United States annual statistics showed about 400,000 drivers age 20 and below figured in car accidents, which translates to $26 billion total damage costs of road mishap.
In fact, vehicular accidents ranked as No. 1 cause of death among teen Americans. The number of death for teen drivers is four times higher than drivers whose ages are between 25 to 69 years.
Statistics also showed that more teen male drivers get killed in car accidents than teen female drivers. About 19 get killed for every 100,000 male drivers, while 11 get killed for every 100,000 female drivers.
First time teen drivers are viewed as reckless as pose higher car crash rates.
This is a concrete explanation why teenagers have the highest car insurance rate among the demographic group. In New York City alone, drivers 16 to 19 years old have a median six-month rate of $1484.13. It is 100 percent higher compared to drivers belonging to 60 to 74 group age, who have the lowest insurance rate.
Aside from alcohol and drugs, other factors why many teenagers often figure in vehicular accidents include being non-attentive on the road. Playing and using electronic gadgets, such as cell phones, PSP, iPods and others cause distraction while driving as well.
Simple violation of traffic rules – beating the red light, tailgating, speeding and ignoring seat belt policies – also cause accident.
High teen car insurance rates are not just based on reported statistics. Many insurance companies also base their rates on geographical location where a teenager frequently drives, like school. If the geographical situation in their school is less-congested, it means a lesser risk and low probability of accidents.
Driving fast vehicles, such as a sports car and a new car are not advisable for teenagers who are applying for insurance. It has a high risk of rollover danger.
An additional teen driver would cause an increase for a family’s auto insurance as well. Most of the time, costs would jump double to their annual premium rates.
Buying liability coverage can also cost much. For this coverage, most car insurance company’s lowest rate is $25,000, while $300,000 is the highest.
On the other hand, most car insurance companies offer discounts for teenagers who have good academic standing. Their good grades can be interpreted as being responsible, safe drivers.
Other ways to reduce teen auto insurance cost is to undergo driving education. Insurance companies always consider reducing insurance cost on teen drivers who underwent formal training from accredited driving school, which teach drivers how to be less accident-prone.
A clean record for three years also helps reduce car premium for teens.