Adding a teenage driver to the family car insurance policy can double annual premiums, according to a new study—a costly fact of life that reflects the higher risk for younger drivers.
Male teens are likely to pay a higher penalty premium than females, but rates also vary depending upon where you live. A teen driver will boost the family car insurance premium by an average of 116 percent in Arkansas, but just 18 percent in Hawaii.
It's the lack of driving experience—and perhaps hormones—that tend to translate into trouble for drivers and increased premiums, between 16 and 19. They have a tendency to rack up more tickets, get involved in more collision, and experience a higher fatality rate than older motorists.
On average, an InsuranceQuotes survey of 10 insurers found that the average annual premium will rise 84 percent when a teen driver is added, roughly a $2,000 penalty. But the precise figure will vary depending upon age, gender and geography.
A 16-year-old will cause the typical premium to go up 99 percent, a figure that dips to 90 percent for a 17-year-old, 82 percent for a driver aged 18, and 65 percent for someone aged 19.
The average male teen driver will sock the family with a 96 percent increase in car insurance premiums while females cause premiums to rise a more modest 72 percent.
The survey found that premiums will, on average, more than double in 10 states, from Arkansas' 116 percent jump to the 101 percent increase in New Hampshire and Louisiana.
Source: CNBC
http://www.cnbc.com/id/100863117