The best way to lower your teenager’s car insurance rate is to add them to your existing insurance policy if they currently have their own and then look for discounts to further lower the cost. Other notable ways to lower the cost of teenage car insurance include reducing your teen’s coverage and getting multiple quotes.... read full answer
Teen drivers typically pay more for car insurance than mature drivers because insurers consider them high-risk. Rates don’t usually drop until age 25, unless you intervene with these strategies.
Four Ways To Lower Teenage Car Insurance Costs
Add your teen to an existing policy
Sharing an insurance policy with a teen driver is usually the most cost-effective option for a family. For example, car insurance for a 16-year-old with their own policy costs an average of $3,343 per year. By comparison, adding a teen to an existing policy raises the premium by about $1,400, on average.
Look for applicable discounts
Most major insurers offer several discounts designed to help lower the cost of insuring a teen driver. The two most common types of discounts that apply specifically to teens are good student discounts and resident student discounts. Good student discounts apply to high school or college students who maintain a certain GPA, while a resident student discount reduces premiums for college students who go to school more than 100 miles away from their vehicle.
Teens can still qualify for some general discounts, too. For example, they may be able to receive a discount if they take an approved defensive driving course or stay accident-free for a certain period of time.
Considering how expensive car insurance is for young drivers, your teen could save on their premium by limiting the amount of coverage they include on their policy. However, they still need to be in compliance with state law and avoid driving uninsured.
Get multiple quotes
The best way to lower teen car insurance is to shop around for quotes from at least three different providers, especially if your teenager is getting their own policy. Every insurer uses their own methods to calculate premiums, so the rate that you get from one company might not be the same as another. As a result, simply shopping around could save a teen driver hundreds of dollars per year on car insurance.
To find out where to start, check out WalletHub’s picks for the best teen car insurance companies. You can also find more information in our guide on how to lower car insurance costs. show less