Teens That Stick With Their Parents' Policy Save on Car Insurance: Study
Though many 18-year olds want to be independent, when it comes to car insurance, sticking with their parents is best.
On average, an 18-year old will pay about 18 percent more for car insurance if they decide to switch to an individual policy, rather than remaining on their parents’ insurance. This, according to InsuranceQuotes.com, is mostly because insurance companies charge a penalty for individual insurance over family coverage.
Some States are actually much worse than average, with 18-year olds from Rhode Island paying 53 percent more for individual coverage, while teenage residents of Connecticut and Oregon are paying up to 47 percent more when they switch off their parents’ insurance.
SEE ALSO: Average Driver has had Same Car Insurance for 12 Years
There are a few places you can live when the penalties aren’t nearly that steep. Hawaii is the best, as it doesn’t allow age or driving experience to influence the cost of insurance. 18-year olds in Illinois, Alaska and Forida can make the switch to individual insurance for just 7 percent more.
“In most states, individual policies significantly add to the already high cost of insuring a teen driver,” says Laura Adams, insuranceQuotes.com’s senior analyst. “Parents with an 18-year-old on their policy pay an average of 77% more than they would without the teen. While this certainly isn’t cheap, it’s usually much better than the individual policy option. Parents who wish to foster financial independence can still ask their child to pay for all or at least some of the increase.”
Stephen covers all of the day-to-day events of the industry as the News Editor at AutoGuide, along with being the AG truck expert. His truck knowledge comes from working long days on the woodlot with pickups and driving straight trucks professionally. When not at his desk, Steve can be found playing his bass or riding his snowmobile or Sea-Doo. Find Stephen on <A title="@Selmer07 on Twitter" href="http://www.twitter.com/selmer07">Twitter</A> and <A title="Stephen on Google+" href="http://plus.google.com/117833131531784822251?rel=author">Google+</A>
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