personal finance expert and published author, Laura Adams explains ,
“ There are many factors that affect your car policy rate that you control, such as the type of car you drive and your driving history. But there ’ s not much you can do about your age or sex, which play a significant character in how much you pay for coverage. ”
Adams says ,
“ Young drivers are statistically much more probable to get into an accident — specially young males. therefore, adolescent drivers are riskier to insure and get charged higher rates, even when they have a clean drive record. ”
According to the new Coverage study, parents can expect their car policy premiums to increase by approximately 130 % when adding a 16-year-old adolescent driver. In most states, there is a significant pace impact when adding a adolescent driver to an car insurance policy — but there are things parents and teens can do to offset these increases. 130 % Parents can expect their car policy premiums to increase by approximately
How much does it cost to add a teenager to car insurance?
On average, a parent ’ s premium is affected significantly after adding a adolescent, even without adding an extra fomite to their car indemnity policy. That 130 % rate increase we mentioned earlier means parents pay an extra $ 2,300 in annual premiums for indemnity coverage. however, costs depend on a variety of factors, such as department of state, the adolescent ’ south sex, policy coverages and more. For ease, we have chosen not to differentiate rate increases by adding a vehicle since car produce and model besides affect premiums. however, Coverage can help parents get a ballpark theme of what they will pay. The trace sections analyze the impact of adding a adolescent driver in each state .
Average policy rate by state
On average, the state with the highest increase is Vermont, where the average bounty increases by a sock 216 % from $ 1,130 to $ 3,565 a year. The state with the least increase is Hawaii, where the average annual premium increase is just 4 %, from $ 1,230 to $ 1,275. Parents can see from the chart and synergistic map that Hawaii is the big exception to the principle — ascribable primarily to its local anesthetic laws. Hawaii state law doesn ’ thyroxine license indemnity rate differences based on age or the length of the individual ’ randomness driving experience ( and other criteria like gender and race ). Michigan sees the adjacent broken rate addition ( 83 % addition, on average ), and New York comes in one-third overall ( 92 % increase ). Those states might be surprising since both by and large offer relatively expensive car insurance premiums. But Laura Hall, Director or Communications at the Michigan Department of Insurance and Financial Services ( DFIS ) says part of this comes polish to parents who shop around for coverage. She says ,
“ It pays to shop around when a adolescent driver is added to a policy. DIFS recommends all drivers compare costs for coverage because rates insurance companies charge can vary dramatically. ”
Parents can expect their bounty to more than double over if they live in any other state aside from Hawaii, Michigan and New York. Hall had some extra tips to help parents keep their policies adenine low-cost as potential ;
“ Take advantage of the lower policy rates teens get as a result of being added on their parents ’ car insurance policy as secondary drivers. besides, keep in mind when shop for a adolescent driver ’ south first car that the character and respect of the car you drive can make a big difference in the premium you pay. And make surely you take advantage of all the discounts offered by your indemnity party. ”
To help parents understand the shock of adding a adolescent driver, the watch chart indicates the dispute compared to average premiums by state without a adolescent. To compile the datum in this chart, Coverage used a male adolescent driver visibility for sample rates. generally, if insuring a daughter, parents pay less than the amounts shown here .
