Tips for Adding a Teen Driver to Your Car Insurance Policy

Having a teen driver in the house is a nerve-wracking experience. Not only does adding a teen driver to your car insurance policy cause stress and anxiety, it can also be a significant drain on your wallet.

Reducing Insurance Premiums

Insurance companies charge significantly higher premiums for young drivers under age 25 due to the increased risk of an at-fault accident, which is influenced by age, gender, and driving habits. However, there are ways to score discounts and minimize the impact on your auto insurance rates.

Driver Training Courses

One way to decrease premiums is by enrolling teen drivers in safe or defensive driving courses. Most auto insurance carriers offer a discount on driver training courses completed through certified instructors. It may require some upfront expenses, but the resulting certification can lead to reduced rates for years to come.

Good Student Discount

Another way to save on auto insurance premiums is to ask for a good student discount. Teen drivers who bring home solid report cards may be eligible for discounts. A good student discount usually applies to high school through college students too, and can even last beyond graduation.

Low Mileage and Distant Student Discounts

Teenage drivers with low mileage commutes to school and back may be eligible for low mileage or distant student discounts as well. For college students who live on campus but keep their cars at their permanent address, there are many other discounted rates available.

Car Insurance Telematics

To get even deeper discounts, parents can opt into car insurance telematics to allow insurers to track their teen's driving habits. By installing an app or device, parents can ensure that their teen drivers behave safely behind the wheel. However, parents must also know that the tracking data could be used to increase rates if teens don’t drive safely.

Shopping Around

Another way to reduce premiums is to shop around before adding a teen driver to an insurance policy. It's worth asking an insurance agent about other discounts and carrier options. When looking for a new car, it's also important to research insurance quotes for each make and model before purchasing one for a teen driver.

Family Auto Insurance Policy

Finally, the most cost-effective option is to add teen drivers to the family auto insurance policy rather than having them purchase their own. It's typically three times cheaper for a teen driver to be added to the family policy, and most major car insurance companies require young drivers to be 18 or older before allowing them to purchase insurance. As long as young drivers live at the same address as their parents, they can remain on the family insurance policy.

Conclusion

Adding a teen driver to your car insurance policy can be a stressful and costly endeavor, but there are options to decrease premiums and ensure safety on the road. By taking advantage of discounts and being conscientious about driving behavior, parents can rest a little easier knowing their teen drivers are covered.