If you are a parent with a teen who is about to get their license, you are likely bracing for a sharp increase in your auto insurance premium. This increase in premium can cause sticker shock to many parents who add their child as a driver on their policy. One of many questions that we as insurance agents get is, "why should my child get punished for something that hasn't happened?"
The question can be answered with simple statistics. Inexperienced Operators (IXO's) are placed in the worst class due to loss experience. Insurance companies look at teenage drivers as, lack of better words, ticking time bombs. According to the Centers for Disease Control and Prevention (CDC), the risks of motor vehicle crashes are higher among 16 to 19 year olds. This does not mean that all teenagers are bad drivers. There have been many teenagers who have driven through their three year IXO period without any accidents or violations.
Inexperienced operators do not have to be exclusively teenagers. If someone waits until they are 18 to get their license, their rate will be as high as a younger inexperienced operator. Someone who is moving to the United States, and who has just acquired driver's license, will be charged a 'IXO' rate.
For more information on inexperienced operators and teenage drivers, visit the CDC article http://www.cdc.gov/motorvehiclesafety/teen_drivers/teendrivers_factsheet.html