Why your father pays less for his car insurance

Those who are new to driving are usually still young and inexperienced. This often automatically translates into more expensive car insurance premiums. Nevertheless, there are ways to keep the prices of your policy within limits.

First, the good news! The number of car accidents is falling: in 2018, 59 of every 1,000 insured cars caused an accident. In other words: 1 in 17 insured cars caused damage. In 2010, for example, it was still 72 out of 1,000 or 1 out of 14.

The accidents are not evenly distributed: especially young drivers turn out to be troublemakers. While the average damage frequency in the period 2015-2018 was 6.05%, it was 13-14% for men aged 18 to 21 and 9-10% for women in that age category.

This means that 1 in 7 among young men had an annual accident at fault, and 1 in 10 among young women. This is also an improvement compared to the 2008-2011 period (when no less than 20% of young male drivers have an annual accident at fault), but it remains twice as much as the rest of the driving population. And that translates into significantly higher insurance premiums for younger drivers, because insurers obviously know the above figures like the back of their hands.

How much more do you have to pay as a young driver? That depends on the insurance company you turn to and your place of residence, and the value of your car.

What can you do?

The easiest way to pay less? Find a job where you get a company car. After all, in that case, it is your employer who pays for the insurance, so your age is not taken into account.

Second option: drive a car registered in the name of your parents. In that case, it is best to have yourself included in the policy as a ‘regular driver’. This can increase the premium by 10 to 20%, but it will ensure that there is no discussion in the event of an accident. If you are not registered, many policies provide a higher franchise in the event of an accident.

A third option is to opt for a lighter car, because the price also depends on the power of the car: the lower the power, the lower the premium.

Special conditions

Axa offers drivers up to the age of 24 a discount of 20 to 50% if they drive carefully. Your car is then fitted with a black box that analyzes your speed and how you corner, brake, and accelerate. After four months of driving experience, the box is ‘read’ for the first time. If it turns out that you are doing it right, you will receive a discount. It is useful that you can also follow your evolution yourself, so that you can adjust your driving behavior if necessary.

Some Insurers are also making an effort for young drivers. Anyone younger than 26 who follows a defensive driving course will receive a 20% discount on the premium.

At some Insurance companies, there is a price reduction of 25% on the premium for drivers between the ages of 18 and 25 who have a Go Box installed in their car. In addition, the bonus-malus for young drivers drops by two degrees per year if they do not have a claim.

At Erie, too, the bonus-malus rate for young drivers decreases by two degrees per year instead of one degree if the insured has no claim that year. In addition, the company offers a discount of up to 15% for customers who still live with their parents, if they also have a car policy with the insurer. Or for customers who no longer live with their parents but who have two other insurance contracts with the company.

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