- Car insurance for teenagers is typically more expensive because teen drivers are higher risk, but you can often lower costs with the right discounts and coverage choices.
- Adding a teen (16, 17, 18 and under 21) to a parent’s policy is often the simplest option when the parent owns the car.
- Good student, driver training and student-away-from-home discounts can help keep affordable car insurance for teens within reach.
- Review liability limits and consider an umbrella policy to help protect your family’s assets when you have a young driver on the road.
How to Save On Car Insurance for Teenagers
Your new teen driver will most likely change your insurance rates. While you can’t avoid it, you can take out some of the sting.
Key Takeaways
While your premium will likely rise, there are many ways to lessen the impact of adding a teen driver (aged 16, 17 or 18) to your auto policy.
If you’re considering getting the most affordable car insurance for teens, start by understanding why rates increase, what discounts you may qualify for and how to set up coverage that fits your family.
Why car insurance is so expensive for teenagers
According to the Insurance Institute for Highway Safety (IIHS), teenage drivers have crash rates nearly four times those of drivers 20 and older per mile driven.¹ Younger age can mean inexperience and immaturity, which can lead to speeding and other risky habits. Young drivers tend to overestimate their driving abilities while also underestimating the dangers of the road. All these factors make the insurance cost for teenage drivers higher than an adult driver.
Insurance companies often use statistics like these in combination with internal loss data as a basis for their premium rates.
If you’re also wondering how much auto insurance for teenage drivers is, the answer usually depends on factors like age, driving record, vehicle type, where the car is kept and how much you drive.
How much does your insurance go up when you add a teenage driver?
You can expect your auto insurance premium to rise when you add a teenage driver. Exactly how much can depend on several factors. Two things that could make adding your teen extra costly are them driving an expensive car and receiving a traffic violation (getting speeding tickets or getting in accidents).
Wondering how much it might cost? You may be able to get an estimated quote on Amica.com.3 Log in to your Amica.com account to learn more. You can also call one of our representatives at 833-513-3881 to get a quote and discuss opportunities for savings with your unique situation.
Car insurance discounts available for teenage drivers
There are several car insurance discounts for new drivers that may help lessen the impact on your premium.
- Good student discounts
Fortunately, you may be able to reduce your premiums if your teen or young driver performs well in high school or college. Some insurers, including Amica, will offer a discount when a full-time student maintains at least a B average (3.0 grade point average), or is on the honor roll or dean’s list. Written proof of grades is required. If you homeschool your teen, check with your insurer to see if other proof can be provided. With most policies, drivers between the ages of 15 and 25 are eligible for this discount.
- Car safety features
Keep in mind that vehicles with the highest safety ratings likely will have newer, pricier features. However, they may help you save on your car insurance premium. The IIHS offers a list of top safety picks by year, along with a searchable database of safety ratings for specific makes and models.
- Young driver training discounts
Some insurers, like Amica, have discounts for drivers under 21 who complete an accredited driver training program. Exact program requirements and discount availability vary by state, so check with your insurer to see what’s needed for your teen to qualify.
- Student-away-at-school discounts
If you have a teen driver who’s been on your policy but is now headed off to college without a car and will be returning home, check to see if your insurer has a “student-away-at-school” discount.²
Related: Staying on Parents’ Car Insurance
- Increase your deductibles
Regardless of adding a driver, you can always consult with your insurance company to discuss increasing your deductibles to reduce your bill. Just remember, if you or your teen has an accident, your out of pocket expenses will be higher. It’s important to never make your deductible higher than what you could afford out of pocket.
There may be other ways to lower your premium when adding a teen. Check out our Auto Insurance Discounts page to find out more.
You can also explore safe-driving guidance that can support long-term savings: How to Teach a Teen to Drive and 6 Common Mistakes Teen Drivers Make.
Should a teen get their own policy or go on a parent’s policy?
Whether a teen should get their own auto policy depends on a few things. Generally, if a teenager gets their own car, they’ll need to get their own auto insurance policy. This is because the owner of an insurance policy needs to match the owner of the vehicle so that someone can’t receive payment from an insurance policy for a vehicle they don’t own. So, if your teenager is driving a vehicle that you own, they’ll typically need to be listed as a driver on your policy. However, each situation is different and Amica’s representatives are happy to discuss your unique case.
If you’re comparing options for good car insurance for young drivers, adding your teen to a parent’s policy may be a simpler starting point — especially when the parent owns the vehicle and the teen lives at home.
How much coverage do you need for teen drivers?
When thinking about car insurance for teenagers, adding a teenage driver isn’t the time to cut corners with coverage. It’s important to understand that if your teen driver is in an accident, the parents’ assets can be at risk in the event of a liability claim. Amica recommends the following liability coverages at a minimum, especially when there’s a new driver on the policy: $250,000 bodily injury per person, $500,000 bodily injury per occurrence, $250,000 property damage per occurrence. An umbrella policy can provide even more liability coverage should you need it.
Want a quick refresher on what these limits mean? See Liability Coverage and How Much Car Insurance Do I Need?
How to add a teenage driver to your auto insurance policy
Once you’ve explored opportunities for savings and considered your options, it’s time to add your teen to your policy. You’ll need their driver’s license number, required documentation for discounts, and if you’re adding a new vehicle, you’ll need the VIN as well.
Your car insurance costs can change
As your teen drives, gains experience and shows that they’re a good driver, your insurance company may charge you less by the time your teen turns 19. You can also save when your teenager is away at school full time and without a vehicle, depending on the distance. Again, be proactive. Keep in touch with your insurer to make sure you’re saving as much as you and your family are eligible for.
Get an auto insurance quote today
FAQs about car insurance for teens and teenage drivers
The one that fits your family’s situation – including the car your teen drives, your budget and the liability limit you need. Look for strong service, clear coverage options and discounts that apply to teenage drivers.
Start by asking about good student discounts, driver training discounts and student-away-from-home discounts (if your teen is at school without a car). You can also consider deductible changes that still feel manageable if you need to file a claim.
Rates can vary widely and depend on things like driving record, where you live, the vehicle, annual mileage and coverage limits. A clean record and qualifying discounts can help.
Yes, there are many available, often tied to good grades, accredited driver training, safe vehicles and (in some cases) a student being away at school without a car.
Teenagers, Insurance Institute for Highway Safety, 2022.
Discount not available in all states.
Online quoting not available in all states.
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