The cheapest way to get car insurance for a teenager is to add the teen to a more experienced driver’s policy, like a parent or guardian. Plus, it’s always a good idea to shop around and get quotes from multiple companies to find the cheapest option.
Although teenagers are able to get their own policies, car insurance for a teenager alone costs significantly more than if they are added to an existing policy. Taking advantage of discounts, reducing the amount of coverage, and changing deductible amounts are other simple ways to get cheaper auto insurance for teenagers.
Cheapest Ways to Get Car Insurance for Teens
Add Teens to an Existing Policy
Adding a teenager to an existing car insurance policy can be significantly cheaper than having a teen get their own policy. For example, the average annual cost of car insurance for a 16-year-old in California is $2,845, while adding a teen added to a parent’s existing policy only increases the cost by about $1,461 per year.
Whether you’re a teenager shopping for your own policy or looking for a joint policy with a more experienced driver or parent, comparing quotes from several insurers is a quick way to make sure you’re getting the best rates possible.
Take Advantage of Discounts
Most insurers offer a wide range of discounts, from discounts for getting good grades to discounts just for being a member of specific organizations, such as a fraternity, sorority or honor society. These and other discounts can be combined to save teens up to 35% on their premiums.
You need to have at least the state’s required minimum coverage, but optional types of coverage can be reduced or removed to help lower rates. This is an especially good option for teens who don’t drive often or who drive older, less valuable vehicles.
Raising deductibles can quickly reduce the cost of premiums, but you’ll have to pay more out of pocket for your claim if you are in an accident. Remember to only choose a deductible that you’d be able to afford in the event of a crash.
To learn more, check out WalletHub’s picks for the cheapest car insurance for teens.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.