If you are a young driver, generally below 25 years of age, you must have wondered why your car insurance premiums are so high. When you are a young adult below 25 years, you tend to invest a portion of your income on building your career or saving money for college or are having other financial obligations on your basic salary. Keeping that in mind, a high premium to be paid on a car insurance can be upsetting.
Let us try to explore the reasons behind this predicament and find ways to optimize purchasing of car insurance by young drivers in the UAE.
Reasons Why Young Drivers Pay More:
Higher Risk Profile
The risk profile of young drivers is generally considered high primarily due to the lack of driving experience these young drivers possess in comparison to the more experienced middle and old age drivers. This lack of driving experience makes the premium on car insurance pricier.
Driving Aptitude & Record
The lesser experience and insufficient proof of clean driving that is built over time with the increase in driving experience is the hindrance which makes young drivers to premiums that can be as high as 40% more than the usual price.
Statistics are Against Young Drivers
The reason for the high premiums for young adults is that statistically young people are more prone to car wrecks and have behavior that is prone to distracted driving which can consequently lead to accidents.
Greater Financial Risk
Insurance Company’s risk is more when they add young and less experienced drivers to their pool of risk insured. Thus, this greater risk is transferred to the young drivers being insured in terms of higher premiums.
Ways to Lower Premiums & The Best Quote:
Never buy the first quote you come across, carefully compare and understand the different benefits and price offered by different companies. Platform such as Yalla Insure is best suited to generate quotes that are competitive and easy to understand.
While comparing, discussing and talking to your insurance broker for finding the best rate as well as educating yourself regarding the norms in the market, this will help you save big and make informed decisions.
Smaller Engine Vehicles
Another smart way to save on your premium is to buy a car with a smaller engine as insurance companies would categorize this smaller vehicle as safe with less risk. The bigger the engine power, the higher the risk would be for the insurer to cover.
Get the best price for all your motor insurance needs, along with additional benefits and superior customer service - Only at Yalla Insure
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