Answer: 

• Age
• Driving history
• Credit Score
• Years of driving experience
• Location

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Questions:

• Why is age considered such an important factor by auto insurers?
• Do you think auto insurer rates are higher for a 50 year old or a teenager? Why? 
• Which of these five factors work in your favor as a teenager? 

Behind the numbers (The Zebra):

Age is a very significant rating factor, especially for young drivers. Between the most expensive insurance premiums — paid by teen drivers — and the most affordable — paid by 50-year-olds — is a cost gap of over $5,500 per year. Insurance companies view teen drivers as very risky and potentially expensive clients to insure. Data show that teen drivers drive more recklessly and get into more accidents than do drivers in any other age group.

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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