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article imageInsurance premiums skyrocket when teens sit behind the wheel

By Nicole Weddington     Jul 21, 2014 in Technology
According to a recent report issued by insuranceQuotes.com, the insurance policy premium for a married couple jumps by a national average of 79 percent when adding a teenage driver to the roster.
On average, premiums amplify by an average of over 92 percent when the teen is a male, and swells by about 67 percent for female teens. On the bright side, as the teen ages, the premium increase decreases. For instance, in the case of a 16-year-old male, the premium increase falls from 96 percent to 58 percent by the time he turns 19.
Car insurance rate increases vary across states, with Hawaii being the only state that forbids the use of age, gender and years of driving experience to determine insurance premium rates. It is most expensive to insure a teen driver in the state of New Hampshire, charging about 111 percent when a teen is added to the policy. Falling close behind in sharp premium spikes come Rhode Island with +107 percent, Maine with +107 percent, Wyoming with +106 percent, Connecticut with +102 percent, Illinois with +101 percent and Oregon with +101 percent.
States with the lowest increase are Hawaii with +17 percent, New York with +53 percent, Michigan with +57 percent, Montana with +61 percent and New Mexico with +62 percent.
While these increases in premiums seem high, the average increase has fallen from that of last year, which was about 85 percent.
Laura Adams, senior analyst at insuranceQuotes.com states, "A great strategy for lowering car insurance costs is to sign up for pay-as-you-drive car insurance. 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. "
Premium average calculations were based on the following inputs for an average policy: married and employed 45-year-old male and 45-year-old female, each driving 12,000 miles per year; policy limits of $100,000 for injury liability for one person, $300,000 for all injuries and a $500 deductible on collisions and comprehensive coverage.
The report adds that premiums increase in general based on data showing teens, or less experienced drivers, are involved in more accidents than experienced drivers.
“The crash rates for teens are three times higher than for older drivers,” said Laura Adams, senior analyst for insuranceQuotes.com. “In fact, accidents on the road are the leading cause of death for teens age 16 to 19 years old.”
The increase in accidents result in more claims, which results in more expense to the insurer.
More about Car insurance, Teens, Driving
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