If you are a young man paying for car insurance, you have probably noticed that your quotes are much higher than your friends’ or your parents’. It is not personal, and it is not random. Here is why young male drivers pay more, whether the color of your car matters, and what you can do to lower your bill.
Why is car insurance so expensive for young men?
Insurance prices are based on risk, and statistics show that young drivers, especially young men, are involved in more crashes, including serious ones. Insurers use these numbers to set prices for entire age groups.
The main reasons
– Age and experience: drivers under 25 have much higher accident rates than older drivers, simply because they have less experience on the road. – Gender: in most states, young men are charged more than young women of the same age, because of higher claim rates for speeding and serious accidents. A few states, including California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania, do not allow insurers to use gender when setting rates. – Driving record: tickets and accidents raise rates quickly for any driver, and even more for young ones. – The car itself: sports cars, powerful engines and expensive vehicles cost more to insure. – Credit and location: in many states, credit-based insurance scores and your ZIP code affect the price.
How to lower your premium
– Stay on a parent’s policy if possible; it is often much cheaper than a separate policy. – Good student discount: many insurers offer savings for students with a B average or better. – Take a defensive driving course. – Use a telematics app or device that tracks safe driving habits and rewards them with discounts. – Choose a sensible car: a used sedan with good safety ratings costs far less to insure than a sports car. – Raise your deductible if you have savings to cover it. – Bundle policies such as renters and auto, and ask about paying in full. – Compare quotes every year. Rates for young drivers vary a lot between companies.
The good news: rates usually start dropping around age 25, as long as your driving record stays clean.
Does a red car raise your insurance?
No. This is one of the most common car insurance myths. Insurers do not ask for your car’s color and it does not affect your premium.
What actually affects your rate
– Make, model and year of the car, including its repair costs and theft rates – Engine size and performance, since powerful cars are associated with more claims – Safety features such as automatic emergency braking and good crash-test ratings – How you use the car: annual mileage and whether you commute – Your driving record, age, location and in many states your credit-based insurance score
Why the myth exists
Bright red is a popular color for sports cars, and sports cars do cost more to insure. People noticed the pattern and blamed the color instead of the car. A red minivan costs the same to insure as a gray one.
Tip before you buy
Before choosing a car, get insurance quotes for the exact models you are considering. Two cars with similar prices can have very different insurance costs, and the difference can add up to thousands of dollars over a few years.
The bottom line
Young men pay more because of statistics tied to age, experience and claims, not because of anything personal, and car color has nothing to do with it. Keep a clean record, choose a sensible car, use every discount available and compare quotes every year to bring your costs down.
General information, not insurance advice — check the details with your insurer before you decide.