Why is automobile insurance so expensive for young drivers?
Automobile insurance rates have to take several factors into account, including: • Gender • Age • Driving record • Vehicle use • Vehicle model Automobile insurance rates are based on the risk that certain groups represent according to insurance companies’ loss experience statistics. As a general rule, history has shown that young people represent a higher risk. However, age is not the only criteria used; a good insurance record (no claims) will help offset higher rates. Also, the more recent the vehicle model is, the higher the premium is going to be. This is why several young drivers choose to gain driving experience with a used vehicle.
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