Learning Center

Combat Increased Premiums for Teen Drivers


Adding a teenager to your insurance policy can result in a premium spike of up to 200 percent!  A teens lack of driving experience combined with their less mature mindset translates into an increased liability in the eyes of auto insurers.  Stopping your teen from getting behind the wheel until he or she turns 25 is impractical, but using insurance discounts to your advantage is a good alternative to keeping the insurance premium down.

Driver’s Education Classes

Many high schools offer driver’s education classes for teens, and completion of a course can result in a 5 to 15 percent discount on most auto insurance policies. The programs offer a combination of in-class and supervised on-road training.  Besides the obvious benefit of discounts, taking a class may help your teen feel more comfortable when he or she gets behind the wheel.

Academic Performance

Just as credit scores are used by insurers to determine adult responsibility, academic scores are insurers’ way of gauging how responsible a teen is.  Although classroom performance isn’t really a true indicator of driving ability, insurers operate under the assumption that kids who do well in school will become responsible adults who are better future risks.  Many insurers offer a sizeable discount for students who maintain an A or B average.  On the home front, restriction of driving privileges can be used to motivate good grades, ensuring that you continue to receive discounts. 

Vehicle Options

Families with multiple vehicles should keep in mind which car the teen will be driving, and make sure that the policy accurately reflects the choice.  Insurance companies are in the business of making money, and if no vehicle is specified for a teen, the insurer often links the teen to the vehicle that is most expensive to insure.  You may want to consider purchasing a used, older model car for your teen to drive because it will be less expensive to insure than any of the family’s newer cars.

Shop Around

Insuring a teen will always be expensive, but it is usually less expensive for a child to join the parents’ auto insurance policy.  Get quotes from other companies to see if there is financial benefit to making a switch for the whole family.  Also check out some quotes for policies just for your teen.  Depending on the type of vehicle and your residential location, a solo policy can sometimes work in your favor. 





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