Teenage Car Insurance Average Cost Per Month

As a parent, you may be curious about the typical cost of a teenage car insurance policy.

Due to the increased probability of traffic incidents involving teenagers, you may also realize that younger auto insurance is expensive.

Teenage Car Insurance Average Cost Per Month

How Much Is Teenage Car Insurance Average Cost Per Month?

If you’re planning to add a teenage driver to your policy shortly, look at the typical price of teenage car insurance rates and look into ways to keep costs down.

With their parents’ policies, teenagers spend between $225-$300 monthly and a maximum of $450/month for a single-vehicle insurance plan. According to business figures, including a teenage motorist in a family’s vehicle insurance plan could increase premiums by 150%. A new driver might expense you up to $2500 yearly if your existing coverage charges $1,000/year.

Everything comes down to the driving record, credit profile, and state where you live.

Let’s say you have a 16-year-old teenager, and you want to know the insurance cost. Here is the table:

Car Insurance Costs for 16 Year Olds

wdt_ID Insurer Monthly cost
1 Erie 311.00
2 Farmers 415.00
3 USAA 423.00
4 Geico 479.00
5 Nationwide 539.00
6 State Farm 577.00
7 Progressive 772.00
8 Allstate 1,141.00
9 Average Cost 813.00
Insurer Monthly cost

Based on the table above, Erie Insurance offers the lowest insurance costs for teenage drivers aged 16 years, about 61% lower than the average of several other insurance providers.

Meanwhile, Allstate charges 40% higher than the average cost of some other insurance providers.

Adding the 16-year-old youngster to the auto insurance policy as early as obtaining a driver’s license is almost always required by law.

It is required by legislation in several areas, and it is also required by most insurance carriers.

Your automobile insurance covers anyone regardless of whether or not it is necessary is a wise decision.

Adding an adolescent motorist to a household policy is usually only necessary after receiving a driver’s license.

Unless the 16-year-old has still not completed their driver’s license exam, they or she isn’t required to be mentioned on the family insurance policy.

Although Geico and State Farm are the most affordable options in 3 states, they are typically the most affordable providers.

Following is a list of the most affordable insurance providers for 16 in each of the nine survey areas.

Car Insurance Costs for 16 in Several States

wdt_ID States Insurance Companies Rates/Month
1 North Carolina State Farm 201
2 Texas Fred Loya 264
3 Georgia Georgia Farm Bureau 274
4 Ohio Geico 333
5 California State Farm 349
6 Illinois State Farm 390
7 Florida Geico 425
8 New York Geico 534
9 Michigan Frankenmuth Mutual 952
States Insurance Companies Rates/Month

Now, adding an adolescent driver to a household with two vehicles means paying 58% more in auto insurance premiums.

As a result, households with three vehicles see a median increase of 62%.

Despite the significant rise in premiums, often these households discover that insuring a teenager is the greatest cost-effective option if the teenager uses the household vehicles.

Adding another car and a young driver to a family’s insurance policy is unaffordable for many.

Variables Affect the Cost of Teenagers’ Car Insurance

Among the most important elements affecting the expense of insurance for teenage motorists is the risk involved.

According to the NHTSA, teens’ lack of driving ability is responsible for 66% of all collisions in this age demographic.

Women are more likely to be involved in a car accident, impacting their insurance premiums.

IIHS estimates that now the fatal percentage of accidents for boys between 16 and 19 is roughly three times higher than the average of many adult people.

Approximately 66% of such incidents are caused by this generational cohort, a considerable reduction from 75% in 1975.

Car insurance premiums for teenage boys are 15% higher than those for teenage girls.

Those between 16 and 17 pay more car insurance rates than those between 18 and 19.

The greater costs can be attributed to a 200 % greater accident frequency in the older population.

As motorists reach the range of 25, the number of crashes decreases.

Cons of Having The Teenage Driver on The Car Insurance Policy

After a few years of driving knowledge and skills, your once-young driver should be ready to get cheaper insurance coverage on their own.

Many parents are reluctant to include teenagers in their policy coverage, afraid that accidents committed by a young driver may result in the loss of a family house or any other valuables.

The teenager should get their coverage, even if it is more expensive than a combined coverage alongside an older motorist.

According to the NHTSA, teens are four times more likely to make auto insurance claims than older, more experienced drivers.

Therefore, in five years, your insurance rates would be increased if something like that happens.

It’s critical to familiarize yourself with the rules in the state before continuing to include a teenager motorist in the coverage.

People possessing a driving permit in certain states must show it on their vehicle insurance coverage.

Several insurers may enable you to remove your teenager from coverage when it comes to auto insurance as long as documentation of a different policy is provided.

Individuals may even be required to cover youngsters with permission in various areas, such as:

  • Virginia
  • West Virginia
  • Ohio
  • Pennsylvania
  • New York
  • North Carolina
  • Indiana
  • Maryland
  • Illinois

If their youngster owns an automobile, mum or dad or guardian’s identity may be required to show on the title.

Considering a teenager can’t enter into a legally binding agreement until 18, parents could be required to sign on a different vehicle insurance coverage for their youngster.

Teenagers Auto Insurance: How to Save Cash with These Solutions

Make sure to shop around and get the greatest deal on car insurance for your teenager before agreeing to coverage.

While receiving 3 – 5 quotes from several insurance providers would sound like such a headache, doing so might save you massive amounts of cash each year on your insurance premium.

When it comes to auto insurance, some parents fall into the trap of simply putting their young drivers to the existing policy before comparing alternative options first.

It is possible to receive drastically varied prices between one insurance company to another since each business has its own costing rules.

Remember to pick the benefit of any available savings when comparing insurance figures for your teens.

Throughout several cases, good-student savings, which is 15%, are available from automobile insurance carriers.

A multi-car discount will apply whenever you agree to include your teen in your insurance coverage.

Parents may also take advantage of savings that your adolescent would not be qualified for on their own, such as savings for combining house and automobile insurance policies.

It is possible to save money on insurance by purchasing a safer, low hp vehicle for your teenager.

Family cars, in general, get the cheapest insurance premiums.

However, you may save cash by driving a more calm car or compact Crossover.

Before assisting your youngster with purchasing an automobile for personal use, research how expensive the brand and type of vehicle may charge to cover before signing the contract.

Despite the significant risk of mishaps that youths face during their first few months of driving, consider purchasing an insurance policy that includes accident forgiveness.

When anyone on their insurance policy is involved in a car accident, this agreement prevents their premium costs from skyrocketing.

Check whether this form of coverage would protect a teen driver; several policies do not include this sort of motorist.

When driving a car that does not need this sort of protection, do not purchase either comprehensive or collision coverage.

Such policies are only required if individuals rent or loan your vehicle or if the vehicle is valued at over $4000.

Parents may ensure their teenager gets the essential vehicle insurance policy in their state through these guidelines without worrying about the cost.

Read:  Average Cost of Car Insurance in Illinois Per Month

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