AUSTIN, Texas--(BUSINESS WIRE)--Attention, parents! Putting a teenage driver on your auto insurance policy is an expensive endeavor. However, according to newly released data from insuranceQuotes, for the fifth year in a row, rate increases after adding a young male or female driver have come down.
The study reveals how much parents in all 50 states pay on average after adding a teen to their existing auto policy. Key findings include:
- The addition of one teen results in an annual premium increase of 78% or $671 nationwide.
- Rate increases for adding a teen have steadily decreased since 2013, when it was 85%.
- Adding a male teen increases the rate 89%, compared to 66% for a female.
- Rates vary widely by state. For instance, adding a teen driver in Rhode Island results in a 153% increase, while Hawaii parents only see a 8% hike.
“Adding a teen driver is expensive because statistics show that they get into more accidents than older, more experienced drivers. While that fact won’t change, the rate increase to add a male or female teenager to an existing policy has come down slightly in each of the five years we’ve analyzed the data,” said Laura Adams, senior insurance analyst at insuranceQuotes.
“To keep rates as low as possible, parents should reinforce the dangers of distracted driving to their teen, shop and compare quotes carefully and take advantage of opportunities to save, such as driver education and good student discounts,” added Adams.
The full report—which includes state-by-state rankings, additional findings and important tips—is available at http://www.insurancequotes.com/auto/teen-driving-insurance-rates-6142017.
insuranceQuotes.com commissioned Quadrant Information Services to calculate the economic impact of adding a driver between the ages of 16 and 19 to a family’s existing auto insurance policy. Averages are based on a married and employed 45-year-old male and 45-year-old female who each drive 12,000 miles per year and have clean driving records and good credit. Policy limits include $100,000 for injury liability, $300,000 for all injuries, a $500 deductible on collision and comprehensive coverage, and uninsured motorist coverage.