Why Car Insurance is so Expensive for Young Drivers

It really does not take a rocket scientist to figure out why young drivers have higher car insurance premiums. Every year we hear about the crash statistics of teenage drivers, and they aren’t pretty. The Insurance Institute for Highway Safety says that 16-year-old drivers get into accidents approximately six times more often than drivers over 30 years of age, so it is no surprise that this age group is more expensive to insure.

The cost of car insurance is primarily based upon risk, and the percentage of risk is calculated from statistics. Those statistics show that accident claims by young drivers are higher than those of drivers over the age of 25.

Insurance companies combine the age risk factor along with other stats like the sex of the driver, their marital status, the type of vehicle driven and where they live, to determine the premium for drivers.

While young drivers are a risk because of their inexperience, there are still some things that they can do to cut their risk factor. Keeping up good grades (B or higher) and taking defensive driving courses are two actions that can result in cheaper car insurance for young drivers. Their choice of automobile will also play a part in the price quote.

Continually practicing safe driving will help to keep a good track record with your insurance and will eventually warrant a better policy rate. Teens should do their best to avoid distractions while driving – texting, playing with the radio and talking on the cell phone takes your focus off of the road and other drivers. Just one accident can send premiums skyrocketing.