Why Teen Drivers Can Expect To Pay More For Auto Insurance
One aspect of driving that anyone who is on the roads legally is familiar with is the necessity of auto insurance coverage. Some form of insurance is required by law in each state for anyone to drive. The internet has revolutionized the way people shop for auto insurance. Online quotes can make finding affordable coverage much simpler with the advancements of websites that will automatically compare prices across more than one company at a time. Drivers can select a level of coverage they wish to purchase and then enter the necessary information for the quote. Then the quote is submitted to several auto insurance companies at once and gives the user back a price quote for multiple companies for easy comparison. Teen drivers tend to pay more than anyone else for insurance coverage for a few different reasons.
In the United States, people cannot drive on their own until they are 16 years old. This means that teens that are behind the wheel on their own have at most three years of experience driving without a parent or older licensed driver in the car for guidance. Insurance companies have to weigh risk when they are determining the prices of policies. One reason that teen drivers are considered more risky than older drivers is that level of experience behind the wheel. Experience means a lot when putting a skill like driving to good use. A more experienced driver usually engages in safer driving practices and is less likely to be the cause of a collision. This increases the cost of auto insurance for teenagers because insurance companies have to cover potential losses.
Another reason that teens tend to pay more for insurance coverage is that statistics show a greater number of accidents caused by teens than by older drivers. Teens have the highest numbers of accidents reported every year to the insurance companies. The companies see this and realize that it is the teens that are engaging in the unsafe driving behavior that tends to cause accidents. Any group that causes more accidents than another group will be charged more for insurance coverage. This same tactic for determining price is used with the gender gap. Women cause fewer accidents annually than men so men have slightly higher rates.
Experience and statistics are the two biggest reasons that teens pay more for auto insurance. Online quotes can help teens find the best prices for coverage to keep this cost as low as possible. Teens also have the ability to get discounts from some companies. Many auto insurance companies offer discounts to students that achieve good grades in school. Teen drivers are the riskiest group to cover so they will be charged more.