Background

Young person pays blue for car insurance

February 13, 2023

245 percent

Let’s dive right into the numbers. Dutch motorists spend an average of 74.75 euros per month – or 897 euros per year – for their car insurance. For younger drivers, ages 18 to 20, this amount is 245 percent higher. Indeed, in 2022, motorists aged 18 to 20 paid an average of 183.05 euros per month for car insurance, which amounts to nearly 2,200 euros per year. “So for young drivers, who generally do not yet have a high income, insuring their own car is virtually unaffordable,” says Amanda Bulthuis, Geld .nl’s money & insurance expert.

Why?

Young people pay the top price because they have less experience and often drive more carelessly. Therefore, they cause more damage and this results in more potential costs to the insurer. According to Bulthuis, young people outside the city are particularly affected. “No driving is probably less of a problem for young people in a city, with lots of public transportation options. But in villages and rural areas, you still really need a car. In short, young people in rural areas are particularly affected by this.”

What to do.

Young people who want to pay as little as possible should opt for a smaller, older car. “Car insurance for a 10-year-old Volkswagen Golf or a BMW 1 Series is easily 25 percent more expensive than for a Toyota Aygo of the same age. So before you pick your car, look carefully at what it will cost you in insurance premiums.”

In addition, it pays to compare multiple insurers. The difference between the lowest and highest premiums for motorists between the ages of 18 and 21 averages 110 euros per month. On an annual basis, that’s over 1,300 euros.

Car insurance in parent’s name

Then another warning for young people: buying car insurance in your parents’ name is not allowed. If the insurer discovers this, there are major consequences for both parents and the child. You then have to pay any damages yourself, and the parents and child get a fraud alert in their names, making insurance virtually impossible for years to come.

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