How to choose the right auto insurance for your teenage driver

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When choosing the right car insurance for your teenage driver, a good place to start is to get quotes from different carriers. This way, you can compare discounts and prices for the same coverage to get the best rates for an inexperienced driver. While it can be expensive to insure a teenage driver, choosing the right auto insurance can help you maximize savings and reduce the stress of paying a high insurance bill.

Why is auto insurance for teens more expensive?

Teenage drivers are among the most expensive to insure because their inexperience in driving makes them more likely to cause an accident which will result in a claim being filed and the insurance company will have to pay money. When adding a 16 year old driver to his parents’ policy, the average rate increase is $ 2,531 per year. Adding a 17-year-old driver increases the cost by an average of $ 2,376 per year.

As your teen gets more experience and ages, the rates should go down, provided they maintain a clean driving record.

Insure your young driver

It’s a good idea to call your insurance company when your teen gets his learner’s license. You shouldn’t have to add them to your policy and pay to have them covered until they get their driver’s license, and they’re covered to drive with their license. It will depend on the insurance company, as well as the state you live in – but generally speaking it should be.

It is almost always cheaper to add a teenage driver to the parents’ policy rather than having their own policy. If you buy a car that is only in their name, you may need to purchase a separate policy for them. If so, consider purchasing insurance from the same insurer to take advantage of multi-policy discounts.

What should I look for in a transporter when I have a teenage driver?

When looking for a carrier with a teenage driver, check for discounts and endorsements offered that are specific to teenagers. These insurance companies generally offer better prices for teenage drivers than insurers that don’t offer teen-specific discounts and features.

Several discounts are available for teens, including:

  • Distant student: This reduction is reserved for university-aged drivers. Teens and young adults who go to college at least 100 miles from home and do not take a car with them can benefit from this reduction. The student is always covered if he drives a car while at home for vacation or for other reasons.
  • Driver training: In some states and with some carriers, teens can take a driver education course for a discount. The training is designed to make them more attentive behind the wheel and to avoid behaviors that could lead to tickets and accidents.
  • Good student: This potential discount rewards teens and young adults who achieve good grades. A high school or full-time student may be able to get and keep a good student discount as long as they maintain a school-specific GPA.
  • Low mileage: If your teenager doesn’t drive a lot of miles, you may be able to take advantage of this discount. Each carrier has their own low mileage limit, but if your car runs less than the limit, you can save on your auto insurance. Some companies also offer kilometer insurance.

Ways to save money when you have a teenage driver

When you have a teenage driver, the increased cost to insure it can be high. By finding ways to save money, you could be insuring a teenage driver with the best coverage at an affordable rate.

Consider usage-based insurance

Some companies offer usage-based, or telematics, insurance for drivers looking to save on insurance. With usage-based insurance, the insurance company tracks the user’s driving habits through a device plugged into the car or a mobile app. Most companies offer an initial discount to allow them to track usage and then adjust your premium based on driving habits. This method is also a good way for you to track your teenagers behind the wheel to see if they are responsible while driving.

Choose your car wisely

The type of car you drive has an effect on your auto insurance premium and can make a significant difference when insuring a teenage driver. If you are looking for a new car for your teenager, consider a used car instead. Used cars can be cheaper to insure, and you could save even more money if you don’t need comprehensive insurance.

Examine coverage options

Removing unnecessary covers can help you save money when you add a teenage driver. If you own an old used car, you may not need comprehensive insurance. For newer cars or if you still want to keep full coverage, increasing deductibles is another way to save. If you have more than one car in the family, consider whether you should pay extra for coverages like reimbursement for a rental car.

You should also consider what liability limits you have and whether you need to increase them. While this can increase the premium, having higher liability limits can help protect your finances if your teenager causes an accident with personal injury or property damage.

Discuss habits with your teenager

When teens get their license, they have to take on a whole new set of responsibilities. Talk to your teen about how his habits can affect him and others. Being a good driver can help them avoid tickets and accidents, which helps keep everyone safe on the road and allows you to keep discounts on policy. For example, if your teenager qualifies for the good student discount, tell him how much he’s saving and how important it is to keep good grades.

Frequently Asked Questions

What’s the cheapest way to buy auto insurance for a teenager?

The cheapest way to get auto insurance for a teenager is to add it to their parents’ policy instead of buying theirs. Giving them an old car to drive and buying the best rates are other ways to save money.

Do I have to insure my teenage driver?

If your teenage driver lives with you, you must insure them or ask them to purchase their own policy. Motor vehicles and insurance companies are linked electronically, so the company will know the teenager is registered and put them on the policy if you don’t.

At what age does auto insurance drop?

For teenage drivers, with each year they get older you should see auto insurance rates drop, as long as they have a clean driving record. With most insurance companies, once you’re 25, that’s the age at which auto insurance breaks down.


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