According to the marketplace, "A 16-year-old's monthly auto insurance on average is
$576.00 which is $6,912.49 annually." The amount is excessively high for a 16-year-old, considering that this is the minimum age for employment and minors are restricted to working no more than 20 hours a week. In other words, when you are just starting to work and your hours are limited due to being a minor, the cost of car insurance can be a significant burden. Moreover, many teenagers have to move out and start living on their own as soon as they turn 18, which makes it even harder for them to pay immensely high insurance rates. Auto Insurance for teenagers is significantly high.

Buying a first car is an amazing journey and a life-changing experience. After passing your license test, the most wanted wish is to purchase your own car. Owning a vehicle brings many factors with it other than freedom for a normal teenager who is working part-time, supporting their family, and studying at the same time. Insurance companies are making it unaffordable for young adults and minors to obtain a basic necessity of this time, which is owning a car. They are creating a loss for them in the long term because, in this era where Uber/Lyft services are increasing, it becomes more affordable to book a ride for an entire month than to pay hundreds of bucks in insurance.

When I calculated my monthly Uber/Lyft expense on daily bases it was a total of $250-300 per month and now when I have a car it costs me $600 for auto Insurance plus $60-120 for gas per month this means now I am spending almost $750 per month on a car due to high auto insurance. In the long term, fewer people may buy a car and people may start using
Uber/Lyft services or public transportation. Clearly, Uber/Lyft makes it more convenient which means in the future Insurance companies can lose their business.

One thing that can be done instead is to not judge a driver by their age but more by their driving experience. New drivers, particularly teenagers, should be offered a one-year policy at an affordable flat rate for their auto insurance. After the year, the insurance company should analyze their driving record or history, including any accidents or tickets received, and adjust their insurance fee accordingly. This approach can benefit teenagers by incentivizing safe driving, as their driving habits will directly impact their insurance rates. By offering affordable rates initially and adjusting them based on performance, teenagers will have more opportunities to learn responsible driving and make smarter choices. It's important for insurance companies to recognize that new drivers, especially teenagers, are just starting their lives and should be supported rather than overcharged. Instead of penalizing new drivers, auto insurance companies should consider offering them more support and resources. 

Works Consulted

"Why Are Teen Car Insurance Rates So High?-TeenLife." TeenLife, 17 December 2019, teenlife.com/blog/why-are-teen-car-insurance-rates-so-high/. Accessed 26 May 2023.

"Car Insurance for Teens: Coverage and Cost (2023)." MarketWatch, 14 May 2023,
https:/ /www.marketwatch.com/ guides/insurance-services/teenage-drivers-insurance/. Accessed 26 May 2023.