If you're lucky, your car insurance premiums will only double when your teenage son hits the streets.
The impact of a teen on car insurance rates is one of the most common questions we receive at CarInsurance.com. And the answer is almost always, "It depends." No two households are alike, and so many factors go into rates that any answer is really a guess.
To get some clarity, we ran comparative insurance quotes in 25 states for otherwise identical families: a father, 49, and a mother, 48, driving a financed 2009 Toyota Camry and a paid-off 2004 Ford Expedition, both with full collision, comprehensive and liability coverage, and no violations or accidents. They live in middle-class suburbs and commute to white-collar jobs. (See: How does your vehicle compare on insurance rates?)
Then we added a teenage boy to the mix.
Fix yourself a drink: Your car insurance is going up
In Scottsdale, Ariz., Culver City, Calif., Black Forest, Colo., Hartford, Conn., and Alexandria, Va., our family's car insurance premiums tripled or worse. The average increase across our 25 cities was 156%.
In dollar terms, that meant an increase in six-month premiums of $505 in Des Moines, Iowa, and $2,854 in Culver City. The average dollar increase was $1,014 every six-month rating period.
And that's making the very favorable assumption that you shopped around and got the lowest possible premium when your teenager joined the policy. When rates rise this much, the penalty for failing to shop around grows exponentially: If our family had settled for the second-lowest rate as they added their teenage driver, their six-month premiums would have averaged $480.00 more.
Example: Scottsdale Arizona No Teen $483.00 with Teen $1,659.00
That is a difference of $1,176.00 a 243% increase WOW.
If you have a teen driver please contact us today 480-307-8147