
Why Car Insurance for Young Drivers Is So Expensive—and How to Lower Your Premiums
If you’ve recently added a young driver to your insurance plan, you’ve probably noticed a big jump in your premium. But why does insuring a young driver cost so much? Insurance companies set their rates based on risk, and young drivers—especially teens and those in their early 20s—present a higher risk on the road. Let’s break down the key factors that drive up insurance costs and consider what you can do to keep your bill under control.
Risky Young Drivers: Why Insurance Companies Charge More
Insurance companies rely on statistics, and the stats for young drivers aren’t great. According to the National Highway Traffic Safety Administration (NHTSA), drivers between 15 and 20 years old make up just 5% of licensed drivers but account for 8.1% of drivers involved in fatal crashes and 12% of drivers involved in police-reported crashes.
Why the discrepancy? Young drivers, particularly teenagers, are more likely to engage in risky behaviors like speeding and distracted driving. In fact, a higher percentage of young drivers involved in fatal accidents are speeding behind the wheel compared to any other age group. Additionally, young drivers may lack the experience to handle challenging driving conditions, such as bad weather or heavy traffic.
Gender Differences: Why Young Men Pay Even More
There’s a significant gender difference when it comes to accidents. The fatal crash rate for young women is 22.74 per 100,000 licensed drivers, but it jumps to 58.73 for young men. This massive gap explains why young men typically face even higher insurance premiums than their female counterparts.
The risk doesn’t just stop at accidents, either. Young male drivers are more likely to engage in high-risk behavior behind the wheel, which is why they’re hit with steeper rates.
Factors That Increase Insurance Costs for Young Drivers
Here’s a quick breakdown of why insuring a young driver is so expensive:
- High Accident Rates: Young drivers are more likely to be involved in accidents, particularly those involving speeding or distracted driving.
- Inexperience: Less time on the road means a greater chance of making mistakes, especially in unexpected situations.
- Gender: Young men have significantly higher accident rates, leading to higher premiums.
- Type of Car: If your young driver is behind the wheel of an expensive or high-performance vehicle, expect even higher rates. Sports cars, for example, are associated with speeding and riskier behavior.
- Driving Record: Even minor moving violations or fender benders can drastically increase your premiums. If a young driver has a ticket or accident on their record, the costs can be astronomical.
How to Lower Your Insurance Bill
While you can’t change a young driver’s age or completely eliminate the risks, there are a few ways to reduce the cost of insuring them.
1. Choose the Right Car
Insurance costs vary greatly depending on the car your young driver uses. High-end, high-performance cars are much more expensive to insure than safe, reliable models. Consider choosing a reliable used vehicle with good safety ratings and anti-theft devices.
2. Look for Student Discounts
Many insurance companies offer discounts for young drivers who maintain a certain GPA, usually a B average or higher. If your young driver is a good student, you could save significantly on premiums.
If your child is away at college and doesn’t have a car on campus, but you want to keep them on your policy for when they visit, ask insurance companies if they offer any “away at school” discounts.
3. Take a Defensive Driving Course
Some insurance companies offer discounts if your young driver completes a defensive driving course. These courses teach valuable skills that can reduce the likelihood of accidents, which in turn lowers the insurer’s risk and your premium.
4. Shop Around for Better Rates
Don’t just stick with your current insurance company — shop around to see if you can find a better deal. Insurance rates for young drivers can vary widely between companies, so it’s worth getting quotes from multiple insurers.
5. Bundle Your Policies
If you’re insuring your home, car, and other assets with different companies, consider bundling your insurance policies with one provider. Many insurers offer discounts if you bundle multiple policies under one roof, which could reduce your overall costs.
6. Get a Young Driver Their Own Policy
If you’re insuring multiple vehicles, adding a young driver with permission to drive multiple vehicles may cause your premiums to skyrocket. To limit that increase, consider limiting your young driver only to certain vehicles.
Alternatively, if they have their own vehicle and policy, you may consider excluding them from your policy altogether. However, this can be a risky strategy, so be very careful. If your young driver is uninsured, they (or you, depending on the circumstances) would be responsible for paying out-of-pocket for any damage they cause behind the wheel. This is especially the case if they drive an excluded vehicle.
It’s recommended that you talk to your agent and understand the risks and benefits of making any change to your coverage before doing so.
Eugene Bruno & Associates Is on Your Side
While car insurance for young drivers is expensive, there are ways to make it more manageable. Taking proactive steps—like choosing the right vehicle, looking for discounts, and adjusting your coverage—can help you lower your premium without sacrificing peace of mind.
But, if a young driver is involved in a car accident, don’t hesitate to contact the attorneys at Eugene Bruno & Associates for legal guidance. Speak with one of our knowledgeable San Diego car accident lawyers by calling 1-888-BRUNO-88 (1-888-278-6688) today.
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