The most expensive states for teen car insurance
The states where young drivers face the highest car insurance costs are also the states with the most expensive car insurance rates across the board, according to Insurify’s auto insurance report. Since young drivers’ lack of experience presents a higher road risk, states that already have higher claims risk from factors like coverage requirements, vehicle theft, and traffic accidents also have higher rates for teens.
The national average cost of car insurance is $2,310 per year, according to Insurify data. Teens joining their parents’ policies pay an annual average of $3,435 for full coverage, almost 50% more than the national average rate. But, in some states, young drivers have to pay nearly double that amount for insurance protection.
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1. Maryland
Average annual cost for a teen driver on their parents’ policy: $6,086
Average annual cost for a teen driver and two parents: $12,876
Average annual cost for two parents: $6,789
State average annual cost: $4,093
Maryland is the most expensive state for car insurance for teen drivers on their own and on their parents’ policy, according to Insurify data. Elevated crime rates and new standard auto coverages likely contribute to those higher premiums.
In the first half of 2025, Maryland had the seventh-highest vehicle theft rate in the country, according to the National Insurance Crime Bureau (NICB).[3] Maryland also saw a 9.7% increase in traffic fatalities from 2022 to 2023, while nationwide, fatalities decreased by 4.3%, according to the NHTSA. Factors like these can increase insurance costs for all drivers, including teen drivers who already see higher costs.
In July 2024, Maryland began requiring insurers to provide enhanced uninsured motorist coverage for new policies.[4] While drivers can opt out, the state mandates that insurers automatically include it in new policies. Since it can increase the claims payout following an incident with an uninsured or underinsured motorist, insurers likely adjusted rates to accommodate that increased financial risk.
Teens have a higher accident risk, so new coverage limits that increase claims costs could affect teen drivers’ insurance rates even more.
2. Washington, D.C.
Average annual cost for a teen driver on their parents’ policy: $5,621
Average annual cost for a teen driver and two parents: $11,891
Average annual cost for two parents: $6,270
State average annual cost: $3,780
Motor vehicle theft likely influences overall auto insurance costs in the capital, which can also elevate costs for teen drivers. Washington, D.C., had the highest vehicle theft rate in the country in the first half of 2025, more than double the No. 2 spot on the list, per the NICB.
D.C.’s expensive rates are also due to it being a largely urban area — these typically pose a higher crash risk. In 2023, the motor vehicle traffic fatality rate was around the national average, but fatalities increased by 38% from 2022 to 2023, according to the NHTSA.[5] Since teen drivers already have an elevated crash risk, the higher accident rates in D.C. aggravate that risk.
D.C. auto insurers also didn’t make a profit that year, according to the National Association of Insurance Commissioners (NAIC).[6] Factors that lead to insurer losses can cause insurance rates to spike over time, as companies increase premiums to cover those losses.
3. New York
Average annual cost for a teen driver on their parents’ policy: $5,538
Average annual cost for a teen driver and two parents: $11,715
Average annual cost for two parents: $6,177
State average annual cost: $3,724
New York is a no-fault state, which means drivers file bodily injury claims with their own insurance company, regardless of who caused an accident. This kind of system is especially vulnerable to insurance fraud, such as staged accidents and excessive medical billing, which can increase insurance premiums for all drivers.[7]
Since teen drivers are more likely to be involved in vehicle crashes than older drivers and would be filing a claim with their own insurer regardless of fault, they’ll face higher insurance costs.
The population density and crowded streets of New York City also contribute to the state’s high average premiums, since drivers there face much higher accident risk than in rural areas. The state also has a moderate traffic fatality rate in crashes involving young drivers, according to the NHTSA.
4. Delaware
Average annual cost for a teen driver on their parents’ policy: $5,005
Average annual cost for a teen driver and two parents: $10,589
Average annual cost for two parents: $5,584
State average annual cost: $3,366
Rates have climbed high enough in Delaware that state legislators are taking a closer look. In July, the General Assembly created a task force to reform auto insurance, curb costs, and standardize the cost of medical care after accidents, according to Delaware Public Media.[8]
Right now, Delaware doesn’t cap the amount of compensation that crash victims can sue for in civil lawsuits, like personal injury cases, according to the Center for Justice and Democracy at New York Law School.[9]
Delaware has an above-average traffic fatality rate, according to the NHTSA. Litigation costs related to serious accidents can raise claims costs for insurers, which trickle down to policyholders’ pockets. Teen drivers’ higher risk of being involved in traffic crashes could mean insurers face expensive payouts for injury claims, which can push premiums up.
5. Rhode Island
Average annual cost for a teen driver on their parents’ policy: $4,953
Average annual cost for a teen driver and two parents: $10,579
Average annual cost for two parents: $5,525
State average annual cost: $3,331
Rhode Island saw a 37% increase in traffic fatalities from 2022 to 2023, according to the NHTSA. Like New York, Rhode Island has a moderate traffic fatality rate in crashes involving young drivers, according to the NHTSA.
The state also has the highest car accident repair costs, at $1,987 per person, according to a Dolman Law Group study.[10] In Hawaii, it’s just $410 per person. Higher accident severity, coupled with expensive repair costs, can significantly increase insurer claims costs, leading to higher premiums for policyholders across the small, coastal state.
Since teen drivers have a higher likelihood of being involved in an accident, the costs of expensive vehicle repairs can increase insurer claims payouts.
State legislators are also considering several bills that some members of the insurance industry are concerned will lead to even higher premiums.
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