Including a teen driver in your car insurance policy is certain to raise the premium, but it can cost parents even more. Adding a freshly licensed teen to your car insurance coverage WILL increase your premium if you are a parent. In 2021, if the parents chose to include their 16-year-old teen child in their full coverage auto insurance policy, their premium is expected to rise by an average of $2541 each year. According to Way.com’s estimate, this brings their total annual premium to $4161 per year.
Way.com’s editorial staff examined average rates from the top 25 U.S. metropolitan areas. The primary parameter was the population to determine the most and least expensive places for adding a teen driver to your car insurance.
Most Expensive Cities for Teen Insurance Premiums
In terms of percentage of increased cost, San Francisco and Los Angeles will be the two most expensive metropolitan regions in the United States in 2021 for parents adding a teen to their car insurance coverage.
In San Francisco, the average cost of a full coverage insurance policy for two parents and their teen drivers is $6132 per year, which is 168 percent higher than the city’s normal average rate of $2,281 per year for those same parents without a teen on their policy.
A comparable auto policy in Los Angeles costs $7,026 per year, 164% more than the normal L.A. rate of $2,655 for the same couple. In both cities, parents who add a young driver to their coverage spend an extra $4,000 per year on average. These rates do not include the cost of adding a second vehicle to your policy for your adolescent to drive, which is an additional expense.
Why Are These Cities Expensive?
SF and LA are the most expensive metropolitan areas for adding a teen driver. The yearly fee of full-coverage insurance for married couples in San Francisco is $2292 on average. When a teen is added to the equation, the cost jumps to $6132, a stunning 169 percent rise. These excessive charges could be attributed to San Francisco’s second-highest cost of living in the United States. San Francisco has also been named the tenth-worst city in the country to drive in.
When a 16-year-old driver is added to a married couple’s full-coverage auto insurance policy in Los Angeles, whose living costs and traffic levels are comparable to San Francisco, the annual average rate climbs from $2661 to $7032 — a 165 percent increase.
What Are the Other Cities Where the Teen Insurance Premium Is High?
With a 161 percent increase in the insurance premium, San Diego is the third most expensive city for parents with teen drivers. If you are planning to include your kid on your policy, expect an annual insurance premium cost jump from $1834 to $4746. With concerns of deteriorated and clogged highways, San Diego is the sixth-worst city to drive in.
In Boston, the average yearly car insurance premium for a married couple is $1605. This will rise to $3924 when a teenager is added to the policy. A 145% increase. When parents add a teen to their vehicle insurance policy in Phoenix, they spend an average of 138 percent more. Prices rise from $1857 to $4410 per year.
Washington, D.C., has the lowest car insurance rates, with a 96% increase when parents add a teen to their policy. The annual rate is $3582 on average.
Least Expensive Cities for Teen Insurance Premiums
Cleveland, St. Louis, Kansas City, Minneapolis, Detroit, and Washington, D.C. are the least expensive cities. The cost of living in these places is normally lower. Washington D.C’s living cost is high and comes in the 6th position of the most expensive cities to live inthe USA. When it comes to factors that reduce the cost of insurance premiums, the availability of public transport in the area plays a significant role. If you have access to reliable public transport, like in Washington D.C., the average annual insurance cost is low, whether you have a teen in your policy or not.
How to Get Affordable Insurance Premiums
Including a teen driver in your car insurance coverage could result in a significant increase in your cost. Fortunately, finding an affordable car insurance premium for your teen is still an option. You can save a lot of money if you do your homework. You should have an idea for an affordable premium before your teen gets the license.
Here are a few ideas for cost-cutting measures:
- Insurance discounts for teens: Many top auto insurance companies provide outstanding prices for teenagers, including discounts for students away at school and good students.
- Telematics programs: Several major insurance companies provide telematics systems that watch your teen’s driving in real-time and reward safe driving habits with savings. These programs may suit your adolescent if they are a safe driver.
- Compare car insurance quotes: Teen car insurance premiums vary greatly depending on each provider’s assessment of your risk profile, and each company provides different discounts. We suggest that you get estimates from at least three different providers. The cost of adding a teen to your coverage can vary greatly between companies.
- Choosing a car for your teen: Cars with safety features like an anti-lock braking system and anti-theft technology may save you more money on your teen’s car insurance. You should check with an insurance representative to see what discounts your insurance company provides for safe cars.
Remember that the prices we looked at do not consider the addition of a car to your auto insurance policy. You may want to speak with your insurance agent to acquire quotes before purchasing a car for your teen.
How to Get the Right Car Insurance When Adding Your Teen?
As with all car insurance, start by comparing quotes from several insurance providers. This ensures you get a good deal on your car insurance. The first step is to call a licensed insurance agent. If you need multiple car insurance quotes in less than 10 minutes, check out the way.com app or website by tapping the banner below.
We only require your basic information to research different uninsured motorist coverage options for you. Then you can choose your policy and benefit from the protection it provides.
Sara Sam may not look like your typical car and finance expert, but don’t let that fool you. With over four years of experience in the industry, she knows all the ins and outs of cars, car insurance, and refinancing. You can trust Sara to help you navigate the often-confusing world of automobiles and financing.
