Most teenagers look forward to the day that they can apply for a driver’s license. Unfortunately, most auto insurance companies consider teen drivers “high risk” due to their lack of experience behind the wheel, and must charge accordingly.

The motor-vehicle accident rates for 16 to 19-year-old drivers are higher than those of any other age category. Why is this?

According to the National Highway Traffic Safety Administration, teen drivers have a low ability to identify hazards in the driving environment. Teens tend to take more risks while driving partly due to being overly confident. Teen drivers are also more likely than older drivers to engage in risky behaviors like speeding, tailgating, ignoring traffic signs and signals, taking illegal turns, passing dangerously and failing to yield to pedestrians. Teenagers are more prone to driving without wearing seat belts. Alcohol and/or drugs, which lead to many serious auto accidents, may also be a risk young drivers are willing to take.

Studies have shown that many graduated drivers licensing (GDL) programs are associated with reductions of up to 40 percent in fatal and injury crashes among 16-year-old drivers. Some states are planning to enact laws that require drivers with learner’s or exam permits or provisional licenses to display identifying decals on their license plates. 

But how does all this factor into the cost of insuring a teen driver?

Companies that issue auto insurance policies determine their rates by considering the amount of risk posed by the motorist – the less risk, the lower the premium rate. What this means for teenage drivers and/or their parents, is they must shop around to find an insurance provider that will take on such high risk drivers for a comparatively low premium.

Is it better to add a teen on to your family’s policy or to put him or her on a new policy? Teens and their parents may want to ask the agent who manages the family's existing policy.

For more information, visit www.floridainsurance.com on the Web or call 1.888.525.2210.