Who should pay for your teen's car insurance?
Considering that car insurance for teenagers is twice the price of that for adults, most adults think that teenagers should be responsible for paying for their own insurance. In addition, each time that a teenage driver is involved in an accident or gets a ticket, his or her insurance premiums increase. The fact that the teen has to pay the increase can be an excellent incentive to drive safely. In addition, by having teens pay for their own insurance, they're learning that everything has a price. You like the convenience of having your own car? Well, it comes with the responsibility of paying for insurance on time.
The highest percentage of car accidents is caused by young males under the age of 25, which is why their car insurance premiums are so high. Their lack of experience, coupled with risky adolescent behavior, results in the leading cause of accidental deaths in teens in the U.S. Females are usually not as aggressive when they drive, so their car insurance premiums are lower. If the male under 25 is married, his premiums can be lower, also.
If your teenager lives at home, the insurance company assumes that in addition to driving his or her own car, he or she is likely to drive a parent's car in an emergency or if permission is given, so if a teen gets into a accident and raises the insurance rate on his or her own car, premiums for all the cars in the family are increased as well. When teens have to pay for their own insurance, they may decide that they really don't need their own car all that much, anyway. Your teens might decide to walk to a friend's house instead of driving (better for the environment and good exercise) and conclude that they don't want to be their friends' unpaid chauffeur.