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When it comes to car insurance for teens, there are many factors that go into determining the cost of your policy. Find out how much auto insurance is for young drivers, how to get discounts and which companies offer the best car insurance for teen drivers.

Car insurance for teens

When it comes to teen drivers and car insurance, things get confusing -- and expensive -- quickly.

A parent adding a 17-year-old driver to their policy can expect to see a rate increase of $4,009 for full coverage. It's even higher if the teen has their own policy. The average cost of car insurance for a 17-year-old is about $5,924 -- and it can be even more, depending on the state.

Now, that we've reviewed those sobering facts, let's guide you through your auto insurance buying. We'll look at discounts, options and special circumstances -- so you can find the best car insurance for teens.

Even though the right answer is usually to add a teen onto your policy to mitigate some of the cost, there are other options and discounts that can save money. We did as much of the legwork as possible for you, hunting down discounts and reading the fine print. In the end, you'll need to compare auto insurance quotes using our quote comparison tool to see which company is best for you.

KEY TAKEAWAYS
  • According to the federal Centers for Disease Control and Prevention, the worst age for accidents is 16.
  • If the student plans to leave a car at home and the college is more than 100 miles away, the college student could qualify for a "resident student" discount or a student "away" discount.
  • It's possible to tell your insurance company not to cover your teen, but it's not a given. This is called a named exclusion.

How much is car insurance for teens?

Like we've said, teen car insurance is expensive. The younger the driver, the more expensive the car insurance. Young drivers are far more likely to get into car accidents than older drivers. The risk is highest with 16-year-olds, who have a crash rate twice as high as 18- and 19-year-olds. That risk is reflected in the average car insurance rates for teenagers:

Rates not only depend on age, but the company you choose. This table shows the annual car insurance rates for teen drivers.

Car Insurance Rates for Teens
CompanyFemaleMaleAverage
Geico$3,233$3,586$3,410
Farmers$6,630$6,999$6,815
State Farm$3,297$3,952$3,625
Progressive$5,934$6,542$6,238
Mercury$7,373$8,844$8,109
AAA$6,684$8,195$7,440
Average$5,525$6,353$5,940

Car insurance for teens

All 50 states and the District of Columbia now have a Graduated Driver's License (GDL) system, according to the Insurance Institute for Highway Safety (IIHS). GDL programs save lives. Between 1996 (when the first GDL program was introduced) and 2020, accident deaths among young adults declined by 53% in the U.S.

Adding a teenager to your car insurance policy

Adding a teenager to your car insurance policy is the cheapest way to get your teen insured. It still comes with a hefty cost, but you can certainly save if you choose the best car insurance companies for teens. We can help.

How to add teen to a policy

How much does it cost to add a teenager to car insurance?

Teens crash at a much higher rate than older drivers. The risk is four times as much. According to the federal Centers for Disease Control and Prevention, the worst age for accidents is 16. They have a crash rate twice as high as drivers that are 18- and 19-year-olds.

Costs vary by insurance company, which is the reason we suggest shopping for teen driver insurance. It's easy to switch car insurance companies.

The table shows the average cost of car insurance some insurers charge when adding a teenager to an existing car insurance policy.

Average Cost to Add a Teenager to Car Insurance
CompanyAdding Teen FemaleAdding Teen MaleParents Policy
Allstate$3,755$4,069$2,310
Geico$2,385$2,519$1,264
Farmers Group$5,169$5,469$2,708
Nationwide$2,317$2,445$1,538
Progressive$3,576$3,842$1,913
State Farm$2,808$3,110$1,671

How to add a teen to your policy

If you're choosing a new car insurance company, you should have already added the teen to the policy when first signing up. If you want to add a teen to your current or new policy, follow these steps:

A quote about car insurance and teens

  1. Call your car insurance company, if they haven't already contacted you.
  2. Talk through the changes to your policy in detail, minimum and maximum coverage and insist on hearing the ins and outs of each and every discount. These can add up to considerable savings. If you are also adding an additional car, be sure to ask about a multi-car discount.
  3. Have ready your teen's driver's license information and information about any new vehicles.
  4. Take the time you need to decide. Just make sure your teen isn't driving on a full license without being formally added to your policy or their own. That would be risky.

