What Are the Costs of Insuring a Male Under 25?
There is probably nothing more liberating for a teen driver than getting behind the wheel for the first time alone in their own car and heading down the road. While this experience comes with new freedoms, this rite of passage will also come with significant auto insurance premiums. Teenage drivers pay some of the highest rates for auto insurance than most other drivers. Because of inexperience and no previous driving record, insurance companies see young drivers as very high-risk policyholders. Even though insurance rates for teens can be significant, most drivers, no matter their age or experience, must have auto insurance.
Most states require that drivers purchase a minimum amount of liability insurance to be on the road. This coverage protects other drivers in the event of an accident where you are at fault. However, with liability insurance, you and your vehicle will not be covered. For some teen drivers, liability insurance is usually all that is needed since they typically don’t have their own at first. Once they get their own car, however, depending on the situation, full coverage may be required.
Although rates are high for all teenage drivers, young male drivers could pay even more for auto coverage. Among the many factors that impact car insurance rates, gender can be a key consideration. Teenage males pay the highest rates among most drivers. As a result, many people seek to find the cheapest car insurance for males under 25. Let’s take a look at insurance costs for young male drivers.
Why do age and gender matter?
While teen drivers are learning how to drive, they will pay a significant amount for insurance premiums. As discussed, age is a large consideration for insurance companies when issuing policy premiums. Teens from 16 to 19 years of age are at an elevated risk for tickets, traffic accidents, and other vehicle incidents. This is mainly because they haven’t had enough experience behind the wheel to develop good driving habits and defensive driving techniques. As a result of these risks, adding a teen to an insurance policy could increase premiums by more than $2,000 a year.
Among other factors that impact insurance rates is gender. On average, young men pay more for auto coverage than young women because they are seen as riskier drivers. Insurance company statistics find that young male drivers are more likely to speed, engage in reckless driving, and take more risks. As young male drivers are generally seen as higher risk, they typically pay an average of 14 percent more for auto insurance than females of the same age and experience.
How can you lower insurance costs for young males?
An 18-year-old male driver could pay as much as $3,000 for insurance for six months. The best way to help lower these rates is to add them to a parent’s policy. While policy rates will jump with the addition of a teen driver, the discounts and benefits offered to more experienced drivers can help lower overall premiums. Aside from adding a young driver to an existing policy, you might also shop around for multiple quotes. Insurance companies have different policies for covering young male drivers, and you might be able to find lower rates by comparing multiple policies from several companies.
In addition to comparison shopping, you should also seek out available discounts. Most major insurance companies understand the financial burden of covering a young male driver. As a result, many companies offer discounts for getting good grades or attending college classes. They may also qualify for a better rate once they have established a clean driving record and maintain good driving habits.
While teenage male drivers will pay more for auto insurance, there are some ways to find cheaper, more affordable rates. Adding the teen to an existing policy and seeking out discounts can help secure lower premiums. With some time and research, males under the age of 25 can find more affordable car insurance.