Teenage drivers with very little driving experience and totally fresh teenage drivers pay substantially more than other auto drivers for car insurance premiums.
According to the findings of the study, many teenage drivers pay up to double the amount of premiums paid by drivers who are comparatively older and having more driving experience. The study further mentions that male teenage drivers are forced to pay higher premiums compared to female teenage drivers with the same level of age and experience.
Teenage drivers in the age group of 16 to 19 pay around $3,000 annually on an average as premium for liability coverage alone.
You could compare this with the average premium of $1,600 annually for drivers in the age group of 35 to 39. According to the research study, majority of insurance carriers continue to charge high premiums until drivers reach the age of 25, which is considered as the age when the drivers have adequate driving experience and risks are lesser. While the annual average premium rates for teenagers have been around $3,000, the rates dropped to about $1,700 for drivers in the age group of 25 to 29.
The research examined further the relationship between age and insurance rates for elderly persons. It studied the premiums of elders and the age factor in premium rates. Normally, it would appear that elderly drivers are prone to be more hazardous in driving. However the study found that such elders were paying the lowest premiums among all age groups.
The annual average premium for liability insurance was only around $1,200 for drivers over 75 years of age. This kind of premium calculation by insurance carriers is supported by statistics revealing that less than 1% of drivers above 65 years of age face the possibility of getting killed in auto accidents, while teenagers are the majority drivers involved in most auto collisions. This could be due to the fact that elders have careful driving habits while teenagers, particularly with fresh driving licenses, have high reckless driving tendencies. Insurance companies determine the auto premium rates only on the basis of risk level that they assess for each individual. Age, driving record, gender, and race are the major factors that influence the decision of insurance carriers.
