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Published: May 2, 2022Last updated: October 17, 2022

Car Insurance Discounts for Teens

Nearly every company offers discounts that could apply to your teen driver.

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Is your teen driver a good student? Perhaps they’re willing to take a driver training course — or maybe they’ll agree to install a driver monitoring device in their car. With a bit of time and effort, your teenager can qualify for teen driving discounts on their car insurance. The exact policy savings differ by company, so here’s an overview of all the discounts for teen drivers that auto insurance companies offer to help you keep costs as low as possible.

Teen driver discounts

Teen Driver Discounts By Insurance Provider

Company Defensive driving course Driver training Good student Multi-car/family Student away from home Teen driver monitoring (GPS) Young driver
21st Century No No Yes – 15% off for students under 25 with grades of B or higher Yes – amount varies No No No
AAA Yes – up to 20% off Yes – 24% off Yes – 14.5% off (7.1% in California) for students with a cumulative GPA of 3.0 or higher Yes – up to 27.3% off Yes – up to 46.7% off for teens staying at least 100 miles from home without a vehicle Yes – 10% off, or up to 30% off at renewal No
AARP (The Hartford) Yes – for 3 years after submitting an approved course certificate Yes – 3-year premium discount for taking AARP driver safety course Yes – for full-time high school or college students, ages 16-25, with B average or above No No No No
Allstate Yes – in some states Yes – for taking a TeenSMART course if under 25 and unmarried Yes – for unmarried students under 25 with grade averages of at least B- or 2.7 No Yes – for unmarried students under 25 and staying at least 100 miles from where car is garaged Yes – up to 40% off for using Drivewise app No
American Family No No Yes – for full-time high school or college students, ages 16-25, with B average or above (amount varies) Yes – amount varies Yes – for students under 25 and staying more than 100 miles from home Yes – 10% off for drivers under 21 who complete 3,000 miles or 1 year in Teen Safe Driver program No
Amica Yes – for drivers age 16-25 in North Dakota, New Jersey, Louisiana, Kansas, Georgia, Delaware, and New York (teen must be the primary driver on the policy in NY) Yes – for drivers under 21 who complete an accredited driver training program Yes – for full-time high school or college students, ages 15-25, with B average or above Yes –  up to 25% off for insuring 2 cars or more Yes No No
Bristol West No No No Yes No No No
Clearcover Yes No Yes Yes Yes No No
Concord No No Yes No No No No
Dairyland Yes Yes No Yes No No No
Direct Auto Yes – up to 10% off if the main driver completes approved course within past 36 months Yes – up to 10% off for drivers under 21 in Texas only Yes – up to 10% off for full-time high school or college students, ages 15-25, with B average or above Yes – up to 25% off No No No
Endurance No No No No No No No
Erie No Yes – for those eligible for a TeenSMART course (not available in Kentucky and North Carolina) No Yes – up to 20% off Yes (not available in Kentucky and North Carolina) No Yes – for unmarried drivers under 21 who live with their parents
Esurance Yes No No Yes No No No
Farmers No Yes – up to 10% off for 3 years when eligible teen (with at least 2 years of driving experience) takes TeenSMART course Yes – at least 3.0 GPA Yes Yes – at least 100 miles away No Yes – for drivers under 25
GAINSCO Yes No No Yes No No No
GEICO Yes Yes Yes – 15% off Yes – 25% off No No No
GMAC Yes No Yes – at least 3.0 GPA Yes No No No
Good2Go Yes – 5%-15% off Yes – 10% off Yes – 5%-20% off Yes – 10%-25% off No No No
Infinity Yes No Yes – for full-time students with at least 3.0 GPA Yes – 10%-25% off in Florida, Arizona, and Texas No No No
Kemper No No Yes – for full-time high school or college students, ages 15-25, with B average or above Yes Yes – for drivers under 23 No No
Lemonade No No No Yes No No No
Liberty Mutual No Yes – for eligible teens who take a TeenSMART course Yes – for students with at least 3.0 GPA Yes Yes No No
Mercury Yes No Yes – for full-time high school or college students, under 23, with B average or above Yes Yes – for students under 23 staying 100 miles from home No No
Metromile No No No Yes No No No
Nationwide Yes No Yes – ages 16-24 with minimum B average Yes No Yes – up to 40% off for enrolling in SmartRide No
Plymouth Rock Yes – in Connecticut, New Jersey, and Pennsylvania Yes – in New Jersey, New York, and Pennsylvania Yes – for full-time students under 22 with a B average in New Jersey and New York Yes – in Connecticut, New Hampshire, Massachusetts, New Jersey, and New York Yes – in Connecticut, New Hampshire, Massachusetts, New Jersey, and New York No Yes – in New Hampshire and New Jersey
Progressive No No Yes – 10% off for full-time students under 23 with a B average Yes Yes – for students under 22, staying at least 100 miles from home, with no car at school Yes – for enrolling in Snapshot program Yes – for drivers under 18
Root No No Yes – 5%-25% off for full-time students with a B average Yes – 4% off No No No
Safeco No Yes Yes Yes Yes Yes – for enrolling in RightTrack No
State Farm Yes Yes – for drivers under 21 Yes – 25% off for students under 25 (including some home-schoolers) Yes Yes – for students under 25 Yes – for drivers under 25 who enroll in Steer Clear program No
The General Yes No Yes Yes No No No
Travelers No Yes Yes – for full-time students with a B average Yes Yes – for students at least 100 miles away and without a car No No
USAA No Yes Yes Yes No Yes – for enrolling in SafePilot program No

