TRENTON, NJ – As the back-to-school season gets underway, parents of teen drivers are facing a steep financial hit, with annual auto insurance premiums jumping by an average of $3,252 nationwide when a 16-year-old is added to a family policy.
A new analysis from CheapInsurance.com found the increase amounts to a 157.9% spike in costs for most households, with sharp variations depending on the state.
The largest jump was reported in Rhode Island, where families can expect a 225.3% hike – equal to an extra $5,828 each year. Wyoming, Louisiana, New Jersey, and Arizona followed with increases ranging from 192% to over 208%.
State Disparities Reveal Additional Teen Driver Costs
The study uncovered extreme geographic variations, with parents in some states facing increases more than three times higher than others:
- Rhode Island: 225.3% increase ($5,828 annually)
- Wyoming: 208.7% increase ($2,820 annually)
- Louisiana: 200.5% increase ($4,966 annually)
- New Jersey: 196.4% increase ($4,603 annually)
- Arizona: 192.8% increase ($5,037 annually)
Hawaii remains an outlier, with premiums climbing only 4.7% – about $74 annually – thanks to laws barring insurers from factoring age and gender into rate calculations.
The study also confirmed a continuing gender gap in pricing. Male teens cost families about 12% more to insure than female teens, a difference of roughly $400 a year for 16-year-olds on a shared policy.
CheapInsurance.com noted that while many parents are shocked by the costs, there are proven ways to cut them by as much as 40%, including shopping multiple providers, using good student discounts, and enrolling teens in defensive driving courses.
Key Points
- Adding a 16-year-old to a family auto insurance policy raises rates an average of 157.9% nationwide
- Rhode Island families face the steepest jump, while Hawaii sees almost no increase
- Male teens cost about 12% more to insure than female teens
