Teen drivers are expensive to insure. But according to a new study, things could be a lot worse for the parents of new drivers in the Empire State.
Adding a teen driver to an auto insurance policy in New York increases a parent’s premium by an average of 52 percent, according to a recent study commissioned by insuranceQuotes.com, an online brokerage. Though costly, it’s lower than the average national increase of 79 percent — and much better than the 125 percent increase in New Hampshire and the 119 percent bump in Rhode Island.
Nationally, the average premium increase for teen drivers is in decline, according to insurancequotes.com, which commissioned the study for the fourth consecutive year. The average national increase was 80 percent last year.
“Driving well takes practice, and since all teens are new drivers they make all sorts of mistakes that more seasoned drivers can avoid,” Eli Lehrer, president of the nonprofit R Street Institute, said in a statement provided by insuranceQuotes.com. “Because of this, they make many more claims, which makes them more expensive to insure.”
New Yorkers see the second-lowest percentage increase after adding young drivers to their policies, according to the study. Hawaii has the lowest percentage increase at just 17 percent, possibly because state law prohibits insurance providers from considering age, gender or driving experience to determine premiums, according to the study.
InsuranceQuotes.com analyst Laura Adams said rate hikes may be lower in New York because of strict insurance regulations.
“In New York, the regulations are very tight. It takes a lot for an insurance company to raise or lower a rate. Companies have to go through a lot of hoops, and adding a teen driver doesn’t move the needle as much as it would in other states,” Adams said.
Though parents may be catching a break compared to other states, New Yorkers still pay the third most in the country for auto insurance, a study by the National Association of Insurance Commissioners found. Motorists in New York paid an average of $1,181 annually, just under Washington D.C. ($1,187) and New Jersey ($1,254).
InsuranceQuotes.com is an online tool that allows consumers to compare insurance quotes. For its study, the site commissioned a data analysis firm, Quadrant Information Services, to calculate rates based on data from the largest carriers in each state.
The insuranceQuotes.com study also found that insuring boys as drivers costs parents more than insuring girls. In New York, adding a female teenager to an auto policy will bump up the price an average of 38 percent. A male teenager will increase rates by about 65 percent.