The average cost of car insurance for 17-year-olds

Written by cameron easey
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Automobile insurance is a requirement when driving a vehicle in any state. As a result, a policy may need to be purchased for a young driver such as a 17-year-old. These individuals in many states have either just received their license or been driving for a year or less. These individuals are considered inexperienced to insurers, which increases the cost of a policy. This means that the average price for a policy is expensive.

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Average Costs

Individuals who have an automobile insurance policy are going to have their car insurance costs increase when they add a young driver, such as a 17-year-old, to a policy. Teenage drivers typically add 50 per cent to 100 per cent to the cost of a standard policy. This means that an individual who is currently paying £520 a year for a policy is going to see his costs increase to between £780 and £1,040 when a teenage driver is added.

Premiums

Insurance companies use many factors to determine the premium that individuals pay for an automobile insurance policy. As a result, the average cost for a 17-year-old or any teenage driver can vary from insurer to insurer. One of the biggest factors that an insurance company uses to determine the premium for a policy is an individual's driving history. An individual's driving history can contain violations that can increase the cost of the policy.

Statistics

Insurance companies look at many types of statistics to determine insurance rates for young drivers, such as a 17-year-old. Insurers already know that teenage drivers are inexperienced and those between the ages of 16 and 19 are more likely to be in an accident than any other age group. Teenage drivers are also more likely to speed and as a result tend to receive more traffic violations.

Lowering Costs

Individuals who are insuring a 17-year-old driver can decrease the average cost of their automobile insurance in a variety of ways. One way is to look for discounts that can be applied to a policy. Insurers have many policy discounts that are available, such as a good-student discount. Another way to reduce the cost of a policy is to increase the deductible. A higher deductible will lower policy costs because there will be less that an insurer needs to pay out when there is a claim.

Parents' Policy

Average costs for a 17-year-old driver can vary depending on how an automobile insurance policy applies to the teen. Parents have the option of providing a teen with her own policy or adding her to their own automobile policy. An individual policy will have a higher average cost than including a teen on a parent's policy. This is because a parent's policy typically has more discounts that can affect the average cost of a policy.

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