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The Cost

As a teen driver, you will pay more for auto insurance than a more experienced driver with a clean driving record (no moving violations or at-fault accidents). Insurance companies consider you a higher risk, because inexperienced drivers are much more likely to get into accidents. In fact, the risk of motor vehicle crashes is higher among 16- to 19-year-olds than among any other age group, according to the Centers for Disease Control and Prevention.

The chart below shows examples of how your clean driving record can affect what you pay for car insurance as you gain more experience behind the wheel.

Single Car Policy Premiums
Experience 30/60/25 Limits 100/300/50 Limits 250/500/50 Limits
0-1 Year $964 $1,159 $1,285
1-2 Years $629 $764 $853
2-3 Years $542 $660 $740
More than 3 Years $243 $307 $352
Examples are based on a driver with no insurance points (see “Safe Driving Pays Off”). No company-specific discounts have been applied to these sample premiums. Coverages considered are Property Damage and Bodily Injury Liability, Uninsured and Combined Uninsured/Underinsured Motorist Coverage with the same limits as the Liability Coverage limits, and Medical Payments Coverage with limits of $1,000.

What factors influence my premium?

When you apply for auto insurance, or when you are added to your parent’s policy, the insurance company will consider several factors, including:

  • Your driving record. If you have at-fault accidents and/or moving violations on your record, you will pay much more. Learn more about insurance points and the Safe Driver Incentive Plan here.
  • Where you live. Insurers consider vehicle and population density, the number of accidents in your area, repair costs, etc. Normally, urban areas have higher rates than rural areas.
  • The kind of car you drive. The likelihood of theft, cost of repair and replacement, and type of vehicle will influence your premium. For example, a sports car will normally have a higher premium than a family sedan.
  • How much you use your vehicle. A vehicle you drive 20 miles to work or school every day is considered a greater risk to insure than a vehicle used only occasionally or for a shorter commute.