7 Reasons Why Teenagers Pay Extra For Car Insurance


29 August 2018


Car Insurance

Car insurance for teenagers is more expensive than experienced drivers. Teenagers, who are at a very young and vulnerable stage of life, often lack any formal driving experience. They learn the skills of driving in this age and polish it with practice. The motor vehicle associations understand the susceptibility of their age and therefore the cost of car insurance for teenagers is higher.

In order to understand this concept in detail, we have laid down 7 reasons that “why teenagers pay extra for car insurance”:

No Proven Track Record of Driving

The insurance companies consider the driving history of the applicant before issuing insurance premiums. In the case of teenagers, there is no proven track record of driving. Since they are at the beginner’s stage of learning, there is no evidence to support their expertise on the road. The risk factor stays high in this case.

In general, the people who have proven driving track record without any mention of traffic violations and accidents in their names can avail significant discounts on their car insurance policies.

The insurance companies need some statistical proof to make a judgment about the driving skills of applicants- which is not possible in the case of teenagers. Therefore, they cannot assume whether the teenage driver is a safe or reckless driver.

In order to cover their risk, they raise the cost of car insurance for teenagers to ensure some safety measures. However, at the age of 19, the insurance plan becomes affordable as you already have 1-2 years driving experience by this time. You can get car insurance here for 19 years olds.

Lack of Experience

It takes time in learning a skill and achieving expertise in it. Learning to drive certainly takes more time and effort as we face different situations every day on the road. The young drivers need to dedicate a lot of practice hours to polish their skills before they can take their own vehicle independently on the road.

The amount of time spent behind the wheel is a considerable factor in enhancing the driving abilities of young drivers. In the case of teenagers, their lack of experience can put them to test while facing real-life driving situations. Their reaction time may be slower than an experienced driver which is much needed when you are in actual driving practice.

It is often seen that the young drivers get into a panic very easily when they face unusual situations on the roads. There are research studies to support the fact that most of the accidents that involve youngsters are due to their delay in reaction to the situations that prevail.

Emotional Distraction

Young people often get stuck with emotional issues. Their vulnerable age often brings out the “rebellious” attitude which may result in anger, sadness, extreme happiness, excitement, overreaction, anxiety, etc. They have very less understanding of dealing with their own emotions which may cause serious troubles while driving.

For example- despite many public advertisements, youngsters use their mobile phones while driving. The overconfidence can lead to the accident-prone situation very easily.

Youngsters often pool their vehicles and go for diving expeditions. Mutual talking and discussions while driving can distract their attention from the road. It is also common for youngsters to appreciate unusual sights on the road and get diverted from their driving spree.

Insurance companies take these facts into account and use substantial proofs to put forth their risk level before issuing car insurance to teenagers.

Increased Tendency Towards Speed and Racing

There is no denial of the fact that teenagers love formula races and speed games. When they sit behind the steering, they get tempted to race with the cars on their track. Sometimes they have their own bunch of friends racing while driving.

The scientific studies have reported that teenagers are easily aggravated by smoking, drugs and alcoholic tendencies. Under the influence of these factors, they may be instigated to adopt risky behaviors while driving. The understanding of the risks and their implications can be attained only with age and experience.

The insurance companies state that the lower rates of premiums for the experienced drivers are supported by the statistics that prove that they are less prone to accidents as compared to teenage drivers.

The Risk of the Insurance Companies

The teenage drivers are at a higher state of financial risks for the insurance companies. The higher the probability of being at risk of accidents raises the probability of higher expenditure of the insurance companies. Therefore, in an attempt to cover the risks associated with the young drivers, they raise the cost of the policy.

The Statistical Proofs

We have already discussed various factors that may cause teenagers to become riskier while driving. It should be mentioned that our studies are based on statistical findings from various reports. These reports emphasize the high probability of teenage drivers being involved in road accidents. The data has been collected by the years of research that bring the car insurance firms at a higher edge of risk.

The Make and Model of the Vehicle

We often get to hear that the teenagers are gifted their “favorite vehicle” on their birthday or any other occasions. Although this practice is popular in rich and affluent families, these days even the middle-class segment has roped into the trend. Thanks to the easy loaning facilities!

