Young drivers pay more

Car insurance fees have risen over 4% in June, July and August of this year. Especially younger drivers, insured for car theft and fire end up paying higher insurance fees making financing a car problematic for some young drivers. Most of us need a car to drive ourselves to work and public transport does not always offer sufficient options to get to where we need to go. For many people cars are a necessity and rises in insurance fees create problems for younger employees who need their car.

As younger and less experienced drivers are statistically more likely to end up damaging their cars insurance companies have raised the insurance fees for this group of drivers more than those of experienced and older drivers.

According to insurance companies the rise in fees are due to the increasing cost of accident damage and injury claims that have been filed in the past few months. Because so many new insurance companies have introduced themselves in the market over the past few years, existing insurers have kept their fees artificially low to be able to compete with new businesses. The costs of meeting damage and injury claims now have to be leveled out by raising insurance fees.

Even though some insurance companies will at first keep their fees low, they will eventually have to follow others and raise their fees. Some insurers are now introducing a so-called 'pay as you go' insurance scheme with which you pay fees according to the distances that you drive your car. This way of driving and paying for your insurance depending on the number of times that you actually use your car is very popular with drivers and is expected to be introduced by more and more insurance companies in the years to come. Many people feel that this way of paying for your insurance is fair and the age of a driver will not be taken into account.

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