Why Is Car Insurance So Expensive For Teens?

Driving is perhaps the most ubiquitous adult skill, yet it is learned much later on in life than most other skills. Naturally, as a child cannot be trusted to safely drive a motor vehicle. Thus, in most states, teenagers obtain a drivers permit at the age of 16. This permit allows them to drive with another legal adult in the car. In this case, a legal adult is anyone holding a driver’s license that is over the age of 21. Then, at the age of 17, the teen becomes eligible to take a driver’s road test. If they fail, they can try again. If they pass, that permit is upgraded to a license — allowing them to travel anywhere on their own. For many, this entails purchasing a car, or using a relatives vehicle to commute. Although this is an exciting time, it can come with many unforeseen difficulties. Car insurance is one such difficulty for many.

Teen Car Insurance

Although it is common knowledge that car insurance is pricier for teen drivers, many don’t realize just how much more it costs. On average, for the teen driver car insurance costs $2,267 a year. For adults, this figure is less than half, priced at just $815 per yer. There are a variety of reasons for this astronomical difference in price. To insurance companies, these reasons seem entirely justified. However, teens and their parents may feel differently on this issue.

Why So Expensive?

There are a multitude of reasons that teen car insurance is more expensive than car insurance for adults. Primarily, these have to do with safety and risk analysis. Below is a list of reasons of why car insurance is so expensive for teens:

  • Young drivers have no record
  • Young drivers have less experience
  • Young drivers are more likely to become distracted
  • Young drivers are more likely to be reckless
  • Young drivers are more likely to be involved in an accident
  • Young drivers pose a financial risk

Although most of these reasons are relatively self-explanatory, let’s take a bit more of an in-depth look at the ones that aren’t. Insurance companies use your driving record to see how safe a driver you are, and adjust your quote based on past accidents/claims. Without a record, their quote will have to be on the higher end. Furthermore, young drivers are likely to become distracted by cell phones, loud music, and other things while driving. This poses a danger to the driver and a risk to the insurance company. Lastly, according to years of statistical analysis, younger drivers are more likely to get in an accident. This may be due to inexperience, distraction, speeding, or simply poor choices. Thus, the above reasons all contribute to higher insurance costs for teen drivers. If you stay safe and responsible, in a few years these costs should drastically decrease!