Adding a teenage driver to an auto insurance policy is expensive for families. Very expensive. Most people know this without any studies, but Coverage.com provided one anyway. However, parents may not realize that their rate could actually triple!
That new study reveals how much parents across every state pay for car insurance after adding a teen. Key findings include:
- Adding a teen in Vermont causes a 216% spike, while parents in Hawaii only see a 4% increase.
- Young males are 37% more expensive than females in Mississippi.
- The addition of one teen in Louisiana results in an annual premium of almost $6,000.
- These shocking rates assume no added vehicle with the teen driving a family car.
View the entire report here.
“Statistics show that young drivers get into more accidents than older, more experienced drivers. So, it’s not unusual for insurers to charge more to cover teens. However, what is surprising is the huge variation from state to state and by gender. Most consumers would be shocked to know that their auto insurance rate depends so much on where they live and the gender of their child,” says Laura Adams, who is an insurance expert and analyst for Coverage.com.
“To keep rates as low as possible, parents must be proactive by asking for particular discounts, structuring auto policies correctly, and shopping carefully. The good news is that you should see rates come down every year.”