Teen Drivers Can Double Family Auto Insurance Rates
Jim LiebeltJim Liebelt's Blog
- 2015 Jun 16
*The following is excerpted from an online article from the USA Today.
Parents are paying almost twice their regular rates to insure their kids behind the wheel, a new study finds.
The average married couple pays 80% more for car insurance after adding on their teen driver, according to a report by insuranceQuotes.com. Five states have seen rates double as a result of adding on a teen driver, including Wyoming, Illinois, Maine and Rhode Island. New Hampshire tops the charts at a whopping 115% boost to original premium prices.
Age and gender play an important part of this equation. Teenage males are the most costly for parents, with average increases topping the charts around 92%. Female teen drivers cost their parents around 67% more to be added to existing policies.
For six states, gender makes no difference. Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania prohibit insurance companies from incorporating gender in their rate calculations.
The younger the driver, the higher the rate when it comes to auto insurance. Research shows 16-year-olds spike premiums the most, jumping rates up 96%. The rate drops to around 60% when teens turn 19.
While these prices probably make parents cringe, there are ways to work with insurance companies to soften the blow through student discounts.
"I've seen discounts as high as 25% for students who maintain at least a B average in high school or college." Laura Adams, senior analyst for insuranceQuotes.com, says in a statement. "Students and their parents need to proactively request this discount."