Why Is Car Insurance So High for Teenagers?

By: Gabriel Miller

Why is car insurance so high for teenagers? The question has been asked by many parents of young drivers who are seeking to protect themselves financially from any rookie errors their child might make behind the wheel. While many teenagers may exercise great caution and common sense when they drive, insurance companies remain wary of drivers under the age of 20. But why?

Stats Don't Lie

Statistically, teenagers are much worse drivers than their adult counterparts. Every year, teenagers are responsible for a sizeable percentage of annual crashes, even though the number of teens who drive in America are fewer in number than drivers over the age of 20. Insurance companies consider the statistics on teen drivers carefully. It has been estimated that teenagers are nearly 10 times as likely as adults to crash their cars, leaving massive bills and injured bodies in their wake. Whether because of a lack of experience or adolescent carelessness, the fact remains that teens can be quite poor drivers.

Getting A Better Rate For Teenagers

Often it is possible to add a teenager to an adult's policy. Parents of a new teenage driver may elect to expand their own policy to cover the new, adolescent driver. The risk in this scenario lies with the parent, as any accident or mishap will drive up the premium for all included on the policy. For teenagers who are able to use their own policies, it may be possible to lower premiums based on academic achievement and other benchmarks of responsibility, such as taking a driver's ed course. The willingness to consider these variables is not yet the norm, but progressive companies are considering it with increasing frequency.

Why Be Mean To A Teen?

At the end of the day, insurance companies don't really trust teenagers. Teenagers' proven record of frequent failure behind the wheel has left providers wary of footing their bills. Still, a teenage driver can secure lower premiums by displaying driving competence over a span of several years or by joining his parents' policy and enjoying the fruits of their labor. If teenagers can collectively become more responsible, insurance companies may treat them more kindly in years to come.