However, parents often forget about the risk associated with allowing teenagers to drive new and expensive cars with high-speed parameters. The insurance companies charge more from their clients who want to purchase insurance of a premium car for their teenager ward.

The reason is clearly stated- higher speed parameters of the vehicle are directly proportional to the high financial risk factor of insurance companies.


Teenagers pay extra for car insurance due to the high amount of risk associated with their age and the levels of maturity. There are facts to support the rash driving incidents leading to fatal accidents in many cases that involve teenagers.

Therefore, the higher rates of insurance are just a precautionary measure by the insurance companies. They intend to ensure that the applicant, as well as the company, must be fully prepared to deal with the possible risky outcomes due to driving errors. Higher is the risk of the insurance company, higher is the cost of the premium.

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I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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Binary Options

Unveiling The Dark Side Of Trading: Exposing Binary Options Scams And Ensuring A Secure Future

It is quite normal to have an extra cushion in life in the form of financial freedom. When you have enough money, your life becomes more comfortable. You have the freedom to buy the things that you desire most. And it is not a crime to dream big.Many seek an alternative source of income to supplement their income. There are several ways one can achieve this, and the stock market is one such place. Many have invested in the stock market and have made substantial profits.Considering the current economic situation, the need for this extra cushion is ever greater. The rising food prices, the Fed's increasing interest rates, and declining job prospects have raised concerns among many Westerners.As more and more people explore the possibilities of making a quick buck, scammers are just around the corner, waiting for them to make a mistake and get scammed in the process.Several scammers will impersonate stock brokers or brokerage firms; there are also some firms whose license to practice trading has expired or been revoked due to some legal issues. Thus, you, as an investor, need to be careful not to fall for such scams.The binary options trading scam is one such financial fraud that has engulfed many victims in its path.Binary Option TradingBefore we understand the nature of the scam, let us first understand what binary options trading is.It is a type of contract between the broker and the client where the payouts entirely depend on the outcome, such as "yes" or "no." The price trend of a financial asset like a stock is considered, and a wager exists between the broker and the client that in the next five minutes, the price trend of that particular stock will either increase or decline. The one who loses the wager pays the winning amount to the winner.For example, a $100 wager between the client and broker is that the price of X stock, which is trending at $45 per share, will rise or fall. The one who loses the wager pays off the winner.Such wagers are instantaneous, and unlike other types of options available in the financial market, there is no way the client can avoid paying the losing bet. The contract ends when the stimulated time ends, and the loser pays the winner.Binary Option ScamsWell, if binary options trading is so simple, you have a 50% chance of winning the bet, and you might think, "What could go wrong?"Well, for one, the trading platform that scammers offer their clients to download is rigged. The rigging is achieved in two ways: either the entire platform is rigged or there is a delay in the data that is streamed.Generally, the trading platforms offered by brokers or brokerage firms relay real-time data on price fluctuations in the stock market.The trading platform provided by Binary options scammers could cause a delay in the data streamed by the stock market. Thus, scammers know in advance about the price moment and can thus ensure that every bet that is placed is in favor of the scammer.In the second way of scamming the victims, scammers provide their victims with a completely rigged trading platform. In this case, the real-time data is not streamed from the stock market; rather, it is completely controlled by scammers.How do scammers keep their victims enticed?Scammers are smart; they know that if they keep on winning every time, their victims will lose interest and stop playing their "rigged game." Scammers will ensure that their victims initially win, thus promising a false sense of security that they have the "ability to win big."Thus, once these scammers start investing more, they start to lose. They invest more because they are afraid of losing money. The false sense that "this is the last bet, the one bet that will recover all the lost money," makes them invest more while increasing the amount on successive bets.A few genuine brokers and brokerage firms allow binary trading; they are regulated and certified by the regulatory authority, which ensures clients' interests are protected.How to spot bogus brokers or brokerage firms offering binary options services?Among all the complaints that are being received by the SEC, or Securities Exchange Commission, there are three common categories where victims were ripped off.1. Denying reimbursement or paying off clientsOnce clients have opened trading accounts with scammers, they will deposit their money into their trading accounts. As and when the clients are falsely encouraged by the scammers to invest more to win more. Once these clients have had enough of the losses or wish to withdraw their winnings from their accounts, these scammers will not allow their clients to withdraw.Since these Binary options scammers are based in another country, there is little that these clients can do apart from calling their customer service center, which will eventually block their contact numbers.2. Identity TheftUnder the guise of providing binary options services, scammers will collect all the sensitive data from their victims. These scammers will collect their social security numbers, bank account numbers, credit card details, passports, driver’s licenses, and so forth.3. Rigged trading platformMany clients who fall victim to bogus brokers or brokerage firms finally admit that they have fallen for a scam where they suspect that the trading platform was rigged. They also stated that the time left until the expiration of the winnings may be extended arbitrarily until the trade ends in a loss.Final thoughtsThe United States has legalized binary options trading, and as mentioned earlier, there are a few genuine brokers and brokerage firms regulated by regulatory authorities that are either private or government-owned.Since almost all brokers and brokerage firms advertise and can be contacted online, researching these firms is a must to avoid falling for binary options scams. Use caution if any broker or brokerage firm is offering binary options services at competitive prices. It's possible that they are scammers.Regulatory authorities offer protection against scams and fraud; they protect the interests of clients of a broker or a brokerage firm. So when a broker or brokerage firm goes rogue, these regulatory authorities ensure that the client's interests are protected.Always check that the online broker or brokerage firm is authorized and protected by a renowned private regulatory body or a government-owned entity.The binary option scam has also engulfed the cryptocurrency market; thus, be cautious if a binary option is offered in the crypto market.Read Also:6 Ways To Make Sure Your Finances Are SeamlessThe Future Of Digital Currencies: 7 Things We Can Expect In 2022Crypto Staking: Locking Up Crypto Holdings To Earn Interest

