Why are car insurance rates higher for teenage drivers?

Teenage car insurance rates are so high because teens are inexperienced, making them high-risk drivers. The average teenage car insurance rates are $272.13/mo.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 18, 2020

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Here's what you need to know...

  • No matter where you live, teen drivers always have a higher premium
  • The American Automobile Association reported a 2008 cost in excess of $34 billion for motor vehicle crashes, including medical bills and property damage
  • According to The National Highway Traffic Safety Administration, you are four times as likely to die in a motor vehicle crash if you are under the age of 25
  • For more information on how age and gender affect insurance rates, check out our complete guide

Car insurance varies by state, but no matter where you live, car insurance is always higher for teenagers.

Why is it exactly that auto insurance rates for teenagers end up being so high? Driving is a skill that most people improve upon with experience.

Teenagers are young and inexperienced drivers, making them a higher risk driver and therefore a more costly driver to insure.

This means that it is even more important to do a thorough comparison of your car insurance options and find the car insurance rates that are the cheapest. Enter your ZIP code above to start saving on car insurance now!

Teen Driving Statistics

Teenagers do not make up a large part of the driving population yet they are responsible for 14 percent of all fatal crashes. Car accidents are the leading killer of teenagers according to the Centers for Disease Control and Prevention.

Alcohol takes a risky situation and makes it dangerous. The Highway Traffic Safety Administration claimed that almost 1,400 out of 13,000 crash fatalities were due to teenage drinking and driving.

Almost 30 percent of teenagers that were killed were under the influence of alcohol. More than half of the victims were not wearing their seat belts.

Out of all the deaths related to alcohol in the United States, 40 percent were reported to be due to teenage alcohol consumption and driving.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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Safer Driving for Teens

Drinking and driving must be avoided at all costs. However, there are other hazards that drivers encounter on a daily basis that should also be evaded to minimize danger.

Every driver is at risk of distraction. Teenagers especially need to be aware of common distractions, such as tuning the radio, texting, and talking on the phone.

Teenagers usually want to become a chauffeur for their friends, but driving with more than one passenger is also a big distraction.

Additionally, night driving adds greater risk to the new and inexperienced driver, so limiting driving to the hours of natural sunlight can help reduce accidents.

Ways to Lower Teen Driver Insurance

Many states today require a graduated driver’s license for teenagers and some car insurance companies reduce the insurance rates based on these programs. Follow the guidelines set by your state in order to become properly licensed and insured.

In order to reduce the cost of auto insurance for the teenage driver, contact your agent to find out what discounts and reductions might be available. Compare different insurance companies to find out who is offering the best deal.

If you have multiple cars in one household, find out what your insurance policy is for adding a teenager to the policy. Just like for experienced drivers, the fancier the car, the more that the insurance will cost. This calculation is even greater with the teenager driver.

Most car insurance companies offer a good student discount. Most companies consider a good student to be a driver that maintains at least all “B”s, although some insurance companies require a combination of both “A”s and “B”s.

Attending and passing certified driving classes, especially defensive driving courses, can also help reduce the premium. Most high school driver’s education courses will help to qualify your child for this discount.

What’s more, if you choose a car that doesn’t have features like airbags or safety glass, and your teen causes an accident, there is a much higher chance that there will be higher medical costs due to bodily injuries.

If you have all of the great safety features that more modern cars have, then this reduces the risk of injury when an accident occurs. In turn, this decreases your overall costs in terms of your teen’s future premiums.

How long will it be before my teen’s insurance rates go down?

In most cases, your teen will see a reduction in their insurance rates each year that they drive safely. However, the first significant drop doesn’t usually occur until your teen turns 20.

Another drop occurs at 25 to 27 years old, depending on the gender of your child.

Once your child has an established driving record, he or she will be paying the same kind of rates any good driver will pay. The key is ensuring that your teen begins on strong footing and understands the benefits of being a careful driver!

While high car insurance is inevitable for a teenage driver, competitive rates can help lower the premium and make it more manageable. Compare different quotes online for free and find the best rate available today.

Enter your ZIP code below and start comparing car insurance quotes!

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