Why is insurance for under 25s so expensive?
Younger drivers tend to face higher car insurance premiums, even if they're long rid of their L plates, but why is that?
When it comes to calculating the cost of your premium, insurers take lots of different factors into consideration. Things like:
- The engine size of your car
- Your location
- The cost of repairing your car
- Whether you have any no claims bonus
- Any driving convictions you may have
- If you've previously made a claim
One of the major factors not listed above, is your age. This is used alongside historical claim data to calculate the risk involved in insuring you.
Unfortunately, if you are under 25, the data shows you're at a much higher risk of being involved in an accident and subsequently making a claim than any other age group. This is why insurers charge so much to provide you cover to be out on the road.
For an in-depth explanation on factors involved in pricing insurance, take a look at our guide to how car insurance is calculated.
Don't take risks by driving uninsured
Affording the price of insurance is obviously a major issue for many young drivers who struggle to stump up the money for a large one off premium that can sometimes cost more than the price of the car.
Whilst it may be tempting, driving without insure is illegal and can lead to fines, court appearances and losing your licence.
According to a report from the Motor Insurer's Bureau (MIB), there are an estimated 34 million drivers in the UK, of which 3.5% (1.2 million) are uninsured and each year uninsured and untraced drivers kill 130 people and injure 26,500 innocent people*.
If you're unsure what to do in the event of being hit by an uninsured driver, take a look at this blog for tips on what to do.
*MIB data August 2012