Car insurance

Young Driver Car Insurance Won't be Cheap for 2011

Teenager and young student drivers in the US can't get low-cost auto insurance quotes and premiums in the first month of 2011.

US young drivers, including teenagers and students aged 16 to 24, face higher car insurance quotes and premiums in the first month of 2011, said online auto insurance quotes providers this week.

According to the CarInsurance.com Premium Index , the average annual insurance premiums for teenagers in the US grew by 15.1 percent from $2,030 in September last year to $2,337 in January, 2011. The January number is 8.1 percent higher than the same period of last year and the second highest after the teenager car insurance premiums plumped in September, 2009. Young driver auto insurance is still more expensive than any other age group of drivers in the United States.

The Index is based on the insurance quotes provided by online car insurers in the US. It is not an accurate national average; but it does provide a useful tool for indicating the national trends for auto insurance quotes.

In 2011, car insurance premiums for young students aged 20 to 24 increased too. According to the Index, the average annual insurance premiums for US student drivers aged 20 to 24 grew by 5.5 percent from $1,612 in August last year to $1,701 in January, 2011. On the other hand, the average annual insurance premiums for all the US drivers declined by 10.8 percent from $1,615 in April last year to $1,441 in January, 2011.

Why should teenagers and students accept the highest auto insurance quotes in the market, even when the national average is declining? The reason is that there are more young student and teenager car accidents than any other group of drivers in the US.

Car crashes are the No.1 cause of deaths among US teenagers. According to Rmiia.org , teen drivers aged 15 to 20 accounted for 12 percent of the fatal car crashes and 14 percent of all car accidents nationwide in 2008, and about two third of teenage passenger deaths occurred in cars driven by other teenagers. High car accident risks determine high premiums as insurers will count the risks in calculating auto insurance rates. The latest trends show that the industry still sees youth car insurance as a high risk market. Teenager and young student drivers may have to keep shopping around online or offline to find their relatively low-cost car insurance policies from the high insurance quotes everywhere.

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