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.
|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|
|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|
|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|
|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|
|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|
|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|
|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|
|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|
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.
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.
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|
|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.
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.
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.
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.
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.
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.
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.
These are some cars that cost less to insure for a teen driver:
Insurance requirements. Virginia Department of Motor Vehicles. (2022).
ACCIDENTS AND FINANCIAL RESPONSIBILITY. General Court of New Hampshire. (2021).
ACCIDENTS AND FINANCIAL RESPONSIBILITY. General Court of New Hampshire. (2021).