Price Hike For Adding a Teen Driver To Insurance? 79%
NEW YORK (TheStreet) -- Adding a teenager to your auto insurance can raise your bills by 79%.
That number comes from InsuranceQuotes.com, which says car insurance costs that much more after a typical married couple adds a teen driver to their policy.
Teenage boys are much more expensive to insure than teenage girls, InsuranceQuotes.com says in a report. Boys add 92% to your premiums, and girls add 67%. The good news is that the premium increases decline each year, from 96% for 16-year-olds to 58% for 19-year-olds.
Living in some states can really dent your wallet with a teen driver. The study notes that premiums double in seven states: New Hampshire (plus 111%), Rhode Island (plus 107%), Maine (plus 107%), Wyoming (plus 106%), Connecticut (plus 102%), Illinois (plus 101%) and Oregon (plus 101%).
The report says the lowest increases are in Hawaii (plus 17%), New York (plus 53%) and Michigan (plus 57%). Hawaii is the lone state in the union that bans insurance companies from framing insurance rates around a driver’s age or gender.
For a good look at average insurance price increases in all 50 states, click here.
If you’re saddled with higher rates due to a teenage driver, there are a few steps you can take to ease the damage.
"A great strategy for lowering car insurance costs is to sign up for pay-as-you-drive car insurance," said Laura Adams, a senior analyst at InsuranceQuotes.com. "These programs allow companies to track your driving habits and can lead to significant discounts, especially if you're a safe driver who doesn't rack up too many miles. Teens who excel in the classroom should also take advantage of good student discounts."
Also, make sure you engage in some serious price shopping; don’t take the first deal you find. Rates vary from insurer to insurer, so line up at least five auto insurance quotes before cutting any checks.
A measurably safer vehicle can also cut down on auto insurance rates for younger drivers. Check out the Insurance Institute For Highway safety’s list of the safest-rated cars, SUVs and trucks in the U.S. here.
Some states offer safe-driving classes that also can help curb the costs of auto insurance for a son or daughter. Check with your state’s insurance office for details. Check this website for the office contact information for your state.