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Why is Insurance for Teenage Drivers so Expensive?


In the United States, 3,214 teens were killed in car accidents in 2009.  Even though teenage drivers only account for about 14% of the drivers on the road, they are responsible for almost 30% of all automobile-related injuries.    According to statistics, teenage drivers are by far the worst drivers.   While a large majority of teenage drivers prove to be cautious and responsible behind the wheel, most insurance companies view any driver less than 20 years of age as a huge risk.   Insurance companies take a close look at statistics concerning teen drivers, and they know that they are 4 times more likely to be involved in an automobile accident than drivers of other ages.  Statistically, this is due primarily to either carelessness, inability to recognize hazardous situations or insufficient experience.  Whichever the case, teen drivers are just considered to be poor drivers.  That means that insurance companies pay out more for teen driver mishaps.


However, there are a couple of ways to save money when insuring your teen driver.  The first of those is, encourage your teenager to do better in school.  Many companies give a discount for teenagers who have good attendance in school and maintain a high grade-point average.  There could also be discounts available for completing a driver’s education course or a safe driving class.


Next, closely consider the type of car you purchase for your teen driver.  Keep in mind, the more expensive the car, the more expensive the insurance.  This doesn’t mean you have to buy a cheap old clinker for your teen, but the year, make and model are definitely the deciding factors involved in the cost.  Insurance companies will typically offer discounts for safety features such as anti-lock brakes, airbags and electronic stability control.  


Another way to save money on your insurance premium is to carry a higher deductible; the higher your deductible, the lower your premium.  The deductible is the amount that you will have to pay out of pocket in the event of a claim.  By raising your deductible, you are agreeing with the insurance company that you are willing to carry more of the financial burden if your teenage driver should be involved in an accident.


So, to summarize, insure your young driver in a sensible vehicle, consider raising your deductibles, have a serious talk with your teenager about driver safety and then just cross your fingers!



U.S. Department of Transportaion - National Highway Traffic Safety Administration
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