- Teen insurance is often expensive, but teens may be able to help lower costs with a good student driver discount, away-from-home savings, driver training and telematics.
- Staying on a parent’s policy, choosing a modest vehicle and increasing a deductible can also help make coverage more affordable.
- Amica offers family-focused discounts like good student, young driver training and student-away-at-school, plus StreetSmart by Amica™ for eligible drivers.
- Related resources can help teens build safer habits and understand how coverage decisions affect student driver insurance cost over time.
How Teens Can Help Lower Their Insurance Costs
Passing a driving test – especially the parallel parking part – is cause to celebrate, but getting a license means extra responsibility and expenses, particularly when it comes to car insurance.
Key Takeaways
As a new teen driver, whether you have your own auto insurance policy or you get added to your parents’ coverage, insurance for teenage drivers tends to be expensive because, statistically, a young driver is more likely to be involved in a car accident. Even if you have a clean driving record, insurance companies will view a teen’s limited driving history as a factor that puts them at a higher risk of filing a claim.
How much is teenage car insurance per month?
For teenage car insurance, average cost per month can vary widely based on the driver, car, location and coverage. You may be able to get an estimated quote on Amica.com. ¹ Log in to your Amica.com account to learn more. But you have options when it comes to curbing the cost of your car insurance. Here are actions you can take to potentially reduce car insurance costs — some apply to all drivers and others are designed specifically for teens like you.
1. Boost your grades
Good grades are important for your future. They can also help you save money right now. Many insurance companies have special car insurance discounts for high school and college students. Students under the age of 25 could qualify for the discount by maintaining a "B" or equivalent grade point average (GPA) — how’s that as an incentive for strong academic performance?
The insurance company may ask for a copy of your transcript or report card. You can ask your insurance provider (or talk to your parents if you're on their policy) to find out what documentation you need to get lower premiums.
At Amica, policies with full-time high school or college students under age 25 with a “B” average or higher may qualify for a good student discount. If you’re comparing student driver insurance discounts, this is one of the first places to start. If a homeschool student, check with your insurer to see if other proof can be provided.
2. Take a safe driving course
Want to know how to get lower car insurance rates as a teenager? Develop safer driving habits.
Insurance carriers want to know that the people they cover know how to drive safely. As a teen driver, you can't point to a long driving history free of claims, but you can take a safe driving course. Designed for young drivers, these courses supplement the driver's education you need to get your license. They teach you how to recognize potential risks, deal with inclement weather, handle sudden emergencies and master defensive driving skills.
By completing a safe driving course, you may earn a discount on your car insurance, and you can learn how to become a better driver and avoid accidents and violations.
Amica offers discounts for drivers under 21 who complete an accredited driver training program, and some drivers may qualify through the Defensive Driver Discount Program.
3. Sign up for a usage-based insurance (UBI) program
One of the easiest potential ways to save on car insurance is to enroll in a UBI or telematics program. These programs use plug-in devices or mobile apps to track your driving behavior and habits. By driving safely – always putting your phone away before you get behind the wheel, obeying speed limits, and limiting nighttime driving – you could qualify for lower auto insurance rates.
Plus, these programs usually provide regular updates on your driving and tips for improving your skills, feedback that can help you become a better driver over time.
Check out StreetSmart by Amica™, our free smartphone app. It works with both iOS and Android devices to improve – and reward – safe driving habits.
4. If possible, stay on a parent's policy
In general, it's more affordable to stay on a parent's policy than purchasing your own insurance coverage. Unlike health insurance, there's no upper age limit for car insurance, so you don't need a separate policy, as long as the car you drive is registered in one of your parents’ names. However, when you move out on your own or register the vehicles in your own name, you would need to get your own policy.
Even if you're currently living in a college dorm room, you can still be on a parent's policy as long as their home is also your permanent residence.
If you’re on a parent’s insurance policy, they may want to see if they can get additional insurance discounts by bundling their car and homeowners policies with the same carrier.
