Car insurance premiums for teen drivers rise by 125% on average

According to 2026 data from CarInsurance.com, adding a teen driver to an existing auto insurance policy can increase annual premiums by an average of $3,721, representing a roughly 125% increase.

Costs vary significantly by state due to local regulations and existing insurance landscapes. Louisiana reported the highest costs, where adding a teen can increase average annual rates from $4,091 to $11,212. Conversely, Vermont saw an average increase of $3,064 per year.

Insurers base these higher rates on risk calculations. Data from the Insurance Institute for Highway Safety (IIHS) indicates that 18-year-olds are four times more likely to be involved in an accident per mile driven compared to older drivers. Consequently, insurers charge approximately 195% more to insure an 18-year-old than a 40-year-old.