Car Insurance Why young drivers face skyrocketing car insurance costs Young drivers face some of the highest car insurance rates due to inexperience and accident risk, but smart strategies can help lower costs over time. View Carriers Please enter valid zip Compare top carriers in your area Written by Zack Sigel Zack Sigel Zack Sigel is a writer and editor based in New York City. He has been managing editor at Policygenius and M1 Finance, where he led teams specialized in writing about business and finance, and he has also written about music and culture for Hyperallergic, VH1, Complex, and the Los Angeles Review of Books. Zack has a bachelor's degree from New York University, Tisch School of the Arts. | Reviewed by Nupur Gambhir Nupur Gambhir Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant. | Posted on: June 18, 2025 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Car insurance rates are rising across the board, but young drivers feel the impact more than most. Since insurers base premiums on risk, inexperience translates to significantly higher costs – often thousands of dollars more per year than older, more seasoned drivers. Add in the fact that teens have the highest accident rate of any age group, and it’s clear why young drivers are the most expensive age group to insure. The best way for young drivers to avoid steep rate increases is to establish a clean driving record from the start. Avoiding accidents, traffic violations, and risky behavior behind the wheel can make a significant difference over time. Many insurers offer discounts for things like completing a defensive driving course, maintaining good grades, or using telematics devices or apps that reward safe driving habits. Practicing caution early on not only helps you stay safe, but it can also lead to big savings down the road. Why young drivers pay more for car insurance When calculating premiums, insurance companies consider several risk factors, one of which is age. Simply put, young drivers get into more accidents than more experienced drivers. According to the CDC, the rate of fatal accidents for teens aged 16 to 19 is three times higher than that of the general population. “Insurance companies are always looking to mitigate risk,” says Ben Michael, founder and managing partner of Michael & Associates in Austin, Texas. “The riskier a person is to insure, the more expensive their insurance will be. Younger drivers are automatically riskier right off the bat due to less experience and [less] proof of good driving, purely because of their age.” Car insurance rates tend to drop significantly after age 25, especially if you’ve maintained a clean driving record. At 16, male drivers pay an average of $628 per month, while females pay $563. As drivers gain experience, monthly rates steadily decline to $329 for males and $295 for females by age 20. When you first start driving, insurers rely on age-based statistics — rather than personal history — to set your rates, but safe driving over time can lead to lower premiums by your mid-20s. How long are young drivers considered high-risk? Young people with a clean driving record may be considered high-risk until age 25. However, car insurance rates may remain high after an accident for three to six years, with extended periods for more severe accidents. “After an accident, young drivers face even steeper increases because they’ve proven they belong in the high-risk category,” says Kris Barber, founder and principal attorney of The Barber Law Firm in Dallas. “Every claim validates the statistical risk profile insurers use for pricing.” That means even a single at-fault accident can have long-term financial consequences, especially for drivers under 25 who are already paying higher premiums. While some insurers offer accident forgiveness or gradual rate reductions with continued safe driving, others may keep rates elevated for several years, particularly if the accident involved injuries, DUI, or reckless driving. The long-term impact of accidents After an accident, your premiums will often increase by thousands of dollars per year. In a recent post on Reddit, one user’s story serves as a cautionary tale. The person explains that they had only received their license the previous year and were already paying $400 per month due to being a new driver. However, after being at fault in two accidents, their insurer raised their rates by about $1,000 per month. In other words, the Reddit user went from paying $2,400 per six-month term to $8,400. Premium breakdown The Redditor had several factors working against them, which any driver would be subject to in a similar situation. For one, although the person isn’t a young driver, they are inexperienced. Secondly, because they now have back-to-back claims — which indicates heightened risk to the insurer — and because those claims are for accidents, the insurer sees them as especially dangerous. Finally, their car, which was valued at about $32,000 new, may need higher levels of coverage. That explains why the initial rates were high and the renewal rates were so much higher. High deductibles don’t always mean lower premiums The Reddit user also mentioned that their deductible was now $2,000. The deductible is your share of the cost you incur after an accident, but most car insurance deductibles are $500 or $1,000. The $2,000 deductible indicates that the insurance company expects the driver to be at risk of being in another accident. But the story also shows that high deductibles don’t necessarily mean lower premiums. While it’s true that you can usually benefit from lower premiums if you select a $1,000 deductible instead of a $500 one, the post illustrates that driving history has a far greater impact. Losing out on safe-driving discounts Many insurers offer a discount for safe driving. Of course, being at fault in an accident will remove your eligibility for these discounts. Other