Distracted Driving

Why Car Insurance is So Expensive for Teenagers

If you have a young driver in your home, you’ve probably wondered why their car insurance is so expensive. While a large majority of teenagers turn out to be responsible drivers, most insurance companies view drivers under 20 years of age as high risk. Here are a few reasons why car insurance for teens is so expensive, and what they can do to lower their premiums.

National Statistics

Teenagers are no exception to the saying that “numbers don’t lie”. Based on accident statistics, teens are exponentially worse drivers than older adults due to significantly less experience. Every year, teens are found to be responsible for a large number of crashes despite being significantly outnumbered by adult drivers. Insurance companies take a careful look at statistics involving teen drivers and they are able to figure out that teens are multiple times more likely to be involved in a fatal auto accident when compared to drivers aged 25-64. One can attribute these statistics to either teenage negligence/carelessness or perhaps just a general lack of experience behind the wheel, but the fact still remains, teens are statistically bad drivers.

Unfortunately, in addition to age, car insurance for male and female drivers is not the same. Parents of teenage sons are almost guaranteed to have to pay more than parents of teenage daughters. Coverage for a female teen will cause the premium to nearly double, while coverage for a male teen can nearly triple it. This may seem like discrimination, and in a way it is, but this is the way it works. Male teens are more likely to be reckless drivers than females.

Fortunately for parents and teens alike, some insurance providers offer ways in which you can lower your premiums:

The Importance of Good Grades

Students who work hard to achieve good grades can often earn good student discounts on car insurance. A good student discount is an added bonus for working hard in school, because insurance companies have determined that good students are also good drivers. Guidelines for receiving this discount are not the same for all carriers, but here is a list of the most common requirements:

  • Licensed driver aged 16-25
  • 3.0 GPA or higher
  • Attending high-school full time, or a college/university student with 12 credit hours or more
  • Verification of report card

Safe Driving Courses

Many insurance providers are now promoting driver safety courses as a way to teach young inexperienced drivers the rules of the road. Once a teen has successfully completed a program, they may be eligible for a discount of up to 15 percent on their premium.

Not all of these discounts are guaranteed to be available from every insurance company out there, so it’s best that you do the proper research beforehand when selecting your insurance provider.

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