Insurance rates are based on statistics. Statistics show that teens have more crashes. Teenage drivers have very high rates of both fatal and nonfatal crashes compared with drivers of other ages. Teenagers are disproportionately involved in crashes.
Newer approaches such as Canada's graduated driver licensing are being enacted to try to reduce teenage crashes and the deaths and injuries they cause.
According to the IIHS, in 2004, 5,610 teenagers died in the United States from crash injuries.
Teens have more crashes in cars whether the rates are based on the total number of teenagers, on the number with licenses, or on miles driven. Both licensure rates and miles driven per license holder are lower among 16-19 year-olds than among drivers age 20 and older (as a group), so when crash involvement is based on the number of licensed drivers instead of total population, the fatality rate of teenage drivers is even more extreme compared with older drivers. It is most extreme when crash involvement is based on miles driven.
You can obtain a car insurance quote here to see how much your insurance would cost.
Here are some ways to help teen drivers:
- Staying on your parents' policy could save you money. It will definitely increase your parents' premium but that may be cheaper than starting your own policy. Drivers with experience may be eligible for discounts for owning a home, having several vehicles, being married, etc.
- Some insurance companies offer discounts to teens, for good grades or taking a driving class. Although that might not mean that their rates are lower than an adult or drivers with more experience.
- As you get older rates drop. At age 19, you can see a drop by as much as 28 percent. At age 21, it could drop an additional 31 percent.
Compare companies and compare rates on our site to see if you can find a lower rate.
In addition, at a younger age with less experience other insurance factors affect your rate proportionately higher. Try to maintain a good credit history, a clean driving record, and don't let your insurance lapse so you are eligible for future discounts for prior insurance.
Nobody is perfect so shop, shop, shop on to find the lowest rate.