Car insurance for 20 year olds: If you’re turning 20 this year, you might be wondering why car insurance is so expensive. Well, there are five main reasons that explain why your premiums are higher than the average driver’s premium – this article will go over all of them in detail. The first reason has to do with the fact that you’re just beginning to develop the habits of a safe driver, and you might make more mistakes than more experienced drivers do.
1) Inexperience
A main reason car insurance costs more for a twenty year old driver is because they are less experienced than a thirty year old driver. This doesn’t mean that they are worse drivers, just that they have less driving experience to draw from and this can make them more dangerous on the road. The inexperience can result in reckless driving behaviors like speeding or not wearing a seatbelt.
2) Lifestyle
It is no secret that being a teenager in America means that you are, unfortunately, at a high risk of victimization. That’s why car insurance is generally more expensive for young drivers – they’re statistically more likely to be involved in an accident. One way to save on your premiums? Ask your parents or legal guardians if they have their own coverage and can add you as a driver (usually on the parents’ policy).
3) Loss History
One of the top reasons why car insurance is more expensive for twenty year olds is that they are more likely to file a claim. This might be because the car does not belong to them or because they feel like they have nothing to lose. Either way, drivers with more accidents will cost more. They are also less experienced and tend to drive at faster speeds which increases their risk of an accident happening in the first place.
4) Age Bias
Car insurance companies charge different rates depending on your age. Generally, the older you are, the less expensive your premiums will be because of the increased likelihood that you are more experienced and have a better driving record. For example, the average 19 year old in Vermont pays $575 per year ($115 per month) in car insurance premiums whereas a 30 year old pays about $550. However, for many people in their twenties car insurance costs nearly double as what it would cost them if they were 10 or 15 years older.
5) Purchasing Power
- With more responsibility than those just starting out, they are able to afford more expensive cars – and higher premiums go with them.
- They often have less experienced drivers on the road with them, making it more likely that accidents will happen.
- They’re in a higher risk group statistically; young people are also more likely to drink and drive or not wear their seatbelt.
- The result of all these factors means car insurance rates increase as they get older – sometimes by as much as 10% every year.
- All of this can be avoided by maintaining good grades, staying away from dangerous situations and being a safe driver!