Other Ways to Save Money on Car Insurance for Young Drivers

  1. Add your teen to your policy. Even though it’ll make your car insurance more expensive, adding your teen to your existing auto insurance policy will be cheaper overall than getting them their own.
  2. Bundle insurance policies. If you have any other types of insurance (such as home, life, or business), bundle them all under the same provider to unlock multi-policy discounts.
  3. Lower your teen’s limits. This is a risky move, as teens are very likely to get into crashes due to their lack of driving experience. However, if you trust your teen to avoid accidents, you can lower their limits all the way down to your state’s minimum coverage.
  4. Drop supplemental insurance coverage. You can also drop coverages your state doesn’t require, like collision or comprehensive coverage. But again, since teens are at such high risk of at-fault accidents, we don’t recommend dropping these optional coverages.
  5. Raise your teen’s deductibles. You can raise your deductible on collision and comprehensive coverage. But remember, if your teen causes an accident that results in property damage, you’ll have to pay this deductible before your provider compensates you for your losses. Learn more about how insurance deductibles work to make the right financial decision.

Cost of Car Insurance for Teens

Adding a teen to an auto insurance policy

The annual cost of auto insurance for teens ranges from about $2,758.33 for 19-year-olds all the way up to $4,368 for 16-year-olds. Fortunately, you can expect price decreases every year from the time your teen turns 17, as they become better drivers who are less likely to file claims.

Why Teens Need Car Insurance

Teens need car insurance because, just like for adult drivers, 48 states require it (the only two states that don’t require auto insurance are Virginia 1 and New Hampshire2). Car insurance will cover any damages your teen causes to someone else’s property in an accident or injuries they cause to another driver or passenger.

If you get them other coverages — such as medical payments coverage (personal injury protection), collision insurance, or comprehensive coverage — the policy can cover their own property damages and injuries as well. Otherwise, you’ll be responsible for these costs out of pocket.

Why Teens Cost More to Insure

Teens cost more to insure for a very simple reason: They are more likely to get into crashes and file car insurance claims.

Age range Rate of drivers in fatal crashes per 100,000 licensed drivers in 2020 Rate of drivers in all types of crashes per 100,000 licensed drivers in 2020
16-19 44 22,103
20-24 39 15,876
25-34 34 11,941
35-44 26 9,062
45-54 23 7,776
55-64 20 6,187
65-74 14 4,383
75 and older 24 3,369

As you can see from the National Safety Council (NSC) data above, licensed drivers ages 16 to 19 have the highest rates of fatal crashes — and crashes overall. Their relative lack of driving experience makes teen drivers more likely to crash. Someone who gets in more accidents files more claims, which costs insurance companies money. To mitigate these risks, insurance companies charge teens more for insurance upfront in the form of premiums.

CheckDID YOU KNOW?

Sixteen-year-old drivers are 32 percent more likely than other drivers to be involved in fatal crashes and 45 percent more likely to be involved in any type of crash, according to 2020 NSC data.

How to Add a Teen to Your Policy

  • Contact your agent. Call, email, fax, or mail a notice to your auto insurance agent, letting them know you want to add your child to your existing policy. Get a car insurance quote for your updated policy, and ask about any discounts you can take advantage of for your teen being a good driver or student, as well as other cost-reducing products or services.
  • Choose the coverages, limits, and deductibles. We recommend getting the highest liability limits you can afford to pay for in premiums, given the likelihood of your teen getting into an accident. Set the deductibles low, and choose supplemental coverages like roadside assistance if you can afford them.
  • Pay your premium. Your policy will activate on its effective date if you’ve paid the premium.

CheckNOTE

If you purchased auto insurance from a broker, your insurance broker can’t add your teen to your policy for you; you’ll need to contact your insurance provider directly. If you can’t figure out who your agent is, contact the company’s customer service.

Conclusion

There’s no question that adding your teen to your car insurance policy will make your rates shoot up. But if they’re willing to help you out by taking a driver’s education class or maintaining their good grades and safe driving habits, you can keep your insurance premiums affordable.

Frequently Asked Questions

How much more will insurance cost for a teen driver in Oklahoma?

It will cost about $5,245 more per year for a teen driver in Oklahoma than for an adult driver. You can expect an average price increase of 82 percent.

How much does it cost to add a teen driver to Liberty Mutual?

It costs around $1,403 to add a teen driver to your Liberty Mutual policy. The average cost for teens at Liberty Mutual is $8,542 annually.

How much does it cost to add a teen driver to a family insurance policy in Florida?

It costs about 127 percent more to add a teen driver to a family insurance policy in Florida, with a possible range of 102 to 152 percent.

What cars cost less to insure for a teen driver?

These are some cars that cost less to insure for a teen driver:

  • Chevrolet
  • Ford
  • Hyundai
  • Kia
  • Lexus
  • Toyota
  • Volkswagen

Citations

  1. Insurance requirements. Virginia Department of Motor Vehicles. (2022).
    https://www.dmv.virginia.gov/vehicles/#insurance.asp

  2. ACCIDENTS AND FINANCIAL RESPONSIBILITY. General Court of New Hampshire. (2021).
    http://www.gencourt.state.nh.us/rsa/html/xxi/264/264-mrg.htmp

  3. ACCIDENTS AND FINANCIAL RESPONSIBILITY. General Court of New Hampshire. (2021).
    http://www.gencourt.state.nh.us/rsa/html/xxi/264/264-mrg.htmp