Adding Teen Drivers Leads to 79% Higher Car Insurance Costs

July 18, 2014

Adding a teenage driver to a married couple’s car insurance policy leads to a 79 percent higher average annual premium, according to a new report. Teenage males (+92 percent) are much more expensive to insure than teenage females (+67 percent). The good news is that the premium increases decline each year, from 96 percent for 16-year-olds to 58 percent for 19-year-olds.

The most expensive state to insure a teenage driver is New Hampshire, where the average premium spikes by 111 percent. The Granite State is one of seven states where premiums more than double after adding a teen driver to the policy. The others are Rhode Island (+107 percent), Maine (+107 percent), Wyoming (+106 percent), Connecticut (+102 percent), Illinois (+101 percent) and Oregon (+101 percent).

Hawaii is the only state that prohibits age, gender and length of driving experience from affecting car insurance costs. As a result, teen drivers only cost 17 percent more to insure in Hawaii, the lowest increase in the nation by far. New York State (+53 percent) has the second-lowest increase, followed by Michigan (+57 percent), Montana (+61 percent) and New Mexico (+62 percent).

The cost to insure a teenage driver fell over the past year. In 2013, the average annual increase was 85 percent (98 percent for males and 73 percent for females).

“A great strategy for lowering car insurance costs is to sign up for pay-as-you-drive car insurance,” said Laura Adams, senior analyst, “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.”

Click here to view the average premium increases in all 50 states and the District of Columbia:


Was this article valuable?

Here are more articles you may enjoy.