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:
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.
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
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:
- all states
- at the national level
- not wearing seat belts
- you are more likely to drive while distracted
- higher rates of alcohol use
- more likely to speed up
- more likely to be involved in accidents at night and on weekends
- car owners: car owners have many savings opportunities your teen may be eligible for, including the good student and gps-focused teen monitoring discount. however, it’s important to note that Car Owners is only available in 26 states, so it may not be an option in your area.
- geico: If your young adult lives on campus at least 100 miles away and doesn’t have a vehicle, they may qualify for savings through truancy status. Plus, Geico offers eligible drivers great student discounts and driver training.
- National: Nationwide offers a variety of teen discounts, including a good student and distant discount, plus access to the national smartride program to monitor safe driving habits.
- progressive: progressive offers the snapshot program, a telematics program designed to monitor teen driving habits and reward them with lower teen insurance premiums. for safer teen drivers, this could be advantageous.
- state farm: Although state farm allows your teen driver to take advantage of many discounts geared toward their demographic, its steer clear program is what sets it apart. This program aims to help young drivers improve their driving skills by offering on-the-road training, mentoring, and an online course.
what is the best car insurance company?
what is the best used car for teen drivers?
should I add my teen to my current policy?
bankrate uses quadrant information services to analyze 2022 rates for all zip codes and carriers in all 50 states and washington, d.c. rates are weighted based on the population density of each geographic region. Rates quoted are based on a 40-year-old male and female driver with a clean driving record, good credit, and the following total coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine the minimum coverage limits, Bankrate used a minimum coverage that meets each state’s requirements. our base drivers own a 2020 toyota camry, commute five days a week and drive 12,000 miles a year.
These are sample rates and should only be used for comparison purposes.
age: rates were calculated by evaluating our base profile with ages 16-19 (base: 40 years) applied. Depending on age, drivers may be renters or owners. Age is not a contributing qualifying factor in Hawaii and Massachusetts due to state regulations.
Teens: Rates were determined by adding a 16 or 17 year old teenager to the policy of a 40 year old married couple.
why it costs more to insure teen drivers
The cost of insuring a teen driver largely depends on whether you add them to your policy or purchase your own separate policy. For example, the average premium for an 18-year-old driver on their own policy (without discounts) is $5,320 a year for full coverage. Instead, the total premium for a policy that includes a married couple and their 18-year-old son is $3,352 (with good student and driver training discounts applied). For comparison, the national average cost of auto insurance for a 40-year-old driver is $1,771. While it might be cheaper to add your young adult to your current policy, comparing quotes is the only way to know for sure.
Car insurance for teen drivers is often higher than average because teens tend to engage in riskier driving behaviors, including:
Despite these numerous risk factors, it is still possible to save money by searching for the cheapest auto insurance companies and requesting quotes.
where to buy car insurance for teen drivers
It’s critical to know which companies offer the best discounts for teen drivers while also providing adequate coverage. Requesting quotes from multiple providers is important because it allows you to see fair coverage comparisons to ensure your teen has adequate insurance coverage at a competitive price. Plus, many insurance companies will work with you to find the best insurance discounts and cheapest comprehensive coverage for teen drivers.
Based on our extensive research, the following companies might offer the best car insurance for young drivers: