It’s the day your teen has been waiting for – and the day you may have been dreading your teen has started driving, which may increase your insurance rates. Before adding your teenage driver to your auto policy, take a look at some potential discounts that may be right for you.
Do I need to add my teen to my auto policy?
Yes, you should add your teen to your auto policy as soon as they receive their driver’s license and are of driving age. Tell your insurance company about all household members who have driver’s licenses, even if you don’t anticipate that they will drive your car.
Why may it cost more to insure teen drivers?
It’s a catch-22; you should add your teen to your auto policy to make sure that they may be able to receive coverage under your auto policy, but your auto insurance rates are likely to increase with their addition.
Teen drivers generally pose more risks than more experienced drivers due to[1]:
- Lack of driving experience
- Distracted driving (texting, friends in the vehicle, social media)
- Speeding
- Not wearing seatbelts
- Potential for alcohol use
- Night driving
Learn more about the “under 25” auto insurance expense here.
How may I be able to save when adding a teen driver to my auto policy?
1. Add your teen driver to your own auto policy.
Some people may try to lower their insurance costs by buying their teen driver a separate auto policy. However, people under the age of 18 may find it challenging to obtain their own auto insurance policies. While adding a teen driver to your auto policy may cost more, it’s usually cheaper than purchasing them a separate policy.
If your teen is driving your car, they will need to be added to your auto insurance as a primary driver. If they will be driving their own car, you may want to include your teen’s car on your auto policy, which may result in you receiving a multi-vehicle discount in certain states and subject to the terms and conditions of your specific policy. You may also be able to save money on your insurance rates if you can have your auto policy and your homeowner’s policy with the same insurance carrier, which is known as bundling.
2. Make sure your teen is driving a safe, reliable car.
Your teen might be begging you for a fancy, flashy car for their birthday. But some cars, like sports cars or small vehicles, can be considered higher risk especially for inexperienced teen drivers. The type of vehicle may also impact your insurance premium.
On the other hand, if your teen is driving a car that includes certain safety features, you may be eligible for lower insurance rates. In some states and with some carriers, you might be able to get a discount on your insurance rates if your car has airbags, driver-assist technology, or backup cameras. In some states and with some carriers, you might also be able to get a lower rate if your car has anti-theft devices and anti-lock braking systems. Work with your Licensed Advisor to see which safety features could help reduce your auto insurance rates.
3. Enroll your teen in a safe driving course.
Having your teen driver attend a safe driving course helps prepare your teen for the uncertainties of the road, which can help reduce their risk of getting into an accident. A safe driving course will give you and your teen peace of mind while they’re on the road. In some states, some insurance carriers, may provide a discount if a teen driver has successfully completed a safe driver course.
4. Inquire about good student discounts.
Some auto insurance companies, subject to terms and conditions, may offer high school and college students a discount on auto insurance rates if they earn certain grades. Some carriers may have age restrictions or might not offer good student discounts, but it’s worth asking your insurance advisor if your driver may be eligible.
5. Ask about “distant student” discounts.
If your driver is a full-time student, who does not reside at your home, and leaves their car parked at your house and doesn’t have a car at school, you may be eligible for a distant student discount. Age restrictions and the specific number of miles from home that a student must reside, as well as other terms and conditions, may differ from one insurance company to another and not all insurance providers will offer this discount. A “distant student” discount in conjunction with a good student discount can be a great way to try to offset any increases in your insurance premiums after adding a teen driver to your policy.
6. Look into low mileage discounts.
If your teen doesn’t drive very often or far, you might be able to get a low mileage discount. The terms and conditions of this discount may vary by carrier and by state.
Check out these other 16 ways to lower your auto insurance premium for more ideas.
Compare quotes with InsuraMatch.
Shopping around for insurance is the best way to ensure you’re getting the best price. When buying auto insurance, you’ll want to compare multiple quotes from several insurers to find out what kind of coverages and discounts each carrier offers. Insurance companies have different underwriting approaches, so premiums for teen drivers can vary depending on the carrier.
. Trying to get comparable quotes from multiple insurance companies can be time-consuming and challenging. That’s why InsuraMatch was founded. We are an independent insurance agency, so our Licensed Advisors put our customers first. We can help you compare quotes from several insurance companies to find the right auto insurance for your family's needs.
Start comparing auto insurance quotes right now to get the best coverage for you and your teen driver in just minutes.