Like many
parents of teenagers, have you been wondering, "Why
is car insurance so high for teenagers?"
The hard facts are that insurance rates are based on
statistics, and current statistics show that teens have
more car accidents than drivers of other ages.
Unfortunately for everyone concerned, teenage drivers
have significantly higher rates for both fatal and
nonfatal automobile accidents. In an attempt to lower
these alarming statistics and the tragedies they often
represent, newer approaches are being tested in both the
United States and Canada.
The graduated
driver licensing program has being enacted to try to
reduce teenage auto accidents and the deaths and
injuries they cause. In 2004 alone, 5,610 teenagers died
in the United States from such auto-related injuries.
Statistically, teens have more car accidents, whether
the rates are based on the total number of teenagers, on
the number with licenses, or on miles driven. Both
licensure rates and miles driven per license holder are
lower among 16-19 year-olds than among drivers age 20
and older (as a group), so when accident involvement is
based on the number of licensed drivers instead of total
population, the fatality rate of teenage drivers is even
more extreme compared with older drivers. It is most
extreme when accident involvement is based on miles
driven.
As you consider
the cost for your teenager to obtain car insurance,
there are a few ways to save some on the premium
expenses. Keeping your teenager on your own policy can
be a real cost-saver. While it will increase your own
premium, the amount will be less than the total of two
separate policies. Drivers with experience may be
eligible for reduced premium rates. Other factors that
may reduce your overall costs include being married,
owning your own home, and having several vehicles. If
your teen is a solid student, he can often get a "Good
Student "discount, which will also help. Some insurance
companies offer discounts to teens for passing a
driver's education class, although that might not mean
that their rates are lower than an adult or drivers with
more experience. The good news is that as you get older
insurance rates do drop. At age 19, you can see a drop
by as much as 28 percent. At age 21, it could drop an
additional 31 percent.
Now that you know the answer to the question "Why
is car insurance so high for teenagers?"
talk with your teen about the seriousness of his driving
privilege. Compare companies and
car insurance estimate.
Try to maintain a good credit history and a clean
driving record, and never let your insurance lap.
Remember, good responsible drivers are rewarded by lower
premiums.
