Teen drivers can significantly raise insurance rates. The average married couple with no teen drivers pay around $2,300 a year for full coverage car insurance, but adding a newly licensed 16-year-old will more than double the cost to $5,229.
Even worse, many insurance companies require a licensed teen living in your home to be added to your policy — even if you don’t plan to let them drive your car. While insuring a teen driver can put a huge dent in your budget, an uninsured accident will cost you even more.
Luckily, there are ways to still get the best auto insurance without paying too much when you add a teen driver. Here are a few steps to consider.
Have teens take a safe driving course
Many insurance companies offer discounts for teens who complete an approved safe driving or defensive driving course. These classes don’t just lower insurance rates; they also teach teens important skills that can help keep them safe on the road. The exact discount will vary by provider, but most offer a discount of 5% to 20% after completing the course.
When’s the last time you compared insurers? Check out our favorite cheap car insurance companies for teens.
Ask about good student discounts
Good grades aren’t just about getting into the best college; they can also lower your car insurance rates. Many insurers offer a discount for teens who maintain a high GPA or keep their grades above a B average. It’s a great incentive for students to hit the books harder. On average, you can expect around 10% off for good grades.
Buy a safer car (or add safety features to your current vehicle)
The type of car your teen drives can impact your insurance rates. Cars with high safety ratings, advanced driver-assistance systems, and features like anti-lock brakes and airbags are generally cheaper to insure.
If your teen will have their own car, opt for a used sedan with solid safety scores instead of a sporty model. If they’re sharing the family car, consider adding safety features like backup cameras or lane departure warnings.
Use telematics to lower rates
Some insurance providers use telematics, a software program used to monitor driving habits like speed, braking, and mileage. Agreeing to install an app or adding a small device can save you big. If your teen can prove they’re a safe driver, you could score significant discounts. But these can also backfire. If your teen often speeds, brakes too hard, or drives recklessly, it could drive up your rates.
Shop around for cheaper plans
Drivers who haven’t shopped around for car insurance lately could be paying far more than necessary. According to the Jerry State of the American Driver Report, only 38% of drivers shop around for insurance, but 60% of drivers who shop around end up saving money — proving that a little research can lead to big savings.
If you’re worried shopping around is a huge hassle, it doesn’t have to be. Most companies offer easy-to-use calculators that make it easier to find the cheapest insurance rates without compromising on coverage.
Adding a teen driver to a car insurance policy can be an expensive milestone, but there are plenty of ways to manage the cost. From taking advantage of discounts to leveraging telematics, there are ways to keep rates in check without sacrificing coverage.
