Reasons for Expensive Car Insurance Rates for People Around the Age of 16
Understandably, 16 year old drivers don’t have much driving experience; therefore, the cost of insurance is not going to be a pretty picture. This is especially true when compared to rates for older motorist. Although it might appear unjust to base rates entirely on age, the truth is that statisitcally young motorists are more likely to be involved in an accident than any other age group.
Insurers develop premiums by analysing statistics for the potential risks involving the driver or the automobile and unfortunately, new or young drivers have the highest level of risk for the company. The main reason insurance for 16 year olds is so expensive is because they are statistically more likely to be involved in an accident.
Teenage drivers often cause accidents, including serious collisions, and this is the reason why teenagers die more often from car accidents than from diseases or suicide. Research shows that younger teen drivers are four times more likely to be involved in accicents, but sixteen year old drivers are three times more likely than a drivers between the ages of seventeen and nineteen. Younger or more inexperienced drivers are at higher risk for loss payments by insurance carriers; therefore, they are charged higher rates.
Sorry, the comment form is closed at this time.