Trading Options In Dubai

What Beginners Must Know About Trading Options In Dubai

When it comes to trading options, there is a lot that beginners need to learn to be successful. In Dubai, many traders are looking to get started in options trading. However, not everyone knows where to start.This article will examine some things that beginners must know about trading options in Dubai. We will look at where to find information and resources about trading options, choosing the right broker, and what strategies can help you succeed in the market.So if you are new to trading options or even have some experience but want to learn more, read on for helpful tips on the difference between stocks vs stock options.Sourcing information and resourcesThere are numerous different sources that you can turn to when looking for information and resources about trading options in Dubai. One popular resource is online forums and discussion groups, which allow you to connect with other traders worldwide.These platforms can be a great way to learn from the experiences and insights of other traders and discuss your trading strategies and stay up-to-date on market trends.Additionally, many websites and blogs are explicitly dedicated to trading options, which provide in-depth analysis, tips, tutorials, and other resources.Finally, most brokerage firms offer educational resources such as live webinars or eBooks that can help you learn more about trading options. Whether you're a newbie or an accomplished trader, there is something that can help you expand your knowledge and improve your success.Choosing the right brokerWhen it comes to options trading, choosing the right broker is essential. This is because your broker will act as your primary point of contact when you need help with your trades and will likely be the one responsible for helping you to manage risk and achieve your financial goals.Therefore, it is essential to evaluate potential brokers before settling on one carefully.Some key factors to consider are their experience in the industry, their regulatory status and background, and the features and tools.Ultimately, selecting a broker should be a process of trial and error, where you experiment with a variety of providers until you find one that meets all of your needs and provides you with the backing you need to succeed. However, with careful research and careful consideration, anyone can find the right broker for options trading.StrategiesOptions trading can be a highly profitable way to invest, but it also carries risks. To be successful, you need to clearly understand the market and the underlying factors that affect price movements. You also need to be disciplined in your approach and have a solid risk management strategy.Here are some tips to help you succeed with options trading:First, make sure you understand how options work before you start trading. It is a lot of information available online and in books, so take the time to educate yourself.Second, start with small trades and only risk an amount of money you can afford to lose. As you gain experience, you can advance the size of your trades. But always remember that there is risk involved and never trade more than you can afford to lose.Third, use stop-loss orders to limit your losses on each trade. A stop-loss order is an order to sell an option when it reaches a specific price. You can protect yourself from significant losses if the market moves against you by using stop-loss orders.Finally, have a plan for exiting both winning and losing trades. Taking profits early can leave money on the table but holding onto losing positions for too long can eradicate your profits.The final sayOptions trading in Dubai can be a lucrative venture, but only for those who understand how options work. For beginners, it is vital to understand the concepts behind options trading before risking any money on this type of investment.By following the recommendations in this article, you will be well on your way to mastering this exciting and potentially profitable form of trading.Additionals:3 Forex Trading Tips and TricksCFD Trading: Everything You Need to Know in 2021Passive Income And Crypto Trading: Here Is How You Can StartCanada Is the First Country to Allow Trading BTC on Its Stock Exchanges

