Adding Teen Driver to Car Insurance Policy Causes Major Spike, Report Says | Edmunds

Adding Teen Driver to Car Insurance Policy Causes Major Spike, Report Says


SAN FRANCISCO — Teen drivers almost double parents' car insurance costs, according to a new report released on Monday.

The average married couple can expect to pay 80 percent more for car insurance after adding a teen driver to their policy.

The new InsuranceQuotes.com report said 16-year-olds cause the highest spike in premiums — a whopping 96 percent.

Teen males are much more expensive to insure than teenage females, with average increases of 92 percent and 67 percent, respectively.

The good news is that the cost to insure a teen driver has fallen slightly since 2013, when the average annual increase was 85 percent overall.

The most expensive state to insure a teen driver is New Hampshire, where the average premium jumps 115 percent.

InsuranceQuotes.com notes that good student discounts "can take some of the sting out of these bills."

Discounts of as high as 25 percent are sometimes offered for students who maintain at least a B average in high school or college.

Teens ages 16-19 are three times more likely than drivers older than 20 to be involved in a fatal crash (or any crash, for that matter) according to the Insurance Institute for Highway Safety. It's not too surprising, then, that teen drivers tend to have high insurance premiums.

Edmunds.com offers parents a handy guide for coping with insurance rates for teens, including buying the right car.

The National Highway Traffic Safety Administration also offers parents a guide for shaping teens into safe, responsible drivers, another way to get a handle on high insurance costs.

Edmunds says: Smart parents need to proactively request good student discounts when they shop for car insurance. Parents may also want to consider having their son or daughter wait an extra year to get a driving permit.

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