Adding a teen driver to your insurance usually means taking on a much higher premium. However, while saving insurance with teenage drivers is an understandable priority for many families, insurance that is suitable for teenagers is not always cheaper. High liability limitations, defensive driving practices, and reliable customer service can be just as important as finding a low premium.
How to insure a teenage driver
Finding the right car insurance for a teenage driver can feel like an impossible balancing act. On the one hand, the increase in premiums associated with teenage drivers guarantees that most families are scrambling for savings, but the cheapest policies aren’t necessarily the best, especially for less experienced drivers in households. When reviewing car insurance estimates for teenage drivers, keep these in mind:
- New drivers have a higher risk of accidents: Most people buy insurance in the hopes of not using it, but drivers with less experience in insurance contracts should be ready to use coverage in the event of an accident. Collision compensation could be a healthy investment with a teenage driver in your policy.
- Customer Service Issues: While good customer service is always a plus, for families with teenage drivers, it can make the difference between positive and negative insurance experience. You are likely to file a claim with your teen about your policy, so beware of airlines that have a reputation for reliable services and handling of billing.
- Delaying your license will save you money. If a national rate driver takes a direct risk based on age, waiting a year or two to wait a year or two in a teenager will avoid the highest rates associated with 16 and 17-year-old drivers. However, in some states, years of driving experience determines the additional fee for younger drivers. This means you’ll pay extra for the first few years, regardless of the age of the new driver. You need to understand how your state insurance will insure you in advance to make the best decision for your situation.
- Your discount eligibility may vary: If you’re saving on insurance with programs like accident-free discounts or bonded homes and car policies, adding teen drivers can make those discounts less favorable, but getting teenage grades will qualify for new discounts like low rates.
- High rates are temporary challenges: Insurance companies are inexperienced and spend their experience and time on the road, claiming high premiums to teen drivers, ultimately becoming a low-risk category for teenagers. Approaching the needs of teenage insurance as a short-term financial challenge can help you adjust your finances to suit your family’s new circumstances.
How a real family found the right insurance for a teenage driver
Bankrate’s insurance editorial team turned to Reddit to gain insight into how Real Family approaches the challenge of finding affordable car insurance with teens. In a post on March 4, 2025, Reddit users asked members of R/Insurance SubredDit to share advice on insuring teenage drivers after receiving an updated estimate from their current insurance company for four times the original premium.
“Other companies can get better rates,” user Gutowscr wrote. “However, other insurance companies don’t guarantee my home because the roof is over 10 years old (even though it has a 50-year warranty).
“Are there any suggestions to add a new teen driver or pay the price?”
*The quotes and quotes contained on this page have been verified by our editorial team and are accurate as of the date of posting. Outlinked Content may contain opinions or opinions that do not reflect the views or opinions of the Bank.
Do I need to add a teenage driver to my insurance policy?
If your teen has a valid driver’s license, they must be added to your insurance policy. All licensed drivers in your home, regardless of age or frequency of driving, must be listed in your policy. If you do not add your children to your insurance, your insurance company may add them to your insurance on your behalf – or if your child is in an accident, you may find your claim will be denied.
In most cases, your teen has the option to buy his or her insurance until he or she is 18 years old and can enter into binding legal agreements. Still, most families find that keeping teen drivers in family policies saves money overall, even if teens are responsible for paying their premium portion.
When you have a teenage driver, what should you look for in your career?
Finding cheap car insurance for teen drivers is the best thing in the mind when you see whether it costs money to add it to your insurance. However, there are other considerations you should consider when choosing the right career for your family. Potential considerations include:
- Available coverage options: What coverage types do teenage drivers need? While your teen is on the road, you may want to add roadside assistance for extra security. If you are worried about keeping your fees affordable, you may consider compensation for accident forgiveness.
- Teen Discounts: Given how expensive it is to insure teenage drivers, many carriers offer discounts aimed at younger drivers. You may be able to use savings to maintain a high GPA, take defensive driving courses, or enroll in a usage-based telematics program.
