Car insurance for 17-year-olds

Being on the edge of adulthood is usually an exciting prospect for 17-year-olds, but not such a lot when it involves automobile insurance . Teenagers between the age of 16 and 19 are usually charged the very best auto insurance premiums because they're considered especially risky, engaging in unsafe driving practices. to guard against the danger , insurance companies set higher premiums for young drivers. Compared to the $1,555 a year national average, 17-year-olds pay two to 3 times more in annual premiums for full coverage automobile insurance .

While during this case age is that the primary factor for the exorbitant cost of insurance, several other reasons contribute to the quantity paid in premiums, like the sort of car the teenager drives, gender, the insurance firm , location and driving record. These factors were examined and compared to urge the typical cost of automobile insurance for 17-year-olds (added to their parents’ policy). However, this text offers ways to save lots of money on premiums also .

A teenager’s first exposure to auto insurance is typically once they are added to their parent’s policy. However, adding a 17-year-old to any automobile insurance policy leads to a surge in premium for the parent. Adding a 16-year-old male teenage driver to the parent’s total increases the first policy about $3,789 a year, and for female teens, around $3,526 annually. The rates included during this article represent the extra cost to a parents’ policy when a 17-year-old driver is added.

If we glance at the statistics from the National Highway Traffic Safety Administration (NHTSA), it’s easy to ascertain why insurers charge teenage drivers the very best rates. consistent with the NHTSA, car crashes are the leading explanation for teen deaths within the us , and 2,121 young drivers under the age of 19 were killed in road accidents in 2018.

Distracted driving is at its peak among teen drivers, besides speeding, drunk driving and drowsy driving. the shortage of responsibility, driving skills and knowledge escalates the danger, not only claiming thousands of young lives per annum but also costing insurance companies in liability and collision coverage. people who survive crashes may face jail time, license suspension, court and attorney fees, and loss of scholarships, academic eligibility or other awards.

Age becomes less impactful for automobile insurance because the motorist gets older except for 17-year-olds it's what makes the worth of insurance surge, even for safe drivers.

17-year-old automobile insurance rates: male vs female

The statistics of male drivers with risky driving behaviors have always been above those of their female counterparts and therefore the same applies to teenage drivers. Fatal crashes are quite twice the amount for men compared to women, which is why insurance companies factor gender into premiums. This factor is far more significant for 17-year-olds, because records have consistently shown boys to be more likely to finish up in an accident behind the wheel than girls.

From the table below, we discover that a 17-year-old male driver is charged about $250 quite a 17-year-old female, although this price may vary by state and insurance firm . the great news is that gender becomes less of an impression to rates with age, and a few states don't allow the utilization of gender as a determinant of automobile insurance premiums.

Quadrant information services, 2020

How much is automobile insurance for 17-year-olds in my state?

The price of insurance for 17-year-olds also depends on their exact location. Insurance is state-regulated and based totally on postcode , with prices often varying significantly accordingly.

Most states make it mandatory to hold minimum liability coverage, whereas some places require drivers to possess additional coverage — which adds to the general cost of insurance. The more populated a state, the denser the traffic, and therefore the higher the danger of road accidents.

Coastal regions experiencing floods, hurricanes and storms also are typically costlier in terms of automobile insurance . If your location is taken into account high-risk by insurance companies, 17-year-old drivers can expect to pay even more for automobile insurance . The table below indicates rate variances by state.

Quadrant information services, 2020

Most expensive states for automobile insurance for 17-year-olds

• New York
• Michigan
• Louisiana
• Florida
• Nevada

Two of the first reasons why automobile insurance is costlier in these states are population density and therefore the risk of crashes and collisions. These factors end in ny being the priciest state within the U.S. for automobile insurance for 17-year-olds, at $6,560 a year for full coverage, followed closely by Michigan, at $5,559 a year. Not only are they no-fault states, requiring drivers to hold sufficient additional coverage, but rates in these states could also be suffering from higher cost of living, number of uninsured drivers or high neighborhood crime rates.

