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Factors affecting young drivers and tips that can help keep premium down. Part 1


New driver
Newly licensed Driver

There's no shortage of rising insurance premiums, and when it comes to new drivers, those premiums can be downright cringeworthy. There are several factors that make up those final numbers on your new policy. The factors are usually assessed by the insurance carriers and dictates the level of risk associated with that driver. Some key factors affecting your insurance rates as a new or youthful driver include:

Age: Typically younger drivers will have higher premiums because of their lack of experience. Statistically speaking, they are more likely to be involved in accidents, and teens in particular, have the highest risks and rates.

Driving history: Driving history is considered regardless of when you got insured or were issued a license. A clean driving record is essential to help manage rates and keep premiums down. If you're a new driver and also have previous accidents or violations, you're likely to see much higher premiums, especially in teen years.

Location: If you live in an area that is congested, there is a tendency to be more accidents, a higher crime rate, and higher premiums. The higher the risk, the higher the premium. Statistics show you are more likely to have an accident, your vehicle stolen, or other incidents such as vandalism when you are in highly populated areas.

Types of vehicles: We cannot overlook the fact that certain vehicles can have much higher premiums. The type of vehicle down to the year and the model is likely affecting your insurance rates. Vehicles with higher theft rates show higher premiums, as well as high-end models or high-performance vehicles due to the repair and replacement costs associated with them.

The coverage you choose will also influence the bottom line on your premiums. The amount of coverage you choose can help or hurt the rates you receive, such as comprehensive and collision coverage is more than liability only. Please speak with a reputable agent who can help advise you on coverages so you can make an informed decision when it comes to your coverages.


There are also ways to minimize the amount of premium a new driver will pay. Stay tuned for part 2 to see the steps and tips that can help you cut down on costs and get the best bang for your buck.



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