Teenagers are risky drivers who are very expensive to insure but rates for insuring teens have come down, according to a report from online auto insurance site insuranceQuotes.
The study found that U.S. families who add a young driver to their existing auto insurance policy will see an average annual premium increase of 79 percent. That average premium increase for teen drivers is lower than 2013, when the increase was as high as 84 percent.
Not all states are created equal when it comes to the cost of insuring a teenage driver. Adding a teen to a married adult’s auto policy in New Hampshire results in an average annual premium increase of 125 percent, while in Hawaii the average increase is just 17 percent.
In California, teen drivers cost parents 83 percent more on average; in Texas, 92 percent; New York, 52 percent; Ohio, 100 percent; and North Carolina, 57 percent.
It costs more to add a young male driver than a female driver to an existing policy – adding a male teen to a married couple’s policy results in a national average premium increase of 91 percent, compared to an increase of 67 percent for a female.
The site insuranceQuotes and Quadrant Information Services examined the economic impact of adding a driver between the ages of 16 and 19 to a family’s existing car insurance policy.
Laura Adams, senior insurance analyst for insuranceQuotes, said parents might want to consider installing monitoring technology in their teen’s car and having their teen sign a contract of safe driving with strict enforcement of the consequences for violating it.
Sources: insuranceQuotes and Quadrant Information Services
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