Orlando Harmon
Adding a teenage driver to your insurance policy is likely to increase your premiums. The exact amount by which your insurance will increase depends on several factors, including the age and gender of the driver, their driving history, and the type of vehicle they drive. Male teens are at a greater risk of being involved in accidents than female teens, and thus cost more to insure. However, there are ways to mitigate the cost of adding a teen driver to your insurance, such as taking advantage of discounts for students, good grades, and driver training courses.
| Characteristics | Values |
|---|---|
| Average annual cost of adding a teen driver to insurance | $1000 to $2000+; can be as high as $3500 or more |
| Average annual cost of adding a 16-year-old driver | $4050 |
| Average annual cost of adding an 18-year-old driver | $2450 |
| Average premium for a 16-year-old | $2661 |
| Average premium for a 21-year-old | $916 |
| Average increase in premium after adding a teenager | $221 per month |
| Average increase in premium after adding two teenagers | $1500 per 6 months |
| Discounts available for | Good grades, completion of driving courses, enrolling in programs like TeenSmart, having a clean record, low mileage, driving under monitoring, driving inexpensive/older/safe vehicles, multi-vehicle insurance, student-away insurance, family plan insurance |
| Cost-saving measures | Increasing deductible, dropping comprehensive coverage, buying liability insurance, buying insurance from the same company as parents |
| Gender differences | Male teens are at a greater risk of accidents and cost 10% more to insure than female teens |
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What You'll Learn
Adding a teen driver to an existing policy
According to Clovered.com, adding a teenager to car insurance can cost $1,000 to $2,000+, with premiums going up by hundreds each month while the driver is under 20. The cost of adding a teen driver to an existing policy can also depend on the insurance company and the state where the policy is being taken out. For example, the average premium for a 16-year-old is $2,661, which can increase the insurance cost by $221 per month. CarInsurance.com estimates the average annual rate to be $4,050 for a 16-year-old, $3,740 for a 17-year-old, and $3,478 for an 18-year-old.
While adding a teen driver to an existing policy can be expensive, it is usually a more cost-effective option than taking out a separate policy for the teen driver. Insurers consider young drivers to be high-risk due to their lack of driving experience, and as a result, separate policies for young drivers tend to be extremely expensive. Additionally, having two different insurance policies in one household may lead to billing complications and the loss of a multi-car discount.
There are several ways to save money when adding a teen driver to an existing policy. One way is to take advantage of discounts offered by insurance companies. Many insurers offer discounts for good grades, with proof of a B average or better required to obtain the discount. Insurers may also offer discounts if the teen driver completes a driving course or a program like TeenSmart. Some companies also offer discounts for students who attend college more than 100 miles away from home and do not take a car with them. Other ways to save money include increasing the deductible to lower premiums, and choosing a car with good safety ratings or an older, inexpensive car.
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Discounts for students and teen drivers
Adding a teen driver to your insurance policy can be expensive, but there are several discounts available that can help lower the cost. Here are some ways to save on car insurance for teen and student drivers:
Family Plan Discount
Many insurance companies offer discounts to young drivers who obtain their own insurance plan with their parents' insurer. This is often referred to as a family plan discount. By adding a teen driver to an existing policy, parents can take advantage of the potential savings offered by insurers.
Student-Away Discount
If your teen goes away to college and doesn't take a car, you may be eligible for a student-away discount. This discount is typically offered when the college is located more than 100 miles from the student's primary residence. The discount can range from 5% to 35%, depending on the insurance provider.
Good Grades Discount
Some insurance companies offer discounts to teen and student drivers who maintain good grades. This is often referred to as a good student discount. To qualify, students may need to submit a copy of their report card showing a GPA of 3.0 or higher.
Driver Training Discount
Completing a driver's education course can also lead to insurance discounts. Many insurers offer discounts for teens and students who complete approved driver training programs. These discounts can range from 5% to 15% or even up to 10% in some cases.
