Getting their first car: Fun.
Finding affordable auto insurance: Not so much.
Adding a teen driver to the family insurance plan doesn’t have to cost an arm and a leg.
Motor vehicle insurance is over 200 percent higher in cost today than it was when a lot of us began driving.
And although the 1980s is experiencing a comeback in pop culture, 21st-century pricing remains. Luckily, the digital age has opened up a world of options for keeping your car insurance under control despite having a teen driver behind the wheel.
Why are teen drivers so expensive to insure?
Most of us don’t place bets (even friendly ones) unless we know we’ll win with some certainty. Car insurance companies are in the betting business to a degree.
Statistically, teen drivers get in more accidents—a fact experts attribute to youth and inexperience. Therefore, families adding young drivers to their policies are more likely to make an insurance claim. In the United States, the fatal crash rate per mile driven for 16 to 19 year-olds is nearly three times the rate for drivers ages 20 and over. Even minor accidents cost insurance companies millions.
The bottom line? Car insurance companies have to account for that potential loss in revenue.
But you don’t have to bear all of that extra cost if you’re smart. There are multiple ways that you and your teen driver can take charge of your insurance rates—and make your family insurance policy appealing to everyone.
Insurify should be the first step on your journey for car insurance savings. Compare auto insurance policy quotes for you and your teen driver, unlock relevant discounts, and even compare coverage levels…all in our one-stop-shop. It’s what you were going to do anyway…just 20 times faster.
Cheapest Car Insurance Quotes for Licensed Teenage Drivers
The data team at Insurify crunched the numbers and determined the cheapest and most expensive insurance companies for teenagers. See which carriers have the lowest and highest basic quotes for teen car insurance:
Cheapest Companies for Teen Drivers
|Insurance Company||Lowest Rate|
Most Expensive Companies for Teen Drivers
|Insurance Company||Lowest Rate|
The easiest way for licensed teenage drivers to save on insurance costs
There’s no getting around insuring your teen driver. And driving is a significant first step to being on their own. Whether you’re footing the bill or your teen has promised to give you their first paycheck and then some, here’s how to keep insurance rates as low as possible.
Rate-fueling factors that YOU can control
- If you don’t already have some or all of your insurance (home, renters, auto, etc.) under the same insurance company, look into “bundling” your insurance needs this way. This incentive is something insurance companies use to gain customers and very often results in reduced rates on one or both policies.
- Comparison shop for insurance providers. When you have longevity with a company, it’s sometimes hard to part. Though companies might reward loyalty, you’d be surprised at just how many insurers you have to pick from now. And every company’s insurance products are just a little bit different. Insurance companies are on a mission to peddle highly personalized insurance products. A family who rents, lives in Tacoma, and has a stellar driving record has different insurance needs than a single parent who travels 50 percent of the time and owns her home but has a DUI or car accidents on her record.
- Keep them on your car insurance policy as long as you can. Although making them find and keep their own insurance policy is a tempting life lesson, adding them to your insurance policy is a much cheaper option (and they can still make payments to you). Yes, your car insurance premiums will increase. But, between shopping around, adding multi-car/multi-driver discounts, and incorporating discounts that your teen can control, you may come out more ahead than you think. They’ll have to be responsible for their own policy soon enough.
- Consider increasing your deductible to save on your insurance premiums. Again, shop around. You may find better deductible rates out there than you imagined, or that you can get more coverage for close to the same monthly premium.
- Hold off on the flashy ride. Although a new car equipped with all the latest safety features likely will qualify you for a discount, it’s much more expensive to insure a sports car or luxury vehicle. Instead, research the best new and used cars for teens. Studies often take into consideration things like how many passengers can fit into the car. A two-passenger truck, for example, is less to insure than a soccer-mom van filled with excited, texting teenagers.
- College students can help keep auto insurance rates low simply by not being home. Find insurance coverage that accounts for how far (or how little) they may be driving while they’re away at school. For instance, State Farm offers a Student Away at School Discount. This program applies a discount for drivers under 25 who are on their parents’ policy but only drive when they are at home or on break.
How YOUR TEEN can help cut costs
- Take advantage of safe driver technology offered by automakers and insurance providers. Is the car updated with the latest safety features? Many insurers reward safe driving through devices that track teen driving (how hard they brake, the way they stop, etc.). Nothing incentivizes teens like knowing they’ll lose driving privileges if they don’t come to a complete stop!
- Although you don’t have to have a straight-A student to take advantage of all the discounts out there, your smart teen can help you secure a good student discount. Tying good grades to driving time is also a great way to ensure your teen does well on their math test!
- Enrolling in driver training courses is another way your new driver can take the sting out of rising car insurance rates. Better driving and fewer claims will make your insurance company happier—passing along the savings to you. And you have the peace of knowing you have an even safer driving on the road. Everyone wins.
- Mind graduated driving rules. State-specific Graduated Driver Licensing (GDL) programs have been in place since the 1990s and allow teens to perfect their driving habits before they’re given full driving privileges. Once they have their driver’s license, teens can drive under limited supervision. These limitations include limits on texting while driving, curfews, and driving with passengers in their vehicles. By minding these rules, teens can keep their record clean and keep teen car insurance costs to a minimum.
Teen Drivers vs. Others: Who Pays More?
You might identify with some, all, or none of these driver profiles. Regardless, these other quotes should give you an idea of the best car insurance rates you could encounter in your comparison shopping journey.
Car Insurance Discounts for Teen Drivers
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