How Much Will Adding a Teen Driver Increase My Auto Insurance Rate?

If you're not prepared in advance for the auto insurance rate amounts currently being charged by insurance companies for new teen drivers, you may well be shell-shocked when it comes time for your teen driver to insure his or her vehicle. Teens are some of the most expensive drivers to insure because of the large risk they typically pose to auto insurance companies. Statistically, teen drivers are most likely to be involved in accidents, to cause accidents and to drive in such a way as to get ticketed for moving violations.

According to the Center for Disease Control and Prevention, drivers between the ages of 15 and 19 are four times more likely to be involved in an automobile crash than older drivers. This makes vehicle crashes the number one cause of death among individuals within this age group.
The riskiest age for car crashes is 16. Their crash rate is double that of 18 and 19-year-old teens. With risk being a major determining factor in setting auto insurance rate amounts, it's no wonder teen drivers are faced with paying the highest of those rates.

Individual Policy Rates Versus Adding Your Teen to Your Policy

There are numerous ways to lower costs when insuring teen drivers. The first is to add him/her to your policy rather than having them take out an individual policy of their own. The cost difference between these two options is significant. Taking into account all teen drivers between the ages of 15 and 19, and factoring cost differences between a wide variety of different insurers, the average cost of an individual teen driver's insurance policy for a modestly priced vehicle is about $3,000 annually.

This rate includes liability protection of $100K per person per accident (bodily injury), $300K total bodily injury per accident and $100K property damage per accident. Comprehensive and collision protection aren't included in this estimate.

Compare that cost with an average increase of $620 when adding your teen to your auto insurance policy.

Other Ways to Save

Most auto insurers offer numerous discounts when taking out or adding your teen to a policy, however, be advised they aren't likely to be forthcoming with all the discounts they have available. In other words, you have to ask about each and every discount for which you may qualify. These can quickly add up to significant savings. Check out this blog post.