When considering the financial implications of insuring a teenage driver, it is important to recognize that the cost is typically higher compared to insuring older, more seasoned drivers. This difference arises primarily because young drivers, due to their lack of experience, present a higher risk on the road.
Insurance companies generally impose higher premiums for teen drivers because they are inexperienced and thus pose a greater risk of accidents. Statistics show that drivers aged 16 to 19 have the highest accident rates among all age groups in the United States. Consequently, auto insurers charge more to provide coverage for them.
For families with teenage or young drivers, the most advantageous car insurance strategy often involves integrating the young driver into a parent’s or guardian’s policy. This approach is usually more cost-effective than purchasing a separate policy for the young driver. The rationale behind this is the elevated risk associated with insuring young drivers, attributed to their limited driving experience and increased propensity for accidents and reckless driving.
How Much Is Car Insurance for Teens?
Adding a teenager to a two-adult car insurance policy significantly increases the cost, often more than doubling the premium. According to NerdWallet’s analysis, the average annual expense for incorporating a 16-year-old driver into a full coverage policy for two parents or guardians is approximately $3,824.
Why Teenage Car Insurance is Expensive
Teen drivers are significantly more likely to be involved in car accidents compared to older drivers. Data from the Insurance Institute for Highway Safety indicates that, per mile driven, teens are four times more likely to crash than drivers aged 20 and older. The Centers for Disease Control and Prevention also highlights that car accidents are the leading cause of death among teenagers in the United States.
Teen Driver Car Insurance Costs
This table shows the average yearly insurance cost for adding a teenage driver to a policy with two adult drivers. We compared costs based on whether the teen has their own older car or shares a family car.
| Age of Teen Driver | Annual full coverage for male | Annual full coverage for female |
| 16 | $4,584 | $4,201 |
| 17 | $4,285 | $3,919 |
| 18 | $6,541 | $5,679 |
The best car insurance for Teens
The best car insurance option for a teen or young driver is usually to add them to a parent’s or guardian’s policy. This is often more affordable than getting a separate policy for the young driver. Young drivers are considered high-risk due to their limited driving experience and a higher chance of reckless driving and accidents.
Adding a young driver to your policy can also help you qualify for more discounts. Many insurers offer savings for covering multiple cars under the same policy. Additional discounts might be available if your teen is a good student or demonstrates safe driving habits.
However, in some cases, adding a teen or young driver to an existing policy may not be the cheapest option. For instance, if you own an expensive sports car that the teen will not drive, it might be more cost-effective to get them their own policy.
Car Insurance for Teens Based on Gender
Young women often face high car insurance costs, but young men typically experience the highest rates even with clean driving records. This is because young men are inexperienced and lack a driving history for insurers to assess.
When insurers can’t reference a driving record to set rates, they use statistics to evaluate risk. Newly licensed teens get high quotes because their peers tend to file many claims or expensive ones.
Male teenagers are involved in crashes more frequently than any other group.
| Gender | 16-year-old | 17-year-old |
| Female | $7,203 | $6,095 |
| Male | $8,161 | $6,918 |
How to Save on Car Insurance for Teens
The best way to save on car insurance for teens is to add them to a parent or guardian’s policy instead of getting their own. Also, compare quotes from multiple insurance companies to find the best rate.
When looking for car insurance, consider these discounts:
- Good Grade Discount: Some insurers offer discounts for students with a high GPA or straight A’s.
- Defensive Driving Discount: Completing a defensive driving course can sometimes lead to a discount.
- Tracked Driving Behavior Programs: Enrolling in programs that monitor driving behaviour can help reduce rates.
- Student Away-at-School Discount: If your teen goes to school away from home, they might qualify for this discount.
It is also cheaper for a teen to share a car with a parent or guardian rather than having their own. This not only saves the cost of an additional vehicle but also reduces the overall insurance premium.
Frequently Asked Questions
How can I find affordable car insurance for my Teenager?
Many parents are concerned about the cost of car insurance for their teenage drivers. Here’s
Get quotes from several different insurance companies. This will help you identify the most competitive teen coverage rates.
What is the Best Car Insurance for Teen Drivers?
The best car insurance for teens largely depends on their unique needs.
Why is Car Insurance for Teenagers very expensive?
Teenage drivers are more likely to drive recklessly compared to older drivers. They tend to engage in risky driving behaviours like distracted driving and not obeying traffic rules.
