Motoring Insurance Specialist Weighs in on Why Car Insurance Often Costs More for Young Drivers

GlobeNewswire

MELBOURNE, Australia, May 16, 2022 (GLOBE NEWSWIRE) -- According to leading car and motorbike insurance specialist, eric Insurance, being a younger driver often comes with a higher price tag on insurance premiums. With less time spent on the road, young drivers lack the experience of navigating different road conditions and often do not have a solid understanding of how to manage their cars in different situations.

In Victoria, a learner driver must drive 120 hours before they are eligible for their probationary driver's license, which equates to just 15 days of driving experience. As drivers build their experience over the years, eric Insurance explains that insurers take this into account which is why premiums are often cheaper for older drivers.

A report released by Compare the Market in 2021 revealed that drivers under twenty-five make more claims than any other age group. This data is reaffirmed by Victoria Police who maintain that young people are four times more likely to be involved in a serious or fatal accident than a more experienced driver.

As a result, eric Insurance explains that insurance companies must balance the risk of insuring a young driver with a higher premium. While this can be frustrating for young drivers, practising responsible driving behaviours will work in their favour. Drivers who have made more claims or have been involved in at fault accidents will often continue to pay higher premiums than those drivers who have not.

By being responsible road users, young drivers are not only making themselves safer, but they will also start to see their insurance premiums reduce as their experience increases.

eric Insurance claims that insurers will also take other factors into account when determining premiums, including the make and model of the car and its garaged address. Offering a range of industry-leading products to cover a variety of circumstances including comprehensive car insurance, eric can be there to protect drivers when they need it most.

To learn more about car insurance online and to find the best car insurance policy, contact eric Insurance.

Disclaimer: This article may contain general financial product advice that does not take into account your personal financial circumstance. Make sure you read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decisions about your insurance. For more information, call 1800 999 977.

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