Auto insurance premiums rise nearly 90 percent in Washington when a teen driver is added
If you’re thinking of adding a teenage driver to your automobile insurance policy, and if you want to save money, then move to Hawaii.
A report out this week from Bankrate.com says your premium will rise only 16.83 percent there with the addition of a teenager.
Nationwide, the average increase is 79.73 percent, still a bargain when you consider that Washington policyholders will see an average increase of 89.75 percent.
And Washington rates 12th highest on the list, behind New Hampshire at the top with an increase of 114.92 percent. Oregon comes sixth at 99.10 percent.
Why are premiums high?
The report goes on to say the Centers for Disease Control and Prevention notes that “drivers between the ages of 15 and 24 make up just 14 percent of the U.S. population, but they account for 30 percent, or $19 billion, of the total costs of motor vehicle injuries among male drivers and 28 percent ($7 billion) of the total costs of motor vehicle injuries among female drivers.”
The difference between the rates within the various states can be explained in part, the report stated, because states regulate the insurance industry differently.
Hawaii, for example, “is the only state that doesn’t allow insurance providers to consider age, gender or length of driving experience when determining premiums,” the report said.
Weather could also play a role, the report stated. Winter in New Hampshire can be more treacherous than in Hawaii.
The report goes on to offer tips for parents concerning keeping teen drivers safe this summer.