Merrill Burchell, Car Insurance Writer
@merrill_burchell
Car insurance is likely to cost more than $5,500 annually for a new driver who is 17 years old to get a stand-alone policy. On the other hand, auto insurance will cost about $2,750 extra per year when adding a 17-year-old new driver to a parent’s policy. But insurance costs for new drivers vary widely.
Age is a major factor in how much insurance costs for a new driver. Not everyone gets their first license at 16 or 17 years old. A new driver could be 25 or 40 or even 60 years old. Insurance companies set different prices for insuring a newly licensed teenager and someone getting their driver’s license later in life. They also factor in gender, state of residence and coverage amounts. Insuring any new driver, however, is more expensive than covering an experienced driver with good driving and insurance records.
Statistics show that new drivers tend to be high-risk drivers who are more likely to get into accidents and file claims. That’s why insurance companies charge more to insure them. You can’t fight statistics, but sometimes, you can make them work for you in order to get the best possible price. A look at car insurance statistics yields the following findings.
- Adding a teen to a parent’s policy is cheaper. If you are a teen driver living at home or in a dorm, ask your parents to add you to their policy. It will be about half as costly as having your own policy.
- Luxury cars are expensive to repair, and sports cars are likely to be driven too fast. Driving a cheaper, practical car with good safety and anti-theft features will lower your rates.
- Students with good grades are better drivers. Insurance companies give discounts to students with a B average or better.
- Driving courses improve drivers’ skills. Many insurance companies offer discounts for attending driver’s ed or online defensive driving schools.
- Teachers, physicians, police officers, and other well-educated professionals file fewer claims. Some insurance companies offer discounts based on occupation.
If you are a new driver of any age, it’s worthwhile to comparison shop rates and discounts carefully. The cheapest way to do this is by getting free online quotes from multiple auto insurance companies.
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Car insurance for a 23-year-old costs $1,053 per year, on average, or $88 per month. Twenty-three-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
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Car insurance for an 18-year-old costs $2,415 per year, on average, or $201 per month. Eighteen-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
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The average cost of car insurance for a teenager is $215 per month, or $2,580 annually. Younger teens typically pay the most for car insurance coverage, with 16-year-olds paying an average of 85% more than 19-year-olds.
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