Reader’s Question:

My son who recently got his driver’s license has been bugging me for a new car. I have been shopping around and found that car insurance for young people is more expensive than mine. Why is this so?

Katie

Seattle, WA

Katie, welcome to the club of moms wondering why car insurance for young people is more expensive than their own car insurance policies. I wondered about that, too, when I had my first car insurance, and I was the one paying the premium. I disliked the fact that my car insurance cost more than my father’s when I was earning so much less.

Later, I realized that it all boils down to statistics. It really is a question of how much of a risk you are as a driver. Aside from lack of experience in driving, young people tend to lack awareness on the consequences of breaking road safety rules and regulations. Back to statistics, I won’t go into details but it is a known fact that many fatal car collisions involve teenage drivers. Not only that, many of those accosted by the police after 10 pm and onwards are teenagers. Some even have alcohol content in their blood. So, Katie, when alcohol and driving are mixed, getting involved in an accident really becomes a likelihood. Hence, car insurance for young people becomes costly. To save up on your car premiums, you should urge your son to avail himself of good grades discounts. Just show your proof of his good grades to your car insurance company.