Average auto insurance rate increase after adding a 16-year-old male driver
| State | Annual Premium without Teen | Annual Premium with Male Teen | % Increase |
|---|---|---|---|
| Alabama | $1,520 | $3,987 | 162% |
| Alaska | $1,535 | $3,678 | 140% |
| Arizona | $1,520 | $4,065 | 167% |
| Arkansas | $1,914 | $4,333 | 126% |
| California | $1,921 | $4,591 | 139% |
| Colorado | $2,020 | $4,861 | 141% |
| Connecticut | $1,726 | $3,811 | 121% |
| Delaware | $1,807 | $3,873 | 114% |
| District of Columbia | $1,809 | $3,750 | 107% |
| Florida | $2,371 | $5,362 | 126% |
| Georgia | $1,912 | $4,747 | 148% |
| Hawaii | $1,230 | $1,275 | 4% |
| Idaho | $900 | $2,372 | 164% |
| Illinois | $1,396 | $3,473 | 149% |
| Indiana | $1,253 | $2,992 | 139% |
| Iowa | $1,051 | $2,592 | 147% |
| Kansas | $1,573 | $3,792 | 141% |
| Kentucky | $1,903 | $4,524 | 138% |
| Louisiana | $2,654 | $5,988 | 126% |
| Maine | $1,034 | $2,734 | 164% |
| Maryland | $1,881 | $4,746 | 152% |
| Massachusetts | $1,254 | $3,193 | 155% |
| Michigan | $2,644 | $4,836 | 83% |
| Minnesota | $1,556 | $3,881 | 149% |
| Mississippi | $1,636 | $4,363 | 167% |
| Missouri | $1,725 | $4,190 | 143% |
| Montana | $1,600 | $3,592 | 125% |
| Nebraska | $1,316 | $3,211 | 144% |
| Nevada | $2,277 | $5,116 | 125% |
| New Hampshire | $1,265 | $3,162 | 150% |
| New Jersey | $1,908 | $4,143 | 117% |
| New Mexico | $1,409 | $3,437 | 144% |
| New York | $2,745 | $5,264 | 92% |
| North Carolina | $1,380 | $3,152 | 128% |
| North Dakota | $1,064 | $2,581 | 143% |
| Ohio | $1,032 | $2,951 | 186% |
| Oklahoma | $1,846 | $4,212 | 128% |
| Oregon | $1,271 | $3,073 | 142% |
| Pennsylvania | $1,533 | $3,573 | 133% |
| Rhode Island | $2,017 | $4,888 | 142% |
| South Carolina | $1,548 | $3,525 | 128% |
| South Dakota | $1,374 | $2,977 | 117% |
| Tennessee | $1,300 | $3,820 | 194% |
| Texas | $2,024 | $4,756 | 135% |
| Utah | $1,417 | $3,486 | 146% |
| Vermont | $1,130 | $3,565 | 216% |
| Virginia | $1,221 | $3,370 | 176% |
| Washington | $1,130 | $2,934 | 160% |
| West Virginia | $1,406 | $3,829 | 172% |
| Wisconsin | $1,106 | $2,720 | 146% |
| Wyoming | $1,316 | $3,277 | 149% |
| National Average | $1,742 | $4,048 | 132% |
quadrant Information Services, 2020
How gender affects auto insurance rates for teen drivers
male drivers tend to be riskier in the eyes of policy underwriters. In 2017, the most holocene year for which this datum is available, the Centers for Disease Control and Prevention ( CDC ) reported that the death pace among male adolescent drivers was twice vitamin a high gear as it was for female teens. due to this greater indebtedness, it makes sense for indemnity providers to charge more to cover them. Mississippi has the greatest premium difference from insuring a male adolescent versus a female adolescent. In this state, parents are likely to pay an average of an extra $ 735 a year to insure a male. coverage found that parents can expect around a 30 % increase in premiums in several other states. If parents live in one of the states that weighs gender heavy in insurance ratings, they can expect to pay at least a few hundred more to insure a son. however, in Massachusetts, Montana and Pennsylvania, there is hardly a remainder in agio between the two genders .
The top five states where adding a 16-year-old male increases auto insurance rates the most (by percentage) are:
- Vermont: 216%
- Tennessee: 194%
- Ohio: 186%
- Virginia: 176%
- West Virginia: 172%
The five states where adding a 16-year-old male increases rates the least are:
- Hawaii: 4%
- Michigan: 83%
- New York: 92%
- District of Columbia: 107%
- Delaware: 114%
The top five states where adding a 16-year-old female increases auto insurance rates the most (by percentage) are:
- Vermont: 190%
- Tennessee: 158%
- Massachusetts: 155%
- Virginia: 154%
- Ohio: 153%
The five states where adding a 16-year-old female increases rates the least are:
- Hawaii: 4%
- New York: 79%
- Michigan: 80%
- Delaware: 92%
- South Dakota: 94%
The top five states where adding a 16-year-old male increases auto insurance rates the most (by premium) are:
- Louisiana: $5,988
- Florida: $5,362
- New York: $5,264
- Nevada: $5,116
- Rhode Island: $4,888
The five states where adding a 16-year-old male increases rates the least are:
- Hawaii: $,1,275
- Idaho: $2,372
- North Dakota: $2,581
- Iowa: $2,592
- Wisconsin: $2,720
The top five states where adding a 16-year-old female increases auto insurance rates the most (by premium) are:
- Louisiana: $5,787
- Florida: $4,949
- New York: $4,914
- Nevada: $4,858
- Michigan: $4,759
The five states where adding a 16-year-old female increases rates the least are:
- Hawaii: $1,276
- Idaho: $2,165
- Iowa: $2,226
- North Dakota: $2,255
- Maine: $2,356
The cost difference of adding a male versus a female teen driver
Clearly, some states weigh gender more heavy when insuring adolescent drivers. by and large, parents that live in a state which deems male teenagers more hazardous can anticipate adding another 30 % to their bounty.
