Helping Your Teen Drive Safely—and Affordably
- Mutual Assurance Society
- Oct 27
- 2 min read
When your teenager starts driving, you want them to be safe and make smart decisions on the road. But
if you’re paying for their car insurance, be ready—adding a teen driver usually means higher premiums. (It’s worth comparing quotes from the cheapest insurers before you commit.)
Why insurance costs more for teens: Teens are riskier drivers simply because they’re less experienced. According to the National Highway Traffic Safety Administration, drivers under 20 made up just 5% of all licensed drivers in 2021 but were involved in over 12% of crashes. That higher risk leads to higher rates.
Should You Add a Teen to Your Policy or Get Them Their Own?
It’s almost always cheaper to add a teen to your existing policy than to buy them a separate one. Still, loyalty doesn’t always pay—get quotes from multiple companies. Consumer Reports found that drivers who switched insurers in the last five years saved a median of $461 annually.
Choosing the Right Car
While an older car might seem like a bargain, newer models are generally safer and sometimes cheaper to insure. Buying a used car that’s reliable and well-rated for safety is a smart compromise. Or consider sharing a family car—fewer vehicles means lower costs overall. Consumer Reports has a list of cars in several price ranges that it deems safest for teen drivers. Click here to see the list.
How Much Coverage Do Teens Need?
Don’t skimp on liability insurance. Teens are more likely to crash, and inadequate coverage could expose you financially. The Insurance Information Institute recommends at least $100,000/$300,000/$100,000 in liability coverage. You might also consider an umbrella policy if you have significant assets.
If your teen is away at college, avoid excluding them from your policy unless your insurer specifically recommends it—doing so could lead to serious problems if they drive your car during a visit and get in an accident.
Ways to Save on Teen Car Insurance
Good student discounts: Many insurers offer lower rates for students under 25 with strong grades.
Driver training courses: These help build skills but may not save much—usually less than $100 a year.
Telematics programs: Safe-driving apps or devices can earn discounts, but they track driving behavior and location.
“Parents can save by shopping around, bundling policies, raising deductibles, and choosing safe, affordable cars,” says Chuck Bell of Consumer Reports.
When Will Rates Go Down?
The good news is that insurance gets cheaper with experience. Premiums typically drop around 16% at age 19, 17% at age 21, and 11% at age 25—especially for teens who maintain clean driving records.
Sources: Consumer Reports, ABC West Palm Beach, iii Institute