Why is the Insurance Premium of Young Drivers the Most Expensive?

Many people don’t know this, but you must notify your insurance company when your home adds a new driver. As soon as a teenager gets their driver’s license, the insurance company must have this information so they can update your policy and cover your car’s damages or personal injuries in case of an accident.

This update will increase your payment; likely around 50% more than what you are currently paying. A young driver’s lack of experience makes them more likely to cause or be involved in accidents.

Studies confirm that teenagers are more likely to be involved in a car accident than any other age demographic. According to a report released by Students Against Destructive Decisions, teenagers drive 44 % more of their time during summer than during school.

It also determined that 16-year-old drivers are more likely to be in a car crash than any other group of drivers, with motor vehicle accidents accounting for the main cause of death between 15 and 20-year-old drivers.

The U.S. Department of Transportation showed that 3,490 drivers between 15 to 20 years old died in car crashes in 2006, and 272,000 were injured. Out of the total fatal accidents in 2006, 12.9% involved young drivers, while 16% of young drivers represented 16% of all registered accidents.

Because of these numbers, insurance companies increase their policies. Young and inexperienced drivers, unfortunately, can get into a car crash that will not only harm them, but also other people’s lives.

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