Unfortunately, sixteen year old drivers have very little experience behind the wheel; therefore, the cost of car insurance is usually not going to be a pretty picture and compare to older motorists can be quite exorbitant. Although it may seem to be unfair to base rates simply on age alone, the fact of the matter is that these young motorists are statistically more at risk of being involved in a traffic accident than any other age or group for that matter. Rates are calculated by insurers based on risks; whether it is the driver or the automobile, statistics are taken into consideration when premiums are developed by insurers and unfortunately, a newly licensed motorist is the most risky to insure.

The main factor that makes car insurance for 16 year olds is the statistics showing the high likelihood of them being involved in a collision. It is a well known fact that traffic accidents are the number one cause of death for teenagers, but a driver under the age of 17 is highly more likely to be involved in a collision. Studies indicate that a motorist in their teens is four times more likely to be involved in a traffic accident, but that a sixteen year old is three times more likely than a driver between the ages of seventeen and nineteen. It is for this reason that insurers feel it is necessary to charge these inexperienced driver more for automobile coverage; the chance of paying for a loss is much higher than any other age group.

Finding Cheaper Insurance for 16 Year Olds

The only logical thing to do when trying to find the cheapest premiums for a newly licensed driver is to take the time and compare the rates of as many carriers as possible; this is true even if the teen will be added on to a parent’s policy or get coverage of their own. Parents should not simply assume that the most affordable route would be to add their child to their existing policies and should shop around to ensure the most affordable premium is found. Although the parent may be getting a great deal from the company that they are currently insured with does not necessarily mean that this will be the case once a teen is added to the policy.

It is highly advised that while shopping around for cheaper coverage that savings are look in to; departments of the government such as the North Dakota Department of Insurance suggests that any discounts available should be taken advantage of. Although parents often urge their child to get good grades in school, it will not only put a smile on a parent’s face if they do so, but will often save money on coverage; many insurers will offer a discount to students who maintain a high grade point average and the discount can be in the 20% range which can be quite substantial. Parents should encourage their children to take a defensive driving class, which can also provide discounts and if not will still equip a teen with tools and knowledge to stay safe behind the wheel. It may be expensive to insure a 16 year old, but shopping around can cushion the blow.

Source: http://www.onlineautoinsurance.com/learn/how-much-is-car-insurance-16-year-old.htm