Why is car insurance more expensive for young drivers

We know what you’re thinking. car insurance is an annoying necessity that costs too much, especially for young drivers. we’re using technology to change that…something we’ll talk about later! 👀

But first, why does car insurance cost so much more for young drivers? The answer is: risk. The riskier a person appears to be on the road, the more their car insurance will cost.

Reading: Why is car insurance more expensive for young drivers

Young drivers between the ages of 17 and 25 are learning to drive or are less experienced drivers. That means, on average, they’re more likely to get into an accident and claim your insurance, making them a higher risk to cover. Underwriters, the people who assess the risk associated with a person’s auto insurance policy, consider all of that data (as well as other things) when setting the price of young drivers insurance.

what else makes auto insurance more expensive?

💼 your work

If you drive a lot for work, your policy price will be higher the longer you spend in your car, and that means you’re more likely to have an accident.

🏡 where do you live

Things like crime rates, local traffic, the average number of accidents in your area, etc. all affect the price of your policy.

🚗 the type of car you drive

if your car is less powerful (like the humble renault clio), you are less likely to have an accident while driving it. And it’s also less likely to be stolen (no offense to Renault Clio drivers).

bad behavior of other people

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Unfortunately, it’s not just you and your driving that affect the price of your policy.

Many drivers make fraudulent claims, such as knowingly crashing for cash (often called a cash crash) or feigning an injury they don’t have after an accident (often related to whiplash).

If fraudulent activity goes undetected, auto insurers have to pay and, as a result, the average price of everyone’s insurance premiums goes up.

how can young drivers save money on their car insurance?

many insurance companies suggest getting black box car insurance. a black box is more or less that; a small black box that is installed in your car and monitors your driving through gps technology.

but here at marshmallow, we’re not big fans of black boxes. they’re outdated (we’re a tech company, after all!) and complicated to install. In addition, some of them impose curfews on drivers, penalizing them for driving late at night, which takes away the freedom that owning a car provides.

How does marshmallow help young drivers save money on their car insurance?

that’s where marshmallow miles come in 👋

marshmallow miles is our app-based coverage for ages 21-30 that helps you save money by rewarding you for driving well. all you have to do is download our app, share some permissions and allow it to run in the background while driving.

Save 5% on your premium just for signing up and if you keep driving well for a year you could save up to £100 on renewal!

By sharing your driving live on the marshmallow app, we can also help you faster in the event of an accident. That means we can start your claim process much faster, which helps us save money. savings that we pay back to you.

*marshmallow miles are only available to drivers ages 21-30 with no additional drivers. To learn more about Marshmallow Miles, including how to set it up in the app, please read our FAQ here.

Aren’t marshmallow miles the same as black box insurance?

not at all! To get started, you don’t need installation. all you have to do is open your marshmallow app, share some permissions with us, and take your phone with you on your way (though please don’t use your phone while driving!)

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and there is no curfew. We will not factor the time of day you drive into your driving score as black boxes often do. we’ll only rate your drive based on speed, focus, and smoothness.

Also, by knowing your location and linking it to the app, it allows us to act faster and offer you much more support if you are involved in an accident, such as helping emergency services locate you and your car.

and let’s not forget the tasty benefits 😋

what benefits are included with marshmallow miles?

If you sign up for marshmallow miles, you’ll get 5% off your policy price right away.

It’s also kind of funny. Overcome challenges, rise through the driving ranks from rookie to wizard, and be rewarded with treats delivered to your doorstep! 🎉

Best of all, keep driving safe and save up to £100 on renewal.**

**There are some terms and conditions, which you will find in the wording of your marshmallow miles policy.

So, to sum it all up…

marshmallow miles are now available in compare marketplace and will be coming to our website very soon. keep your eyes open! 👀

It’s the perfect car insurance for young drivers over 21, helping to lower the cost of your policy by rewarding great driving.

learn more about marshmallow miles here.

See also: What Is Short-Term Insurance?