How To Get Cheap Auto Insurance for Your Teenager

Charlotte Miller

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Turning 16 years old and getting a driver’s license is a traditional rite of passage that has been happening for many years. Whether the teen gets a hand-me-down used vehicle or a brand new car, they usually can’t wait to get behind the wheel for the first time. While this is an exciting gateway into adulthood, it does come with more responsibility. Unfortunately, it also comes with high car insurance rates. Since teenagers are inexperienced drivers, insurance companies consider them to be higher-risk. As a result, a policy for a teen driver can cost thousands of dollars per year.

Most states require that all drivers carry a minimum amount of liability insurance to operate on the road legally. Typically insurance companies will allow parents or guardians to unofficially add teen drivers with a learner’s permit to the policy without a rate increase. Once the teen driver becomes fully licensed, however, they must be able to show proof of an insurance policy that meets the minimum standard for their state. When your teen driver becomes licensed, you could see a premium rate increase that totals a few thousand dollars annually.

If you need to find cheap auto insurance for teenager drivers, there are a few things to consider. Let’s take a look at auto insurance for young drivers.

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How much is car insurance for teen drivers?

Auto insurers consider several factors when assigning rates for policies. Things such as your location, type of vehicle, and driving record are all factored into your premiums rates. Age is one of the biggest determinants when insurers consider policy rates. Teens from 16 to 19 years of age  are at an elevated risk for speeding tickets, auto accidents, and insurance claims. As a result of these risks, insurance companies place inexperienced teen drivers in a very high-risk category. The national average for full coverage insurance for a 16-year-old driver is over $6,500 a year.

Aside from age and inexperience, another factor that impacts insurance rates for teens is gender. Based on historical claim data, insurance companies see young male drivers at a higher risk for speeding, engaging in reckless driving, and having accidents. Due to this statistic, teen male drivers can end up paying around 14 percent more for insurance than their female counterparts.

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Add teen drivers to your insurance policy.

As discussed, parents can add young drivers to their existing insurance policy to get lower rates. It is usually a lot cheaper to add a teen driver to an adult’s plan rather than get them their own policy. The discounts and benefits extended to you for your driving record and experience will help lower the overall premium when adding a teenager. Additionally, most insurers allow you to keep your child on your insurance as long as you like. This means they can stay on your policy until they reach 25 when insurance rates usually drop.

Shop around for lower rates.

If you want to seek out lower rates for car insurance after adding your teen driver, it can be beneficial to compare multiple rates and policies from several insurance companies. Insurers have different policies concerning young adult drivers. Comparison shopping for insurance quotes will allow you to find the best rates and coverage options for your teen driver.

Seek out available discounts.

Most insurance companies understand the financial burden of purchasing coverage for teen drivers. Many companies will offer discounts to help offset the high rates for teenage drivers. There are safe driver discounts for teens who maintain a good driving record. Additionally, many insurers offer discounts to college students and discounts to teens who make good grades. Finding discounts will help you lower the high insurance rates associated with teen drivers.

Teenage drivers pay some of the highest insurance rates among all drivers. Fortunately, there are some ways to reduce premium rates. Adding a teen to an existing policy, shopping around for rates, and seeking out discounts will help you get the most affordable car insurance policy for your teenager.