Car Insurance Premiums Can Double with a Teenage Driver, But Results Vary Considerably by Age, Gender and State
SAN FRANCISCO--July 1, 2013: Nationally, a married couple pays an average of 84% more for car insurance after adding a teenage driver to their policy, according to a new report from InsuranceQuotes.com. Male teenagers cause significantly higher increases than females (96% versus 72%, on average).
The average increase is highest for 16-year-olds (99%) and diminishes a bit each year thereafter. A married couple adding a 17-year-old can expect to pay 90% more for their car insurance. An 18-year-old costs 82% more and a 19-year-old costs 65% more.
There are several states that differ from the national average. The biggest hit is in Arkansas, where the average increase is a whopping 116%. InsuranceQuotes.com found 10 states where adding a teenage driver caused the average premium to more than double. The others are Utah (115%), Wyoming (112%), Alabama (111%), Idaho (107%), Maine (105%), Washington (105%), Arizona (104%), Louisiana (101%) and New Hampshire (101%).
Conversely, in Hawaii, adding a teenage driver only causes the average premium to rise by 18%. That's because Hawaii is the only state that doesn't allow insurance providers to consider age, gender or length of driving experience when determining premiums. North Carolina (59%), New York (62%), Massachusetts (66%) and Montana (66%) join the Aloha State among the states with the five lowest average increases.
"It's important to remember that these are averages," said Laura Adams, senior insurance analyst, InsuranceQuotes.com. "Savvy consumers don't settle for average. You're not going to move to a new state just because car insurance is cheaper somewhere else, but there are some easy things that you can do to save money regardless of where you live. First of all, go to InsuranceQuotes.com to search for a better deal from a different insurer. Also, look into discounts for good students and drivers who have passed an advanced driver training course."
Click here to view the average premium increases in all 50 states and the District of Columbia:
InsuranceQuotes.com commissioned Quadrant Information Services to examine the economic impact of adding a young driver between the ages of 16 and 19 to a family's existing car insurance policy.
Quadrant calculated rates using data from the largest carriers in each state. The averages are based on insurance for a married and employed 45-year-old male and 45-year-old female who each commute 10 miles to work each day with policy limits of $100,000 for injury liability for one person, $300,000 for all injuries and a $500 deductible on collision and comprehensive coverage.
The quotes assume that each of the two cars is driven 12,000 miles per year. The sample refers to iterative pairs of vehicles from the following list: 2012 Toyota Camry, 2012 Honda CRV, 2012 Honda Civic, 2012 Ford F150 and 2012 Toyota Prius.
The hypothetical drivers have clean driving records and good credit. The rates include uninsured motorist coverage and refer to new business policies. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle.