Young drivers pay some of the highest rates of all for their car insurance coverage. The reason rates are so high for teens and young adults is that they are statistically the most likely to be involved in accidents. People in this age group are more likely to take risks in a number of areas of their life, including while behind the wheel. As a group, they lack the maturity to fully grasp the consequences of their actions and therefore are more likely to speed or become distracted by music, cell phones or the conversation they are having with a passenger in the vehicle.
To get the lowest rates for coverage for a young driver, consider adding him or her to a parent’s existing policy. To buy a new policy for a teen driver would be very expensive, given the level of risk that someone in this age group presents. The young person can remain as an occasional driver on the parent’s policy until he or she leaves home, and this is a good way to keep costs down.
Having a teen driver in the household is a change in circumstances that warrants shopping around to find the best possible rates for coverage. Since prices for insurance coverage can vary significantly between providers, the parent should make a point of gathering quotes from a number of providers before making a pricing decision.