Insuring a new teen driver without the sticker shock
Adding a teen is one of the biggest rate jumps a family sees. Smart ways to soften it.
Drivers aged 16 to 19 have the highest crash rates of any age group, so adding one to a policy can raise the premium sharply. A few decisions make a real difference.
Add them to your policy, usually
A teen on a parent's policy typically costs much less than a separate policy in the teen's name, and it lets them share your liability limits and discounts. Many insurers require all licensed household members to be listed or formally excluded.
Pick the car carefully
An older, mid-size sedan with good safety ratings is usually cheaper to insure than a sports car, a large truck or a brand-new vehicle. If the teen drives an older car, you may be able to skip collision on that vehicle.
Discounts made for teens
- Good student (often a B average or 3.0 GPA).
- Driver training or education course completion.
- Student away at school without a car.
- Telematics programs that reward smooth, safe driving.
Compare at the moment you add them
Insurers price young drivers very differently. The company that was cheapest for two adults may not be cheapest once a 16-year-old is added.
This guide is general information from Smart Quotes Now, not insurance, legal or financial advice. Coverage rules vary by state and insurer.