Many teenagers are quite surprised when they first understand how much more expensive it is for them to get insurance on their car. Some young drivers experience premiums that are several times as high as someone 10 years older would get for their car. Here are some common questions and answers about why cheap car insurance for teenagers is so difficult to come by and what you can do to lower your own premiums.
Why is insurance so expensive for teen age drivers?
More people in their teens are in car accidents than just about any other age group, with over 5000 dying each year and 400.000+ accidents reported. Since the insurance companies are commercial entities, they will of course price their policies to match the risk that you represent for them. Younger age means less experience in traffic, and also less responsible driving. This translates in to higher premiums in general for people in their teens.
Will I get cheaper insurance if I have a “slow” car?
Yes, most likely. The insurance companies look at how new your car is and how many horsepower it packs. If the car is build for speed, you will probably pay a higher premium, since speed and accidents correlate.
What are the other things I can do to get cheaper car insurance for my young driver?
Your driving record, if you have one yet, will of course be very critical when assessing the risk you pose in traffic. If you have been responsible, always used a seatbelt, never reported any bumps, and stayed clear of traffic tickets, this will be a positive factor. Your grades at school are also important, as many companies look at good grades as a sign of maturity and responsibility.
As you see, cheap car insurance for young drivers is all about showing the insurers that you will most likely not be reporting any accidents that they have to pay for.
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