If you are under age 25, it’s likely that you think car insurance for young people to undergo some sort of reform. Car insurance premiums are expensive for anyone and it’s not likely they will go down anytime soon. Car insurance for young people is in a league of its own.

Insurance companies decide insurance premiums based on risk. That formula is applicable in any type of insurance, however, young drivers get to experience this possible first hand at each 16.

Insurance premiums for teenage drivers, in most states at the age of 16, began high and do not begin to decrease for a minimum of three years. Essentially the only way for an insurance premium for a young driver to go is up for that three years. Young drivers will notice a slight decrease then, a more significant decrease at age 25.

Statistically speaking teenage drivers and drivers under 25 are involved in more moving violations and accidents. Because of that, young people are the beneficiaries of near punitive insurance premiums.

For example, assuming a teenage driver with no driving history seeks to secure affordable car insurance, his or her chances are nil. Because of the risk and the potential for claims, the premium starts at a very high level. Typically, teenage drivers can expect to pay close to $1000 per month for car insurance, and that is at minimum coverages.

The best that a young driver can hope for is to drive an older late-model car with a few safety features, and high deductibles on primary coverages, to make car insurance affordable.

At present, there is no remedy in sight. Car insurance for young people will continue to be cost prohibitive for many young drivers. Being added on to an existing car insurance policy, normally does not have a significant effect in the car insurance premiums than a young driver must pay.

If you are a young driver with a driving record, for example a speeding ticket and or an accident, you can expect your insurance premiums to double, triple or sometimes even quadruple in price. Again, car insurance companies make money by not paying claims.

While they are prohibited from excluding young drivers from access to car insurance, there is no rules or provision that dictate what they are allowed to charge for young drivers.

Car insurance companies are allowed to sell insurance across state lines, and young people who seek car insurance would do well to exhaust all possibilities before making a decision on what is the most affordable car insurance for young people. Buyer beware, affordable auto insurance is a relative term.