Best Teenager Car Insurance Discounts in 2024 (Save up to 25% With These Companies)
The best teenager car insurance discounts can save young drivers up to 25% on their policies. Teen drivers often pay higher rates, but discounts can help lower costs. Young driver discounts include good student discounts for B+ averages and higher, driver education course discounts, and many more.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: Nov 15, 2024
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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Nov 15, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
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The best teenager car insurance discounts help young drivers reduce expensive rates and include good student discounts, good driver discounts, and more.
If you have a teenage driver who has just received his or her driver’s license, it can be an exciting but worrisome time. It can also be an eye-opening experience when you call your insurance company and discover the quote for your teenager’s car insurance is high due to how companies calculate average auto insurance rates by age and gender.
Our Top 10 Company Picks: Best Teenager Car Insurance Discounts| Insurance Company | Rank | Savings Potential | A.M. Best | Who Qualifies? |
|---|---|---|---|---|
 | #1 | 25% | B | Teen drivers with good grades |
 | #2 | 20% | A+ | Students with high GPAs |
 | #3 | 20% | A | Teens with safe driving records |
 | #4 | 15% | A++ | Full-time students with good grades |
 | #5 | 15% | A+ | Teens on parent’s policy |
 | #6 | 10% | A+ | Young drivers with good GPAs |
 | #7 | 10% | A | Students with clean records |
 | #8 | 8% | A++ | Teen drivers with good grades |
 | #9 | 5% | A | Full-time students |
 | #10 | 5% | A++ | Teen dependents of military |
However, following a few pointers can reduce your cost of insuring your young driver and teach your teen the best safe driving habits for the road ahead. Read on to learn about the best teenage discounts, or get an affordable quote today by entering your ZIP in our free tool.
- Several companies offer discounts geared toward young drivers
- A good student discount can save drivers up to 25%
- Policies will be cheaper if teenagers join a parent’s existing policy
How to Get the Best Teenager Car Insurance Discounts
It can be hard to find cheap car insurance for 16-year-old drivers, but there are some key car insurance discounts you can take advantage of to reduce your teenager’s car insurance. Make a call to your insurance company and see if you can take advantage of the following discounts for teen drivers.
Driver’s Education Course Discount
Insurers may reduce the rates of young drivers for teenagers who complete a driver’s education class. Some companies also offer a safe driving course that your teen driver can take online.
Insurance companies often require drivers to submit a certificate of completion to qualify for a driver’s education discount.
You will also find that some car insurance agents will ask for your permission to speak to your young driver about the need for responsible, safe driving habits. This conversation will help reinforce the need for safe driving habits.
Good Student Discount
Young drivers with good grades can reduce premiums by up to 25%. Many companies offer what is known as good student discounts. Generally, if your teen driver maintains a B average or better, they will receive a discount on their auto insurance premium price.
Safe Driving Record Discount
By avoiding traffic tickets and accidents, your teenager can establish a driving history and help reduce your insurance payments. You will likely see a slight drop in rates for each year of staying accident-free.
These discounts remain as long as your teen driver is accident or ticket-free. Incurring a ticket or having an accident may cause your young driver to not only lose these discounts but also incur a surcharge for the ticket or accident.
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Other Ways to Save on Teenage Car Insurance
In addition to the available discounts, you can work with your car insurance company to reduce your premium payments by taking a close look at your policy. Consider doing the following:
- Find Out How Your Insurer Assigns Drivers to Vehicles: Many insurers automatically assign the highest-risk driver (in this case, the young driver) to the most expensive vehicle – even if the young driver never gets into that vehicle. If that’s your insurer’s policy, your rates may skyrocket. If your insurance company engages in this practice, consider shopping for a more favorable policy.
- Drive Older Cars: Older cars may not need full coverage auto insurance policies. Eliminating or reducing comprehensive or collision coverage may save you big money in premium costs.
- Reduce Liability Coverage Levels: This is certainly an option that may save you money, but it might not be worth the risk. Reducing liability coverage could mean disaster, as a serious accident could put those assets at risk if damages exceed your liability amounts.
- Raise Deductibles: Raising your deductible, the amount you agree to pay towards accident costs, will lower auto insurance rates.
Following the tips above will help lower rates, but be careful not to raise your deductible or reduce your liability coverage too much, as the savings may not be significant enough to justify the risk.
Cost of Teenager Car Insurance Policies
Insurance for young drivers can be expensive and will increase your car insurance payments because young drivers are a high-risk group when it comes to calculating car insurance rates.
