How much is the average monthly market price for car insurance in your 20s?

Auto insurance is a must-have for anyone who drives a car, but the premium varies depending on the age of the insured.

Under such circumstances, it is said that car insurance premiums, especially for those in their 20s, are higher than others .

Therefore, this time, we will introduce the monthly market price of car insurance for people in their 20s, tips to reduce insurance premiums, and recommended car insurance .

How are car insurance prices determined?

Auto insurance is what you want to have in case of an accident.

Of course, the insurance premium is a concern when enrolling, but what conditions determine the premium for automobile insurance in the first place ?

Before explaining car insurance premiums for people in their 20s, let’s first look at the basic factors that determine car insurance premiums .

Element (1) Vehicle model

The first element is the model of the car.

In the first place, car insurance is insurance for the vehicle you subscribe to, and who will drive it is a secondary issue.

So, first of all, the important thing is whether the car is a large car, a small car, or a light car, a detailed classification such as a minivan or an SUV, and the model.

The difference in insurance premiums depending on the model is determined by the “rate rate class by model” divided into 17 classes (three classes for light vehicles).

This “class” is determined by an organization called the General Insurance Rate Calculation Organization, and is determined by factors such as the accident rate for each model of car .

In other words , roughly speaking, sports cars with a high accident rate have high insurance premiums, and conversely, compact cars with a low accident rate have low insurance premiums .

Element 2: Car insurance grade

The second factor is the car insurance rating.

The grade is a system that divides drivers into grades from 1 to 20, and if there is no accident, the grade is raised by one year, and if an accident occurs, the grade is lowered by one or three grades.

When subscribers first get car insurance, they basically start from grade 6 .

From there, you can upgrade to a maximum of 20 grades, and the higher the grade, the more discounts you get on insurance premiums. The discount rate is high, and grade 20 can be less than half of the premium for grade 6.

On the other hand, if you repeat an accident, the grade will drop steadily.

For this reason, the lower the grade, the higher the insurance premium, so it may be advantageous to maintain the grade without receiving compensation from insurance as long as it can be covered at your own expense.

Element (3) Relationship with age

The third factor is the relationship with age.

Auto insurance premiums vary depending on the age range of the driver of the insured vehicle.

The age categories differ slightly depending on the insurance company, but generally they are roughly divided into four categories: “all ages”, “21 years old and over”, “26 years old and over”, and “30 years old and over” .

For example, if a family has a car that is driven by a 35-year-old father, a 32-year-old mother, and a 65-year-old grandfather who lives with them, all of them are 30 years old. Therefore, you should apply for insurance in the category of “over 30 years old”.

However, if my 20-year-old son, who lives with me and just got his license, drives the same car, I will have to switch to “all ages” instead of “over 30.” is not done.

And statistically, young drivers who have just gotten their license and are inexperienced have a higher accident rate.

Therefore, premiums are highest for all ages, and premiums decrease as the age group increases.

other elements

Here are the three main factors that determine car insurance premiums.

But there are many more elements.

For example, the higher the mileage , the higher the accident rate, so insurance premiums will rise proportionally.

The purpose of driving a car is mainly divided into “daily and leisure,” “commuting,” and “business,” with the former being cheaper and the latter being more expensive.

In addition, each insurance company may independently revise insurance premium rates according to changes in circumstances, not the characteristics of the vehicle or driver.

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Why is car insurance expensive for people in their 20s?

Let’s take a closer look at why car insurance is expensive for people in their 20s .

Because there are many people who ride for the first time (grade is low)

As mentioned earlier, car insurance has the concept of “grade” .

This means that if there are no accidents, you will improve one year at a time.

Starting from 6th grade, it takes at least 14 years to reach the highest grade of 20th.

You can get a driver’s license from the age of 18, so even if you have car insurance at the age of 18 and have had no accidents, you will be 32 by the time you reach grade 20.

In other words, no matter how young you are when you buy car insurance, it is impossible to get a top-class grade in your 20s . will be

Also, in many cases, people in their 20s start driving a car for the first time, that is, when they start buying car insurance. This means that your insurance premiums will be higher.

Statistically, people in their 20s have a higher accident rate.

The reason why car insurance premiums are high for people in their 20s is not just due to grade.

Drivers are divided into age categories such as “21 and over”, “26 and over”, and “30 and over” because national statistics show different accident rates depending on age.

