Skip to main content

Teenager Auto Insurance

Get A Free Quote

Auto Insurance for Teens

Most teens cannot wait until they learn how to drive, get their license and hit the open road. Unfortunately, finding auto insurance can prove to be tricky. Having been in this position themselves, every driver can understand the challenges of finding the right car insurance – but the challenges can be compounded for young drivers. Since teen drivers are three times more likely to have an auto accident, the rates – at least initially – can be very expensive. However, there are ways to keep young driver insurance costs lower, such as adding them to an existing policy, seeking out discounts they qualify for and teaching them safe driving habits that will eventually lead to cost savings.

Car insurance policies for young drivers

No matter what state you live in, having young driver insurance coverage is a must. Teens need to realize that it’s a part of the responsibility of owning or driving a vehicle; it’s not an option to go without car insurance. Most insurance companies have special auto insurance for young drivers. It’s important to learn what the policies entail, including coverage limits. Some parents add additional coverage when they seek car insurance for teens as a precaution.

When should I consider purchasing auto insurance for my teen?

Purchasing auto insurance for teens typically occurs after they pass a driving test and get their licenses. Before obtaining a driver’s license, young drivers with a learner’s permit should also be covered under an auto policy. Most auto policies will cover teens with a learner’s permit that are driving the car of an adult in the same household, but it’s never a bad idea to confirm coverage with your car insurance provider.

Most insurance agencies will require licensed drivers — even teens — living in the same household to be covered. Younger drivers are typically added to their parent’s policy as it’s usually more affordable. The insurance laws do vary from state to state, so it’s always a good idea to speak to your agent about young driver insurance as your child approaches driving age.

Teen girls driving in a car

Teen driver insurance providers

Almost all insurance companies can underwrite a car insurance policy for teens even though many new drivers end up on their parent’s policy as soon as they get their driver’s license.

However, for young drivers who are shopping for their own car insurance, it’s a good idea to research the companies that are within your coverage area.

Once you’ve narrowed down your selections, it’s time to consider the factors that go into making a final decision on what constitutes the best young driver insurance for you.

Factors to consider when choosing an insurance provider

  • Price – this is probably the single most important factor that teen drivers or their parents consider, and for good reason. As younger drivers are generally inexperienced, auto insurance rates for teens are often higher than those of an established driver. For this reason, it’s advisable to shop around for the best price, but don’t rely on this factor alone.
  • Coverage – another important factor when considering a young driver insurance policy is the amount of coverage provided. There is no one-size-fits-all policy; the factors that influence the decision of how much coverage should be purchased differ from person to person. Some drivers only need collision coverage while others will need a comprehensive policy. However, for younger drivers, it is advisable to have a higher level of coverage, even if they drive a car that has already been paid for in full. Look for higher deductibles on car insurance for teens as that often lowers the monthly rate.
  • Customer service – not all auto insurance companies are created equal. Some are well touted for their attention to detail and excellent customer service skills, especially when handling car insurance for young drivers. It’s important to research companies and individual agents, to see what others have experienced when dealing with a claim or policy change request.
  • Discount programs – everyone loves to save money, and teens and their parents are no exception. When shopping for young driver insurance, ask your agent about any qualifying discounts that may be available. These can help drop the rates, in some cases significantly.

The cost of insuring young drivers

There are several considerations that go into the cost of insuring young drivers. The amount of driving experience, the type of license they have, and the make and model of their vehicle are three things at which insurance companies look. Typically, a longer driving history and clean record will lower rates. Most young drivers operate with a license to drive personal vehicles, but drivers with a license to operate larger vehicles such as busses and trucks with heavy towing capabilities may pay higher premiums for insurance as their vehicles and towed items may cost more to cover. Newer cars can also increase the cost of insurance because of the greater value of the vehicle compared to older models.

oung man driving a car with his father
  • Adding to an existing policy – Parents who opt to add their young drivers onto their existing policy will see an increase in their overall insurance premium. However, it’s easier for new, inexperienced drivers to become insured this way. The young driver insurance policy cost won’t increase as much if the child is driving mom or dad’s car. If they are driving their own vehicle, the existing rate could increase by a few hundred dollars a month.
  • Opening a new policy – Opening a new car insurance policy for teens isn’t often recommended because of the high cost. Insurance companies consider these young drivers a higher risk and as such, it’s not uncommon for an auto insurance policy for teens to cost upwards of a thousand dollars per year. Many teens can’t afford these rates, even if they are working full time. It’s not impossible to find affordable car insurance for teens, especially if the vehicle being driven is older and doesn’t require comprehensive coverage.

Saving on teen auto insurance

As with any young driver insurance policy, there are ways for teens to reduce their rates. Let’s look at a few different ways to lower that bill.

  • Student discounts for good grades – insurance companies like to reward teens who show responsibility and keep up their grades. These discounts are typically offered to young drivers between the ages of 16 and 24, though some insurance agencies may have other ranges. While the grade requirement may vary between providers, a common qualification for a good student discount is to maintain a B average in high school or college, with proof of grades. The amount or percentage discounted on car insurance for young drivers varies per agency, but it’s worth making an inquiry.
  • Loyalty discounts – loyalty discounts come as teens and young drivers maintain their policies with a specific agency or agent. The longer they keep a policy with the company and keep their account in good standing, typically the better the discount.
  • Safe driver discounts – driving safely is a must and insurance companies measure this by looking at the number of traffic violation tickets and accidents a driver has. Even teens can qualify for safe driver discounts on their insurance policy if they maintain an impeccable record. Some agencies even offer a tracker to reduce rates. You simply install it in the car and the tracker monitors the driver’s habits. Discounts can be offered to those who follow the speed limits and traffic laws.

Car Insurance Near Me

Just click on your state below and you’ll find affordable auto insurance options, plus everything you need to know about car insurance in that state.