Having a teenager on your insurance policy can inflate your
annual cost through the roof! Take a look at the most expensive and inexpensive
states, and learn helpful tips that could lower your insurance rates.
It’s known that teens
are the most dangerous drivers on the road.
Per mile that’s driven, teens between the ages 16-19 are three times
more likely than drivers aged 20 to be involved in a fatal crash, according to
Insurance Institute for Highway Safety (IIHS).
Therefore, it is not surprising that adding teens to a car insurance
policy would eventually result to an increase in policy cost.
The most surprising is
how much the policy increase varies from state to state.
When adding a teen
driver to an insurance policy, the annual premium can increase by 84 percent
(about $2,000) on average. But that
number can be much lower and higher depending on where you live.
To add a teen driver
to an existing policy increased the most in the following five states: Arkansas
(116 percent increase), Utah (115 percent), Wyoming (112 percent), Alabama (111
percent), and Idaho (107 percent).
However, the following
five states listed showed the smallest percentage increased: Hawaii (18 percent
increase), North Carolina (59 percent), New York (62 percent), Massachusetts
(65.9 percent), and Montana (66.06 percent).
Hawaii policy
structure is a little different. Their
unique law disallows insurance companies to consider age, gender, or length of
the driver’s experience, when determining the insurance premium.
Insurance industry experts
were surprised by the findings and explained that the reasons for the
differences in premium increases were many and nuanced. They stem from many
factors, according to Mike Barry, spokesman for the nonprofit Insurance Information Institute, including state geography, local driving patterns, and how
insurance is regulated in each respective state.
Parents looking to keep insurance costs down can take a few different actions. These include buying your teen driver an older car, ensuring your teen has a safe car and taking advantage of the numerous discounts offered by the major insurance companies.
Parents looking to keep insurance costs down can take a few different actions. These include buying your teen driver an older car, ensuring your teen has a safe car and taking advantage of the numerous discounts offered by the major insurance companies.
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