Low-Mileage Discount
Insurance companies may offer discounts for vehicles that are driven less than a certain number of miles per year. This is known as a low-mileage discount. By driving fewer miles, teen and student drivers can help lower the cost of insurance.
Safety Features and Vehicle Choice
The choice of vehicle can also impact insurance costs. Generally, older cars may have lower insurance rates, but they may lack modern safety features. Insurance companies often offer discounts for vehicles with advanced safety features, as they can help protect teen drivers better in the event of an accident. Additionally, fuel-efficient cars may also be eligible for discounts with some insurance providers.
While adding a teen driver to an insurance policy can be costly, taking advantage of these discounts and shopping around for the best rates can help mitigate the expense. It's always a good idea to speak with an insurance agent to explore all the available options and find the most suitable plan for teen and student drivers.
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Male teens cost more to insure
Adding a teenage driver to your insurance policy can be expensive, with premiums increasing by 50% to 100%, or hundreds of dollars each month. The exact cost depends on various factors, such as the age of the driver, their ZIP code, driving history, and vehicle type. Male teens, in particular, can cost significantly more to insure than their female counterparts.
According to statistics, young male drivers are at a much greater risk of being involved in accidents than young female drivers. The Centers for Disease Control and Prevention notes that fatal crash rates for boys aged 16-19 are three times higher than for females in the same age group. As a result, the cost of insuring young male drivers is about 10% higher than that of young female drivers.
There are several reasons why male teens are considered higher-risk drivers. One factor is the tendency for young males to engage in risk-taking behaviours, such as speeding, tailgating, and not wearing seatbelts. Additionally, male teens have higher rates of aggressive driving, which can increase the likelihood of accidents and violations. However, it's important to note that as males mature behind the wheel, their rates will decrease, and by the time they reach their 30s, their car insurance rates will be comparable to those of females.
While adding a male teen driver to your insurance policy can be costly, there are ways to mitigate the expense. Many insurance companies offer discounts for young drivers who maintain good grades, complete driving courses, or demonstrate safe driving habits through telematics programs. Additionally, choosing a vehicle with more safety features or opting for liability-only coverage can help reduce insurance costs.
It's worth noting that the cost of insuring a teen driver gradually becomes more affordable over time. As teens gain driving experience and maintain a clean record, their rates will typically decrease. By encouraging safe driving practices and taking advantage of available discounts, parents can help offset the high costs of insuring male teen drivers.
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Cheaper vehicles equal cheaper insurance
Adding a teen driver to your insurance policy can be expensive, but there are ways to save money. One way to do this is to choose a cheaper vehicle, as the cost of insurance is often related to the value of the car.
Cheaper vehicles are generally less costly to repair or replace, and they may also cause less damage to other drivers' vehicles in an accident. This means that insurance companies will often offer lower rates for these cars, as they will pay out less in the event of a claim. For example, the Honda CR-V, Jeep Wrangler Sport and Subaru Crosstrek are among the least expensive cars to insure.
However, it's important to note that the vehicle itself is not the only factor that determines insurance rates. Other factors, such as safety features, repair costs, driver age, driving history, and location, can also play a significant role. For instance, older cars may be cheaper to insure if they have higher safety ratings, but newer cars with advanced safety features may be cheaper to insure under liability coverage. Additionally, male teens have higher insurance rates than female teens of the same age, but these rates decrease as they get older and become less aggressive drivers.
To find the best rates, it's recommended to compare insurance rates for different vehicles and take advantage of discounts offered by insurance companies. For example, many insurers offer discounts for young drivers who obtain insurance plans with their parents' insurer, good grades, and driver training courses. By considering all these factors, parents of teen drivers can find ways to mitigate the increased cost of adding a teen driver to their insurance policy.
