 The rates for teenage drivers are higher as a result of compiled statistics which indicate a higher risk of insuring.
Statistics show that motorists between the ages of 16 and 19 years may be considered high risk drivers because they are far more likely to be involved in an accident than any other age group. It is also stated that young drivers account for 30% ($19 billion) of the cost of injuries among males and 28% ($7 billion) among females as a result of traffic collisions.
Inexperience and bad judgment play a major role in reason why youths are more prone to accidents and therefore more expensive to insure, especially among males. Insurers assess the risk and potential amount of payouts and calculate their premiums accordingly. So the more that a company pays for claims for their younger clientele, the more likely the rates will be inflated for new applicants in that category. What Makes Insuring Teens an Increased Risk?
In 2005, over 4,500 teen deaths were a result of injuries sustained during an automobile accident and 400,000 suffered nonfatal injuries. This is the leading cause of death among American teenagers at a rate of one out of three and has a direct impact on auto insurance for teens because it indicates a higher risk for the insurer. In that year they accounted for only 10% of the population but were victims of 12% of fatalities caused by motor vehicle crashes. Per mile driven they are four times more likely to crash than older motorists.
Bad judgment is a big reason why a teen is more dangerous behind the wheel. They are more likely to underestimate dangerous situations and recognize hazards. Compared to older drivers, they have a higher likeliness to speed and tailgate, which if done in combination is very dangerous. In 2005, young male drivers between the age of 15 and 30 that were involved in fatal accidents, 38% had been speeding and 24% had been drinking.
Younger motorists are less likely to wear their seatbelts and more likely to drive irresponsibly if they have young passengers in the vehicle. A survey showed that 3 out of 4 youths that were killed as result of drinking and driving were not wearing their seatbelts. When insurers combine all of this data and assess the risk and potential of loss associated with insuring a youth, it is without question that the rates are increased in order to maintain balance. How do I find affordable auto insurance for Teenagers? The best approach to finding affordable auto insurance for teenagers is to compare quotes from several providers. The reason being is that since prices are determined on prior losses and experience, consumers may be able to find a company that has not increased there rates as much as others. Although premiums for younger motorist tend to be higher, there are quite a few ways to save. First and foremost would be to compare rates for teenage drivers from various providers. Obtain as many quotes as possible. The more a person has to choose from the more likely they can find what they are looking for.
Take advantage of discounts. Every parent encourages their child to get good grades. Now it's even more important because it can save money too. Students who maintain a "B" (3.0) grade point average can receive a savings of up 20%. Completing a safe driving course can also provide the opportunity for saving. Obtaining a certificate of completion from a recognized institute can entitle a discount from some insurers.
Types of vehicle and usage are a factor for the price of a premium. If only driving from home to school and back, a low mileage discount can be available (The less a person drives, the less likely they will have an accident.) Needless to say, higher end vehicles and sports cars are usually more expensive to insure. Purchasing one of these automobiles will just add to a premium and may also require comprehensive and collision coverage. By operating a vehicle that may only need liability coverage, the savings can be quite substantial.
|
