How much does insurance cost for a young driver?
How much does insurance cost for a young driver – one of the most frequently asked questions asked by newly licensed drivers and their parents. The answer often surprises: the first compulsory car insurance for a young person can cost several times more than for an experienced driver.
Why does insurance cost more for a young driver?
For a young person who has just obtained a driver’s license, insurance can sometimes cost up to ten times more than for their father or mother, who have more than ten years of driving experience and a long history of accident-free driving. For example, a driver with 10–20 years of experience and no accidents may pay around €70–120 per year, while for an 18–20-year-old driver, insurance for the same car can cost €400–800 or even more. Insurance companies set prices based on their accumulated statistics — young and inexperienced drivers are involved in accidents more often, so their risk is assessed as higher.
How quickly does insurance cost decrease for a young driver?
It is important to know that insurance history begins to accumulate very quickly. Even one year without accidents can already help move you into a more favorable risk category. Insurance companies in Lithuania can see a driver’s history regardless of which company the policy was taken out with, so even if the car is used rarely and the driver’s license mostly “sits in a drawer,” a few accident-free years can bring tangible benefits in the future.
Why is it worth checking offers from different insurance companies?
Different insurance companies assess risk somewhat differently. For some, the driver’s age is more important; for others, driving experience matters more, but most often a combination of both factors is used. For this reason, it is worth for a young driver to compare offers from several insurance companies each year, as the price differences can be very significant.
Is it cheaper to insure a car in your parents’ name?
An interesting practical detail is that if a car is registered in the name of a father or mother who has a good driving history, and the insurance policy includes a condition allowing young drivers to use the car, the insurance usually becomes more expensive, but still costs less than if the car were owned by the young driver themselves. However, it is important to remember that if a young driver causes an accident, they may worsen their parents’ accident-free driving history, so this decision always carries a certain level of risk.
What should a young driver know?
In summary, several key principles can be highlighted:
- the first years of driving almost always mean more expensive insurance,
- driving without accidents quickly reduces the price,
- insurance companies assess age and driving experience differently,
- sometimes insurance is cheaper for a car registered in the parents’ name.
Therefore, the best advice for a young driver is to compare offers from several insurance companies, as the differences can be quite significant.
You can check transport insurance prices in Lithuania on the “Man ramu” insurance platform:
https://manramu.lt/transporto-draudimas/
Palygink draudimo kainas per kelias minutes!
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