For your teenage son or daughter that just got for the first time the driver’s license fewer things can mean more than getting to drive their first car – but also there are fewer things more expensive than getting him on the insurance plan.
The parents of a new driver will need to take into account – besides the expense of getting that desired car – the massive increase of their insurance premium if that new product of the driving school is added to the family policy. The latest study shows the hike is 77 percent on average. If the teenage driver will have his own insurance, it would be 18 percent higher than adding it to the family’s plan. “In most states, individual policies significantly add to the already high cost of insuring a teen driver,” says Laura Adams, an insurance senior analyst. “Parents with an 18-year-old on their policy pay an average of 77% more than they would without the teen. It’s also usually much better than the individual policy option. Parents who wish to foster financial independence can still ask their child to pay for all or at least some of the increase.” The good news – the rates will see a drop after the age of 18, naturally if they don’t get into trouble and gather some moving violations.
For those intent on getting individual policies, the 18-year-old living in Rhode Island “only” pay an average of 53 percent more than getting added to the family plan. Connecticut and Oregon at 47 percent, Nevada at 41 percent, and Maine at 40 percent round out the top for most expensive insurances. The cheapest states will be Illinois, Alaska and Florida, asking a 7 eprcent premium on average for 18-year-olds for individual coverage and Hawaii altogether discards factors such as age or driving experience.