There comes a time in most young drivers' lives when they have to ask themselves an important question: Should I get my own car insurance policy or add myself to the one my parents already have? A new study suggests the latter option is the way to go.
A recent Quadrant Information Services study, commissioned by insuranceQuotes.com, examined the economic impact of a young driver getting his or her own insurance policy versus being added to a parent's existing policy. The findings were quite significant.
According to the study, U.S. drivers between the ages of 18 and 24 pay, on average, 8 percent more for their own individual insurance policies than they do when added to an adult's. But in some states -- and for certain types of drivers -- the increase can be more than 50 percent.
"The bottom line is that young drivers are more expensive to insure, and if they want their own individual policy, it's going to come at a cost," says Mike Barry, spokesman for the nonprofit Insurance Information Institute. "A young driver has a very limited driving record, not much credit history and data that show they are statistically riskier drivers."