How much is insurance for a new driver?

Car insurance for a 23-year-old costs around $2,100 per year on average – about 33% more than the average U.S. driver pays for coverage. Age is one of the main factors insurance companies consider in setting premiums. Insurance statistics show that drivers age 21-24 are more likely than older drivers to be involved in car accidents.… read full answer

There are other factors that impact pricing, of course, including gender. Although the differences decrease over time, young male drivers are typically rated as higher risks and are charged higher premiums than young female drivers. The average premium for a 23-year-old female is about $2,000 per year, while it’s more than $2,200 for a 23-year-old male.

Another major factor is the type and level of coverage you plan to buy. The average annual premium of $2,100 is based on a policy that includes comprehensive and collision coverage. If you only want to purchase the minimum liability insurance coverage that’s required by your state, the average cost for a 23-year-old driver is about $730 per year.

The state you live in and the insurer you choose will also affect the amount you pay for car insurance. USAA (military families only) and GEICO are two companies that offer lower rates for young drivers, including 23-year-olds. However, the best way to find the cheapest policy is to get 3 to 5 free quotes and compare.

Car insurance for an 18-year-old is expensive. The average cost of an individual policy for an 18-year-old is over $5,000 per year, or $420 per month—about three times the amount paid by older, more experienced drivers. However, young drivers are a higher risk for insurance companies, and many insurers won’t even issue them individual policies.… read full answer

Most 18-year-old drivers are covered on their parents’ policy, at an average additional cost of roughly $2,300 per year. These prices vary widely by state, however, from a low of about $1,175 in Ohio to a high of $9,200 in Florida. They also vary by gender. Young men are statistically more likely to be involved in crashes than young women. This is reflected in premiums that tend to be about 15% higher.

For an 18-year-old to be covered by his or her parents’ policy, the teen must be living at home or attending school. There are pros and cons to covering your teenager on your policy if you’re a parent. The most obvious benefit is the much lower insurance cost for the family overall. The disadvantage, however, is that your 18-year-old’s accidents and moving violations can impact your premiums. In addition, if your child is at fault in an accident and causes damages and injuries that exceed the limits of your liability coverage, your personal assets are at risk.

If your teen driver has a separate policy, problems in his or her driving record raise his or her premiums only. You have no liability for losses unless it’s your car that is involved in the accident.

If you decide, like most parents, to cover your 18-year-old on your family policy, be sure to shop carefully for the best prices. Look at companies like GEICO and Progressive that offer good rates for young drivers, and research discounts for good students and driver’s education.

The average cost for teenage car insurance is about $430-$450 per month for an individual policy or $225-$300 per month as an add-on to a parent’s policy.

Insuring a teenager is expensive due to a high risk of insurance claims. Teenagers are more likely to be involved in accidents than any other age group, according to the Centers for Disease Control and Prevention (CDC). As inexperienced drivers, they make more mistakes. Roughly three-quarters of serious accidents involving teens are due to driver errors, according to the National Highway Traffic Safety Administration.… read full answer

Even among teenagers, age is a big factor in the cost of car insurance. The younger the driver, the more expensive the insurance. Premiums and risks are highest with 16-17 year olds, whose fatal crash rate is twice as high as for 18-19 year olds, according to the CDC.

Gender matters, too. The average teenage boy pays about 15% more for car insurance than the average teenage girl. Young male drivers are more expensive to insure because they are significantly higher risks, based on statistics. According to the CDC, the motor vehicle death rate for boys ages 16 to 19 is twice the rate of girls that age.

Adding teenagers to their parents’ auto insurance policy may be a good way to reduce family costs for insurance, but it isn’t always the best option. Teenagers may want independence; parents may want to protect family assets from liability. Whichever kind of policy is best for your family, shop carefully for the best prices. Look at companies like GEICO and Progressive that offer good rates for young drivers, and research discounts for good students and driver’s education.