discounts, such as those for taking a defensive driving course or maintaining low mileage, may also be affected, keeping premiums high indefinitely. Accidents can have long-lasting effects on your insurance rates, but you’re not stuck forever. Take steps now — like improving your driving habits, exploring discounts, and comparing policies regularly — to get lower premiums. How insurers calculate premiums Your age isn’t the only factor insurance companies use to calculate your premiums. Here are some other factors they consider: Your driving record shows how risky you are to insure. Frequent violations or accidents suggest you’re more likely to file a claim. Where you live affects your risk level. Areas with high rates of theft, vandalism, or severe weather can lead to higher premiums. Your vehicle type impacts replacement costs. Expensive, high-performance, or frequently stolen cars usually cost more to insure. Your level of coverage may be more than you need. Carrying higher limits or optional add-ons can increase your premium unnecessarily. Your claims history signals how often you use your insurance. Multiple claims, even if not all are your fault, can make you seem like a higher-risk driver. Why some insurers deny high-risk drivers — and what to do if it happens to you Besides paying higher premiums, many insurance companies may deny coverage altogether if they determine it’s too risky to insure you. This could happen if you’re too young, live in an area prone to property crime, or have a spotty driving record. If you’re denied coverage, you have several options. Shop around: Some insurers have more favorable risk standards and may be willing to insure you, albeit at a high premium. You may need to work with a “non-standard” carrier, which is more likely to write high-risk policies. Talk to an independent broker: Brokers work with customers to find a policy that fits their needs. They may know of smaller companies that will cover you even if larger ones don’t. Get car insurance from your state’s assigned risk pool: Every state has this option, allowing drivers to get coverage regardless of risk. However, premiums will be extremely high. How young drivers can save on car insurance Saving money on car insurance as a high-risk driver can be challenging, but several strategies may help lower your rates. Your best bet will always be practicing safe driving during the three-to-six-year high-risk period, then following the guidelines below. “The best way to reduce the cost of car insurance for teens is to prove yourself right through concrete actions,” says Barber. “Enroll in driver safety programs, maintain good grades for ‘good student’ discounts, and consider monitoring devices that reward safe driving behavior. Building a clean driving record and choosing safer, less expensive vehicles to insure can also make a substantial difference in premium costs.” Shop and compare policies online Comparing policies online can ensure you find the best rates for your coverage needs. Online comparison tools will synthesize your inputs and show you many policies at once that meet the parameters you entered. Not only will this save you a lot of time, but it could save you money, too. Look out for discounts While these discounts are more likely to be relevant when you’re no longer considered high-risk, you can still ask your insurer about them and see what they’re willing to offer. Bundling discount: Insuring your home and auto with the same company can save you money on your overall premiums. Usage-based insurance discount: By agreeing to install an app or device that tracks your driving, your insurer will be able to assess your safety more accurately on the road, which could lead to lower premiums. Good student discount: Young drivers showing that they’re earning good grades may be eligible for lower premiums. Take a defensive driving course Many insurers offer discounts for taking a defensive driving course, which may help drivers avoid accidents and motor violations by teaching them safety techniques. However, the discount you get varies by state and insurance carrier. Taking a defensive driving course can also help you regain your license if it was suspended following an accident. Other ways to reduce your premiums Even beyond the discounts offered by insurers, you can reduce your car insurance premiums by taking several proactive steps. Choose a lower-risk vehicle: Newer and more expensive cars may cost more to insure, not just because the cost of repairing them is higher, but because they’re more attractive to thieves and vandals. Reduce your car insurance coverage: If you’re a high-risk driver, we don’t recommend reducing your coverage, as you could be sued for damages you cause that exceed your coverage limits. However, comprehensive and collision coverage, if you have them, may be dropped if you don’t mind paying for repairs to your car out of pocket. Increase your deductible: While our above example shows that high deductibles don’t necessarily result in affordable premiums, in some cases, especially if you have an otherwise clean driving record, you could save on your premiums by selecting a higher deductible. Car insurance for young, inexperienced, and high-risk drivers is expensive for a reason — statistically, teens are more likely to cause accidents and file claims. But that doesn’t mean there’s no hope for savings. By consistently demonstrating that they can drive safely, these drivers can reduce their premiums over time and build a strong foundation for long-term insurance savings. Zack Sigel  . .Zack Sigel is a writer and editor based in New York City. He has been managing editor at Policygenius and M1 Finance, where he led teams specialized in writing about business and finance, and he has also written about music and culture for Hyperallergic, VH1, Complex, and the Los Angeles Review of Books. 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