Statistically, young people and especially young males, are more likely to be involved in an accident than any other demographic.
They charge more because you are more likely to cost them money. It's not feasible for them to accurately assess every drivers skill individually so have to go by these general statistics of who is most likely to cost them money.
So why is car insurance expensive for anyone under 25?
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| Speed | can understand someone who has just gotten behind the wheel for the first time ever, but I have been driving for 2 years without even a traffic ticket on record, and my insurance is still near 2.5 grand a year. I don't drive a sporty car either, I drive a 2002 Accord. And I still have to wait 7 years for my insurance to go down to a reasonable rate? doesn't this sound a little ridiculous? And don't tell me that an accident is "bound to happen" or "unavoidable" for someone of my age. My dad got in his first car accident at age 35. My mom has yet to get in one (well, one that doesn't involve being rear ended). My girlfriend's oldest sister, who is now 27, hasn't gotten in an accident either. I think it is flawed that the insurance companies are simply assuming I am going to get in an accident instead of assessing what kind of a driver I really am. |
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| Fredrick | ||
| Zak | Insurance companies create there rates based on sterotypes (based on statistical data) which is also why people who live in cities with a higher crime rate pay more than cities with less crime pay less. You are still going to pay more in a city that had more break ins even if your car never gets broken into. |
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| noname | It's not based solely on your age. They can base your rate on your experience, driving record, and even your credit score. And whether you like it or not, the Accord may be considered to be a sporty car by some companies. And it doesn't stop there. They do assume you're a higher risk for an accident simply because you haven't been driving that long. It's nothing personal, they are just following statistics. They do it for everyone on the road. We're all just a bunch of numbers to them. You may be able to talk your agent into helping you negotiate a lower rate, but they get paid based on how much you pay the company. I'd say shop around for cheaper insurance. If you do find a lower rate, use that to negotiate a lower rate with your current company. If they refuse, go with the other guy. |
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| Endy | Welcome to Socialism 101 where everyone (25 and under) is exactly the same. Automobile insurance is one of the best examples of how socialism works. (I hope you didn't vote for obammamma) Because statistics prove that people under 25 have more accidents. People under 25 are a greater risk and therefore insurance companies charge them more. |