Teens have the highest rate of crashes, and distracted driving is just one of the reasons.
Studies show drivers under the age of 20 are three times more likely than the general population to get into a fatal accident, and that doesn’t include fender-benders and other, more routine crashes – all of which mean that parents who plan to put a teen onto their insurance policies need to be prepared for a big increase in premiums.
The insurance bill for the typical married couple will jump an average 79%, according to a new study by insuranceQuotes.com. And for those young motorists who have a poor driving record, premiums could well more than double. The good news, however, is that the average teen penalty dipped from 85% in 2013.
The younger the driver, the more insurance rates will rise, and males will pay a stiffer penalty than females, reflecting their traditionally higher risk behind the wheel. Insurance rate increases also vary from state-to-state. The penalty is stiffest in New Hampshire, noted the insuranceQuotes report, at an average 111%.
But young motorists and their parents can take advantage of a number of ways to reduce costs, from getting good grades in school to participating in new insurance programs that track driving behavior and reward those who follow the rules of the road.
“A great strategy for lowering car insurance costs is to sign up for pay-as-you-drive car insurance,” said Laura Adams, senior analyst, insuranceQuotes.com. “These programs allow companies to track your driving habits and can lead to significant discounts, especially if you’re a safe driver who doesn’t rack up too many miles. Teens who excel in the classroom should also take advantage of good student discounts.”
(Ford Mobii system could let parents track teen behavior behind the wheel. Click Here for more.)
While the Granite State is the most expensive place to add a teen to your family insurance policy, six other states will see premiums double, including, Rhode Island, Maine, Wyoming, Connecticut, Illinois and Oregon.
At the other end of the spectrum, the lowest penalty is in Hawaii, which has strict insurance rules, and sees an average 17% teen premium hike. New York State is second-lowest, at 53%, followed by Michigan, Montana and New Mexico.
Male drivers, reflecting their highest statistical risk, get hit with an average 92% increase, according to insuranceQuotes.com, while teen females see a more modest 67% hike.
The younger the new driver, the higher the cost, adding 16-year-olds to the family policy resulting in an average 96% hike, which falls to 58% by the time the young driver reaches 19.
(Americans admit to dangerous driving behaviors behind the wheel. Click Here to see what they’re doing.)
Insurance companies justify their hefty teen driver premiums by pointing to federal and trade data showing young motorists are by far the riskiest on the road. According to the National Highway Traffic Safety Administration, 942 teens died in crashes in 2011, the latest year for which such data is available. That makes motor vehicle accidents the leading cause of death in the U.S. for those between the ages of 14 to 18, according to the government.
More than a third of such deaths were linked to speeding, according to NHTSA, while 12% involved distracted driving. Meanwhile, many of those fatalities likely could have been prevented because over half of the teens killed in crashes were not wearing seatbelts.
(Summer brings the 100 deadliest days for young drivers. Click Here for the story.)
Insurance rates for young drivers can rise or fall depending upon a number of factors, notably including a teen’s driving record. But many insurance companies will give discounts for students, and even reward those with good grades. New policies are available, such as Progressive’s Snapshot, that use in-vehicle devices to monitor for and reward good driving behavior.
(Progressive car insurance could be the best option for you.)
The type of vehicle a teen drives also will have a big impact, especially if it’s a high-performance model. The Insurance Institute for Highway Safety this week released its first-ever guide to the safest vehicles for teens, and it put an emphasis on lower power, as well as the presence of safety-oriented technologies such as airbags and electronic stability control.
(Click Here to see which cars were on the IIHS safest cars for teens list.)