The reason teens pay more for car insurance

Every year, there are thousands of automobile accidents in the province of Alberta. That means there are thousands of insurance claims for everything from property damage, automobile damage, and bodily injuries. If you own a car, it is your legal requirement to have liability coverage to protect others from these types of damages. The big question is: how do car insurance brokers determine the premiums for coverage for you and your family, and why do teens pay more than everyone else?

Insurance rates are based on statistics. The insurance industry and the Alberta provincial government keep records of every reported automobile accident. With more than 140,000 accidents on record in the most recent report, you can understand that there have been a whole lot of insurance claims. According to the statistics, the age group between 16-24 years old shows a higher rate of accidents than older-aged drivers. That means the lower age group is a higher risk for insurance companies. What other factors come into play when determining risk?

car insurance sw edmonton

car insurance sw edmonton


Men tend to be in the higher risk category, according to the Alberta Government statistics. Almost three times as many men have been charged with being legally impaired compared to female drivers in the 20-21 age group. This statistic alone is enough to drive up the automobile premiums for car insurance in SW Edmonton and surrounding communities.


Young drivers have far less experience on the road and thus are more likely to make mistakes when operating a motor vehicle. Male drivers between the ages of 16-24 are involved in more fatal collisions than their female counterparts, but both male and female drivers rank about the same when it comes to overall injury accidents. The lack of experience causes young drivers to be involved in more accidents, increasing their risk factor for car insurance brokers.


Where you live and where you drive your automobile affects your premium. Injury and property damage collisions happen more often in urban areas compared to rural areas. Basically, if you drive and live in a city, you are in a higher risk group. It is not surprising that most accidents happen on Fridays and during rush hours when there is more likelihood of an increased number of vehicles on the road.

Driving record

Another factor that affects every drivers’ premium rate is their driving record. Having a clean driving record is one of the best ways to keep your insurance premiums down. Teen drivers do not have enough hours behind the wheel to determine how well they drive, so even though they may start with a clean record, the statistics of their age group drive the insurance rates. Getting a speeding ticket, being charged with impaired driving, getting a moving violation, or being involved in an accident are also things that will cause your insurance premium to rise.

Check with your car insurance broker for some tips on how to reduce your premiums.

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