Singles In Their 20s To Get Life Insurance

Why It Is Important For Singles In Their 20s To Get Life Insurance?

Life insurance is a product that may not seem a cause for concern as a single in the early 20s. However, postponing it to a later date or several years ahead might cost you more than you expected.We must buy life insurance early to manage unforeseen commitments and pursue long-term goals with ease. Financial planning with life insurance will assure you benefits, especially low premium rates, extensive cover for your family, and financial security for the entire family.Here are some of the best reasons for singles to opt for life insurance early in the 20s. Reasons to buy life insurance in your 20s:When you are single and being in your 20s, you may be the only earning member of the family - your parents might become your dependents. They survive and manage expenses based on your income. However, as you get older, your commitments start increasing with marriage and children. The income will be increasing but not in tune with the rising liabilities. In case of an unfortunate event like your death, the whole family will suffer. If you have a life insurance cover, the life cover payout will ensure financial security for the family in your absence. In the early 20s, the insurer will provide insurance plans with a lower premium rate. This is primarily because you are healthy and fit at that age, and the risk involved is comparatively less. When you opt for term insurance with a higher sum assured, medical tests are mandatory. At a younger age, you won’t have any pre-existing ailments. So, the application gets approved for a minimal premium rate. And during a claim, it will not get rejected due to the submission of a healthy medical test report initially. Even being single, you have to plan your financial commitments way ahead. Life insurance comes with additional benefits like riders, guaranteed returns, savings plans, and other investment solutions for any individual. With guaranteed returns, you can pursue your long-term goals, and with investment plans like ULIP, you can get insured and invest for growth. There are also guaranteed savings plans that will provide life cover and regular income after a set period of time. The early you invest with the best life insurance, the higher is the sum assured. There are also high possibilities that you may have an educational loan. If the installment is fairly higher, then the payout from guaranteed returns plans can help you pay off a majority of the loan. In case of your unfortunate demise, your family members can pay off the debts with the lump sum assured.Having realized the advantages of life insurance of taking up life insurance as an individual at an early age, you must put the plan into action. It will encourage you to start your life with a disciplined approach to secure your life. Before choosing the right plan:Spend some time analyzing your financial position, career goal, long-term plans, and financial commitments. Research through the variety of plans available and select the best with expert advice.Comprehensive Insurance Cover for your 20s: Comprehensive life insurance plans are the perfect life cover to buy when you start your insurance journey. These plans combine affordable savings-cum-insurance cover and health-based riders. Thus, true to their name, they offer comprehensive protection - life, health, and savings!You can buy a comprehensive life insurance plan to secure your family’s future and ensure a lump sum payout so that they can lead a financially independent life. The guaranteed returns from the savings component help you fulfill your dreams and financial goals.Finally, the health-based riders assure protection and financial support during medical emergencies, especially on the diagnosis of critical and terminal illnesses. In conclusion: The avenues for insurance and investments are increasing every day. You can purchase life insurance online and get the necessary assistance at ease. In your 20s, before you start spending money on luxuries, allocate it for insurance and investments to stay financially independent in the present and later during the future. Keep in mind, the early you get insured, the better are your prospects, and the safest is your loved ones! Read Also:How Private Hire Insurance Takes You Out from Problems? Four Different Types of Insurance Everyone Needs How to Get Low-Cost Life Insurance for Seniors