1. 185 POINTS
    Brennan Hurley
    Producer, Hurley Insurance Brokers, Inc., Pittsburgh, Pennsylvania
    The short answer is that younger and more inexperienced drivers are far more likely to have an accident.  Insurance carriers base their rates off of actuarial data using large sample sizes to determine the likelihood that certain factors (such as youthfulness) will lead to a claim.  In the case of youthful and inexperienced drivers, they have found overwhelmingly that there is a much greater likelihood of a claim than with more experienced drivers.
    Answered on May 8, 2013
  2. 7647 POINTS
    Mark Bartlett CLCS
    Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
    Insurance rates are based in large part on experience and driving record. In fact this is who the entire insurance industry operates. There is not questions a newly licensed operator lacks the experience to make the right decisions in certain situations. The insurance industries experience and even my own as an agent show that newly licensed or youthful operator are involved in more accidents. This is why the rates are higher then a driver who has more successful years on the road.
    Answered on May 8, 2013
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are thousands of accidents each day across the nation.  These accidents are analyzed in great deal to identify the causes and conditions that lead to accidents.  The data is evaluated in close detail and in some states the insurance companies can charge by age and sex.  Going to that pile of data, they can determine exactly what it costs to insure a large group of 19 year olds with two years of driving experience.  In other states, California being one, you are only allowed to evaluate on driving experience, not age.  The important thing is that the rate is based on actuarial data.  It isn’t that someone has an axe to grind against young drivers.  Young drivers simply cost the company more to insure.
    Answered on May 20, 2014
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