Is there such a thing sports car insurance for young drivers?
Comprehensive car insurance usually covers just three things: damage to your own car, damage to other people’s property, and damage or loss caused by theft of your car. In some countries, car insurance companies give an option to cover damage or loss due to fortuitous events such as floods and other natural calamities.
There is one thing most “comprehensive insurance policies” generally don’t cover, and that is injuries or death to other people in an accident. The reason for this is because this type of cover is known as the compulsory third party liability insurance. In most countries, you can get your car registered with only the compulsory third party liability insurance. This is generally issued as a separate policy.
What Determines the Rates?
All insurance companies use two primary considerations when assigning rates to property (non-life) insurance: value of the property to be insured and the element of risk. These two considerations are valid whether you are trying to insure a house against fire, or getting car insurance for young drivers. The following factors are usually considered when assessing risk and assigning rates.
The Age Factor
A sports car insurance for young drivers are often more expensive due to the age factor which is taken into consideration when assessing risk. Drivers 25 years of age and below are usually assessed the highest rates; those between 26 and 65 are given the lowest rates, which then increases after 65. The reason given is that young people are not as experienced, and are usually more daring. Old people on the other hand tend to lose their coordination and get into accidents more often.
The Driver’s Gender
Though there is a perception that men are better drivers than women, statistics show that male drivers get involved in accidents more often. This is because most men drive more aggressively.
The Type of Car
Sports cars are usually given the higher rates because statistics proved that in general, drivers of sports cars get into accidents more often. After all, nobody buys a Porsche to drive leisurely around the countryside.
You have to watch your driving skills because it affects your insurance rates. People with driving offenses assess heavier insurance rates, especially those who have been involved in extremely dangerous behavior such as driving under the influence of alcohol, or speeding and beating the red light. The more driving offenses are in your record, the higher your insurance rate gets.
You also get penalized for being involved in an accident, especially if you happen to be in the wrong. One other thing to consider is when you have a friend driving your car with your consent and he gets into an accident. This will also cause your insurance rates to go up, unless your friend pays for the repairs and you do not file a claim.
The Value of the Car
This should be obvious – you can’t expect to pay the same low insurance rates you paid for an entry level small car when you insure a luxury sports car. This time it is not the risk involved but the value of the car to be insured that helps determine the rate.
The Car Insurance Company
Your choice of insurer also determines how much you have to fork out for car insurance. A bit of research online, and perhaps a few calls will do a lot to help you find the best auto insurance company.
How To Get The Best Value For Money
A comprehensive sports car insurance for young drivers are bound to be costly, but there are many factors you can do to minimize the blow to your finances. In this case, your age and your gender are beyond your control and having a sports car is given. But based on the above information, you can take steps that will lower your insurance rates such as:
a) Don’t drink and drive.
b) Watch your speed.
c) If you cannot afford astronomical insurance rates, don’t go for a vehicle with an astronomical price tag.
d) Choose only the insurance coverage you need – people who live in a state often visited by twisters may benefit from a fortuitous events cover, others may not.
And above all, exercise due diligence before choosing a company that will provide your car insurance cover.