Why is Car Insurance more Expensive for Teens?

Answer:
Let’s face it, teenagers think they are invincible

and often act recklessly. But that’s not the only reason for higher insurance premiums for teens. Even if your teenager is careful and responsible, he is inexperienced behind the wheel.

This inexperience translates into a much higher accident rate among teenage drivers compared to the general population. Because the insurance company takes a greater risk when adding coverage for a young driver, they need to be compensated according to that risk. Thus, the higher price for insurance coverage.

Teens and their parents can take a proactive approach and reduce the price by following some simple guidelines. Long before the teenager begins driving, it’s important to maintain a good scholastic record. Good grades mean lower insurance rates. Next, enroll in a driver’s education course to take advantage of any discounts for proper training.

When the teen get’s his learner’s permit, contact the insurance company and add the teen to the parent’s policy rather than purchasing an individual policy. This option is usually less expensive.

As the young driver becomes more experienced, rates will eventually go down provided the driver maintains a safe driving record.


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