Why is auto insurance so important for young drivers

Category car insurance

P 1 11Most insurance companies have a policy of higher rates for drivers under the age of 25. Unfortunately it’s still necessary to invest in the monthly insurance premium commitment, to build a good insurance reputation. The longer you wait to activate your auto insurance, the higher the penalties will be.

Four facts about accidents involving young drivers:

  • One in five drivers has an accident in their first year of driving
  • 26% of road accidents involve at least one young driver, ages 17 to 24
  • A higher rate of young driver accidents occur on Friday and Saturday nights
  • 57% of reported accidents that involve young drivers occur in urban areas

(Sources: AA Public Affairs report: Young drivers DfT Road Accident Statistics Factsheet No. 6, 2009: Reported road accidents involving young car drivers)

Keeping the statistics in mind, it is a good idea to be realistic about the risks involved as a young, inexperienced driver. The chances of making a mistake are considerably higher than an experienced driver and it is sensible to have the safety measure of an auto insurance policy in place.

Insurance companies will most likely compare your records when applying for a new policy, the cost estimation will be linked to the time-frame between getting your license, to applying for an insurance policy.

Warranty on car registration plate keyring

Auto insurance is about protecting yourself, your passengers, as well as your vehicle. When you are involved in an accident then injuries, damages and legal liability are likely to occur. Some drivers are lucky enough to never be involved in a collision, however accidents unfortunately do happen and things can go wrong unexpectedly.

Also, you might be a good driver, following all the traffic rules, but you share the road with other drivers who might be reckless and their mistakes can influence you.

Auto insurance gives you the added sense of protection and peace of mind, knowing that you won’t be stranded in the event of an accident. If you don’t want to fully insure your car, it is wise to at least activate Third Party Property Damage insurance to cover you for damages in case you are the responsible party in an accident.

Another benefit of some insurance policies is roadside assistance. If you are stuck somewhere with a faulty battery, flat tyre or even when you ran out of petrol, you can contact your insurer to come and assist you in the emergency situation. This is especially useful for ladies who are not mechanically inclined. A further service offered by some insurers, is a drive-me-home option when you feel that you are too intoxicated to drive yourself home.

Sorting out everything to activate your auto insurance might feel like too much of a hassle, but you will definitely benefit from the investment in the long run. While you are a student some insurance companies will also offer the option to be added onto your parent’s existing policy, which could offer you a reduced fee to start off your insurance track record.