What Is the Average Cost to Insure a Teenage Driver?

By Contributing Writer

  • Overview

    What Is the Average Cost to Insure a Teenage Driver?
    What Is the Average Cost to Insure a Teenage Driver?
    Obtaining car insurance for a newly licensed teenage driver is not cheap. Teenagers represent a big risk for insurance companies, and parents often pay accordingly. Teens are more likely to drive recklessly and disobey safety laws. According to the CDC, auto accidents are the leading cause of death for teenagers, and they are far more likely to be involved in an accident than any other age group.
  • Average Cost

    Insurance companies use a number of factors when calculating car insurance premiums, so there is no average cost that applies to all teenage drivers. However, there are some general cost guidelines. The Insurance Information Institute estimates that adding a teenage driver to your insurance policy will increase your premium by 50 to 100 percent. As a general rule, if your auto insurance premium is $1,000 and you add your teenage daughter, you can expect your coverage to increase to around $1,500--a 50 percent increase. Your premium could increase 100 percent if you add a son, so a $1,000 premium would increase to $2,000.
  • State Variations

    Auto insurance costs vary greatly by state. The Insurance Information Institute compiles this information, and a list of averages by state is included below under "Resources." This is a rough estimate, bu it is a good guide for what you can expect to pay. In New Jersey, for example, the average for all drivers is $1,221. Using the 50 to 100 percent estimate, the average cost when adding a teenage girl would be $1,831 and would top $2,442 for a teenage boy.

  • Reasons

    There are good reasons why car insurance is so expensive for teenagers. According to CDC estimates, teenagers between the ages of 16 and 19 are four times more likely to be involved in a car crash than drivers from other age groups. Teenagers, particularly teenage boys, are more likely to speed, more likely to disobey traffic laws, more likely to drink and drive and less likely to wear a seat belt than other drivers. So, it is easy to understand why insurance companies jack up your premium when your son or daughter begins to drive.
  • Keep Costs Down

    You can make insuring a teenage driver less painful for your wallet. The Insurance Information Institute recommends that parents add their children to their own car insurance policy, instead of creating a new policy. Creating a new policy for a teenage driver is substantially more expensive. Teenage drivers should also be encouraged to maintain good grades in school. Teens can get a discount of as much as 10 to 15 percent for maintaining A and B averages. In addition, choose a used car with a good safety record. New cars can be very expensive to insure, especially for teenage drivers.
  • Shop Around

    Shop around and compare quotes when buying car insurance for your son or daughter. Some auto insurance companies offer greater discounts than others for good grades or attendance in a defensive driving school. There is one bright spot in insuring your teenager: the longer they maintain a good driving record, the lower your rates will go.
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