Why is car insurance for young people more expensive?

On average, car insurance is considerably more expensive for young people under 24 years of age. The differences can be very large. This is because they are generally less experienced and more fickle in traffic. Especially for this group, comparing car insurance can be financially very rewarding.

Young people have few or no claim-free years. For the car insurance, it makes a big difference whether you have ten claim-free years or none. Young drivers up to 24 years of age are additionally penalised for their age. Insurers apply surcharges for these young people. It sounds logical, because they have little driving experience. On the other hand, you can say the same about a thirty-something who just got his driving licence. We were curious about the premium differences. We calculated the costs of a car insurance for a VW Polo based on a 20-year old and a 30-year old driver.

Sample calculation

For the calculation we used the following data:

• VW Polo 1.2 TDI from 2010
• Policyholder (male) and regular driver residing in Overijssel
• Claim-free years: zero
• How insured: third-party insurance
• Annual kilometres: 12,000
• List price of the Polo: €16,290
• Date of birth calculation 1: 01-05-1996
• Date of birth calculation 2: 01-05-1986

The cheapest insurance for the 20-year-old is: €158.04
The cheapest insurance for the 30-year-old is: €74.70

The differences between the more expensive insurers are even greater in some cases. Among the more expensive insurers, there were even insurers with premiums well in excess of 300 Euros per month for 20 year olds. This shows that comparing car insurance pays off!