The teenage driver is at a disadvantage in the world of automobile insurance.

The automobile insurance industry uses both a system of actuarial tables and the driver’s record to determine how well a driver will perform in the future. Because the teenage driver is obviously an inexperienced driver, with now record that the automobile insurance industry can examine, the industry must rely upon statistics. These statistics for the teenage driver generally indicate that they are a relatively high risk. This means that the insurance industry must charge a much higher rate to insure the teenage driver than it would charge for a safe demographic group. Many parents are willing to add their teenagers to their own policies and this can save a bit on the premium, but don’t expect too much. Completing drivers training and maintaining a 3.0 GPA or better will provide significant premium savings. This information is general in nature and should not substitute for the advice of an expert in the field.