New Drivers

New drivers pay higher car insurance rates. Some states allow drivers to be as young as fifteen, and insurance and department of transportation statistics show clearly that motorists between the ages of sixteen and twenty-four experience and cause a higher rate of crashes, injuries, and fatalities than drivers over twenty-four. Insurance companies take these statistics very seriously and work on several fronts to make the streets safer, and to avoid having to pay up on bodily injury and property damage claims. Among the approaches they employ is that of charging a premium for teenagers, who make up the largest portion of new drivers.

Some carriers have created special drivers education programs for prospective new drivers, or collaborate with other organizations to produce them. There are the Graduated Driver Licensing Laws of some states that move new, young drivers through prolonged training and preparation for using the public roadways in a manner that is safe for them and for other people who use the roads. Some of these are programs that young people can pursue on their own, and there are others that require the full and active participation of parents and guardians. Parents or guardians are included in all of these obligations and indeed are considered fundamental in every case, because after all, it is typically parents and guardians who pay the actual premium rather than the new drivers being underinsured, and it is they who will eventually negotiate the high automobile insurance quotes.

Some of the programs require that both parent and teenager sign the contract of participation. Parents and their teenage drivers must show that they have had discussions about the rules, limits, and expectations of driving. They must talk about how many persons and who is allowed to drive along in the car. Once these conditions are fulfilled, costs can become quite acceptable.

In calculating the car insurance rates that they will offer to their new drivers, carriers and their agents first consider the probability that the new driver will cause or be involved in an accident and subsequently, file a claim. Prospective customers who appear to present a high risk will pay a correspondingly high premium.

Why New Drivers Insurance Costs More

Motor vehicle insurance carriers contract with their customers to cover the cost of repairs or damages and bodily injury that the automobile or a person might sustain in an accident. When an accident occurs and a claim is made, it costs the insurance company money. The probability of this happening is the risk that the carrier takes, and that the customer pays for with the premium. This is the car insurance quote that increases parents' premiums overnight, practically. It is the price of inexperience and extreme youth; it is the price of green driving skills.

Teenagers and new drivers are more prone to accidents than are older motorists primarily because they have such limited experience, and are so much less likely to respond in a rational level-headed manner, although perhaps very quickly, to dangers they encounter on the roads. This partly explains the frequency with which they fail to avoid certain accidents, even though they have sharper reflexes than older drivers.

Insurance regulations require that all teenagers and new drivers living in a household and who have driving privileges, be listed on the primary holder's insurance policy. This simple act immediately and automatically brings the family a substantial increase in automobile insurance quotes.

Keeping New Driver Insurance Down

Insurance companies will typically consider offering discounted car insurance rates when new drivers demonstrate an older, more experienced side through having completed the specialized driver training that the carrier indicates or offers, or turns twenty-five



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