The majority of teenagers dream about their own car after getting a driving license. For every teenager getting driving license means the next level of adulating and gaining independence. But for parents it means additional costs in the form of one more auto insurance.
If you add a teenager to your insurance policy, it will undoubtedly increase your rates. The answer to the question “How much does it cost to add a teenager to car insurance?” depends on many factors, including your living area and the age of your teenager, among others.
States with the Lowest and Highest Increases
State you live in is one of the factors affecting the cost of the teenager’s insurance. InsuranceQuotes.com has made a research to check how much is car insurance for teens in every state. Their team has made a list of the highest and the lowest average increase for adding a teenager to your insurance policy.
- The states with the highest average increase were Utah, Arkansas, Wyoming, Idaho, Alabama, Washington and Maine (116-105%).
According, to statista.com, by 2020 the revenue of direct insurers will reach about $564.15 billion. Yes, this data shows the insurance industry in general.
- On the contrary, the following states have the lowest average increase: New York, North Carolina, Montana and Massachusetts (59-66%). Maybe this data will help you to choose top auto insurance companies.
Hawaii is the state where adding a teenager to your insurance policy has the lowest increase rate – 18%. The reason for such a cheap price is that it does not allow insurance companies to base premium on the age of a driver, driving experience or gender. That is why Hawaii is so different from all the other states.
Factors Influencing Rate Increases
The given number is the average from the aforementioned states. But location is not the only factor that will affect how much is car insurance for teens. The age of the teenager, average grade point, and credit score have an impact on your premium as well.
The same research of InsuranceQuotes.com shows, that 16-year-old teenagers raised the premium of their parents by 99%. At the same time, 17-18-year-old teens increased it by 90% and 82%. These statistics show that the older your teen is, the lower your premium will be.
Age is the basic factor you should look at when considering the insurance cost for teenage drivers. When your kid gets older and enhances his or her driving experience, the insurance amount will go down.
The main factors that increase your premium for adding a teen to insurance plan are age and the living area. However, school performance of your teen and credit score are also essential when it comes to calculating how much is teenage car insurance per month.
Consider taking a defensive driving course. It will help lowering the insurance cots.
It goes like that: the level of the teenager’s maturity is defined by school performance and credit score. And maturity shows whether they will become responsible drivers or not. If your child enhances performance at school or makes credit repayments in time, it will help you save some money on your premium.
The given information is relevant for married couples, who want to add their teenagers to the insurance plan. If the parents are divorced, the answer to the question “How much does insurance cost for a new driver in our family?” depends on the insurance company.
As a rule, a parent with a primary custody will have to pay for the teenager’s car insurance. But for correct information turn to your insurance company anyway.
How to Lower the Rate for Adding a Teen to a Car Insurance?
It is a good idea to compare the offers of multiple insurance companies. If your teenager has a good performance at school, you can ask about a student discount.
If you want to add a new car to your household, consider purchasing anti-theft devices and anti-lock brakes for safety measures. That will lower the car insurance sum.
If a kid takes part in driving classes or purchases a monitoring device for the vehicle, the insurance company may give you a good discount, too. Nevertheless, the best way to save on adding your teen to the insurance premium is to keep his or her driving record clean.
It will cost a considerable amount to add the teen to your car insurance premium. The increase in your car insurance rate might depend on the age of the child, the area you live in, school performance and credit score. Make sure that adding the teenager to car insurance will not empty your pockets.
P.S.: Learn how traffic schools help to save money.