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Should Teen Drivers Buy Their Own Auto Insurance?

Buying auto insurance can be an overwhelming experience, especially if you’re buying for the first time. You have quite a few options, from the basic liability insurance policy required by law to “full coverage” policies that, surprisingly enough, leave you and your property vulnerable. There’s terminology that needs to be understood, and at the end of the day, it can be difficult to decide which policy is the right one for you. If you’re picking out your first auto insurance policy, you’re likely about to start driving for the first time as well, but there’s one important question many parents and teens have about the insurance buying process: should teens stick with their parent’s auto insurance policy or buy their own?

Insuring a teenager is expensive either way, but by knowing the numbers, you can minimize costs. Across the country, teen drivers pay 18% more for their car insurance if they purchase a policy separately from their parent’s existing policy according to a new report from InsuranceQuotes.

On the state level, things tend to fluctuate a bit more, and knowing your state’s precise policies can go a long way to saving you money. In many states, like New Jersey, where teens pay, on average, 19% more if they buy their own policies, the national average isn’t too far off point. In states like Rhode Island, however, we see one extreme of the price spectrum reflected in car insurance quotes.

An 18-year-old looking to buy their very own insurance policy in Rhode Island will pay an average of 53% more for their own individual coverage as opposed to simply joining their parents’ policy. Conditions are similar in Connecticut and Oregon too, with the average price difference floating somewhere around 47%, with Nevada and Maine finishing off the top 5 with a 41% difference and a 40% difference respectively.

On the other end of the spectrum are Illinois, Alaska, and Florida, three states where an 18-year-old can get their own policy for only 7% more, on average. Hawaii isn’t even on the spectrum of price difference because in Hawaii, insurers are not allowed to factor age and driving experience into policy costs.

“In most states, individual policies significantly add to the already high cost of insuring a teen driver,” said InsuranceQuotes Senior Analyst Laura Adams. “Young people are not getting some of the advantages that mom and dad are like having a long, clean driving record, good credit or multiple vehicles. It is expensive to add a teen driver. There is no getting around that, but we are finding that it’s a little less expensive to be on mom and dad’s plan. The good news is that it does get less expensive each birthday the teen has. As they’re getting older, statistically they are becoming a different profile of driver,

Have any questions on how an individual policy could benefit you and your family or how to save money on your car insurance? Call or click today for one-on-one help choosing the right California auto insurance for you!

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