FAQ

How to save on car insurance for young drivers

Many parents may struggle with the cost of their new car insurance premium after adding a teen driver to their policy. after all, teens are among the most at-risk drivers due to their lack of driving experience. however, there are specific savings opportunities for young drivers; you just need to know where to look. Bankrate’s insurance editorial team used their decades of experience in the industry to bring you these tips to help you save when adding a teen driver to your auto policy.

how to save on car insurance by adding a teen driver

Insurers charge higher rates on average for teens than for any other group of drivers, but affordable car insurance for teens is possible. in particular, driving behavior programs, good student discounts, and telematics can help provide premium reductions. here are some discount opportunities to explore:

Reading: How to save on car insurance for young drivers

good discount for students

It is common for auto insurance companies to offer discounts for full-time students who maintain good grades. For example, Allstate offers a nice student discount to single drivers, under the age of 25, who have at least a B- average. In addition, State Farm offers up to 25% savings for students with good grades, up to age 25 or their last year of school. If your teen is a top student, you can call her agent to ask about savings. Some companies require you to provide proof of qualifications by sending a copy of your child’s report card, but the small amount of time it takes to do so may be worth it.

enroll in a safe driving course

At-fault accidents on a teen’s driving record can cause rates to rise substantially, especially when compared to drivers in other age groups. Many insurers now promote driver safety courses as a way to teach young, inexperienced drivers the rules of the road and offer discounts to teen drivers. Geico, State Farm, Allstate, and Travelers are examples of carriers that reward drivers with a premium discount for completing required driver safety training courses.

distance student savings

If your young adult driver moves away from home to attend college and leaves their car behind, they may be eligible for a lower rate. For some companies, this savings comes in the form of a distant student discount. For others, the savings isn’t a discount, but rather an “away from school” driver status that can cause your premium to drop. either way, your child usually has to be some distance from home (usually 100 miles or more). Whether your company offers a distant student discount or a school absentee status, this could be a great savings opportunity, especially when combined with the good student discount.

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low mileage savings

Like the distant student, if your teen drives the car a small number of miles each year, then usage-based insurance may be a good option. for example, at a national level, it offers the option of paying per mile through its smartmiles program, providing coverage with a premium that changes each month, depending on the number of miles traveled.

consider the teenager’s car

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The make and model of your vehicle can have a significant impact on auto insurance rates. With this in mind, you may want to be strategic when shopping for a car for your teen driver. if you want the lowest rates, a used sedan might be a cheaper option than a new sports coupe. however, remember that older vehicles may lack safety features, such as anti-theft devices and anti-lock braking systems, which could lead to a higher premium. Most insurance professionals recommend that you get separate quotes for all the vehicles you’re considering before making a decision, but be sure to include your newly licensed teen as a driver to get the most accurate rate.

take advantage of telematics

Installing a telematics device in your teen’s car or downloading a telematics-based app from your insurer can help you monitor their driving habits and might also get you a discount. A telematics device is a small piece of equipment that connects to your vehicle, but could also work through your phone with the appropriate app installed, and collects driving data such as braking rate, average speed and time of day. day you drive a car. many companies now offer a telematic discount, which includes:

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