As anybody with teenagers understands, life sometimes is not easy. Unfortunately, it also can be expensive. This goes for the cost of auto insurance too.
According to a study by the insurance industry, American families adding a new teenage driver will see an average annual premium increase of 80%. This is an astounding number. There are multiple reasons for the increase.
First, as you can imagine, teenagers are more dangerous than average drivers. According to the National Highway Traffic Safety Administration (NHTSA), motor vehicle crashes are the leading cause of death for teenagers, In fact, in 2013, 2,524 teenagers between 16-19 years-old died in auto accidents. This was 9% of all drivers involved in fatal accidents that year. Although this number is tragic, it actually marks a huge decrease from the late 1970s, when more than 10,000 teenagers were killed in auto accidents every year.
In addition, crashes involving teen drivers tend to be more costly. According to the Centers for Disease Control and Prevention (CDC), drivers between 15-24 years-old make up 14% of the general U.S. population, but 30% of the total costs of car accident injuries among male drivers and 28% for female drivers. This makes teenage drivers two times more expensive than the average driver from a cost prospective.
Gender can also matter when it comes to the cost of adding young drivers. It is more expensive to add male drivers than female drivers to an existing policy. According to one study, adding a male teen to a married couple’s insurance policy increased the premium by over 90%. Adding a female teen increased the premium by 67%.
Besides gender, location matters as well for teenage drivers. States with more snow and bad weather tend to be more expensive. Bad weather increases the risk for accidents and insurance is essentially a valuation of risk. In addition, areas where the driver is required to drive longer distances will also result in a higher premium. Therefore, if you live a rural area and your teenage driver is expected to drive long distances for work or school, this may increase your auto insurance rates as well.
The Michigan car accident lawyers at the Lee Steinberg Law Firm, P.C. have been helping Michigan families get the compensation and justice they deserve for over 40 years. If you have any questions, please call us toll free at 1-800-LEE-FREE (1800-533-3733). There is no fee unless we win your case.