How to pick the right car insurance for your teen driver
Adding a teen driver to your insurance typically means taking on a much higher premium. But while saving on insurance with a teen driver is an understandable priority for many families, the right insurance for teens doesn’t always come cheap. High liability limits, defensive driving practice and reliable customer service may be as important for your teen’s car insurance as finding a low premium.
Key takeaways
- Teen drivers’ high risk of accidents can increase your insurance premiums as well as your coverage needs.
- Comparing quotes, customer service ratings, coverage options and discounts may help you choose the right auto insurance company for you and your teen driver.
- Insuring a teen driver can be expensive, but maintaining a clean driving record and choosing your vehicle wisely may help keep your rates affordable.
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How to insure your teen driver
Finding the right car insurance for a teen driver can feel like an impossible balancing act. On the one hand, the premium increases associated with insuring a teen driver have most families scrambling for savings — but the cheapest policy isn’t always the best, particularly with an inexperienced driver in the household. As you’re reviewing car insurance quotes for your teen driver, keep the following in mind:
- New drivers have a high risk of accidents: Most people purchase insurance hoping they won’t use it — but with an inexperienced driver on your policy, you should be prepared to use your coverage in the event of an accident. Collision coverage may be a sound investment with a teen driver on your policy.
- Customer service matters: Good customer service is always a plus, but for families with teen drivers, it can make the difference between a positive and negative insurance experience. Because you’re more likely to file a claim with a teen on your policy, look out for carriers with a reputation for reliable service and claims handling.
- Delaying licensing could save you money — or prolong the inevitable: If your state rates driver risk directly based on age, having your teen wait a year or two to earn their license could help you avoid the highest rates associated with 16- and 17-year-old drivers. But in some states, years of driving experience determine the surcharge for young drivers, meaning that you’ll pay extra for the first few years no matter the new driver’s age. You should understand how your state rates insurance policies ahead of time to make the best decision for your situation.
- Your discount eligibility may shift: If you’ve been saving on your insurance with programs like accident-free discounts or bundled home and auto policies, you may find that adding a teen driver makes those discounts less favorable — but you may also be eligible for new discounts, such as a lower rate if your teen gets good grades.
- High rates are a temporary challenge: Insurers charge higher premiums for teen drivers because they’re inexperienced, so building experience and spending time on the road will eventually move your teen into a more low-risk category. Approaching your teen’s insurance needs as a short-term financial challenge may help you adjust your finances to fit your family’s new situation.
How real families found the right insurance for their teen drivers
To get insight into how real families approach the challenge of finding affordable car insurance with teens, Bankrate’s insurance editorial team turned to Reddit. In a post made on March 4, 2025, a Reddit user asked members of the r/Insurance subreddit to share their advice for insuring teen drivers after receiving a renewal quote from their current insurer for four times their original premium.
“I can get a better rate at other companies,” user gutowscr wrote, “but other insurance companies will not insure my home because my roof is over 10 years old (even though I have a 50 year warranty roof) so I lose the combined discounts. Insurance is beginning to seem like a mob racket rather than true insurance.
“Any suggestions for adding a new teen driver or just pay the price?”
Reddit user review
Reddit user review
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Should I add my teen driver to my insurance policy?
Once your teen has a valid driver’s license, they must be added to your insurance policy. All licensed drivers in your household, regardless of age and driving frequency, must be listed on your policy. If you fail to add your child to your insurance, your insurer may add them to the policy on your behalf — or, if your child is in an accident, you may find your claims denied.
In most cases, your teen won’t have the option to purchase their own insurance until they turn 18 and can enter a binding legal contract. Even then, most families find that keeping teen drivers on a family policy saves money overall, even if the teen is responsible for paying their own portion of the premium.
What should I look for in a carrier when I have a teen driver?
Finding cheap car insurance for your teen driver may be top of mind when you see what it could cost to add them to your insurance policy. However, there are other considerations you may want to take into account when choosing the right carrier for your family. Some things to potentially consider include:
- Available coverage options: What coverage types do you want for your teen driver? You may want to add roadside assistance coverage for extra peace of mind while your teen is on the road. If you’re worried about keeping your rates affordable, you might consider accident forgiveness coverage.
