* Inexperience: Teen drivers lack the driving experience and judgment that comes with years behind the wheel. They are more prone to making mistakes like speeding, distracted driving, following too closely, and failing to properly assess risk.
* Higher Accident Rates: Statistics consistently show that teenage drivers are involved in more accidents per mile driven than older drivers. This increased risk translates directly into higher insurance premiums.
* Increased Severity of Accidents: While the frequency of accidents is a factor, the *severity* of accidents involving teen drivers can also be greater. This is partly due to inexperience and partly due to risk-taking behaviors. More severe accidents lead to higher insurance payouts.
* Higher Risk of Injury: Teenagers are also more likely to be injured in an accident, even in less severe collisions. This contributes to higher medical costs and insurance claims.
* Lack of Established Driving Record: Insurance companies base premiums on driving history. Teenagers lack this history, making it difficult to assess their individual risk profile accurately. They are essentially placed in a higher-risk category until they build up a clean driving record.
* Vehicle Type: The type of vehicle a teen drives can also impact insurance costs. Powerful, sporty cars are often associated with higher insurance premiums due to the increased potential for accidents and damage.
In essence, insurance companies charge higher premiums to teens to offset the statistically higher risk they present. As teen drivers gain experience and build a clean driving record, their insurance premiums typically decrease.
