Insurance companies use loss statistics to generate the rates they charge. Stiff competition among different companies and regulations by state governments insure that fair and adequate rates are charged. Statistically, teenage drivers have three times as many losses as older drivers so they are charged three times as much.

There are many techniques we can use to minimize the cost of insuring youthful operators. They include discounts for good grades, low mileage credits, higher deductibles, etc. The best youthful drivers are the ones who respect the privilege they have been given.