If my teen gets a ticket, will it raise my rates?

Yes. Once together on the same policy, all driving records -- including your teen's -- affect premiums, for better or worse. You share in the discounts, and you shall also share in the risk. To understand how a moving violation will affect your rates, we ran a study and found that the additional cost could run from 5% to as high as 20%.

Can a teenager get their own car insurance policy?

Yes. Companies will sell directly to teens. However, state laws vary when it comes to a teen's ability to sign for insurance. That means a parent may have to co-sign -- and it's rarely cheaper. In fact, your teen will likely have a higher premium compared to adding a teen to a parent or guardian policy.

However, there are cases where it might make sense for a teen to have their own policy. Progressive cites two:

  • You have a luxury sports car. In this case, all drivers in your household are covered under your policy.
  • The teen is eager to be financially independent.

Car insurance is different for a first-time car insurance buyer, but it's a great time to start a relationship with an insurance provider.

How to save on teenage car insurance

Teens pay more for car insurance than adult drivers because insurance providers consider them high-risk. But there are ways teen drivers can save on their car insurance premiums. Teens can take advantage of the following ways to save on auto insurance-

  • Raise your deductible. An easy way to lower car insurance premiums is to raise your deductible. However, weigh against the fact that young drivers are more likely to get into accidents. When you get into an at-fault accident, you have to pay the deductible amount. Increasing your deductible from $500 to $1,000 will reduce your annual premium by approximately $400. You can also drop comprehensive and collision coverage if the car isn't financed and not worth much. Use our auto insurance coverage calculator to find out what coverage people "like you" have.
  • Skip the red Mustang. A car with a high safety rating will be cheaper to insure. Use Insurance.com's list of car models to find the cheapest cars to insure. This mostly has to do with the car's cost, how easy it is to repair and claim records.
  • Delay getting a license. This isn't really a popular option for an eager teen driver, but it's worth considering. An older teen driver is significantly cheaper to insure if you compare the average rates for a 16-year-old and a 19-year-old. However, you should also understand the insurer still charges higher rates for the first few years of the license.

Another way to minimize your insurance premium is to avail yourself of the discounts available. Some of them are mentioned below

Discounts for teen drivers

We've identified the best discounts for teen drivers to get affordable car insurance. Most car insurance companies won't reach out to you with discounts, so you must be proactive. Ask and ask again, insisting on as many discounts as you possibly qualify. Discounts can only be stacked up to a certain point though.

  • Good student discount. A popular discount is tied to doing well in school. This usually translates as a "B" average (3.0-grade point average) or higher. Age limits do exist; typically, the student must be under the age of 25. How much will you save? Our research shows you can get an average of 16% for the discount.
  • Defensive driving discount. You can take extra driver education or a defensive driving course. This means going above and beyond the minimum state-mandated drivers' education and training. In most states, teen drivers can save around 5% on their premium by taking a state-approved driver improvement class. Online classes are a convenient option but check with your carrier first to make sure it will lead to a discount.
  • Student "away" discount. Most car insurance companies offer a student "away" discount for students who are away at college or living away from home during high school. You could receive a discount of around 18% if the teen can claim this discount.
  • Good driver discount. Keep a clean record and you can receive a discount. This means you don't get into any accidents or violations.
  • Low-mileage discounts. Pay-as-you-drive pay-per-mile insurance can offer a small discount. Several car insurance companies offer discounts if you allow a telematics device to be placed in your vehicle so they can monitor your driving habits. This is considered "pay-as-you-drive." This can provide a discount of around 6%. With pay-per-mile, you'll pay for the distance you drive, rather than driving patterns. Both discounts are great for teens or families that don't drive very often.
  • Look for unrelated discounts. Review discounts unrelated to teens like a multiple vehicle discount and a home and auto bundle discount for additional savings.

