1. 16470 POINTS
    David Osgood
    Agent, Rural Mutual Insurance Co., Union Grove, WI
    Auto insurance rates are partially based on driving experience of the person to be insured. Teenagers are brand new drivers and are typically not fully mature (when it comes to driving) hence the reason that their rates are typically on the high side. This is not to say that a teenager can not be more mature or a more responsible driver than someone that is older but the statistics are against it. On a brighter note if your teenager maintains a 3.0 or above GPA in school many carriers will offer a good student discount which can help lessen the premium hike experienced.
    Answered on November 4, 2013
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    “If all things were equal…..” Unfortunately we all know that things are not equal. Losses are carefully evaluated and where there are distinct trends, insurance companies go to the state insurance commissioner and ask for permission to consider those specific trends. Youthful drivers have long been recognized as incurring a higher frequency of losses. We can argue all night about whether this is correct or not, but there are years of statistics that say that it is predicable.
    Answered on November 14, 2014
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