The addition of a young driver to an already existing car insurance policy costs much less than getting a separate policy or insuring a vehicle in which they’re the primary driver. As much as adding a young driver to a policy costs less, it can still be a heavy financial burden, so it is important for families to think carefully about their financial situation and long-term budget when planning for a new driver.
The cost of adding a teen, even with a discount, can represent more than ten percent of a family’s income, depending on the state. Data also suggests that families in the poorest neighborhoods in the largest cities can face insurance costs that are thousands of dollars more expensive yearly than what the cities’ wealthiest residents would pay to add a young driver to a policy.
Adding a teen to an existing car insurance plan is highly expensive. This is because designating a 16-year-old as a driver of an insured vehicle carries an average cost of $5,380 a year, and the cost of insuring a young driver falls as the individual ages. However, if the young driver waits until they’re 22 years old before getting their license and being included on an insurance policy, the cost to cover them then drops by thirty-seven percent to $3,931 a year.
Along with all that is stated above, some of the key findings concerning how much adding a young driver to a policy will cost include the following:
- Adding a teen to a family’s car insurance policy costs $4,799 a year on average. This is even with a good student discount. Without a discount, insuring a teenage driver can cost $5,109 annually on average.
- By waiting until the age of 22, which is the age of a four-year college graduate that entered school at age eighteen, young drivers can save their families 37% on potential car insurance premiums. The average combined cost of insurance from age 16 to 22 totals up to $33,091.
- Good student discounts do not lower the cost of insurance for young drivers enough to cause an impact on most families. Insurance costs represented nearly the same percentage of a family’s income regardless of whether they qualified for the discount from ages 16 to 22.
These key findings should be able to help you decide thoroughly if you are financially able to add a young driver to your family car insurance policy. To learn more about which policy works best for your auto insurance needs, contact the experts at Phocus Insurance Services in Phoenix, Arizona today. We are ready to assist you with all of your coverage needs.
