How much will my policy increase?

Something I'm sure many parents of budding drivers want to know is how much their policy is going to increase once they get their license.

I'll have to admit to you, it's not pretty. But with 50% of auto claims going out on young drivers alone, it's hard not to see why rates can be so high.

FYI, Females will cost less than males, because males tend to have more and bigger payouts when it comes to claims.

I've done a few "tests" if you will...statistics say that your policy can increase about 50%-100% by adding a young driver. On a policy costing about $2500 with 3 existing drivers, I added yet another driver. A 16 year old female, date of birth 1/1/92, licensed 12/1/08. The rate went up to only $3067. Not even close to the estimated 50%-100%!

Have I confused you enough? I hope not...I've now changed the information to a male. the rate is the same.

Now what if they got into an accident the day after they received their license (we've heard this story!) -- the rate shoots up to $3500. Male or female.

Now, you have to keep in mind though...insurance rates are based on a lot more than just the driver and their driving record. It's also based on where you live, how far you drive the vehicle, what vehicle you drive, how many vehicles you own, and an "insurance bureau score" which is partially based on credit.

Many times the rates can be different depending on how much was paid out on the accident. A little fender bender to an old Chevy will cost you less than a fatality in a Mercedes Benz.