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Reports tend to suggest that the accident rate among young drivers, i.e. those aged 25 and under, tends to be higher than in any other group. Young people are generally a higher risk group when it comes to insurance, and consequently most insurance companies will, on average, charge younger, inexperienced drivers more. It may seem unfair that they pay more but they are seen as an at-risk group. Insurance providers use a number of sources to determine what the risk potential of an individual might be. For example, certain postcodes have a higher rate of car theft and car accidents than others. So, where you live could define how much you pay for car insurance.