- Discounts for teens: Given how expensive it may be to insure a teen driver, many carriers offer discounts geared toward young drivers. Savings may be available for maintaining a high GPA, taking a defensive driving course or enrolling in a usage-based telematics program.
- Customer service and financial strength: Adding a teen driver to your insurance may be a great opportunity to evaluate your satisfaction with your current carrier. Reviewing third-party customer satisfaction scores and financial strength ratings may indicate how easy it could be to manage your policy and file a claim with a company.
| Carrier | Best for | Avg. monthly full coverage premium |
|---|---|---|
| Nationwide | Usage-based insurance | $325 |
| Auto-Owners | Local agents | $369 |
| AAA | Roadside assistance | $374 |
| Geico | High-risk coverage | $388 |
| Progressive | Accident forgiveness | $387 |
| *Rates are for a 16-year-old driver added to their parents’ policy. |
Finding the best car insurance company for your family may mean switching insurance providers. If you’re having trouble choosing the right carrier after comparing quotes, speaking with an insurance broker who works with several insurance providers may help.
Why is car insurance for teens more expensive?
Teen drivers are among the most expensive to insure because their inexperience behind the wheel makes them more likely to engage in risky driving behavior and less likely to take action to prevent an accident. While the national average cost of car insurance is $2,692 per year for full coverage as of March 2025, the average annual cost to insure a 16-year-old driver on their parents’ full coverage policy is $5,768. As your teen gains experience behind the wheel and gets older, their rates 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 also influence the price teens pay for car insurance. Statistics show that females engage in less risky driving behavior than males, which may result in slightly lower premiums. For example, the average cost of a full coverage car insurance policy that includes a 19-year-old female as a listed driver is $4,179 per year. The same policy for a 19-year-old male driver is $4,549 per year — $370 more. This does not hold true in every situation or state. Hawaii and Massachusetts do not allow for age as a rating factor, and California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania do not allow for the use of gender.
How to save on teenage car insurance
When you have a teen driver, the increased cost to insure them can be high. However, some strategies may help you save on your auto insurance, even if you have a young driver on your policy.
Shop around for coverage
Comparing quotes from different carriers is likely the best way to see which carrier offers the lowest rates for you and your teen driver. When comparing rates, you may also want to keep an eye out for discounts that may apply to your teen driver. Good students may save for having a high GPA, while teens who drive hybrid cars may earn a green vehicle discount.
Cost is a concern for many parents of teen drivers, but the right insurance may also help protect your financial future. According to the Centers for Disease Control (CDC), the cost of motor vehicle crash deaths among teens is about $40.7 billion. You may want to talk to your insurance agent about increasing your liability coverage to limits well above the state minimum requirements.
Consider usage-based insurance
Some companies offer usage-based insurance, or telematics, for drivers looking to save on insurance. With usage-based insurance, the insurance company tracks the user’s driving habits through a device plugged into the car or a mobile app. Most companies offer an initial discount in exchange allowing them to track usage and then adjust your premium based on driving habits. Some carriers, like State Farm, even offer telematics programs designed for young drivers. This method may also be a good way for you to track your teen’s driving to see if they are responsible behind the wheel.
Choose your car wisely
The type of car you drive has an effect on your car insurance premium and may make a significant difference when insuring a teen driver. If you are in the market for a new car for your teen to drive, you might want to consider a used car instead. Used cars may be cheaper to insure, and you may be able to save even more if you don’t need full coverage insurance.
Discuss habits with your teen
When teens get their licenses, they have a new set of responsibilities in their day-to-day life. You may want to discuss with your teen how their habits can affect them and others. Being a good driver may help them avoid tickets and accidents, which helps keep everyone safe on the road and likely allows you to maintain more affordable coverage.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze May 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually. Bundling and paperless billing discounts are applied.
These are sample rates and should only be used for comparative purposes. Your quotes will differ.
If otherwise specified, the base profile has been modified with the following driver characteristics:
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