AUTO INSURANCE ARTICLE
Why is Car Insurance So High For Teenagers?
By: BethAnnThe Statistics that Affect Rates
The insurance industry basis how it prices coverage rates based on statistics that are gathered from various sources. One of the statistics that affects how much teenagers paid for insurance is on the rate that teens, both boys and girls, are in car accidents. The numbers show that out of the general population teenagers are one of the highest risk categories for accidents. Due to their high risk category, the insurance companies raise the price are those that fall within this age range.
Boys Versus Girls
The insurance companies also further break the data down by gender, which shows that teenage boys are in accidents with a vehicle more often than girls are. In this case, a teenage boy will generally have to pay a higher insurance rate on their car than a female will. Parents need to be aware of this when their children come of age to drive in and considering what kind of car in which insurance company that they choose to insure with.
The Good News for Reducing High Teenage Insurance
There are ways, though that parents and teens can save money on insurance. One of these that many companies will offer is a discount for being a good student. This discount is based on the student maintaining a separate average or higher for a certain period of time. Be sure to ask your agent for any other discounts that you might be eligible for. The other good news is that as your teen gets older and stays accident free his rate should drop over time. As they get older, they will leave the high risk category.
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