- Customer Service and Financial Power: Adding teenage drivers to insurance may be a great opportunity to assess your current career satisfaction. Looking at third-party customer satisfaction scores and financial strength ratings can indicate how easy it is to manage your policies and submit a claim to your company.
| Career | It’s perfect for | average. Monthly Full Coverage Premium |
|---|---|---|
| Nationwide | Usage-based insurance | $325 |
| Car Owner | Local Agent | $369 |
| aaa | Roadside support | $374 |
| Geico | Highly Risky Coverage | $388 |
| progressive | Forgiveness of accidents | $387 |
| *Prices are for drivers aged 16, added to the parents’ policy. |
Finding the best car insurance company for your family may mean switching insurance providers. If you have problems choosing the right carrier after comparing quotes, it may be helpful to talk to an insurance broker who works with some insurance providers.
Why is car insurance more expensive for teenagers?
Teen drivers are most expensive to insure as inexperienced behind the wheels are more likely to engage in risky driving behaviors and are less likely to take action to prevent accidents. As of March 2025, the average national cost of car insurance is $2,692 per year, while the average annual cost to guarantee a 16-year-old driver with a full parental coverage policy is $5,768 per year. As your teen gets older and gains experience behind the wheels, their fees will likely drop as long as they maintain a clean driving record.
In states that allow them as insurance rating factors, age and gender can affect the price teenagers pay for car insurance. Statistics show that women are involved in less risky driving behaviors than men, which could lead to slightly lower premiums. For example, the average cost of fully covered auto insurance, including a 19-year-old woman as a listed driver, is $4,179 per year. The same policy for a 19-year-old male driver is $4,549 a year, plus an additional $370. This is not the case in all situations and conditions. Hawaii and Massachusetts do not allow age as a rating factor, and California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania do not allow gender use.
How to save on car insurance for teens
If you have teenage drivers, the increased costs to ensure them can be high. However, some strategies can help you save on car insurance, even if you have younger drivers in your insurance policy.
I’ll shop for coverage
Comparing quotes from different carriers may be the best way to see which carriers offer the lowest rates for you and your teen drivers. When comparing prices, you can also be aware of the discounts that apply to teenage drivers. While excellent students can save on high GPAs, teens who drive hybrid vehicles may earn green vehicle discounts.
Costs are a concern for many parents of teenage drivers, but proper insurance may also help protect your financial future. According to the Centers for Disease Control (CDC), deaths in a teenage car accident cost around $40.7 billion. I would recommend talking to your insurance agent about increasing liability coverage to restrictions that are far above the minimum state requirements.
Consider usage-based insurance
Some companies offer usage-based insurance or telematics for drivers looking to save on insurance. Usage-based insurance allows insurers to track users’ driving habits through devices connected to cars and mobile apps. Most businesses offer initial discounts on exchanges so that you can track usage and adjust the premium based on your driving habits. Some airlines, like State Farm, offer telematics programs designed for younger drivers. This method may also be a good way to track teenage driving and see if they are responsible behind the wheels.
Choose your car wisely
The type of car you drive can affect car insurance premiums and make a huge difference when insuring teenage drivers. If you’re in the market for new cars for your teen to drive, you might want to consider a used car instead. Used cars may be inexpensive to get insurance, and you may save even more if you don’t need full coverage insurance.
Discuss your teen about your habits
Once a teenager has a license, he has a new responsibility in his daily life. You might want to discuss with your teens how their habits affect them and others. Being a good driver may help you avoid tickets and accidents.
FAQ
Methodology
Using Quadrant Information Services, Bankrate analyzes May 2025 rates for all ZIP codes and carriers in all 50 states, with Washington DC rates being weighted based on population density in each geographical region. The cited fees are based on 40-year-old male and female drivers with clean driving records, good credits and the following full coverage limits:
- $100,000 per person physical injury liability
- $300,000 for each accident
- Liability for property damages of $50,000 per accident
- Uninsured driver physical injury for $100,000 per person
- Uninsured driver’s physical injury for $300,000 per accident
- $500 collision deduction possible
- Comprehensive $500 deduction
To determine the minimum coverage limit, bank rates used minimum coverage to meet the requirements of each state. Our base profile driver owns a 2023 Toyota Camry, commutes five days a week and drives 12,000 miles a year. Bundles and paperless billing discounts apply.
These are sample rates and should be used for comparison purposes only. Your quote is different.
If specified, the base profile has been modified with the following driver characteristics:
