on car insurance for young drivers. As long as you are responsible and aware of the driving risks, you will be able to pay less money as you grow older. Keep in mind that 1 in 5 drivers is involved in a car accident within the first year of driving. Furthermore about a quarter of all road accidents involve a driver younger than 25 years old and most such accidents occur on Friday and Saturday nights (over half of these accidents take place in urban areas). As you can see, the risks are pretty high, so insurance companies have solid reasons for charging young drivers with higher premiums.