Rates for teen drivers are on the rise in Utah and other states
Teen drivers may be pushing auto insurance costs higher in Utah and other states. A new survey from insuranceQuotes.com shows that the average premium for auto coverage has increased by 89% throughout the state. Utah is now home to the 15th highest auto insurance rates in the country, and teenagers may be responsible for this. Teens have long been a major risk for insurance companies, largely due to conceptions regarding their recklessness and lack of driving experience.
Teens are more expensive for insurance companies to cover
The survey found that insurance rates among teen males was 92% higher than the average premium for adults. Rates for teenage females are 72% higher than the average for adult drivers. Younger drivers represent a greater risk for insurance companies and, as such, insurers are charging more for the coverage that they provide to these drivers to offset the potential losses they could see. While many teen drivers have shown that they can be safe and responsible behind the wheel, rates are largely based on the generalized behavior of the overarching demographic and not the behavior of particular individuals.
Survey shows that rates for teen drivers has dropped somewhat throughout the country
The survey does show that auto insurance premiums for teen drivers throughout the U.S. have dropped somewhat. In some states, insurance coverage for these drivers is becoming less expensive due to the safe habits that these drivers have begun to adopt. In other states, however, rates are on the rise. This could be due to the inexperience of teen drivers who find themselves in accidents, but insurance fraud may also be playing a role.
Males are involved in more costly car accidents than females
The survey notes that crash rates for teen drivers are three times higher than those for older drivers. Vehicular accidents are a leading cause of death among teens between the ages of 16 and 19. Male drivers, in particular, are involved in more accidents than females. These accidents tend to be more costly as well, which has an impact on insurance rates.