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Q

Why are teenagers car insurance rates so high?


A

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:

  1. 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.
  2. 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.
  3. 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.


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7 Responses to "Why are teenagers car insurance rates so high?"
  1. paul

    Can anyone tell me why my son was told his insurance will cost 300 pounds when learning to drive but when he passes his test it will cost it will go up to 900 pounds? I think it's one big rip off.

      Reply»  
  2. Anonymous

    Purchasing an economical car with security features will lower your insurance premiums as well as choosing a higher deductible.

      Reply»  
  3. Anonymous

    it is wrong for insurance companys to make teenagers insurance so high. there are alot of adults that cause wrecks not just teenagers.why is a teenage girls insurance ,cheaper than teenage boys. there are alot of adults who have road rage and speed ,not just teenagers. the law should step in and correct the problem.

      Reply»  
  4. Anonymous

    yeesssssss

      Reply»  
  5. Anonymous

    It was GGGGRRRREEEEAAAATTTTTT! Your biggest fan, Charlie

      Reply»  
  6. Anonymous

    Tihs information about teens and driving helped alot!

      Reply»  
  7. Anonymous

    i needed a freakin report

      Reply»