How Much More 18-Year-Olds Pay for Their Own Auto Insurance

August 10, 2015

Eighteen year-olds pay an average of 18 percent more for car insurance if they sign up for an individual policy as opposed to remaining on their parents’ policies, according to a report from online seller insuranceQuotes.com.

The difference in premiums for individual coverage versus being added to family coverage is much higher in some states.

For example, 18-year-olds in Rhode Island pay an average of 53 percent more for individual coverage. The costs for 18-year-olds in Connecticut (47%), Oregon (47%), Nevada (41%), Maine (40%), Vermont (39%), North Dakota (38%) and Minnesota (37%) are also much higher.

Eighteen-year old drivers in Arizona (2%), Mississippi (5%) and South Carolina (5%) pay only slightly more for their own policy than if they remain on their parents’ policy.

The differential varies by state quite a bit. An 18-year-old driver in Illinois, Alaska or Florida pays just seven percent more for an individual policy compared to being added to an existing one.

The difference also fades as the driver ages.

The average premium hike for 18-year-olds drops to nine percent for all 19-year-old drivers and continues to decrease until bottoming out at four percent for 24-year-olds, according to the report.

In some states, including Arizona, Hawaii and Illinois, it becomes cheaper, on average, for a young driver to get his or her own policy after turning 19.

“In most states, individual policies significantly add to the already high cost of insuring a teen driver,” says Laura Adams, insuranceQuotes.com’s senior analyst. “Parents with an 18-year-old on their policy pay an average of 77 percent more than they would without the teen. While this certainly isn’t cheap, it’s usually much better than the individual policy option.”

The insurance industry says young drivers are charge more because they present greater risk.

“The bottom line is that young drivers are more expensive to insure, and if they want their own individual policy, it’s going to come at a cost,” Mike Barry, spokesman for the nonprofit Insurance Information Institute, told insuranceQutes.com. “A young driver has a very limited driving record, not much credit history and data that show they are statistically riskier drivers.”

The insuranceQuotes report has the average premium increases in all 50 states and Washington, D.C.

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