Print this page

Why is Car Insurance So High For Teens?

Written by Posted On Wednesday, 13 March 2019 02:10

When teenagers get their driver's license their parents contact their insurance company to add them to their auto insurance policy. Their jaws usually hit the floor when they hear how much it costs to insure someone that is 16 years old. There are a few reasons why car insurance is so high for teen drivers.

The reason why it costs so much to insure young drivers, especially boys, is that statistically they have a much higher chance of causing an accident than older drivers. They are inexperienced behind the wheel and don't know what to do in the split-second that an accident can occur in. Their brains are also not fully developed and so they don't always think things through leading to bad decisions when driving a car.

The statistics show that younger drivers have a lot of accidents in the United States compared to adults. In 2015, 235,845 drivers between the ages of 16 and 19 ended up in emergency departments after car accidents. 2,333 drivers of this age group died as a result of car accidents.

It isn't until someone is 25 that the costs of auto insurance start to come down in price. Insurance companies see people under that age as a big risk and so charge for auto insurance accordingly. They charge a high premium for these drivers in order to offset the higher odds that a young driver will be involved in an accident that the insurance company then has to pay out on.

Insurance companies also keep much closer tabs on teen drivers versus older drivers. They will run their drive records on renewal and if any moving violations are reported the rate will go up. These moving violations increase the premium on an auto insurance policy for three years from the date that they occurred on. Keeping a clean driving record is important at any age but especially for teenagers.

There are ways to save money on policies with teen drivers, though. Most insurance companies offer a good student discount if the teen is going to school full-time and has a GPA over 3.0. They see these teenagers as more responsible than students who have bad grades.

Some insurance companies also offer a discount if the teenager takes a defensive driving course. These courses can be taken in person or online through a number of providers. Another way to save money on auto insurance is if the vehicle they are driving is older and doesn't need to have comprehensive or collision coverage. This can save a substantial amount of money as the insurance company doesn't need to cover damage to the insured vehicle in an at-fault accident if there is no collision coverage.

It always pays to shop around for car insurance and this is especially true if there are young drivers in the household. The rates can vary widely between different insurance companies. This tool for finding auto insurance near me will get your information and then obtain quotes from a wide variety of auto insurance companies. This eliminates the time and hassle of contacting endless insurance companies in order to find the cheapest rates available for the desired coverages.

To get an auto insurance quote the insurance companies need information. They need to know what vehicles are in the household, the names and dates of birth of the drivers, and what the drive records are. They also need to know the address of the household, if they currently have insurance, and what coverages are needed on the policy. This information is run through an algorithm which comes up with how much it will cost to insure the vehicles in the household.

Rate this item
(0 votes)
Laura wang

Latest from Laura wang

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries