Car insurance for teenage drivers can be a significant expense for parents. However, with the right knowledge and strategies, it is possible to find affordable options that provide adequate coverage. In this article, we will explore the factors that affect car insurance costs for teens and provide tips on how to save money while ensuring your young driver is protected on the road.
How much is car insurance for teens?
On average, car insurance for teens costs $217 a month for their own liability coverage, while full coverage can reach an average of $457 a month. However, adding a teen to a parent’s policy can result in significant savings. Families can save an average of $129 a month by combining their policies instead of having separate coverage for the teen and parent.
Car insurance costs for a parent and teenage driver
When comparing different policy options, it is essential to consider the cost implications. Here is a breakdown of the monthly rates for various scenarios:
- Single policy for parent and teen: $483 per month
- Separate policies for parent and teen: $612 per month
These rates are based on a 50-year-old parent and an 18-year-old child.
Who has the cheapest car insurance quotes for young drivers?
State Farm and Geico are known for offering the most affordable car insurance quotes for young drivers. Whether the teen is added to a parent’s policy or has their own coverage, these companies consistently provide competitive rates.
Cheapest car insurance for parents with a teen driver
For parents looking to add a teen driver to their policy, State Farm stands out as the most cost-effective option. Their average full-coverage quote for a parent and teen driver on the same policy is $465 per month. Geico follows closely with a rate of $511 per month.
Cheapest car insurance quotes for teens on their own
Even if a teenager opts for their own car insurance policy, State Farm remains the most affordable choice. Their rates for 18-year-olds average $197 a month for minimum liability coverage and $386 a month for full coverage. Geico is the next best option, charging an average of $202 a month for liability coverage and $428 a month for full coverage.
It is important to note that these rates are subject to variations based on individual circumstances, such as driving records and location.
Most states require liability insurance to cover injuries or damage caused in a car accident. Full coverage includes collision and comprehensive insurance, which cover damage to your own vehicle.
Why is car insurance so expensive for teens?
One of the primary reasons car insurance is more expensive for young drivers is their higher likelihood of being involved in accidents. Insurance companies evaluate risk factors, and since crashes cost them money in terms of injury treatments and vehicle repairs, they charge higher premiums to customers who are statistically more prone to accidents.
Car insurance costs for parents with teens
The cost of adding a teenager to a parent’s car insurance policy varies depending on the child’s gender and age. On average, it is 11% cheaper to add a teenage girl compared to a teenage boy. Additionally, 19-year-olds are generally 19% less expensive to insure than 16-year-olds, regardless of gender.
Here is a breakdown of average car insurance costs for a parent with a teenage driver:
| Age of teen | Male teen | Female teen |
|---|---|---|
| 16 | $584 | $518 |
| 17 | $550 | $488 |
| 18 | $512 | $454 |
| 19 | $475 | $422 |
These monthly rates are based on a 50-year-old parent and teenage child with clean driving records.
Car insurance discounts for teen drivers
To reduce the cost of car insurance for teenagers, it is crucial to take advantage of available discounts. Here are some common ones to inquire about:
Good student discounts
Many car insurance companies offer a good student discount to teens who maintain a B average or better in school. Make sure to inform them about your child’s grades when requesting a quote. In most cases, you will need to provide school transcripts upon activating your policy.
Safe driving apps
Most major car insurance companies have app-based safe driver programs that offer discounts to drivers of any age. By enrolling in these programs, you allow the app to monitor your driving habits and generate a score based on how well you avoid unsafe activities, such as speeding and distracted driving. A high score can earn you future discounts when you renew your policy. These programs also enable parents to monitor their teens’ driving habits.
Driver’s education
Many insurance companies provide discounts to teens who complete an accredited driver’s education program. The qualifying programs vary by insurance company, so it is essential to inquire about eligibility requirements.
Away-at-school discounts
Several insurance companies offer discounts to parents with teens who are away at school and do not have a car with them. By excluding the teen from the policy while they are away, parents can save on car insurance while still ensuring the teen remains insured when they borrow cars, either at school or back at home.
Other tips for teens to save on car insurance
Teens can further reduce their car insurance costs by avoiding coverages they do not need. For instance:
- If a teen drives an older car with a low resale value, collision and comprehensive coverage may not be necessary.
- If you are a parent, list the teen as the driver of the least valuable vehicle in your household.
- Teens with their own car insurance usually do not require as much coverage as their parents.
It is important to remember that the cost of adding a young driver to your policy can vary depending on the insurance company. Getting quotes from multiple providers will enable you to find the most affordable rate.
When should I get car insurance quotes for a teen driver?
To ensure a smooth transition, you should obtain car insurance quotes for a teen driver before they receive their license. Start by notifying your current insurance company when your teen gets their learner’s permit. Most insurance companies cover permitted teens driving under supervision at no extra cost, but it is important to check for any restrictions and obtain a quote.
Your teen’s car insurance should take effect on the day they receive their license.
Advantages of adding a teen to a parent’s car insurance
The advantages of adding a teenager to a parent’s car insurance go beyond cost savings. Consider the following benefits:
- A single policy for parents and teens covers each driver in any household vehicle.
- Some insurance companies mandate that all related drivers who live together be on the same policy.
- In most states, teens under 18 are prohibited from entering into any legal contracts, including car insurance. A 16- or 17-year-old typically requires a parent or guardian to co-sign for them to obtain their own policy.
A teen can remain on a parent’s policy while they live at home or are away at school. If a teen moves out on their own, they typically need their own car insurance, unless a parent owns or co-owns the vehicle.
FAQs
Here are some frequently asked questions related to car insurance for teenage drivers:
-
How can I find the most affordable car insurance for my teenager?
Compare quotes from different insurance companies to find the best rates for your teenager’s specific circumstances. -
Can a teenager get their own car insurance?
Yes, teenagers can get their own car insurance, but it is often more expensive compared to being added to a parent’s policy. Additionally, some states may require a parent or guardian to co-sign for a teen’s car insurance policy. -
Do insurance rates for teens decrease as they get older?
As teens gain more experience and establish a clean driving record, their insurance rates generally decrease. However, rates can still be higher than average until the age of 25. -
What factors affect car insurance rates for teens?
Factors such as the teenager’s driving record, location, type of vehicle, and coverage options can influence car insurance rates for teens. -
Are there any specific insurance discounts available for teenage drivers?
Yes, insurance companies offer various discounts for teen drivers, such as good student discounts, safe driving app discounts, and driver’s education discounts. Inquire with insurance providers to explore available options.
Conclusion
Finding cheap car insurance for teenage drivers can be a daunting task, but it is essential to secure adequate coverage for your young driver. By understanding the factors that affect car insurance rates for teens and utilizing available discounts, you can save money while ensuring your teenager is protected on the road. Remember to compare quotes from different insurance providers to find the most affordable and suitable option for your family.
