Average Car Insurance Rates for Teenagers

If you are a teenage driver you probably pay a high premium and want to know at what age does car insurance go down? Your frustration is understandable since high premiums are a huge surprise for many young and new drivers. Naturally, you may feel that you haven’t done anything wrong to be avoided like the plague. However, you are not alone since average car insurance rates for teenagers are high. Also insurers probably feel fully justified when they give scary teenage auto insurance quotes. The fact of the matter is that they are scared for two very valid reasons.

Lack of Driving Experience: One of the reasons is naturally the lack of experience. Today, vehicle insurance companies look into many details when they calculate premiums. Unfortunately, most teenagers have no driving experience to talk about and not much information in the way of credit history either. A teenager may turn out to be a great driver and stay with the insurer for years without making a single claim. On the other hand, the moment they insure such teenager they may have a huge accident claim in their hands. So, a teenage driver is a complete mystery to insurers and this scares them a lot and some scared a lot more than others. That is why insurance company A can give you a quote as much as 6 times higher than company B.

Lack of Life Experience: When you are young you may feel indestructible and cannot imagine something bad happening. This is called experience and you can only get it by living. This can lead to serious risk taking knowingly or unknowingly. But a momentary misjudgement can result in a serious accident or even death when you are behind the steering wheel. This is a real worry for insurers and that is why some insurers avoid teenage drivers at all costs.

Statistical Proof: Unfortunately, insurers have the statistical data that backs their decision to charge high car insurance rates to young drivers. A teenage driver is about 4 times more likely to cause a deadly crash than any other driver group. When you see figures like this you can understand why car insurance rates for teenage drivers could be 4 times more.

How Much Is Teenage Car Insurance?

You may be pleased to know that even a 16 year old may not need to pay as high premium as 4 times of a mature driver. Some insurers may try their luck or want to scare away unwanted risk by quoting much higher rates. The beauty of it all is that you don’t have to accept them. If you keep checking for better quotes you are bound to find an affordable policy that will put you on the road. Average cost of car insurance for a 16 year old driver is about 2.5 times higher than average cost for a 25 year old, who is considered to be a mature driver. This equates to $2,102 based on the US average for an average policy and you may need to pay $3,312 for a full coverage auto insurance if you have a nice car. The average premium drops to 2 times of a mature driver by the time you are 18 and 1.5 times by the time you turn 20 and be over with your teenage years.

It may look or sound unfair to a teenage driver. However, it is fairly reasonable that teen drivers pay between 2.5 to 1.5 times more than mature drivers when all the risks associated with young drivers are taken into account. It is natural to expect that people who are more likely to cause accidents pay higher premiums. There is no way of knowing who is actually going to cause an accident and that is why average statistical figures are used as benchmark for certain group of drivers.

If you want to break away from your age group and prove that you are better than your age suggests you can always opt out for a telematics insurance that will tell your insurer how good a driver you are. So, there are solutions that can help you get the cheapest auto insurance for teenage drivers

It is important to keep in mind that the US average is very broad. Average vehicle insurance rates in your state can be much lower or higher than the US average. Also, City drivers are known to pay a lot more than the countryside drivers. As you can see, where you live plays a very important role in premiums.

When Does Teen Car Insurance Go Down?

You may be wondering if it is only a teenage thing and your rates would come down when you turn 20, just like a magic? Naturally, rates would start coming down at some point. The toughest time for you is the first year of driving. If you can manage to complete a year of driving without a claim you can get about 20% discount from most insurers. These large discounts keep coming as long as you don’t make any claim or get a ticket. Average car insurance rates for teenagers go down about 40% by the time they turn 20. A further 20% drop on the rates is expected by the time you turn 25.

Your driving experience, records and claims history will be very important factors in getting the most savings. If you have been driving and having your own policy since you got your license and have no accidents or traffic violation tickets you should be asking for maximum discounts. Most dangerous years for accidents are teen years especially the first year of driving. If you passed those years with flying colors it is not hard for companies to see that you are already a good driver.

Besides, your rates would (should) have been coming down for every year that passed without any accidents or traffic violation tickets. Generally, good driver and no claim discounts are gradual affairs. You don’t suddenly get all the discounts that were withheld when you hit a certain age or certain number of years without incidents. You keep getting them and reach to a maximum amount at some point, usually after three years. From then onward discounts can level out and you see very little or no drop on your premiums.

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