Why car insurance for young people is more expensive

Do you know why insuring young people is more expensive? So find out in this article and find out how to save money on car insurance for young people.

Many people tend to purchase their first vehicle at the beginning of their adult life. It is at this stage of life that our commitments begin to accumulate. There are work meetings, university and partying with friends.

For this reason, having a car facilitates and improves our mobility and, as we are constantly on the move, concerns about car protection are natural, hence the need to take out car insurance for young people. At this point, the cost of this investment is surprising when compared to insurance for older people, for example.

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Why is insuring young people more expensive?

Taking out insurance for young people is more expensive because the cost of insurance is determined by a series of analyzes based on statistics and actuarial studies. To compose it, it is necessary to know the region with the greatest circulation, where the vehicle spends the night, the marital status and age of the driver, among other information.

The so-called driver profile determines the risk that the insurer is assuming to guarantee the replacement of the property in the event of theft or the probability of possible collisions.

Therefore, based on statistics, it is known that single people are not as cautious when driving as married people or people with children, just as people who work and study travel more and, therefore, are more susceptible to traffic accidents.

Other important factors relate to the vehicle model and usage habits: whether you use the car to visit clients, whether you usually keep the car in a garage, whether the client has a discount bonus or whether it is the first time they have taken out insurance, etc. .

If the risk is greater, the cost of ensuring replacement will also be greater.

How much more expensive is insurance for young people

To get an idea of ​​how much these factors impact the cost and why insurance for young people is more expensive, in a simulation carried out by Porto Seguro in January 2018, which considered a neighborhood in the north of São Paulo, with a new vehicle of the Honda brand, which uses a garage and does not visit customers, the result is:

1. For a 52-year-old married man: R$ 1,566.00
2. For a 22-year-old man, single: R$4,925.00

To explain this difference in a very simple way, the disparity is due to the fact that the single man is likely to travel more with his vehicle, with more places and with less experience than the married man.

There is also the experience of the insurer to consider. Some insurers have a higher risk experience in a neighborhood, while the same region does not have records of collisions and robberies in another insurer's portfolio, and therefore the rates between two insurers may be different for the same driver profile.

As you can see, the composition of the insurance value is much more complex than it seems. For this reason, it is important not to omit information when making a quote, as all data will be checked for possible service and, if any discrepancy is found, the insurance company may deny service.

Therefore, car insurance should always be contracted with a broker who will advise on all issues that may increase the cost of contracting and seek the most appropriate solution for each situation.

*This text is editorial content and does not guarantee the sale of this product on this website.

* SeguroAuto.org is not responsible for the amounts mentioned here, as the price of insurance may vary depending on the profile of each driver.