How is it that teenagers get more expensive car insurance rates?


Of all the demographic group of individuals, insurance companies put more demand on teenagers. Like all other insurance companies, auto insurance relies solely on knowing who is more vulnerable to risk. The higher the risk one person may bring or cause, the bigger premium a company charges in order to moderate that risk. So what is the real reason behind teens being too expensive?

To put things clearly and bluntly, teenagers are reckless drivers. Studies and statistical results support this claim. According to a 2006 survey, drivers aged 15-20 accounted for 12.9 percent of all the drivers involved in fatal crashes, and 16 percent of all the drivers involved in police-reported crashes in 2006. Teenage lifestyle is also to blame on why insurance companies put bigger premiums to teenagers’ monthly pay. Teens are most likely out drinking every weekend than adults as further statistics say that 31 percent of teen drivers killed in 2006 had been drinking, and according to the National Highway Traffic Safety Administration (NHTSA). 25 percent had a blood alcohol concentration of .08 or higher.

Another reason on why companies think that teenagers are more at risk hence making rates more expensive is because of their lack of driving experience. Teenagers under 18 are considered to be new drivers. These kids have less time behind the wheel than most of driving adults, which makes them more likely to get into an accident, and will not be able

Though these descriptions can be thought of as stereotyping, companies still give importance to these findings in setting the price for teens who want to get insured. It may seem that all bad things about driving are directed toward teens, but there some are ways to lessen these results. One option, which is already tried and tested in Canada, is the implementation of a graduating licensing program. This will make the teen get his or her driver’s license only after completing a series of steps. In this way, teens are able to have more practice which in effect giving them more experience and lessens the probability of them getting into an accident when behind wheels.

Teens are more dangerous drivers than adults, and they are four times more likely to be involved in accidents. Though this is probably the main cause on why insurance rates for teens are so expensive, not all teens should be part of the statistics. In order to do this, teens must have proper practice, have great teaching and most importantly become responsible teenage drivers.