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Amica teen car insurance: just what does it cost?

Adding a teen driver to your Amica car insurance can be expensive, as these coverage scenarios clearly show.

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amica teen car insuranceGuiding young drivers through the process of acquiring a driver’s license is a cornerstone rite of passage for most families. It’s also a very nerve-wracking and potentially costly endeavor. Since younger drivers tend to be the most inexperienced drivers, insurance companies routinely charge far higher rates to cover them.

Just how much higher?

To find out, we’re putting together a family driver profile and taking the family car insurance shopping with one of the nation’s leading and most highly rated providers: Amica car insurance. Thanks to continued improvements in online researching, we can create a sample family and craft a sample set of coverage options that clearly show you the impact adding a teen driver can have on your car insurance bills. With Amica teen car insurance, where you live when you add that teen driver can also make a big difference.

Take a look and see.

Our model driving family

To start the process, we’ve created a hypothetical family to take shopping for Amica car insurance. Jordan and Roseanne Mills are married, ages 31 and 30 (respectively.) Jordan is a college lacrosse coach and Physical Education professor. Roseanne is a CFO of a mid-sized medical partnership specializing in sports injuries and orthopedic surgery. They have a four-year-old daughter (June). They also have an 18-year old son they adopted out of foster care (Aaron) and it’s Aaron they will be adding to their Amica car insurance coverage.

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Both Jordan and Roseanne have been continuously insured since they first attained their driving licenses. Neither have ever had an accident, a serious citation, or any violations causing the revocation of driving privileges. Aaron has successfully completed all of the required steps in the Graduate Diver License (GDL) program in the state(s) where they live and drive, and he recently was granted full driving privileges. Aaron is a high school senior, carrying a heavy college-prep school schedule, but doing quite well with a 3.9 grade point average.

The cars in the Mills family include a 2012 Jeep Patriot Sport (driven mostly by Jordan) and a 2013 Chrysler Town & Country Touring minivan (driven mostly by Roseanne.) Neither car gets heavy driving as they typically live near enough to work to often walk or bike. The Chrysler is the car Aaron learned to drive on, it’s what he passed his driver’s exam in, and it will be the primary car he drives.

Markets for coverage

To get a fuller picture of how adding a teen driver to your Amica car insurance plan will impact your premium rates, we’re taking the Mills shopping in three separate states/cities. Where you live can have a big impact on what you pay for car insurance. Where you live will also dictate what the minimum insurance coverage requirements need to be for your Amica car insurance. Generally speaking, the more coverage options and limits you have in place for your car insurance, the more it will cost.

Each year, several organizations combine information to rank each state relative to what average drivers need to pay for car insurance. The National Association of Insurance Commissioners (NAIC) the Insurance Research Council and a handful of related consumer reporting bureaus rank states each year by what the average driver pays in annual car insurance premium. Using the rankings for states for 2014, we’re taking the Mills shopping in three states: Michigan, Alabama, and Maine. According to 2014 survey results, these represent an expensive state, a mid-range state, and an inexpensive state (correspondingly) for annual car insurance premium costs.

Here’s what we found.

(Coverage rates, levels and plans listed below are the result of requesting coverage quotes from Amica’s online quoting tool, submitted in June of 2014.)

Ann Arbor, Michigan

amica teen car insurance2Michigan consistently ranks as one of (if not the) most expensive states for car insurance. One big reason is that it is a complicated no fault state for car insurance that also happens to award lifetime, unlimited medical expenses coverage for treatment of injuries sustained in a car accident. As a no fault state, it also requires drivers to carry personal injury protection (PIP) coverage that includes with it medical and work loss payout provisions.

Licensed drivers in the state of Michigan are required to carry the following, minimum types and levels of car insurance coverage:

  • $20,000 in bodily injury liability coverage for a single person per accident
  • $40,000 in total bodily injury liability coverage per accident
  • $10,000 in total property damage liability coverage per accident
  • Personal injury protection (PIP) coverage covering medical and work loss
  • $1 million in a separate property protection coverage option

The Mills are a responsible family, routinely putting car insurance coverage options and levels in place that comfortably exceed any state minimum requirements. Amica actually rewards families like the Mills by giving them a lower base rate for calculating coverage when they purchase plans exceeding the bare minimum requirements. To meet this goal, here’s the Amica car insurance plan we put in place for the Mills in Michigan:

  • Liability coverage at 250/500/100 levels
  • Uninsured/underinsured motorist coverage at 250/500 levels
  • Personal injury protection (PIP) coverage with a $500 medical deductible
  • $1 million in separate personal property protection
  • Collision coverage (on both cars) with a $1,000 deductible
  • Comprehensive coverage (on both cars) with a $1,000 deductible
  • Rental reimbursement coverage, in place
  • Roadside assistance and towing coverage, in place
  • Participation in Amica’s Platinum package of additional options

In Michigan, Amica can extend some discounts to the Mills to help offset the cost of their car insurance premium. Amica’s Michigan discounts include:

  • Loyalty discount (for having stayed with a previous carrier for an extended period of time before switching to Amica)
  • Multi-car discount
  • Anti-theft devices discount
  • Safety devices discount
  • Good driver discount
  • E-discount (for seeking and securing coverage online)

Even with these discounts, Michigan shows its colors as an expensive state for car insurance as Jordan and Roseanne (for just the two of them) would pay a total monthly premium for covering both cars (on a 12-month policy) of $190-$200.

