This article attempts to explain the reasons why teenagers pay more for their car insurance is not a guide that teaches in reducing their bills auto insurance if you are a teenager or young man under twenty-five years.
It is no secret that young people pay more for your auto insurance which is strange because it is precisely this group of people who are the least likely to be able to afford to pay the types of accounts. This often translates into anger against the companies insurance for discriminatory practices against young drivers.
Is this discrimination? It is charging higher insurance rates for drivers youth and adolescents and categorizing them is a class that must pay more discriminatory? The short answer is "no."
This would help to explain the reason this group of drivers to pay more. It is important to first explain one of the basic principles of insurance. Insurance is based on the law of large numbers. What this means for insurance is that premiums are based on the characteristics of certain market segments. For example, based on historical statistical data, Insurance companies found that drivers under the age of 25 will get into more accidents and more claims, in general, drivers over 25. Thus, drivers under 25 pay more.
This group of drivers may have more accidents for any number of reasons such as lack of experience or a greater propensity for recklessness. Either way, it does not matter. All that matters is that young drivers have more claims. And they do. That is a fact.
But if young drivers have more claims, he still believes charging insurance premiums is discriminatory? Maybe, maybe not. If not, then the highest rate of claims that have to pay some other way. Perhaps the increase in premiums must be shared among all drivers? In that case, drivers would be over 25 young drivers compensation for their claims through their own higher premiums. Now, that not fair, right?
Some may say that teen drivers have never had an accident and for that reason it should not pay as much as other drivers do. This is faulty reasoning. Most teen drivers have not really had a car accident. It's just that a higher percentage of them have. Is that higher percentage that makes it more likely that a young driver will have an accident. Your insurance rates are based on the likelihood of a future accident.
Adolescents and young drivers are charged a higher insurance premium because they are at higher risk. No matter how much you think this is unfair or discriminatory will not change. Not change while other young drivers keep having accidents. Therefore, your anger should be directed to young reckless drivers. Get to behave, while that behind the wheel and insurance rates would decline as a result.
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