Adding a Teenage Driver Makes a Big Difference to Your Car Insurance

Teenagers tend to be charged some of the highest premiums across drivers of different ages. However the moment teenagers get some experience under their belt and get closer to the 25-year-old age bracket, their prices get reduced by almost 30%!

The reasons for this trend are understandable. Adolescent drivers are a comparatively low experience driver group. In fact, traffic accidents cause a high number of teenage deaths in the USA. The California Department of Motor Vehicles found that male and female drivers between the ages of 16 and 19 years are involved in the highest number of traffic accidents and crash rates than any age group. The Center for Disease Control and Prevention notes that even though the youth (aged between 15 and 24 years) represent just 14% of the US population, this group of drivers is responsible for 28-30% of the total costs of motor vehicle injuries!

The following table shows the percentage increase in premiums by state, with the addition of a teenager to the insurance plan. These numbers are calculated assuming that the insurance buyer is a 40-year-old male driver with a 2017 Honda Accord. The liability coverage in the agreement is taken to be $100/$300/$100. The teenage driver is a 16-year-old male or female driver, driving the same car. Note that the table does not include Hawaii as it is the only state that does not allow insurers to increase rates on the basis of driver age.

StateAverage Premium without TeenagersPercent Increase by Adding TeenagersAverage Premium after Adding Teenagers
New Jersey$1,490223%$4,813
Arizona$1,329219%$4,240
California$1,694217%$5,370
Louisiana$2,117214%$6,646
South Carolina$1,421213%$4,447
Illinois$1,117209%$3,452
Nevada$1,657203%$5,020
Virginia$1,043199%$3,118
New Hampshire$1,214195%$3,581
Georgia$1,724194%$5,069
Rhode Island$2,112190%$6,123
Alaska$1,184189%$3,421
DC$1,793179%$5,001
Maryland$1,464178%$4,070
Idaho$968176%$2,672
New York$1,275176%$3,518
Alabama$1,239169%$3,332
Nebraska$1,351168%$3,622
Utah$1,273168%$3,411
Texas$1,726167%$4,609
New Mexico$1,573166%$4,184
Michigan$2,250163%$5,916
Wisconsin$1,204163%$3,167
Connecticut$1,881161%$4,909
Oregon$1,391161%$3,631
Tennessee$1,406160%$3,655
Arkansas$1,478158%$3,814
West Virginia$1,540157%$3,959
Vermont$1,224155%$3,122
Washington$1,372154%$3,486
Minnesota$1,272153%$3,218
Delaware$1,746145%$4,278
Massachusetts$1,535145%$3,761
Colorado$1,591144%$3,883
Florida$2,138144%$5,216
Mississippi$1,579144%$3,853
Wyoming$1,656143%$4,024
Kentucky$1,530142%$3,704
Iowa$1,019140%$2,446
Indiana$1,004140%$2,410
North Dakota$1,179139%$2,818
Oklahoma$1,542135%$3,625
Kansas$1,341134%$3,139
Missouri$1,352131%$3,124
Maine$840124%$1,881
North Carolina$1,229123%$2,740
South Dakota$1,313122%$2,914
Pennsylvania$1,510118%$3,292
Montana$1,668103%$3,387
Ohio$1,007101%$2,024

Crash History by Teenage Gender

The gender of the teenage driver also matters a great deal. Research identifies teenage boys as the most high-risk cohort of drivers among generally accident-prone teenagers. The graph below shows the trends in automobile accidents in the last 26 years (until 2016), by gender, for drivers aged between 13 and 19 years.

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Source: IIHS

While it may be difficult to escape the surcharge for adding a teenager to your car insurance plan, some of these factors can soften blow: good student grades, being enrolled in a recognized driver training course, carefully choosing the car, and opting for higher deductible and liabilities.

Good student discounts are something that most providers offer for maintaining at least a B average grade or a GPA of 3.0 in high-school. Being enrolled in recognized driving courses will indicate that the teenager is a safer driver. These small steps  taken at the right time can go a long way in bringing down exorbitant car insurance rates for teenage drivers.

Find a comprehensive analysis of all the ways to you can save on your car insurance, here.

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