Adding Aaron to the Michigan coverage opens one additional Amica discount (the good student discount) thanks to Aaron’s academic achievements. Even with that, adding Aaron to this package of coverage raises the monthly premium to $300-$310 on a twelve month policy.

Auburn, Alabama

amica teen car insurance3The state of Alabama tends to fall right near the national median for annual car insurance costs, but that could be changing. While the state does not require licensed drivers to carry any form of uninsured motorist coverage, the last several years have seen the rate of uninsured drivers climb substantially in the state. What is required of licensed drivers in the state of Alabama is the following:

  • $25,000 in bodily injury liability coverage for a single person per accident
  • $50,000 in total bodily injury coverage per accident
  • $25,000 in total property damage liability coverage per accident

In keeping with the philosophy of putting better-than-required coverage packages in place, and to keep the comparisons as close to exact as possible, here’s the Amica car insurance coverage plan we put in place for the Mills:

  • Liability coverage at 250/500/100 levels
  • Uninsured/underinsured motorist coverage at 250/500 levels
  • $5,000 in medical payments coverage
  • Collision coverage (on both cars) with a $1,000 deductible
  • Comprehensive coverage (on both cars) with a $1,000 deductible
  • Rental reimbursement coverage, in place
  • Roadside assistance and towing coverage, in place
  • Participation in Amica’s Platinum coverage options

While the Mills may not need that much coverage in Alabama, we wanted to illustrate how costs differ and also how annual surveys don’t always pan out in reality. Amica can extend the Mills all of the same discounts they received in Michigan, but even with that, coverage for just Jordan and Roseanne on this plan, for a 12-month policy, is going to set them back a monthly premium of $195-$205.

Adding Aaron to the Alabama Amica car insurance plan opens up a discount for good grades as well as an additional discount for Aaron having successfully completed driver safety training as part of his GDL requirements. Even with additional discounts, adding Aaron ratchets up the monthly premium on a 12-month policy in Alabama to $430-$440, more than double.

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Brunswick, Maine

amica teen car insurance4Maine is consistently near the bottom on annual surveys rating states for car insurance costs. One big reason could be that the state has some of the highest minimum required levels of car insurance for its licensed drivers. To legally drive in Maine, you have to have the following minimum car insurance coverage levels in place:

  • $50,000 in bodily injury liability coverage for a single person per accident
  • $100,000 in total bodily injury liability coverage per accident
  • $25,000 in total property damage liability coverage per accident
  • $50,000 in uninsured motorist bodily injury coverage for a single person per accident
  • $100,000 in total uninsured motorist bodily injury coverage
  • $2,000 in medical payments coverage

Plugging in the same Amica car insurance package we used in both Michigan and Alabama easily allows the Mills to exceed even Maine’s stiffer requirements. Here’s the Maine Amica car insurance coverage plan we factored in for the Mills:

  • Liability coverage at 250/500/100 levels
  • Uninsured/underinsured motorist coverage at $250/500 levels
  • $5,000 in medical payments coverage
  • Collision coverage (for both cars) with a $1,000 deductible
  • Comprehensive coverage (for both cars) with a $1,000 deductible
  • Rental reimbursement coverage, in place
  • Roadside assistance and towing coverage, in place
  • Participation in Amica’s Platinum coverage options

The Mills are able to get the same discounts from Amica in Maine as they do in the other two states. Factoring those discounts in, Maine proves itself once again as a thrifty state for car insurance costs. On a 12-month policy, Jordan and Roseanne can get coverage for the two cars for a monthly premium of $110-$120.

Adding Jordan to the Maine Amica car insurance plan gets the Mills the good student and driver training discounts they enjoy in Alabama. With those, the 12-month Amica policy in Maine, adding Jordan, brings the monthly premium to $260-$270, an increase of almost 240 percent!

These pricing scenarios will differ when you start plugging your own personal information in. There are also a number of additional car insurance discounts you may be eligible for from Amica depending on the state where you live. (For instance, there is a nice discount if you pay your premium in full or if you set up electronic, automatic payment of your premium with Amica.) In many states, Amica can extend a discount if you have other lines of insurance through them (such as your homeowner’s coverage.)

 

What won’t change is the fact that you will be paying more for car insurance when it comes time to add a teen driver to the mix. This will be true whether you are with Amica, or if you’re with any other car insurance provider. One great way to make sure you and your teen driver(s) are getting the best possible coverage for your money is to consult with a licensed car insurance pro. Reply! can help you in that matter by connecting you to local car insurance professionals eager to help you get your teen well covered and started down the road on a lifetime of safe driving.

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