Cheap car insurance news
01/10/2008
Cover for young drivers in US is dropping in price
Competition in parts of the United States is leading to a drop in prices of car insurance for young drivers - insurers are starting to offer discounts.
After apparently pricing young people off the road, now the North American media is reporting that costs are dropping to encourage more young motorists back into the driving habit.
Motor insurance companies claim teenagers and students are not as high risk as in the past. They say curfew-type restrictions on teenage drivers, as well as bans on driving with mobile phones and limits on numbers of passengers, means premiums can be lower.
One insurance agent is cutting young people's cover rates by 15% if they achieve high levels of school attainment and then further discounts by attending additional driver training.
According to US news reports, companies want future clients to be on their books and need to attract new motorists now before they go elsewhere, so they are offering better rates on car insurance for young drivers.
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