Calculating auto insurance costs for teen drivers

There is no doubt that the riskiest driver in the world is about a teenager and these objects are the most concern for paying auto insurance.

The issues of auto insurance for a teenage driver

According to the report from the Insurance Institute for Highway Safety (IIHS), the fatal crash rate per mile driven for teenager drivers (from 16 to 19 years old) is approximately three times higher than the elder drivers.


Consequently, the insurance expense for this age group always hits a spike in annual premiums, sometimes, the premium increment is even double the average rate.

Based on a study from Quadrant Information Services and data from insuranceQuotes.com, the economic impact of including teenager drivers into car insurance policy for the family was once again astound the readers. Mr. Mike Barry - a representative from non-profit Insurance Information Institute even strongly believe that those targets are likely to get involved in more and more serious accidents, which cause the dramatic increase in insurance cost for car drivers.

How much will you pay to ensure a teen driver?

Generally, if a U.S family add their young driver on their existing car insurance policy, the average annual payment seems to increase at least 50 % (and able to up to 80%). It is not about how bad drive teenager is, but the less experienced they can be, in compared with their elder counterparts.

Driving is everything about practice and it takes time to be well-trained or experienced. The younger driver is, the more and more careless mistakes he/she cannot handle. Eli Lehrer – president of nonprofit R-Street Institute explains that this is also the root-cause reason for the incredibly expensive of teenage driver’s insurance.

The highest record for the insurance expense was 84% higher than average rate in 2013. Fortunately, this average premium was decreased below 80% in 2014 and shows a continuing decline. The gradual decreases reflect the positive recognition of safety in teen.

In 1978, U.S people were completely shocked when IIHS informed the total number of U.S teen driver deaths were approximately 10,000. The bad news party warned the Americans about how dangerous the teenage driver can be and passively level off the number of teens (was allowed to be) behind the wheel. Since then, the death number has dropped every year and in 2014, IIHS recorded only 2.600 teen driver deaths in a year.

The percentage of death obviously decreases. 30 years ago, nearly 70% of American teenagers had a car license, while the current proportion is just 45% only. It seems like many crashes have been prevented and many lives have been saved by the time, thanks to strictly driver’s licensing programs.
In 1996, the graduated driver licensing (GDL) systems were first enacted. And it immediately plummeted the fatality rate of the teen crash. From 1996 to 2010, the crash rate showed a great decline by 68%. The relative rates continue to drop from 59% for 17 year-olds, 18% for 18 year-olds and 47% for 19 year-olds.

The other factors affect insurance’s cost for a teenager is gender! The young male driver often cost more than a female driver. It is considered by the risker the young male driver is as well as the more dangerous behind the wheel of teenage boys!

Advice for teenager behind the wheel. 

Here is some expert advice on how to keep your children driver safe:
  • Educating them about responsibilities and transport’s regulations: Teach them more about danger possibilities and hold them accountable. Do not drive at night or not to drive much till them have enough sufficient experience and learn about drive responsibility!
  • Installing minority technology in the car, it can deterrent the risky driving habit and warn parent to revise their children driving behavior in time!
  • Teaching the children to drive actively. Driving is not about theory in the lesson, but practice on the road. The more practical time you have with your kids on the road, the better driving habits you can train them. And you will know whether they are ready to sit behind the wheel or not.
  • Forcing your children to drive safe as the most priority. Warning them to be taken away the car privileges for any infraction of agreed-upon rules.  
Regardless of the premium cost of car insurance, the safety should come first and don’t forget to warn your children about their driving responsibility to themselves and to the others. Zero tolerance for alcohol might be a good start for your personal driving lesson to your children. Don’t wait but do it now!

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