Many parents dread the time when their little munchkins will be old enough to drive. While much of the dread centers around emotional factors, some of it also stems from the cost of car insurance for young adults. Young adults face higher insurance premiums that are often paid for by their parents. While an insurance company may decide to offer discounts to long-standing customers, more often than not the rates are still expensive for two very good reasons.

1. Young adults lack driving experience. Without years of experience boosting their confidence and teaching them how to deal with stress and lightening fast decisions behind the wheel, young adults are more likely to have car accidents. Insurers understand this and must increase their rates in order to compensate for this additional risk.

2. Young adults are more likely to engage in reckless behavior. The older you are, the more likely you are to realize what the consequences of your actions are—and that your actions do, in fact, have consequences. While not true in every case, many young adults don’t understand consequences as a theory and instead only understand them after they suffer them. This can make them more prone to engaging in risky behaviors.