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The Main Factors Influencing Car Insurance Premiums for Young People

Safety - 21 May 2019

Young man behind steering wheel“Taking out car insurance helps you build your life!”

You’re newly qualified, got your first job and have just bought a shiny new car. The problem is that you also need to take out your own car insurance. You find it expensive because of your age, limited driving experience, lifestyle, short credit history and because your insurance policy only covers your car.

Young men also pay higher premiums than young women. Is this fair you may ask. Richard Grubb from RGA Insurance and Risk Manager explains what factors most affect the cost of car insurance premiums for young drivers.  

Age

Age is a highly significant factor in determining the cost of premiums. When you, as a young driver of 25 years or below, drives a vehicle valued at R500, 000 or less, a basic excess is imposed together with an additional excess due to age.  Excesses are generally non-negotiable for you due to your inexperience on the road.

Lifestyle

Under 25s tend to travel on the roads with greater frequency at night than older people; and driving after dark is dangerous. This is because more people drive under the influence of drugs or alcohol at night, making them reckless on the road. Speedsters take advantage of the fact that there are fewer cars on the road at night and drive irresponsibly.  

Gender

And, just in case you had any doubts; statistics prove that female drivers have fewer accidents than males.  Thus, gender is an important rating factor when insurance companies decide on the cost of premiums for drivers young and old.

Credit Ratings

Your credit history also affects premium costs.  Thus it is critical to keep your credit record clear so you can benefit from lower premiums in future. It is good to note that paying your vehicle premiums regularly also helps you build a good credit record.

Combined Insurance Policies

Note that insurers give cheaper car insurance to people with combined insurance policies. That is when they cover their car, household and other valuables under one policy.  This affects young drivers, many of whom have not accumulated many assets and whose first biggest purchase is a vehicle.

Many young people may see car insurance as a grudge purchase because it is expensive and takes money away from other more fun aspects of life, such as holidays and socialising. However, driving, growing your career, and enhancing your education are all responsibilities that enable you to be able to achieve your potential and help you gain your independence.  Thus taking out car insurance is a further step towards growing your life and achieving success.

As a young driver, at Supa Quick your safety is our concern. Stop in at a Supa Quick fitment centre for a free vehicle safety check and keep driving accident-free.

Original, sourced via interview with Richard Grubb, Insurance Broker.

Disclaimer: This information is for educational, or entertainment purposes only. The views expressed here are not that of Supa Quick. We do not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the information on this site is at your own risk. We will not be liable for any losses and damages in connection with the content on this site.

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