Why Are Insurance Rates Higher for Drivers Between the Ages of 15 & 30?
The U.S. Centers for Disease Control and Prevention in 2002 reported $26 billion as the total cost of medical claims for injuries of drivers between the ages of 15 and 25. Insurance actuaries have examined statistics and determined that the rates for younger drivers must be significantly higher than for older adults because of the risks they pose on the road.
Other People Are Reading
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Inexperience
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Inexperienced drivers cause accidents. They are unaccustomed to dealing with adverse weather and driving conditions. It can take years of driving to develop good judgment in hazardous driving situations.
Gender
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Young male drivers generally pay higher rates than their female counterparts. Statistically, more accidents happen to young male drivers.
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Speed
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It is a thrill for teenagers to get behind the wheel for the first time. The inevitable temptation comes along to show off their vehicles, possibly racing friends. This greatly increases their chance of being involved in an accident.
Ways to Reduce Rates
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There are things that can be done to reduce insurance rates for young drivers. They can use or buy a cheaper and safer vehicle. They can take driver's education. These generally result in discounts on the premium. Some companies even give a "good-student discount" for those who earn good grades.
Compare Rates
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While all insurance companies charge higher rates for young drivers, there are differences between carriers. Shop around for the best deal. Some companies make more discounts available for young drivers.
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Resources
- Photo Credit Wikipedia (public domain)
