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Why Is Car Insurance so High for Teenagers?
Your 14 or 15-year-old son or daughter is eager to start learning how to drive and get their learners permit and you want to know how much it will cost to add them to your car insurance policy when they do get their actual drivers license. And you will probably be shocked to know that your car insurance premiums will double or triple every six months just by adding your young teenager to the policy.
Why is car insurance so high for teenagers?
Car insurance companies base their premiums on risk. They have actuaries who do nothing but look at statistics of drivers and accidents and use complex algorithms to determine premiums for groups of drivers.
Teenage drivers are one of the highest risk groups there are. And the premium you have to pay is appropriate based on the risk the insurance company has to take on.
Even though your teen driver may not be a primary operator on any one car, the overall premium for the household will go up because the household risk has increased in the insurance companies eyes.
You can try and lower the premium by putting them on an older car with liability only. A car that you own outright and does not need to comprehensive or collision coverage. Your young teen driver may also qualify for a good student discount or driving school discount. Check with your insurance agent to see how much you can save before you enroll in an expensive drivers training course.
This may also be a good time to shop around with other car insurance companies and get free online quotes to see if there is any way you can save some money with your new 16-year-old driver.
So why is car insurance so high for teenagers? Because they are one of the highest risk groups statistically and insurance premiums are based on risk. The higher the risk the higher the premium.