Regions susceptible to natural disasters, like hurricanes, floods and storms even have expensive automobile insurance . Louisiana and Florida are two such states where susceptibility to natural disasters increases auto insurance premiums for 17-year-olds, with full coverage premiums averaging $5,550 and $5,397 a year respectively. Relaxed alcohol laws and therefore the year-round Las Vegas party scene make Nevada another highly expensive state for automobile insurance for teens, at $4,406 a year on the average for 17-year-olds.

Least expensive states for automobile insurance for 17-year-olds

• Hawaii
• Maine
• Idaho
• North Dakota
• Wisconsin

States with the most cost effective automobile insurance are those with a lower population or crime, lower cost of living and usually safe drivers. Hawaii, Maine and Idaho have the most cost effective full coverage premiums for 17-year-olds added to their parents’ policy, on the average , at $1,203, $1,445 and $2,021 a year respectively.

Car insurance rates by insurance carrier for 17-year-olds

No two insurance companies are an equivalent when it involves pricing a 17-year-old’s automobile insurance premium. Even with an equivalent coverage options, prices can vary counting on a spread of other factors.

After comparing average rates for full coverage among the main insurance companies (by market share — shown within the table below), Coverage found that Nationwide offers the most cost effective annual rate for 17-year-olds, at $2,173 a year, added to their parents’ policy. this is often followed closely by Erie at $2,578 a year. The priciest insurer for teens was The Hanover, at $8,211 annually.

When it involves teen drivers, age is that the reason why rates are far above what they're for adult motorists. But a 17-year-old will gain valuable driving experience over time, resulting in a gradual but consistent drop by rates as they get older . the value of auto insurance for teens changes rapidly between the ages of 17 and 25, so shopping around for insurance every six months may be a great way to form sure you’re not overpaying. Once you switch 18, you'll be ready to obtain your own policy, so compare rates on your own versus staying on your parents’ policy to ascertain which saves the foremost .

Quadrant information services, 2020

How to get cheap automobile insurance for 17-year-olds

Insuring a teenager driver is dear , but the subsequent are a couple of ways to save:

Defensive driver discount

Taking a driving course that specialize in road safety and traffic rules is a method to prove you're responsible to an insurance firm , and save money on premiums. Not all insurers offer this discount though, but people who do usually require physical proof of the qualification.

Good student discount

Some insurance companies offer discounts to young drivers with academic excellence. If a 17-year-old holds a mean grade of three .0 or higher, it's possible to urge an honest student discount with certain insurers.

Clean driving record

Being safe on the road is important for each driver, and more so for teenagers. Maintaining a clean driving record, free from tickets and claims, can save 17-year-olds significantly on auto insurance. Most insurers reward safe driving practices, making this one among the neatest ways to save lots of on premiums. albeit you can’t get a selected safe driving discount, avoiding accidents and claims can prevent your rate from being even higher.

Smart coverage

Teen drivers also can save by using an old car that not needs a high level of coverage. A vehicle worth no quite $4000 doesn’t need the maximum amount damage protection, and by sticking to only liability coverage, you'll effectively spend tons less on insurance. However, it’s best to talk with an agent to make sure your coverage is adequate, no matter your vehicle type or age.

Shopping around

Every insurance company’s prices vary supported variety of things . rather than choosing the primary insurer you discover , it's always recommended to buy around and obtain quotes from multiple providers. By comparing prices, coverage options and repair per annum , 17-year-olds can find the simplest rate for the coverage they have .

The takeaway

• Car insurance for 17-year-olds costs two to 3 times quite the national average.
• Male teenagers are viewed as higher risk and are charged quite female teenage drivers.
• Based on postcode and insurance companies, insurance prices differ significantly, and a few states are significantly costlier for teen drivers than others.
• It is possible to save lots of on premiums by driving safe, shopping around, taking advantage of discounts available to teenage drivers and sticking to essential coverage.

Teenagers and young drivers pose a big risk to insurance companies, which risk is mitigated within the sort of steep premiums. However, the worth tends to drop with age, so shopping around for a replacement policy per annum may be a smart move towards getting the simplest rate. With a clean driving record, no claims and academic excellence, 17-year-olds are often eligible surely discounts that lower the value of automobile insurance .