According to the online insurance marketplace QuoteWizard, the average cost of a standard individual policy (without bundling) for a 16-year-old driver is $438 a month – more than $5,000 per year.
In a new study, QuoteWizard examines several different factors and finds that:
- Teenage boys cost more to insure than girls.
- Adding to their parent’s policy is cheaper for a teen than buying an individual policy.
- Single parents don’t save much more than married couples.
To understand the cost of insuring a teen, QuoteWizard compared quotes for teenagers across the country from top insurance companies. Quotes were based on a standard insurance policy for a risk-free driver.
“Many of us who’ve grown up driving here in the U.S. have long sensed that teens are charged more than just about any other demographic for car insurance, so we felt the time was finally right to take a hard look at costs,” said Adam Johnson, QuoteWizard content manager. “While our findings confirm that teen drivers can be charged alarmingly high rates for car insurance, our study also provides some specific guidelines and data to help teens and their parents better understand and navigate the increasingly complex world of car insurance.”
Article courtesy BodyShop Business.