Why adding a teen raises your premium
Insurance prices follow risk, and inexperienced drivers crash more often than any other age group. IIHS and NHTSA both identify teen drivers as a high-risk group, especially in the first months of driving on their own. Triple-I notes that insurers generally charge more when drivers under 25 use the car.
The increase depends on your state, the teen's age and gender where allowed, the car they drive, and the coverages on that car. Some states restrict factors like gender in auto pricing, so the effect varies. Use the premium estimator to compare an estimate with and without a young driver before you call your insurer.
When to add your teen
- Learner's permit. Many insurers cover a permit holder under the household policy while driving with a licensed adult, sometimes at no charge until the teen is licensed. Others want the teen listed right away. Tell your insurer when your teen gets a permit.
- Driver's license. Once your teen is licensed, insurers generally expect them to be listed on the policy. Leaving a licensed household driver off can lead to a denied claim.
- Away at college. A student who lives at school without a car may qualify for a reduced rate. Keep them listed so they're covered when home.
Parent's policy or a separate policy?
| Option | Pros | Cons |
|---|---|---|
| Add to parent's policy | Usually cheaper; keeps multi-car and multi-policy discounts; teen gets the family's liability limits | A teen's accident can affect the whole policy's premium |
| Separate policy for the teen | Can isolate the teen's claims history from the parents' policy | Usually much more expensive; the teen may choose lower limits; parents may still be sued as owners if they own the car |
If the teen will drive a car titled to a parent, it generally belongs on the parent's policy. Families with significant savings or a home often review their liability limits and consider an umbrella policy when a teen starts driving.
Choosing a car that's safer and cheaper to insure
The vehicle matters as much as the driver. IIHS publishes an annual list of recommended used vehicles for teens and gives these general guidelines:
- Avoid high horsepower. Powerful engines can tempt young drivers to speed. Stick to base engines.
- Bigger and heavier is safer. Small cars and minicars offer less crash protection.
- Electronic stability control is a must, and IIHS says it greatly reduces the risk of fatal single-vehicle crashes.
- Choose the best safety ratings you can afford from IIHS and NHTSA crash tests.
From an insurance point of view, a modest, safe car that's inexpensive to repair and not a frequent theft target usually costs less to insure. An older, lower-value car may also let you skip collision coverage. Compare models in our vehicle insurance cost index.
Discounts to ask about
| Discount | Who typically qualifies |
|---|---|
| Good student | Full-time students who meet a grade threshold set by the insurer, often shown with a report card |
| Driver training | Teens who complete an approved driver education or defensive driving course |
| Student away at school | Students who live at school a set distance from home without a car |
| Telematics or usage-based | Families who let the insurer track driving through an app or device |
| Multi-car and multi-policy | Households insuring several cars or bundling home or renters insurance |
Discount names, amounts and rules vary by insurer and state. Our discount guide covers more options.
Graduated licensing and family driving rules
NHTSA explains that all states use graduated driver licensing (GDL), which moves new drivers from a learner stage to an intermediate stage with restrictions, and then to a full license. Research reviewed by NHTSA shows GDL systems reduce teen crashes. Common restrictions limit nighttime driving and the number of young passengers.
Many families add their own rules in a written parent-teen driving agreement, covering phone use, passengers, curfews and consequences. Fewer tickets and crashes protect both your teen and your premium, since violations raise rates for years.
What happens after a teen's ticket or accident
A speeding ticket or at-fault accident usually raises the premium at the next renewal, and because a teen already starts at a high rate, the dollar increase can be large. Some insurers let you assign the teen as the main driver of a lower-cost car on the policy, which may limit the effect; others rate the highest-risk driver on the most expensive car. Ask how your insurer handles this.
Some states let drivers take an approved course to reduce points or qualify for a discount. New York's Point and Insurance Reduction Program, for example, reduces the base rate of liability and collision premiums for the principal operator who completes an approved course. Check whether your state offers something similar.
Checklist for adding a teen driver
- Call your insurer when your teen gets a permit and ask how it handles permit drivers.
- Before licensing, get quotes for adding the teen, including to different cars on the policy.
- Review liability limits, since your household's financial exposure grows with a new driver.
- Collect proof for good student and driver training discounts.
- Consider a telematics program if your insurer offers one and you're comfortable with the data it collects.
- Recheck prices at each renewal as your teen gains experience.
For questions about who must be listed on a policy, see who is covered on your policy.
Frequently asked questions
Is it cheaper to add a teen to my policy or get them their own?
Adding a teen to a parent's policy is usually cheaper because of multi-car and multi-policy discounts. A separate policy typically costs more.
Do I need to add my teen to insurance when they get a learner's permit?
It depends on the insurer. Many cover permit holders under the household policy while supervised, sometimes at no extra charge, but you should notify the insurer either way.
What cars are cheapest to insure for teens?
Generally, modest vehicles with strong safety ratings, electronic stability control, lower horsepower and reasonable repair costs. IIHS publishes recommended vehicles for teens each year.
How much is the good student discount?
It varies by insurer and state. Typically the teen must be a full-time student meeting a grade threshold, such as a B average, and provide proof.
Does my teen need to be on my policy if they don't have their own car?
Generally yes. Insurers usually expect every licensed household member to be listed or formally excluded, since they could drive any household car.
Related guides
- Car Insurance Discounts: Common Types, Who Qualifies and What to Ask
- Who Is Covered on Your Car Insurance? Household Members, Permissive Use and Excluded Drivers
- How Car Insurance Rates Are Calculated: The Rating Factors Explained
- Full Coverage vs. Liability Only: What Each Means and When to Switch
- Can You Get Car Insurance Without a Driver's License?
How we estimate this
This guide explains general rules and practices. Insurance terms vary by state, insurer and policy — check your policy documents and your state insurance department for the rules that apply to you. For cost estimates, try our calculators. Read the full methodology.