How to Lower Car Insurance for a Teen Driver

You can't make a new driver cheap to insure, but you can make a real dent in the bill: keep the teen on your policy, pick a modest car, ask for every discount and shop around. According to the Insurance Information Institute (Triple-I), adding a teen can raise a parent's premium by 50 to 100 percent, so each of these steps is worth the phone call.

Here are the levers parents control, in roughly the order they tend to matter.

Key takeaways

Keep your teen on your policy. Triple-I says it is usually cheaper than a separate policy.
The car matters. A modest, safe car usually costs less to insure than a newer, pricier one.
Ask about good student, driver training, multi-car and student-away discounts.
A higher deductible lowers your premium, if you can afford the out-of-pocket cost.
Get at least three quotes. Prices for young drivers differ between companies.
A clean record is the biggest long-term saver. Rates drop as teens get older.

Why teen insurance costs so much

Insurers price risk, and young drivers crash more. Federal figures cited by Triple-I show drivers 16 to 20 were involved in 42.40 fatal crashes per 100,000 licensed drivers in 2023, compared with 24.38 for all drivers. Young drivers were 5% of licensed drivers but 8.9% of drivers in fatal crashes that year.

That risk falls with experience, and so do rates. Triple-I says that as your teenager gets older, insurance rates will drop, provided the record stays clean.

1. Keep your teen on your policy

Triple-I says adding a teen to a parent's policy is usually less expensive than the teen buying a separate policy. It also notes that insurers price young drivers differently, so the gap varies by company.

Talk to your agent before your teen even gets a permit. Our guide Do You Need Car Insurance With a Learner's Permit? lists what to ask.

2. Choose the car carefully

The car your teen drives can matter as much as the driver. Triple-I explains that premiums are based in part on the car's price, and suggests researching insurance costs and IIHS safety ratings before you buy.

The NAIC is blunt: adding a teen to a policy with a newer, expensive sports car may considerably raise your premiums, and a modestly priced economy car may be more appropriate.

If you already have more than one car, ask whether your insurer assigns drivers to specific vehicles. Triple-I suggests assigning your teen to your least valuable car where possible. Then hold your teen to it: Triple-I warns that driving an unassigned car may bring penalties and higher premiums.

3. Ask for every discount

Discounts vary by company and state, so ask your agent to go through the list. Common ones named by Triple-I and the NAIC:

Good student. Triple-I says students with at least a "B" average may qualify.
Driver training. Teens who complete a recognized driver training course may qualify. See Does Driver's Ed Lower Car Insurance? Discounts by State.
Student away at school. For college students at least 100 miles from home who leave the car behind.
Multi-car. Insuring more than one car with the same company.
Safety and anti-theft equipment. The NAIC lists airbags, other safety equipment and anti-theft devices.
Bundling. Auto and home with the same company.

The NAIC also notes that some companies may reduce premiums for an honor roll student, a driver education graduate or a teen with a job.

Keep proof handy. Insurers may ask for report cards or a course certificate, so ask what proof they accept.

4. Consider a monitoring or safe-driving program

Some insurers offer programs that track driving habits. Triple-I reports that insurers offer safe-driving programs, online courses and discounts for families that use monitoring devices such as GPS tracking or driving-agreement apps.

These programs can also help at home. Parents can get alerts when preset speed, distance or time limits are exceeded. Ask your insurer how its program works, what it tracks, and whether it can ever raise your rate.

5. Adjust deductibles and coverage

Raise the deductible. Triple-I says a higher deductible can significantly lower your premium. Keep enough savings to cover it if you have a claim.
Review coverage on older cars. As a rule of thumb, Triple-I says that if an older car is worth less than 10 times the premium, collision or comprehensive coverage may not be worth it. A lender may still require it.
Don't cut liability. Triple-I suggests putting deductible savings toward higher liability coverage, because state minimums may not fully protect you after a crash.

6. Shop around

Triple-I recommends getting at least three quotes from different kinds of insurers. The NAIC agrees that premiums can differ noticeably between companies. Compare the same coverage limits and deductibles on each quote, or the comparison won't mean much.

Good times to shop: just before your teen is licensed, at each renewal, and when your teen turns a year older or heads to college.

7. Other money-savers

Triple-I's general savings guide lists a few more that may apply to families with teens:

Low mileage. Some companies offer discounts for driving less than the average number of miles.
A clean record. Discounts for no accidents or moving violations over a set period.
Credit history. Many insurers use credit information to set rates, so check your credit report for errors.

8. The biggest saver: a safe driver

Every crash or ticket can follow your teen for years. Rules at home help. The NAIC suggests setting ground rules on hours, passengers and mileage before your teen drives, and considering a signed driving contract. Your state's graduated licensing limits are a good starting point; see Teen Driver GDL Restrictions Explained for Parents.

Solid training matters too. A licensed driving school gives your teen professional instruction, and the completion certificate may count toward a discount. If the school issues certificates through RoadVerified, your insurer can check the certificate's code at check a certificate.

FAQ

How much does adding a teen to car insurance cost?

Triple-I says it can raise a parent's premium by 50 to 100 percent. Your actual cost depends on your state, insurer, car and discounts, so ask for a quote before your teen is licensed.

What grades does a teen need for a good student discount?

Triple-I says students with at least a B average may qualify. Each insurer sets its own rules, so ask what proof it needs and how often.

Does drivers ed lower teen insurance?

It can. Triple-I and the NAIC both list driver training or driver education as a possible discount. The amount varies by insurer.

What car is cheapest to insure for a teen?

There is no single answer, but premiums depend partly on the car's price. The NAIC suggests a modestly priced economy car may be more appropriate than a newer, expensive sports car. Check IIHS safety ratings and get quotes before you buy.

Find a verified driving school

Good training is a safety step first and a possible discount second. Browse driving schools in our directory and look for the verified check mark.