Some people think insurers discriminate against teenage drivers by charging them higher rates than other drivers. Unfortunately, it is true that teenagers are high-risk drivers. Here are a few reasons for their increased risk:
They Are Inexperienced
This is probably the top reason teenagers are considered high-risk drivers. Even if you have been taught by the best driving instructor, there are some road safety issues you will only internalize after a few years of driving. Unfortunately, teenage drivers usually lack driving experience, which increases the risk that they will get involved in crashes before they gain experience. Insurers cover their risks by increasing insurance rates for this age group.
They Are Easily Distracted By Passengers
Drivers, some more than others, can cause accidents due to distractions from passengers. Teenagers belong to this group of drivers who are easily distracted by their passengers. According to statistics, distraction accounts for over 58% of all teen crashes, with passenger distraction topping the list for causes of distraction. This is worrying given that teenagers like to carry their friends in their cars. This increased risk of accident (due to distraction) can only be adequately covered by increased auto insurance rates.
They Don't Like Seat Belts
Research has shown that seat belts are effective in reducing the severity of car accidents, yet people continue to drive without them. Teenagers, in particular, show a marked reluctance to use seatbelts. This increases the likelihood that a teenager involved in a crash will have more severe injuries than a driver from another age group. Insurers, therefore, increase rates for this age group to pay for the (potentially) high medical costs.
They Incur High Rates of DUI-Related Crashes
Lastly, insurers also consider teenagers as high-risk drivers because the age group is more responsible for alcohol-related crashes than other age groups. According to statistics, teenage drivers represent only 10% of all licensed drivers. Unfortunately, this percentage accounts for a staggering 17% of all alcohol-related car accidents. Don't forget that the driver isn't the only one who gets injured in a DUI-accident; other road users suffer too.
Considering all these, it makes sense to increase insurance rates for teenage drivers. The good news is that there are checks in place to reward teenage drivers who are low-risk. For example, many insurers offer good-student discounts for those with above-average school performances. Talk to an insurance agency like Wyatt Insurance Agency for more tips on how to lower insurance rates for your teenager.
After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.