There's nothing more exciting than a teen getting their driver's license. However, car insurance for teens is expensive since they have the highest accident rates among all age groups. Fortunately, there are ways to save money on car insurance for teen drivers.
Learn how to find the best car insurance for teens that is affordable and provides the coverage you need.
Factors Influencing Teen Car Insurance Costs
Insurance companies determine premiums by analyzing a range of factors. Here are the most common ones that affect the cost of insurance for teenage drivers.
Age and Gender
Even though teenagers drive less than most age groups, young drivers ages 16 to 19 are three times more likely to be in a fatal car crash than drivers 20 and over. The danger is especially high for 16-year-old drivers, who have a crash rate about 1.5 times higher than 18- and 19-year-olds for every mile they drive.
Teen males in this age group face even more risk. They're three times more likely to get into a fatal accident than teen girls. It's also riskier when teens drive with their friends in the car. The chance of an accident goes up with each additional teen passenger.
Driving Experience
Teens who just got their licenses have limited driving experience. They have not had enough time to develop good driving habits and skills, making them more prone to accidents. Compared to more experienced drivers, they tend to make more driving mistakes and often underestimate or don't realize when they are in risky situations.
Location and State Requirements
Your teen's age and driving record aren't the only factors impacting your premiums. Where you live also plays a role. Each state has different minimum car insurance requirements. Auto insurance premium quotes will be higher in a state with a higher minimum coverage requirement.
In addition, where you live in your state matters, too. Drivers in large cities have higher insurance rates due to higher accident rates and increased risk of theft compared to rural areas.
Average Costs of Insuring Teen Drivers
In 2023, 16-year-olds paid $584 on average for comprehensive coverage car insurance, the highest annual cost for any age group. In comparison, 21-year-olds only paid $248 for the same insurance. That's about half as much — 16-year-olds paid almost $4,000 more for their car insurance than older drivers.
Strategies To Reduce Teen Car Insurance Costs
While teen car insurance can be expensive, you can take several steps to lower costs.
Good Student Discounts
Look for an insurance company that offers a good student discount to those with a B average in school. Insurers believe that if a student does well in school, they will likely be responsible and less likely to take risks on the road despite being an inexperienced driver.
Defensive Driving Courses
Some insurance companies offer discounts to teens who complete a defensive driving course. These courses focus on safe driving techniques.
Safe Driving Telematics Programs
Telematics use technology to monitor a driver's behavior, such as how fast you go and how often you brake. Insurance companies frequently use telematics to personalize insurance rates. The safer you drive, the lower your premium.
Vehicles with Advanced Safety Features
Many insurance companies offer discounts if your car has safety features such as electronic stability control, airbags, and CAS technology (collision avoidance system). These prevent accidents, leading to fewer and less expensive claims. Driving a car with an anti-theft device can further lower your premiums.
Bundled Insurance Policies
Many insurers offer discounts if you bundle multiple insurance policies, like home and auto insurance. Having all your insurance policies in one place can also be more convenient.
Insurance Discounts for Teens
Many insurance providers offer discounts for teenagers. Here are some common ones to look out for:
- Student away at school discount: College students who do not have regular access to a vehicle may get an insurance discount. To qualify, you must be under 25 and attend a school 100 miles or more from home without a car.
- Safe Driving Discount: Teens who have a clean driving record and can show they are responsible behind the wheel can get a discount. On the other hand, a DUI conviction can raise rates by hundreds or even thousands of dollars annually for up to five years.
- Multi-Policy Discount: This discount may be available when you bundle car insurance with another policy, like home insurance.
- Multi-Car Discount: You can get a discount by insuring more than one car on the same policy. For example, adding a teen to an existing family policy can be more cost-effective.
Promoting Safe Driving Practices for Teens
While these discounts and strategies can reduce costs, the best way to get your teen to drive safely is by setting a good example and promoting safe driving habits. Following these tips can help in reducing both current and future premiums:
- Set Rules: Establish clear rules for driving, like not texting while driving. Limit nighttime driving and the number of passengers allowed in the car.
- Model Safe Behavior: Teens often mimic their parents' habits. Show them the importance of buckling up, adhering to speed limits, and avoiding aggressive driving.
- Monitor Driving: Regularly discuss driving experiences and provide constructive feedback to help teens improve their skills.
Compare Quotes & Insure Your Teen's Car
Finding cheap car insurance for teens is simple with EverQuote. You can use EverQuote's free comparison tool to compare rates and find affordable car insurance. Start saving on your teen's car insurance today by comparing personalized insurance options — it's fast, free, and only takes a few minutes!