Wondering whether to get your own policy? This related article may help: Adding a Teenager to Your Car Insurance Policy.
5. Increase your deductible
While a low deductible can be appealing, the trade-off is paying a higher premium because your insurer starts covering the cost of repairs sooner. If you have a part-time or summer job and have built up your savings, you may benefit from increasing your deductible.
Raising your deductible means you’d pay more out of pocket if an accident happens, but it can also help lower your auto insurance premiums, potentially making your coverage more affordable over time.
6. Choose a modest car
When you apply for a car insurance policy, the insurance company uses several factors to calculate your premiums. While your age and location play a role, your car's make, model and year are important, too.
While you can be a safe driver in any kind of car, vehicles that are relatively inexpensive, have cheaper parts and are easier to repair will be less costly to insure than other vehicles. While older cars are generally less expensive to buy and insure than newer ones, you’ll want to weigh those costs against the safety features that are more readily available on newer-model vehicles. Keep in mind, though, that certain safety features may actually earn you a modest discount on your car insurance.
7. Ask about ‘away-from-home’ discounts
If you're a college student who lives on campus but keeps your car at home, you may be eligible for an "away from home" discount. Some insurance companies offer this discount because students away from home tend to drive less, which lowers the risk of accidents.
You can still use your car during breaks or weekends, but you'll pay a lower rate and your policy remains active. This is beneficial because it helps you build a record of continuous insurance coverage and shows that you can maintain a clean driving record over time, which is a plus when you start getting insurance quotes for your own policy.
For families looking at student driver insurance cost, this discount can be especially helpful when a student is away at school without a car. Learn more about staying on a family policy here: How Long Can You Keep Your Child on Your Car Insurance Policy?
Teen driver insurance: Establishing good habits
Insurance may not be the most exciting aspect of trading in your learner’s permit for a driver's license, but insurance is a key part of being an adult. You can help manage the added cost of a teen driver insurance policy by establishing safe driving habits and avoiding some of the most common driving mistakes that new drivers make.
To be a good driver, keep these best practices in mind:
- Obey speed limits
- Wear your seat belt (and make sure your passengers do, too!)
- Avoid distractions like texting while driving
- Maintain safe following distances
- Use your turn signals
- Limit nighttime driving
Parents and teens can also review How to Teach a Teen to Drive for more ways to build safe habits early.
As a teen driver, you may be eligible for special discount programs that can lower your insurance rates. Contact your insurance agent and ask about good student discounts, away-from-home discounts, safe driving course discounts, or multi-vehicle discounts.
Quick look: Ways teens may be able to lower insurance costs
| Option | How it may help | What to ask about |
|---|---|---|
| Good student driver discount | May lower premiums for qualifying students with strong grades | Grade requirements, age limits and proof of enrollment |
| Driver training or defensive driving | May reward safer habits and course completion | Which courses qualify and whether state rules apply |
| Telematics/UBI | May help lower rates based on safe driving behavior | Eligibility, app requirements and how discounts are calculated |
| Stay on a parent’s policy | Is often less expensive than a separate policy | Residency, vehicle ownership and policy setup |
| Student-away-at-school | May reduce cost when a student is away without a car | Distance, residency and vehicle-use rules |
Get an auto insurance quote today
FAQs about lowering teen car insurance costs
There isn’t one fixed answer. It depends on the teen’s age, location, vehicle, driving record and coverage choices. A parent’s policy, a modest car and available discounts may help reduce the monthly cost. Call Amica and speak to one of our representatives to explore rates at 833-513-3881.
A good student driver discount is a savings opportunity some insurers offer to full-time students who meet grade requirements. At Amica, eligible full-time high school or college students ages 15-25 with a “B” average or higher may qualify.
Several ways: by maintaining good grades, staying on a parent’s policy when appropriate, choosing a lower-cost vehicle, asking about away-from-home discounts and practicing safer driving habits.
Ask your insurer about every available discount, avoid risky driving habits and review your policy regularly as your driving experience grows.
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