Factors That Go Into Teen Car Insurance Costs

Teen car insurance is a topic that makes most parents cringe. The thought of their little baby behind the wheel is hard enough for them to cope with, but when they see the bill for their insurance they are really unhappy. Teen car insurance is always higher than any other age group and there is really no way to completely get around it. So what makes car insurance for teens so high?


The stereotypes of teenagers work against them in the case of auto insurance. The perception of teenagers is that they are wild and reckless. The ability to legally drive for the first time makes them go crazy with excitement. The image of 16 year olds drag racing in their new cars is often thought of when people think of teenage drivers. Insurance companies are aware of this reckless attitude and they charge accordingly. Although not every teenager fits into this mold, enough of them do to cost the insurance company a good chunk of money. Therefore, if you fit into this category, you are going to pay a higher premium for your auto insurance. 


As the saying goes, "Numbers don't lie". The statistics about teenage drivers tell auto insurance companies that they are going to experience their fair share of losses. According to the statistics, teenagers are three times more likely to die in a car crash than people older than 25. This means an astounding rate of teenagers are involved in car crashes compared to other age groups. When you are paying for all these losses, they start to add up for insurance carriers. 


The gender of your teenager plays a large role in the cost of the insurance rate that they will pay. When your teenager is a male, they will pay a much higher rate than female teenagers. Again, stereotypes play a large role in this decision, but the numbers back it up. Males are more aggressive than females and with their aggression they get involved in more wrecks. If you are the parent of a teenage boy, be prepared to pay more than anyone else. 

What Can Be Done?

There is not much that you can do to completely get around teenage car insurance prices. However, there are a few things that can help lessen the blow. For one thing, you can have your teenager attend driving school. Compared to learning to drive from a parent, they are much more likely to learn the correct way to drive from an academy. When a teenager attends driving academy, they could receive a discount from their insurance provider. Insurance companies like the fact that they attended driving school. 

Another tip that you can use is to get a cheaper car for your child to drive. If the car is an old, run-down car, you will be much more likely to get a cheaper insurance rate. Insuring a new car with a teenager is very expensive compared to insuring an older car. You can also get liability only for an older car and forget about collision and comprehensive if you want. 

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