Ask any teenager why the Insurance companies consider young drivers such a big risk and prepare to hear about a friend of a friend that drives like a maniac. If you want to stir up an argument, ask any group of men or women (especially in a high school drivers’ education class) to debate which sex exhibits better driving skills, men or women.

Single, young male drivers always have the highest auto insurance premiums. Young men represent a much higher risk statically when compared to single, young female drivers. The difference in the auto insurance rate paid by the driver reflects that risk. But the common factor of youth weighs heavily into both young men’s and women’s high insurance premiums.

Car insurance premiums for young drivers remain high as the risk factors used in the insurance company’s calculations stay high. For example, incidents such as moving violations and collisions contribute to young driver’s higher premiums. Insurance company calculations also factor in the severity of the incidents and accidents. Accident severity calculations are based on the dollar amount paid out by the insurance company to settle those claims. Fortunately, many insurance companies offer safe driver or good student discounts to help recognize the reduced risk of these teenagers.