Teenage drivers and drivers younger than age 25 generally pay higher car insurance premiums. Young male drivers under 25 years old often pay the highest rates as insurance companies consider them to be high-risk drivers. Other factors, such as where you live and the type of car you drive, also affect the cost you pay for auto insurance.
Teenage Male Drivers A Higher Risk
The average annual cost of car insurance nationwide in 2010 was £1,017, according to CarInsuranceComparison.com. Although insurance companies charge different rates, 18-year-old male drivers tend to take more risks when driving, increasing their odds of being involved in a motor vehicle accident. They receive more traffic violations as well. As a result, teenage males pay higher auto insurance rates.
The Centers for Disease Control and Prevention reports that for every mile teens between the ages of 16 and 19 drive, they are four times more likely than older more experienced drivers to be involved in an auto accident. Teen males are at particularly high risk of motor vehicle accidents--nearly twice that of teenage girls. In fact, the CDC reports that injuries among young males account for higher total costs than injuries among young females. The accident risk is especially high during the first year that a teenager has a driver's license. Reckless driving behaviours such as speeding and alcohol contribute to many auto accidents involving teen drivers. Male high school students are also less likely to wear a seat belt.
Female Teenage Drivers A Lower Risk
One reason that male teenagers pay higher auto insurance premiums than female drivers the same age is that they are more likely to take risks when driving. Teen males also drive more miles than teenage females putting them at higher risk of accidents. Young female drivers normally drive less aggressively; therefore, the insurance rates they pay are usually a bit lower than what their male counterparts have to pay.
Getting Lower Rates
Adding your teenage driver onto your auto insurance policy can increase premium rates by 50 to 100 per cent, according to Bankrate.com. Fortunately, there are ways to get discounts that will lower the cost. Many insurance companies offer a discount for teen drivers who complete driver education classes. You could qualify for a discount of up to 10 or 15 per cent. Getting good grades in school can earn an additional discount. Some insurance companies also offer premium discounts for teens that successfully complete a defensive driving program. The amount of the discount varies by insurer.