And since the accident rate is highest among people in their 20s, insurance premiums are also higher.

Of course, there are people in their 20s who are good at driving and people in their 40s who are rough drivers, but since insurance premium rates are determined by statistical calculations, as a whole, the older you get, the more experience you have driving, the more you test your driving skills. This is reflected in insurance premiums.

When you hear the word “insurance,” you may think that medical insurance is cheaper the younger you are, so it may not immediately come to mind.

What is the average monthly insurance premium for people in their 20s?

So, what is the monthly market and average amount of car insurance premiums for people in their 20s ?

The market price for people in their 20s who buy their first car

The market price for car insurance for those in their 20s who purchase a car for the first time is grade 6 at the start, and the monthly fee is about 4,000 to 10,000 yen .

The reason why there is such a difference in the amount is that even if you are in your 20s, there are three age categories: 20 years old is “all ages”, and then “21 years old and over” and “26 years old and over”. .

If you exclude the 20-year-old “all ages” and consider only “21 and over” and “26 and over”, the monthly fee will be about 4,000 yen to 7,000 yen.

Even in the same 20s, it differs depending on the vehicle and usage

I introduced the market price roughly under the category of “20s buying a car for the first time”, but of course, even if you are in your 20s, the amount will change depending on the insurance content.

As I introduced at the beginning, the amount varies depending on the make and model of the vehicle to be insured . The amount varies depending on the distance and whether or not you have vehicle insurance (an insurance item that compensates for the cost of repairing your own vehicle in the event of self-damage).

How to get cheap car insurance in your 20s

We found that insurance premiums inevitably increase for people in their 20s, depending on factors such as class and accident rate.

However, there are a number of things you can do to keep your car insurance premiums low even in your 20s.

Let me show you how.

Restrict users/ages

One of the ways to keep insurance premiums low is to limit users and age .

This is to narrow down the range and age of drivers (users) who drive insured cars.

First, regarding the range of drivers , for example, there are categories such as “only the insured person”, “only the insured person and spouse”, “only the insured person and his family”, and “no restrictions” . is higher .

And as mentioned above, the age is set in a range such as “21 years old or older” or “26 years old or older”.

Both classifications will change depending on the driving situation, but it is good to remember that it is cheaper to narrow down the range as much as possible .

However, for example, if you forcibly narrow down the scope and set it only for yourself, and if your spouse happens to be driving and there is an accident and you are not compensated, then it is putting the cart before the horse.

Review your compensation

Auto insurance covers a wide range of items and covers a wide range of damages.

Among them, “vehicle insurance” occupies a large position, but by reviewing this, insurance premiums may be significantly reduced.

For example, if the car to be insured is a used car, and you do not plan to trade it in in the future, and you do not mind if it gets a little scratched, it is one way to remove the car insurance.

Alternatively, you can reduce the premium for the vehicle insurance portion by setting a certain deductible amount, which is called a deductible.

In this way, you may be able to reduce your insurance premiums by carefully examining the details of your car insurance coverage .

take over family grades

I mentioned earlier that the car insurance grade basically starts from grade 6 at the time of purchase, but in exceptional cases it is possible to inherit the grade from a family member .

For example, if there is a parent with a high grade of 20, the child living together can inherit it and suddenly have a grade of 20 instead of grade 6 .

However, as a condition, when purchasing a new car, it is necessary to change the name of the insurance at the same time as replacing the vehicle (changing the car to be insured).

In addition, parents who handed over 20th grade will start from 6th grade, but even so, it will be cheaper than taking out insurance for people in their 20s, so the total insurance premium for parents and children can be reduced . is possible .

There are conditions such as cohabitation and relatives, so if you think that applies, you should check it out.

Take advantage of internet discounts

In the case of car insurance called “mail order type” where you can apply online instead of at a store, “internet discount” is often set.

This is a privilege that you can receive when you go from the estimate to the contract online, and some insurance offers discounts of as much as 10,000 yen a year.

In addition, regardless of age, of course even people in their 20s can get a discount, so there is no reason not to take advantage of it.

In most cases, there are discounts not only for new contracts but also for renewals, but the conditions differ depending on the insurance company, so it is a good idea to carefully check the “Internet discount” item of the insurance you are considering . prize.