Car Insurance for Under 25
When we talk insurance, we talk risk. The higher the risk, the higher the insurance premiums. It’s simply a fact of life, and unfortunately for people under the age of 25, it’s a proven fact that they pose a bigger risk for insurance companies. If you fall into this age group you may feel (understandably) hard done by as you could be an excellent driver with a clear record. Unfortunately, you are a victim of statistics, here are some of them:

1· Insurance industry figures show that young drivers account for 45% of fatalities on our roads between 23h00 and 6h00. They are also 10 times more likely to have an accident at night and 14 times more likely over weekends.
2· Arrive Alive data revealed that drivers between the ages of 16 and 19 are four times more likely to speed, run red lights, make illegal turns, drive while under the influence of alcohol and drugs or being involved in accidents.
3· According to a World Health Organisation study done in 2007 road accidents was the leading cause of death among people under the age of 25.
4· The same study state that more than 1 000 young people died daily – mostly in Africa where more than 105 000 young people loose their lives in accidents yearly.
5. Young males are more vulnerable than females as they are more likely to take risks.
6· Mark Stokoe of Netcare 911 says the staff always prepare to treat more young people over weekends and that most of the accidents happen between 4h00 and dawn.
7· Every year we are confronted with teenage deaths after matric functions.

The cost to the insurance industry is enormous, they therefore have to link the higher risk they carry to higher premiums.

It is not only age causing the problem, it’s the number of years driving experience you have. The insurance industry believes that you need 5years+ of driving experience before you become a lower risk.

The premium loading is calculated on a sliding scale as you get older, so every year you will pay less in terms of the loading on the premium.

A valid point is made that we now have an increased number of inexperienced drivers on our roads who received their driver’s licenses in recent years but they are in a higher age group. They may fall into the 25-40 age range (supposedly a lower risk group) but their lack of driving experience makes them a higher risk.

If your teenager drives your car, even if this only happens on the odd occasion, you must inform your insurer and yes, you will pay more. Not advising the insurance company could result in them refusing to pay out a claim if your teenager is involved in an accident, don’t take that chance.

Some points to take into consideration:

1· Not only are the monthly car insurance premiums higher but the excess as well.
2· As with any insurance, shop around for the best deal. Some companies do take into account the personal circumstances, occupation and academic qualifications of the person under 25. There are companies that offer special products for drivers under the age of 25.
3· If you are under 25 and looking for car insurance remember that it is not only your age that will determine the insurance premium. Other factors are:
4· The type of car you drive: Stay away from sports cars and modified cars. The insurance is much higher as again, the risk is higher. Modifications to your car, such as the exhaust or extra lights, may result in the company refusing to insure you.
5· Taking an advance Driver’s Course will count in your favour and could reduce your premiums.
6· If you live in a high risk area and your car in not kept in a locked garage overnight, you will also pay more.
7· Security devices such as approved immobilisers or tracking and recovery systems will result in lower premiums.

Shop around and negotiate the best deal you can get, but make sure you are sufficiently covered.

Safe Driving