In addition to gender, age also plays a role in rate increases. For instance, the average increase for 16 year olds are 99 percent, 17 year olds 90 percent, 18 year olds 82 percent and so on. Similar to the reason between males vs females, the reason behind this decrease is that as teenagers grow older, they become more experienced drivers and less reckless.
When it comes to averages there are always numbers that skew the average up and others that bring it down. The state "skewers" that bring the average up in this case are Arkansas (116% increase), Utah (115% increase), Wyoming (112% increase), Alabama (111% increase) and Idaho (107% increase). In contrast, the states that pay the least to add teens to their policies are Hawaii (18%), North Carolina (59%) and New York (62%) to name a few.
So why is Hawaii such an outlier. Well the main reason is due to the insurance regulations that Hawaii enforces. In fact, Hawaii is the only state across the United States that does not permit auto insurance companies to consider driving experience, gender or age when calculating insurance rates. As a result, teenagers in Hawaii do not pay much more than adults for auto insurance.
Furthermore, miles driven, geographic landscape and crash data can play a role in these differences between states for parents adding teens to their insurance policy. A 2011 Centers for Disease Control and Prevention declared that most driving deaths occur in rural areas. Combine a wide and long stretch of open road and most teenagers would drive at reckless speeds with their youthful driving experience. As a result, it is easy to see why it costs more to insure a teen in states like Idaho and Wyoming. Rising insurance costs coupled with a bad economy can give any parent rising blood pressures, to save money follow some of these tips below:
- Try to wait to insure your child at 17 or 18 to save some money. Especially for males, waiting as long as possible can mean savings.
- Look for discounts such as discounts for good grades like maintaining a B average which can lower your insurance premiums by up to 25 percent on average.
- Having your teen complete a defensive driving course online, which costs $25, can lower insurance rates by 10 percent for three years.
- Compare insurance rates annually to find the best rates possible.
- Older car= lesser cost and cheaper to insure. For example, for an older car you may not need collision coverage, which covers the cost to repair a car, while you will surely want it for a new car.
- Get a safe, economical vehicles for your teen. They don't need a sport or luxury vehicle! Safer cars means less accidents. In addition, since the car is of lesser value compared to a luxury vehicle, not only does it cost less to repair but collision coverages will also be lower.
- Make sure your teen is at their best in terms of their ability to drive. If your teen gets in an accident, your overall insurance costs can increase by up to 75 percent.