Even though car insurance premiums vary from state to state and individual to individual they all have one thing in common. They tend to skyrocket when teenage drivers are added to parents’ policies, regardless of insurer.

For instance, adding a teenage son to the family insurance policy often results in a whopping rate increase, an increase many times in excess of 100%. This is usually a rude awakening for parents insuring a teenage son or daughter for the first time.

Here are some of the reasons why insurance premium increase so dramatically.

1. Teen drivers are inexperienced

Driving a car is like any other acquired skill. It calls for practice, effort and time before becoming proficient. Teen drivers often lack this proficiency as they’ve only been behind the wheel for a few hours in driver training and have not, in many instances, encountered a sufficient number of real driving conditions to safely handle the vehicle.

Many teen drivers are usually granted  driving permits after just a couple of days of driving under supervision. Unlike a skilled driver who can quickly detect road hazards and take measures to prevent accidents the typical new teen driver will not spot danger until it is too late.

2. Teen drivers get distracted easily

After a few years  behind the wheel adults are less likely to engage in practices that endanger themselves and other road users. Teen drivers, on the other hand, are young, carefree and often easily distracted.

AAA  statistics indicate ~51% of teen drivers admit they make and receive calls while driving. Another 46% respond to texts while at the wheel. This puts them at much higher risk of causing a crash because their reaction time to road hazards is doubled if they’re reading, sending texts or making calls.

It is factors such as these that cause insurance companies to impose high premiums on young drivers.

3. Teen drivers are more likely to be involved in an accident

Most millennials live the YOLO (You Only Live Once) slogan. As a result they are far more likely to engage in practices such as driving while intoxicated, speeding, eating and drinking while at the wheel. Quite obviously these beliefs and practices place them at higher risk of being involved in an accident.

4. School parking facilities are usually not secured

Most countries have laws that allow teenagers aged 15 to get driving permits and become licensed drivers by age sixteen. Younger drivers are still in high school and must park their cars in either school parking lots or public ones. These spaces are usually unprotected. Vehicles parked in these spaces can be vandalized, or even worse, stolen. Obviously vehicle replacement costs are expensive and help to drive up costs throughout the entire insurance industry.

5. Young drivers do not have a proven driving record

Insurance companies consider several factors to determine fair market price for insurance. One of these factors is driving record. For example, an individual with a DUI charge is likely to see a hefty increase in premium price compared to a driver with a clean record.

6. Young drivers often commit traffic violations

Teenage drivers are more likely to violate traffic rules than adults.

Some states, for example, have traffic laws that prohibit teens younger than 18 from driving between 1 A.M and 5 A.M local time. However, this is often the timeframe in which young drivers leaving parties or even friends’ homes get pulled over.

The likelihood of a teen getting stopped by law enforcement is often increased because they get caught having more passengers in the vehicle that is either safe or allowed by law.

Other infractions that cause them to get ticketed more than their adult counterparts include:

♦  not wearing a seat belt,
♦  running a red light or a stop sign,
♦  not signaling before turning.

If your teenage son or daughter has any of these ticketed infractions your family insurance costs will skyrocket.

7. Teenagers  drive more than adults

Teenagers often like driving around just for the fun of it.  Adults usually don’t drive simply for fun. They drive to work, run errands and drive to planned destinations. As a result they spend less time on the road which minimizes exposure to minor accidents and crashes..

8. Teenagers often lack a sense of responsibility

Most young drivers are reckless because they know they’re on the family’s insurance policy and the insurer will have to pay to repair or replace the damaged vehicle. In addition, because they’re not the ones paying the insurance company they don’t really care about rising premium costs as a result of their careless behavior behind the wheel.

9. Discrimination

It’s a fact that pricing policies based on the driver’s age is a form of discrimination. That said, it is one of the most widely accepted and openly executed forms of discrimination due to the factual record insurance records have compiled concerning drivers in general, and young drivers in particular. It is clear from the actuarial tables that young drivers are the most expensive group to insure.

For reasons listed above the trend toward ever increasing premiums when teens are added to family policies is likely to continue.

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