7 Reasons Why Teenagers Pay Extra For Car Insurance

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29 August 2018

Finance

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.

Conclusion

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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