Why do teenagers have higher insurance premiums?


Usually, the older people pay more expensive rates than younger people do. However, the style among car insurance companies was turned upside down. Younger people have to compensate even twice the price the old people are paying!

Considering the young people’s point of view, the said policy is “questionable”. Based on their arguments, any of them, just like the older ones, have been experts in driving and in fact were driving years before they ever get their driver’s license. “Is age the basis of a driver’s ability? We don’t think so,” teenagers argue. Secondly, younger people certainly earn lesser than older people do. Though younger people nowadays has the capacity to work pastime, it does not mean they could accommodate such expensive car insurance rates, therefore making these young people a liability to their parents, who has to pay for more expenses aside from an expensive car insurance rate!

Sounds valid for both the kids and the parents, eh?

Now let’s examine the car insurance firm’s argument, in reference to “liability”. As I have said earlier, younger people are a “liability to their parents”. This verifies the figures from National Center for Health Statistics which says that car accident is the number one cause of death among teens (15-19 years of age), accounting for 40% of all deaths. Teenagers, being liabilities to parents, in the streets, and with driving, so business firms are liable to them. However, we all know that in every business, the rule is that the firm emphasize the “assets” and get away as much as it can with “liabilities.” This needs no further explanation. Everyone knows that a company exists because it is able to circulate in it the same amount or more money it has had, and too much liability is just not reasonable!

Not only in statistics has car insurance companies depend, but also on science’s explanation on the brain’s prefrontal cortex. The prefrontal cortex is a small area in the brain responsible for the impulses and consequences. It takes time to develop fully—mostly up to 25 years of age. This only means that people below 25 years old (especially the teenagers) are prone to mix ups. Parents and teenagers, that explains well how confusedly-wired the adolescent brain is, and why car insurance companies has taken such precautionary steps when it comes to teenagers’ insurance premiums.

With science’s parallel relation to statistics, research states that people aged 25 and above (excluding the senior citizens) have the lowest insurance rates.

Sounds more valid than the first argument, eh?