Auto insurance companies determine the rates they charge based on a variety of factors. Among these are the year and make of the vehicle, the marital status of the driver, the number of miles driven per year, and the driver's age. Policyholders under age 25 tend to pay more than older drivers for coverage, and teen drivers pay most of all. Below is an explanation of why teen drivers pay more for auto insurance and what you can do about it. 

Why Do Teens Pay More for Auto Insurance?

Insurance companies base the premiums they charge on statistical risk. For instance, married people tend to get in fewer accidents than singles do, so you’ll pay less for insurance if you have a spouse. Similarly, teen drivers tend to get in more accidents than older drivers, so insuring them costs more. There are many reasons for this. First, teens don't have as much experience behind the wheel, so they are less able to anticipate trouble and to react to it effectively if it arises. Teens are also statistically more likely than older drivers to engage in risky behaviors while driving. In one study of over 100,000 teens, nearly 40% admitted to sending a text or email while behind the wheel within the previous 30 days. This form of distracted driving has contributed to a significant amount of traffic accidents and fatalities.

How Can You Lower Auto Insurance Payments?

Teens can lower their auto insurance rates by minimizing certain risk factors. For example, you can often save money—depending on the insurer—by completing a certified driver's safety course. Furthermore, insurers have found a correlation between good grades and safer drivers, so teens who earn a place on the honor roll or with a high enough GPA can often qualify for a discount. If you go through an insurance agency that you already have a policy with, you might also be eligible for a bundle discount.

For invaluable assistance designing an auto insurance policy for your teen driver, contact A Better Choice Insurance Agency Inc. in Concord, NC. They have served clients in and around Cabarrus County for more than 25 years and are renowned for their customer service and quality insurance products. Their specialties include auto, home, business, life, and motorcycle insurance. Visit their website to interact with them online or call (704) 782-2073 to request an insurance quote.