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Car insurance quotes can double when you add a teen driver

It’s getting too expensive for teens to drive

In a recent survey, the sad reality most parents feared has been officially confirmed, In some states, the annual premium rate for a married couple will double if they add a teen driver. The extremes could not be more stark.

The state with the lowest increase

In Hawaii, the state government has banned insurers from considering the age, number of years driving, and gender of people applying for coverage. The result is that auto insurance quotes come in with only an 18% rise in the combined parental premium rate. Of course, to compensate, everyone who drives pays a little more as the cost of loss caused by the inexperienced drivers is divided among them. But as a matter of policy, this has been a great success in encouraging most drivers to get insurance before driving.

The states with the highest increases

The fate of parents living in Arkansas, Utah and Wyoming is to find their annual premium rates increase by more than 110%. It’s perhaps not surprising these parents should be bringing pressure to bear on their teens to delay getting a driver’s license. Indeed, there’s emerging evidence teens are in no hurry to get their license. Why is this?

A new study in Maryland

Any teen who is fit and healthy can apply for a driver’s license at the age of 15 years and 9 months. No matter how inexperienced people may be at that age, this has been the qualifying age for years. In fact, it comes from earlier times when there was significantly less traffic on the roads. With more congestion, the risks of an accident are higher. Nevertheless, the state has no plans to change the age. Yet a formal change may not be necessary. Less than half the teens actually apply for a license in the first twelve months of eligibility. Many are waiting until they are eighteen and older. In this, young women are twice as likely as young men to delay.

What are their motives?

  1. The statistics of death and injury are becoming better known among the teens and fear is deterring some.
  2. Many delay because they do not have a vehicle available to drive. In these difficult economic times, parents do not always have a spare.
  3. The expense of driving. Looking at the cost of insurance and then gas, most teens cannot find work to help cover the costs.
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