Closeup of a car key on an auto insurance policy

Why Do Auto Insurer Charge Young Adults More?

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The Tar Heel State is one of the best places to have car insurance. The monthly premium in the state can be over $100 less expensive than the national average, which translates to more than one grand worth of annual savings.

However, the cost of auto insurance in Charlotte and other communities in North Carolina is still more expensive for young drivers. A statistic shows that 16-year-olds may receive quotes three times as big as those offered to motorists in their mid-30s.

The fact that teenagers are costlier to insure may be unfair, but it is not groundless. Below are the reasons why insurers charge young drivers more.


New drivers are inherently risky customers. They are bound to make mistakes on the road as they master the skill to maneuver a motor vehicle without hitting anyone and anything, a process that may take several years. Insurance companies, of course, want to be compensated for the high level of risk they have to take for servicing inexperienced drivers.

The irony is miles driven per year is another critical factor affecting a motorist’s car insurance premium. As teenagers need to spend more time behind the wheel to learn the ropes, the more they have to pay for insurance because they have a reputation for being hazardous road users.

Academic Underachievement

The absence of a person’s driving history is a natural disadvantage, but a teenager may gain the trust of a car insurer through their academic performance. Research reveals that ace students also tend to be responsible drivers despite their young age.

Yes, being excellent at school can help make up for not having extensive driving experience. With proper documentation, qualified licensed teenage drivers, including homeschooled ones, can receive insurance discounts.


Humans are born to be reckless. According to the University of Rochester Medical Center, the prefrontal cortex, the rational part of a person’s brain, does not develop fully until the age of 25, more or less. As a result, a teenage driver usually lacks the psychological capacity to use good judgment to handle situations. They lack the awareness and foresight to consider the long-term repercussions of their actions.

Operating a heavy machine that runs tens of miles per hour makes a young driver extremely dangerous. With less regard to safety and consequence, teenagers are likely to drive while intoxicated. Even worse, they tend to binge-drink, so often have higher levels of blood alcohol concentration when they drive drunk.

Susceptibility to Distraction

Signing an insurance policy

Teens are more likely to get involved in a car crash when driving with friends. Talking and listening to loud music are some of the fatal distractions young drivers willingly deal with when they are supposed to concentrate physically and mentally on the road.

Paying more for auto insurance at a younger age is a fact of life. Although a premium goes down over time, a person will not get the least insurance charge until middle age. Nevertheless, making every effort to be a responsible driver, regardless of age, is the best way to avoid getting involved in an accident and convince an insurer to charge less.

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