The Truth About Teen Drivers & Auto Insurance Rates

In today’s world, teenagers are masters of all things relating to smartphones, cat videos and eye rolling. However, one skill some teens struggle with is operating a motor vehicle. Yes, it’s about that time when you have to teach your teen to drive. Not only that, but you need to add them to your Auto Insurance policy. Oh, the horror. Because of your teen driver’s inexperience on the road, Auto Insurance companies charge higher insurance rates for them than they do adults. There aren’t many ways you can get around the expensive cost of insuring teen drivers. However, there are some discounts and tricks you can do to offset some of the rate increase. 

Below are a few things you should know about adding a teen driver to your policy.

Auto Insurance WILL Be Expensive for Teen Drivers

For starters, let’s say you’re a typical married couple adding your first teen to your Auto Insurance policy. So, what happens to your rate? According to InsuranceQuotes.com, your total premium will surge by an average of 79%. In other words, a couple who pays $1,000 for six months’ coverage would see that figure skyrocket to $1,790 after adding their teen driver to their policy.

Teen Boys v. Teen Girls

What’s interesting is that it’s worse for boy teen drivers than for girl teen drivers. Statistics show that teen boys are involved in more collisions than their female counterparts. The average 16-year old girl’s inclusion on her parents’ policy raises the combined rate by 67%. However, a boy of the same age added to the family policy typically results in a more drastic 92% increase.

That’s why it’s so important to comparison shop your Auto Insurance rate before adding your teen. It’s a major purchase, which warrants some time and research. To make things easier on your behalf, we can shop around for the lowest rates for you. To get a free Car Insurance quote, call (855) 919-4247 to speak with an Insurance Specialist. They can let you in on how much it will cost to add your 16-year old.

Practice Safety & Keep A Clean Record

teen drivers and mom

One of the most effective ways to keep your premium down once you add your teen to your policy is for them to maintain a clean driving record. This means no traffic violations and no at-fault accidents. How can you accomplish this? A great way is to teach your teenager how to be a safe driver. And guess what? This process actually starts before your teen becomes eligible to drive a car.

There’s a good chance that over the years, you may have developed a few bad driving habits yourself. However, it’s important to change these behaviors so that your teen doesn’t mimic them once they start driving. Most importantly, you should demonstrate safe driving at all times, especially when your teen is in the car with you. To be a good role model, drive safely, properly and cautiously in front of your children. An important habit to instill in your teen is no distracted driving, especially when it comes to cell phone use.

Another great idea is to enroll your teen in a certified driving instruction course. Then, they can learn the appropriate way to drive from an instructor who has experience teaching new drivers. Also, when your teen is practicing these new driving skills in your car, always remain calm and offer constructive advice. It will be more beneficial for them in the long run if you’re not constantly stressed and dictating orders while they’re learning to drive.

Set Clear Boundaries & Rules

Eventually, your teen will begin to drive solo. Before that happens, it’s important to communicate your expectations and boundaries regarding the use of your vehicle or whichever one they’ll be driving. Clearly defining the driving limitations and rules for your teen driver will help ensure there’s no confusion. Discuss topics like curfews, destinations, driving purposes, etc. If you feel it’s necessary, there are numerous smartphone apps and/or technological devices to help monitor teen driving or minimize distractions while they’re behind the wheel.

Never Drive Under the Influence

teen driversIt’s important to talk to your teen driver about driving under the influence of drugs or alcohol. Many parents differ on the appropriateness of alcohol and/or marijuana use for their teens, but the laws in most states are pretty strict concerning minors who drive under the influence. The minimum level of blood alcohol content for adults to be considered intoxicated is 0.08%. But, the minimum level for a teen, or anyone under the age of 21, is between 0.00% and 0.02%.

That basically means that the consumption of a single drink, pill, or joint is enough to make a teen an impaired driver in the eyes of the law. And, the consequences of being convicted of a DUI are substantial. For one, driving under the influence of alcohol or drugs substantially increases the risk of a collision. Also, if your teen is convicted of a DUI, his or her Auto Insurance premium will skyrocket. It will even remain that way for several years until the offense is removed from the teen’s record or he or she turns 25 years old.

So, make sure your teenager knows that their best bet is to not even risk driving under the influence of a substance.

Discounts For Decreasing Teen Auto Insurance Rates

Luckily, there are some steps you and your teen drivers can take to lower your Car Insurance rate.

  • Good Student Discount. You probably already encourage your teen to get good grades. And if they do excel in the classroom, your insurance carrier may reward you with a discount on your premium. This is because statistics show that students with good grades tend to be less risky drivers. Typically, students must prove that they have a B average or higher in high school or college to qualify.
  • Choosing Their Car. If you plan to buy your teen their own car to drive, consider a few things first. Note that the type of car you buy for them will strongly affect your Auto Insurance rate. Car Insurance carriers typically charge less for vehicles that are older, safer and less targeted by thieves. Be sure to check safety ratings, theft reports and vehicle safety discounts when deciding on the car to buy for your teen.
  • Usage-Based Insurance. Some insurance companies offer usage-based Car Insurance. This typically involves installing a device in your teen’s vehicle that records metrics like mileage, speed, braking and acceleration. Your insurer then downloads this data and uses it to help determine how safe your teen is being behind the wheel before adjusting your rate accordingly. If you’re confident in your teen driver’s abilities, choosing this insurance may lower your premium significantly.

Other Ways To Reduce Your Premium

Besides those mentioned above, there are other general tactics many drivers use to reduce their Auto Insurance costs. Some of these options include:

  • Pay annually or bi-annually on your premium for a discount.
  • Bundle your Auto Insurance policy with your Homeowners or Renters Insurance.
  • Raise your deductible to lower your monthly payment. However, make sure your deductible is still one you can afford in case you do get into an accident.
  • Invest in anti-theft devices to qualify for a vehicle safety discount.
  • Choose online “paperless” statements or set up automatic payments for discounts.

Get A Free Auto Insurance Quote

One of the best ways to find the right coverage at the right price is to contact AIS. Our Insurance Specialists will shop rates from multiple top companies to find you a policy that works with your budget. Call (855) 919-4247 today and get a free quote in minutes.


The information in this article is obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here. Such policy will be governed by the language contained therein, and no warranty or appropriateness for a specific purpose is expressed or implied.

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