Why is insurance so expensive for teenage & young drivers?
Insurers base the price of premiums on lots of different factors:
- The car you’re insuring – Its age, engine size, value and more
- Information about you - Your age, where you live, how long you’ve been driving, whether you have any driving convictions, No. of years no-claims bonus you have, No. of claims you've made and more
- The type of cover you’re looking for - Whether that’s comprehensive, third-party, or a black box policy
- The level of excess you’re looking for
Because this information alone isn’t enough to base a quote on, insurers also have to use statistical data from all of its customers to determine the level of risk.
The industry statistics show higher accident levels amongst teenage and young drivers which therefore means they’re a higher risk to insure.
It’s understood that younger drivers are involved in more accidents as behind the wheel; they’re more likely to take risks and with less driving experience, are less likely to spot potential hazards.
The road safety charity Brake has compiled some hard facts about young drivers that include:
- One in five new drivers has a crash within six months of passing their test
- An 18-year-old driver is more than three times as likely to be involved in a crash as a 48 year-old
Student car insurance explained
Many students are also younger drivers and unfortunately, insurance companies see those aged 25 and under as a higher risk, which means their cost of insurance will be higher.
The location of the biggest Universities in the UK has an influence on the cost of insurance for its students. As crime and insurance claim rates are often higher in the cities and areas students live, the cost of insurance may be higher than more rural areas.
The below table shows the average comprehensive policy price for each of the cities containing the ten largest Universities. It's worth noting that the prices shown below are an average across all age ranges and not just students.
|University of Manchester
|University of Nottingham
|Sheffield Hallam University
|Manchester Metropolitan University
|University of Birmingham
|University of Leeds
|University of Central Lancashire
|University of Plymouth
|University of Northumbria
*Figures for University population published by Higher Education Statistics Agency 2012-2013 (excluding The Open University)
**Towers Watson/Confused.com price insurance index Q1 2014
How can I reduce the price of my insurance?
Rather than waiting a couple of years to build up your no claims bonus, there are other ways you can reduce the amount you pay for teenage or young driver car insurance.
Take a look at this short video on top tips to cheaper car insurance.