If insuring a daughter, parents will be happy to know her rates will be well less steep. here ’ s a agile look at the states where adding a male vs. female adolescent driver will affect parents ’ budgets the most and the least. 30 % Parents that live in a state which deems male teenagers more bad can anticipate adding another
The top five states with the greatest premium difference
The top five states with the least premium difference
Savings tips for insuring teen drivers
Given the data presented above, it is natural for parents to seek opportunities to find extra savings. Below, Coverage has provided advice on discounts that may save on indemnity costs, and when parents can expect the increases to decline over clock .
Good student discount
many car insurance companies reward teens for commodity grades. If your child maintains at least a b average and is enrolled full-time in gamey school or college, they can normally earn this discount rate. This type of dismiss ranges from around 7 % to angstrom much as 25 % .
Away from home discount
If your child moves away for college ( at least 100 miles ), they might qualify for a discount. This is due to the fact they ’ re not driving american samoa much and don ’ thymine act as much of a risk to the policy company. Savings provided by this discount varies widely by insurance company and how far away your scholar is moving .
Safe driving programs
Some providers besides reward adolescent drivers for taking programs to improve their drive skills. This includes a defensive drive course. Before taking the course, check with your supplier to see if this deduction is available in your state. This supernumerary measure toward condom can help you save around 8 %, assuming the dismiss is available with your insurance company in your express .
Using a monitoring app or device
car policy companies are searching for more claim data on drivers ; this is why programs like SnapShot from Progressive are offered. With these programs, you download an app or attach a track device to your vehicle. The device measures miles drive, driving style and times of day driven. If your adolescent doesn ’ thymine drive much, you could save significantly. In fact, you might be able to save up to 20 % with this engineering .
Multi-car discount
many providers offer discounts if you insure multiple cars on your policy. If you plan to buy your adolescent a fomite, then adding it to your policy could help you save. It ’ sulfur crucial to check with your insurance company to make surely you qualify for the dismiss .
Ask for other options
When adding your adolescent to your policy, ask your provider if there are other discounts available. This is besides a big time to do some comparison denounce to see if you could receive more discounts or a better conduct with another supplier .
How long until these premiums decrease?
premium increases from insuring a adolescent driver can seem daunting. fortunately, these rate increases won ’ deoxythymidine monophosphate last constantly. As Adams explains, “ If a young driver avoids accidents and traffic tickets, their car rate should decrease each class until about old age 25 or 26, when they become less hazardous to an insurance company. ” Below are the rates at different ages to highlight that rates will decline over time once a adolescent has some years of condom driving under their belt. Keep in mind, pace decreases are based primarily on driving know. If a adolescent starts driving at 18, their rate will likely be higher than an 18-year-old who started driving at 16. That said, the older an individual gets, the less hazardous insurers consider them to be behind the steering wheel.
The takeaway
even if parents add a 16-year-old driver to their policy, they can inactive save money by encouraging safe drive. Teens should be reminded that dependable drive is the best way to keep the premium increases vitamin a minimal as potential. “ Adding a adolescent driver to your car indemnity policy can be costly. A minor fender-bender can drive up costs. But there are some things you can do to keep costs down, ” says Ray Farmer, President of the NAIC and Director of the South Carolina Department of Insurance. “ A big way to save money – and lives – is for adolescent drivers to drive safely ! many companies grant discounts to drivers whose records have been clean for three or more years, which means a driver can earn savings by keeping their drive read rid from speeding tickets or accidents. ”
He continues, “ Parents should enroll their adolescent in a defensive drive course. This is not merely a smart way to prepare your adolescent for tug, but some companies offer discounts if your adolescent completes one. You should besides encourage your adolescent to uphold a thoroughly grade-point average in school. many indemnity companies offer discounts or preferred rates for teens who maintain good grades. ”
Methodology
coverage use 2020 data from Quadrant Information Services to analyze quoted rates from thousands of energy codes across all 50 states. Quoted rates are based on the profile of a middle-aged married couple with a scavenge drive read that adds either a 16, 20 or 25-year-old driver to their insurance policy who were licensed at age 16. The family drives their Toyota Camry 12,000 miles a year with the following assume bounty details :
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per accident
- $100k property damage liability coverage per accident
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
These rates should be used to inform your cable car policy shop march, but your quote will differ .