Does Insurance Increase When Adding a 17 Year Old Driver?

Insurance rates increase when adding teen drivers.

Adding a teenager to an existing insurance policy, or creating a separate policy, will allow the teen driver to start driving on his own. In providing this freedom, you may find that your insurance rates will increase. Many factors determine the amount of the increase when adding a 17-year-old driver to your policy.

Risk

Due to the risks and inexperience of new drivers, adding a 17-year-old driver to your policy may increase your insurance up to 50 percent. But, adding a teen to an existing policy is the cheaper route, since the average individual premium for a teenager is $1200.

Formulas

Insurance companies may have substantially different calculations to determine insurance rates; these formulas will determine how cheap or expensive your insurance will be. Get quotes from multiple companies to compare the best rates.

Other Considerations

Insurance companies may also consider different factors when determining premiums for teens, including the need for the insurance, the insurance type required, information concerning the vehicle, the average distance driven, whether the teen is the primary driver and the teen's academic record.

Fluctuation

Once you cover your teen driver, rates will go either up or down throughout the years. Insurance rates generally come down as the teenager gets older. Traffic violations will increase the insurance premiums.

References

• Rocky Mountain Insurance Information Association: Teens and Auto Insurance
• Arizona Insurance Council: Arizona Insurance Council
• Assure Insure: Car Insurance Rates for Teenagers