Posted June 5, 2012
Charmayne Smith, Researcher
Young Drivers Insurance
The thought of young drivers insurance makes some people cringe. Many factors impact the availability and premiums of young drivers insurance. The young drivers activities and history on the road impacts the potential fluctuations of the young drivers insurance policy, making the young drivers insurance premiums even more unpredictable. Still, young adults can effectively manage their young drivers insurance by understanding their policies and, of course, by driving safely on the road.
The lack of experience is one of the biggest components of the young drivers insurance policy. Many young drivers have fewer than five years’ driving experience which means they have less experience dealing with the unexpectedness of daily driving. As a result, many young drivers insurance policies include a minor driver surcharge which often has substantial impacts on the young drivers insurance premiums.
Other common factors that impact the young drivers insurance policy options and premiums include:
- Accidents & Violations – Accident and violations almost always impact the young drivers insurance premium. Although a young drivers insurance policy may not immediately increase in premium price, it is likely the young drivers insurance policy premium will increase upon renewal.
- Vehicle Type – Young drivers insurance policyholders should choose their vehicles carefully, if they want greater control of the young drivers insurance premium. Higher-risk vehicles, such as sports cars and SUVs can result in higher young drivers insurance premiums than more moderate vehicles, such as sedans.
- Coverage Selections – Young drivers insurance always includes the minimum coverages required by the state. However, young drivers are not required to carry state minimum coverages. Those with young drivers insurance can elect higher liability and medical benefit coverages, as well as physical damage coverages to protect their vehicle.
- Discounts – Policies for those with young drivers insurance are often eligible for certain discounts which help to reduce the young drivers insurance premiums. Young drivers insurance discounts vary by carrier and driver. Common young drivers insurance discounts include:
- Good Student
- Safe Driver
- Accident Prevention
- Many carriers do not provide discounts for completing the required drivers’ education courses but may provide young drivers insurance discounts for completing additional driver training courses.
Young drivers insurance policies are subject to the same regulations and guidelines as other auto insurance policies. As a result, young drivers insurance carriers reserve the right to cancel and non-renew policies for nonpayment, unacceptable driving history, unacceptable risks and fraudulent activity. Insurers must notify those with young driver insurance, in writing and in advance of these cancellations, according to the law. Depending on the reason for cancellation, the young drivers insurance carrier provides from 7 to 60 days’ notice.
Like all policyholders, people with young drivers insurance have a right to obtain competitive rates from other carriers offering young drivers insurance. Young drivers insurance policyholders can cancel their policies at any time to start a new young drivers insurance policy with a new carrier. If you choose to change the carrier who provides you with young drivers insurance, be sure not to create a lapse in coverage.