Why Is Car Insurance So High For Teenagers?

By Mike Anderson Posted in Car Insurance News

State Laws Vary

Since each state’s driver’s license laws can vary, insurance can also vary by state. Most states offer some sort of graduated provisional license starting at age fourteen and three months, and in some states, until eighteen years old. A driver’s permit allows an unlicensed driver to drive with an adult (over the age of 21). Once you have taken your driver’s test (age sixteen) you are eligible for a provisional license. With a provisional or graduated license there are certain restrictions including a curfew, which varies from state to state, and the number of passengers allowed in the car while you are driving. Because of the risk involved with young drivers, insurance can be very expensive even on your parent’s insurance policy.

Insuring Teens Is Expensive For A Reason

Insuring teens to drive is expensive for several reasons. According to a report published by the National Highway Traffic Safety Administration, car accidents are the leading cause of death for teenagers, sixteen year olds are at a three-times-higher risk of dying in an accident than any other age group, and accidents involving teenagers cost about $40 billion dollars in economic impact. Since teens are at such a high risk for accidents, insurance companies charge them a higher premium to manage their risk. The average cost is roughly $2,000 per year to insure a teen on their parent’s plan and even more expensive to insure them individually. Some insurance companies won’t insure a teen alone; insisting that they be attached to a parent or guardian’s plan. Being a safe driver and earning good grades will help reduce the cost of the premiums over time. Once a driver reaches the age of 21 and has maintained a clean driving record, they are eligible for a reduction in insurance.

Related posts:

  1. How Much Is Car Insurance For An Underage 16 Year Old?
  2. What Is The Cheapest Kind Of Car Insurance?
  3. How Old Do You Have To Be To Purchase Auto Insurance?
  4. Are There Effects Of Cell Phone Use On Car Insurance For New Drivers?
  5. Simple Short Guide To Get Cheap Car Insurance For Teens

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