Huge price difference car insurance young people

Huge price difference car insurance young people

The difference between the cheapest and most expensive price differences in car policies for young people is huge. To insure an eleven-year-old city car, an expensive company charges almost four times as much as a cheap insurer. On average, a young car owner pays around 1000 euros per year for third-party coverage. In 18 months, young people pay just as much in premium as their car is worth. This is according to research by the independent comparator Good Finance.

Difference between cheapest and most expensive insurer

Difference between cheapest and most expensive insurer

An 18-year-old motorist pays more than twice as much for his third-party insurance than someone who is over 24 years old. Insurers charge much higher rates for young people, because they have a higher accident risk than older drivers. Research by SWOV has shown that this risk is four times greater. However, the difference in premium between the cheapest and most expensive insurer is more striking.

For example, third-party coverage in Veenendaal for a Peugeot 205 from 1999 at Gaeon Bank costs 168 euros per month, while at Bruns ten Brink it is also possible for 40 euros.

Price difference for WA car insurance per month per municipality

Price difference for WA car insurance per month per municipality

The price differences were calculated on the basis of the following data:

  • 18 years;
  • 0 claim-free years;
  • Peugeot 205 (’99);
  • 8000 km / year.
  Cheapest car insurance Most expensive car insurance Price difference per month Magnification factor
Amsterdam Real: € 53 Gaeon Bank: € 181 € 128 3.4
Veenendaal Bruns ten Brink: € 40 Gaeon Bank: € 168 € 128 4.2
Franeker Bruns ten Brink: € 38 Gaeon Bank: € 147 € 109 3.9

Car insurance costs

Car insurance costs

In addition, Good Finance investigated the relationship between the current market value of the car and the costs of third-party insurance (ie by far the most chosen cover). 24,900 premium calculations show that the average annual premium for 18 and 19-year-old car owners amounts to 981 euros. This amount is equal to 66 percent of the current value. “Assuming that young people have their cars for more than a year and a half, this means that they often have to spend more for their car insurance than for the purchase costs,” said Erik Hordijk, director of Good Finance.

Car insurance in the name of parents?

Car insurance in the name of parents?

“It often happens that young people try to put the car insurance in the name of one of the parents. As a result, the premium is considerably lower, but this is strictly prohibited, “warns Hordijk. “It may seem difficult to check for an insurer who is actually the regular driver. But when in doubt, the insurance company can conduct a fraud investigation. And then the child and parents are further away from home. Moreover, a young person does not build up damage-free years in this way. ”

Smaller difference, premiums increased enormously

Smaller difference, premiums increased enormously

Update 07-03-2017

Good Finance did this test again in 2017, with the following data:

  • 18 years;
  • 0 claim-free years;
  • Peugeot 206 (’00);
  • 7,500-10,000 km / year.
  Cheapest car insurance Most expensive car insurance Price difference per month Magnification factor
Amsterdam Alli € 114.32 Overal € 311.32 € 197 2.7
Veenendaal Genz € 99.91 Overal € 284.04 € 184.13 2.8
Franeker Genz € 83.72 Overal € 244.34 € 160.62 2.9

We can see here that the premiums have increased enormously compared to 2010, in most cases they have more than doubled. The difference in euros between the cheapest and most expensive insurance has also increased, while the magnification factor has actually decreased.

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