Teen drivers: Getting car insurance for young drivers can double your cost
by Nick DiUlio, InsuranceQuotes.com
It’s no surprise that young drivers pay more for car insurance than any other demographic—and for good reason. According to the federal Centers for Disease Control and Prevention (CDC), crash rates per mile driven for 16- to 19-year-olds are four times higher than those of older drivers.
What’s more, National Highway Traffic Safety Administration (NHTSA) data shows that traffic crashes are the leading cause of death for teens, accounting for one third of all deaths of 16- to 19-year-olds.
Even though teen drivers typically are the riskiest—and most expensive—to insure, a new study finds that the price of adding a teen driver to an existing auto policy varies widely from state to state.
The study, commissioned by InsuranceQuotes.com, examined the economic impact of adding a young driver between the ages of 16 and 19 to a family’s existing car insurance policy. The results were as perplexing as they were intriguing to insurance analysts and experts.
“It’s usually cheaper to add a teen to his or her parents’ policy rather than buy a separate policy for the young driver. But I’ve never seen the figures broken down this way before,” says Mike Barry, spokesman for the nonprofit Insurance Information Institute. “The numbers were pretty fascinating.”
How much is car insurance for young drivers in your state?
According to the study, U.S. families who add a young driver to their existing auto policy will see an average annual premium increase of 84 percent (or about $2,000). However, there are several states that buck the national average.
The following five states showed the greatest average premium increase when adding a teen driver:
- Arkansas — 116 percent increase
- Utah — 115 percent increase
- Wyoming — 112 percent increase
- Alabama — 111 percent increase
- Idaho — 107 percent increase
Meanwhile, the following five states, on average, showed the smallest percentage premium increase by adding a teen driver to an existing auto policy:
- Hawaii — 18 percent increase
- North Carolina — 59 percent increase
- New York — 62 percent increase
- Massachusetts — 65.9 percent increase
- Montana — 66.06 percent increase
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