Adding a teenager to your auto policy can raise your rate by more than 40%. The good news: you and your teen can reduce these hikes significantly in a variety of ways:
Ways to reduce rate increases
- Get good grades. Most insurance companies offer high school or college students with a B average or better a discount of up to 10%.
- Live away from home. Students at college or living at least 100 miles from their parents without a car can usually get a 5%–10% discount.
- Take an additional driving class. Although most insurers don’t give a discount for mandatory driver's ed, some companies will reduce premiums by about 5% for teens who complete follow-up or advanced driving courses.
- Sign a parent-teen driving contract. Your insurer might offer up to a 5% discount if your teen agrees to rules such as no driving at night or no driving with friends in the car.
- Raise your deductible. Bear in mind you’ll have to pay this deductible if your teen driver damages the car; repairing every ding could cost more than you save on premiums.
- Reduce or drop some coverage. If you have an older car, you might not need Comprehensive or Collision coverage. Be cautious about lowering Liability limits and consider keeping Personal Injury Protection (PIP) to help cover medical expenses after an accident.
- Choose a safe vehicle. The higher the safety rating of your car, the lower your premiums—and the safer your teenager will be behind the wheel.
We’d be happy to help you minimize the sticker shock of adding a teen driver. For safe-driving tips and insurance information, see Driving Safety and Insurance Insights. For additional ways to lower premiums, see Ways to Save on Auto Insurance. Or talk to an agent.
Frequently Asked Questions
What discounts are commonly available for teen drivers?
Insurers commonly offer discounts for good grades, completing additional driving courses, limited mileage, or student-away-from-home status, though availability varies by company.
Should I add my teen to my policy or have them buy their own insurance?
Many families find it more cost-effective to add a teen to a parent's policy, but it's a good idea to compare both options with an agent to see which provides the best coverage and price for your situation.
Which coverages are most important to keep when adding a teen?
Maintaining adequate liability limits and medical coverage such as PIP is generally recommended; Comprehensive and Collision can be reviewed based on the car’s value and your financial risk tolerance.