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Reader’s questions:

I am a young driver. I have been finding it hard to procure a cheap auto insurance. Is it true that insurance companies do not want to insurance young drivers?

Andy

Thanks for asking.

A host of vehicle insurance companies have ceased to insure less mature drivers, so it is now important to scout around for car insurance for young persons. A lot of insurance firms stated that the reasons that a lot of companies had stopped to insure younger drivers was the big probability that they are more likely to make a claim as compared to older drivers.

These insurance claims filed by younger persons accounted for a huge chunk of money paid out by insurance firms as compared to older drivers.
Statistics of various insurance companies show that in the year 2004 there were over 150 deaths of drivers who were bracketed from ages sixteen to nineteen.

As an offshoot of what insurance firms’ fear as a greatly increased risk, they have gradually hiked up premiums to correspond to that risk, however at the moment a lot of companies are simply turning their backs on giving out car insurance for young drivers, and not giving them with policies.

It has been very chronicled that younger persons are deemed by insurance companies to be very high risk considering the fact that they are not only very likely to be involved in accidents but more significantly they are more likely to figure in accidents paving for injury and death. Younger persons are predisposed to statistically drive at a much higher speed, has tendency not to obey traffic regulations, and to drive in a very reckless fashion than people of their parent’s age.
Over the past thirty years the number of young persons driving on the countryside has increased multiple times over, and with this has raised an alarm bells in terms of risk factor for the insurance companies and naturally this risk has been passed on in the form of higher premiums for auto insurance for young persons which is usually paid not by the young person but by their parents.

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