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Teen driver monitoring programs
Adding a teenage driver to your insurance policy typically leads to a significant increase in premiums. However, some insurance companies offer monitoring programs that can help reduce these costs. These programs use telematics or smartphone apps to track and monitor a teen's driving habits, providing feedback and notifications to parents and insurers. Here are some examples of such programs:
Insurance Company Programs
- Lemonade is a tech-focused insurance company that bases its premiums on driving behaviour. Its telematics app includes emergency crash assistance and safe drivers can qualify for premiums as low as $30 per month for liability-only coverage. However, it is only available in a few US states.
- Progressive's Snapshot tool is a well-known telematics program that has issued over $1.2 billion in discounts. It rewards good drivers based on their driving behaviour.
- Amica offers personalized support and protection for teen drivers, including monitoring devices and apps. They also offer reduced premiums for teens who complete approved safe driving courses.
Standalone Apps
- Canary is a free app that notifies parents if their teen speeds, drives after curfew, travels beyond set boundaries, or disables the program.
- MamaBear is a basic free app that notifies parents of a teen's departure and arrival time and whether the car is driven faster than a certain speed. The ad-free version offers additional services such as tracking where the car was driven each day.
- Star Driver by Allstate is a free mobile app that helps teach teens good driving behaviours. It rewards good driving behaviours with points and badges and sends text alerts to parents if teens go outside pre-set parameters.
- AutoCoach is a driving tracker app that teaches teen drivers the rules of the road. It also offers interactive lessons and a feature to log skills, helping parents monitor their teen's driving.
- DriveSmart reduces distractions by sending calls straight to voicemail and providing automated responses to texts. It also detects motion and starts when the teen starts driving.
- Know Your Drive is a best-selling app published by American Family Insurance.
- Life360 is a popular family tracking app that offers comprehensive features for monitoring teen drivers, including real-time location tracking, driving reports, safety alerts, and crash detection.
- TrueMotion Family is a mobile app that tracks driving behaviour using the smartphone's sensors, providing real-time location tracking and driving behaviour alerts.
- Hum by Verizon is a connected car system with a diagnostic reader that plugs into the car's OBD-II port. It provides robust tracking and safety features, including alerts for speeding and hard braking.
- Bouncie is a GPS vehicle tracker that provides detailed driving reports and real-time tracking by plugging into the OBD-II port and sending data to a mobile app.
- MotoSafety offers real-time GPS tracking, driving behaviour alerts, and a report card feature that grades driving performance. It also includes geofencing and curfew alerts.
Built-in Vehicle Technologies
- Ford's MyKey system lets parents program a second key that communicates specific restrictions to the vehicle, such as limiting audio volume and setting speed limits.
- Chevrolet's Teen Driver Technology includes features like muting the audio until seatbelts are fastened and providing in-vehicle report cards on driving behaviour.
- Hyundai's BlueLink is an embedded telematics system that offers safety and remote functions, as well as parent-friendly options like setting speed limits and establishing boundaries.
These teen driver monitoring programs can provide peace of mind for parents and potentially save money on insurance costs. However, it's important to discuss the use of these programs with your teen to establish trust and promote safer driving habits together.
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Frequently asked questions
Adding a teen driver to your insurance can raise your premiums by 50% to 100%, or hundreds of dollars each month while the driver is under 20. The exact amount depends on factors such as the driver's age, their ZIP code, driving history, and vehicle type.
Teenagers are the most costly group to insure because they are the least experienced and most accident-prone demographic of drivers. Young male drivers are at a much greater risk of being involved in an accident than young female drivers, with fatal crash rates for boys aged 16-19 being three times as high as for females of the same age.
Yes, there are several discounts that can be applied to insurance policies for teen drivers. These include good student discounts, multi-vehicle discounts, family plan discounts, and driver training discounts.
You must add a new driver to your policy as soon as they are licensed. Some companies require that you add a driver when they get their permit. While there may be a grace period of up to 60 days to add a new driver, your insurance company can and will backdate the rate increase to when your teen was licensed.
In most cases, it is cheaper to add a teen driver to your existing policy than for them to get their own policy.