Car insurance for college students

College students can follow the same guidance that is given to teens. There is potential to save. If the student plans to leave a car at home and the college is more than 100 miles away, the college student could qualify for a "resident student" discount or a student "away" discount, as mentioned above.

Also, do well in school. That could lead to a good student discount. Both discounts will require you to contact your insurance provider so they can begin to apply the discounts. While you're on the phone with them, don't hesitate to ask about other potential discounts.

Learner's permit insurance

You can get insurance with a permit, but most car insurance companies include the permitted teen on the parents' policy without any action.

However, the teen should be added to the parent's policy or get their own policy when he or she receives a driver's license. When that time comes, be sure to visit the rest of this article for guidance on options and discounts. Also, it may be wise to contact your insurance provider for all options available to you.

Opt for no coverage savings option

It's possible to tell your insurance company not to cover your teen, but it's not a given. This is called a named exclusion.

Through an endorsement to your policy, you and your insurance company mutually agree that the driver isn't covered, which means neither is any accident the driver causes. Not all companies allow this, and not all states do either.

Adding a teen driver cheat sheet

  1. Talk to your carrier as soon as your teen gets a driver's license.
  2. Compare multiple car insurance quotes using Insurance.com.
  3. Consider all coverage options. Think about raising your deductible.
  4. Seek out and stack as many discounts as possible.
  5. Talk to your teen early and often about safety.
  6. Insist they drive a safe car.

Things to consider before choosing a car insurance company for your teen

  1. Know your timing. Chances are that your car insurance company will contact you. How does the company know? It probably asked you for the names and birthdays of all the children in your home when you first signed up for your policy. So, if your teenager is 16 or 17 now, the company knows all about it. If you don't get the call, alert your carrier once your teen gets a learner's permit to talk through your options and to give yourself time to compare car insurance companies. In general, permitted drivers are automatically covered as a part of the parent or guardian's policy with no action needed on your part. However, when they do have a true driver's license, even provisional, they will need to be on your policy or get their own.
  2. Get ready to compare quotes. Our research shows that insurance companies across the U.S. (except Hawaii) use age and experience as a rating factor. In our studies, adding a teen raises your car insurance costs anywhere from 100% to more than 200%. However, the rates that insurance companies charge you for adding a teen vary, as shown in California adding a teen to your policy
  3. Understand available discounts. When you add a teenager to your car insurance policy or they get their own, car insurance companies don't actively communicate what discounts are available to you. Use our discount guide below so you're not in the dark.

Frequently asked questions about teenage insurance

Do you have to add a teenage driver to your insurance?

Yes, you'll have to add your teenager to your car insurance policy if they live with you and drive your car. Some states will require you to add your teen driver as an additional insured person when they get their learner's permit.

What is the cheapest way to get car insurance for a teenager?

The cheapest way to get car insurance for a teenager is by adding them to your own insurance policy. It is not advised to buy a teen their own insurance because it can be very expensive. Insurance companies charge teens more for auto coverage than adults because they believe drivers under 25 have a higher chance of causing accidents.

Should I add my 16-year-old to car insurance?

Most states require you to add your 16-year-old teen to your car insurance as soon as they get their license. It is mandatory in some states, and many insurance companies also require it. Even if it is not mandatory, it's always a good idea to make sure you're covered by car insurance.

How to get car insurance for a teenager?

It is possible for a teenager to get car insurance with a permit, but most insurance providers will include the permitted teen on their parent’s policy without any other formalities. Teenagers should get car insurance after they receive their driving permit to stay protected in the event of an accident.

How much does it cost to add a 17-year-old to car insurance?

The average car insurance cost for a 17-year-old for full coverage is $5,924 a year. Your auto insurance rate will depend on where you live, the coverage level you choose, the make and model of your car, among other factors.

Methodology

Data was provided for Insurance.com by Quadrant Information Services. Rates are based on a 2022 Honda Accord for a full-coverage policy (100/300/50 liability, plus comprehensive and collision insurance, and a $500 deductible).

--with additional reporting by Michelle Megna

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