Age, driving record, location and credit score are the main factors affecting car insurance premiums. Gender, although also a factor, has a more considerable effect on young drivers under 25. A 16-year-old male pays almost $500 more per year because of higher accident frequency than a 16-year-old female. However, the difference decreases to only $33 per year when they're 25.
Feb 18, 2025
Question of the Day: On average, how much more does car insurance cost annually for a teenage driver compared to an adult?
Is teen car insurance highway robbery?
Answer: $4,218 per year (for a 16 year old vs a 30 year old)
Questions:
- Why do insurance companies charge teenage drivers so much more than adults?
- What factors could help lower car insurance costs for a teen driver?
- Do you think car insurance rates for teens are fair? Why or why not?
Here are the ready-to-go slides for this Question of the Day that you can use in your classroom
Behind the numbers (Money Geek):
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About the Author
Dave Martin
Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.
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