U.S. teen drivers cause 60-90% spike to parents’ insurance rates: report

The average married couple in the United States pays 80% more for auto insurance after adding a teen driver to their policy, according to a new report on Monday from InsuranceQuotes.com, an online provider of quotes for auto, life, homeowners, health, renters, dental, group health and business insurance.

The report said that 16-year-olds cause the highest spike in premiums (96%), while the average impact decreases to 60% at age 19. The National Highway Traffic Safety Administration also reports that motor vehicle crashes are the leading cause of death for teens, accounting for one-third of all deaths of 16- to 19-year-olds.

Not surprisingly, teenage males are much more expensive to insure than teenage females (average increases of 92% and 67%, respectively), although six states prohibit insurers from using gender in their rate calculations (Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania).

The most expensive state to insure a teen driver is New Hampshire, where the average premium jumps 115%, the report said. Teen drivers cause premiums to more than double in four other states: Wyoming (104%), Illinois (104%), Maine (103%) and Rhode Island (102%). [click image below to enlarge]

Hawaii is the only state that does not allow age and length of driving experience to affect car insurance costs. As a result, teen drivers only cost 17% more to insure in Hawaii, the lowest increase in the nation by far. New York State has the second-lowest increase (53%), followed by Michigan (57%) and North Carolina (60%).

The cost to insure a teen driver has actually fallen a bit since 2013, the report found, when the average annual increase was 85% (98% for males and 73% for females). [click image below to enlarge]

The study calcuated rates using data from the largest carriers in each state. The averages are based on a married and employed 45-year-old male and 45-year-old female who each drive 12,000 miles per year with policy limits of US$100,000 for injury liability for one person, $300,000 for all injuries and a $500 deductible on collision and comprehensive coverage. The hypothetical drivers have clean driving records and good credit. The rates include uninsured motorist coverage and refer to new business policies.