Because teenagers are high-risk drivers, you will see higher rates when shopping for teenage policies (Read More: Best Car Insurance for High-Risk Drivers). Below, you can see the average cost of minimum car insurance for young drivers.
The good news is that most car insurance companies offer discounts for teenagers, which can lower car insurance rates.
Auto Insurance Rates After Teenage Discount| Insurance Company | Discount Percentage | Monthly Rate After Discount |
|---|---|---|
| 20% | $160 |
| 5% | $190 |
| 20% | $160 |
| 15% | $170 |
| 10% | $180 |
| 10% | $180 |
| 15% | $170 |
| 25% | $150 |
| 8% | $184 |
| 5% | $190 |
Full coverage costs the most for teenagers, but it will provide the most protection for inexperienced drivers who are more likely to get into a crash.
Why Teenagers Pay Higher Auto Insurance Rates
According to the National Highway Traffic Safety Administration, for both men and women, drivers aged 16 to 19 years of age have the highest average annual crash and traffic violation rates of any other age group.
Some of the reasons cited for this were:
- Poor hazard detection
- Carrying passengers
- Not wearing seat belts
In order to reduce the risk of young drivers causing accidents, most states have laws that restrict young drivers to a learner’s permit or provisional license.
These restrictions, generally based on age and how long the driver has had their permit or license, require minimum amounts of supervised driving, set limits on passengers, restrict hours of driving, and dictate when and where teenagers are permitted to drive.
New drivers from ages 16 to 24 pay the highest for auto insurance of all age groups. Once a driver turns 25 years old and has a clean driving record, they will see their rates decrease drastically.
Brandon Frady Licensed Insurance Producer
Insurance companies recognize the high risk involved with teenage drivers, so they charge higher prices for teenage car insurance policies. Once teenagers prove their good driving skills, however, rates will start to drop.
Purchasing a Car and Insurance For Teenage Driver
Are you considering purchasing a car for your teen? Giving a young driver their own car to drive can increase your car insurance premiums. If you want to purchase a car for your teenager, consider purchasing an older car to reduce your insurance payments (Read More: Can you get a refund on a used car if defects are found after purchase?).
Kristen Gryglik Licensed Insurance Agent
If you have two or more young drivers in your household who share a vehicle, this can increase your car insurance premium. Auto insurance companies usually only assign one driver to one particular car, so if two or more young drivers in your household truly share one car, you should choose the least expensive driver to be assigned to the car.
You can save money by choosing the less expensive young driver (usually a female or the driver with no violations) as the dedicated driver – main driver assigned to a car.
Buying teen auto insurance doesn’t have to put a dent in your pocket. Following the few tips above and asking the right questions about the available young driver discounts can save you money. To see how much you can save, use our free quote tool.
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Case Studies: Teenage Car Insurance Discounts and Coverage
Below are several examples of how parents can help significantly reduce the cost of insuring young drivers with a youthful driver discount, such as maintaining good grades or installing safety features.
- Case Study #1 – Utilizing Young Driver Discounts: Sarah, a parent of a teenage driver, seeks to reduce her car insurance premiums while providing adequate coverage for her young driver. After contacting her insurance company, Sarah discovered she could take advantage of multiple discounts, including good student discounts and safe driving discounts.
- Case Study #2 – Adding Safety Features to Reduce Premiums: John wants to provide the best protection for his teenage driver without breaking the bank. He decides to equip his teen’s car with additional safety features such as anti-lock brakes, airbags, and a tracking device (Learn More: Best Safety Features Car Insurance Discounts).
- Case Study #2 – Sharing a Vehicle to Save on Premiums: Mary has two teenage drivers in her household who share a vehicle. To minimize insurance expenses, Mary designates the least expensive driver, based on age and driving history, as the primary driver for the shared car. This decision helps Mary save on premiums while ensuring both teenagers have access to a vehicle.
Auto insurance costs can be reduced by taking advantage of the several car insurance discounts for new drivers. Most insurance companies will also lower rates over time for young drivers as long as they stay accident and ticket-free.
Saving With The Best Teenager Car Insurance Discounts and Quotes
Applying for the best teenage auto insurance discounts will help young drivers save on expensive coverages. Everything from having good grades to taking a defensive driver course can be used to reduce rates for auto insurance for new drivers.
If your teenage auto insurance rates are still too high after applying a teen driver discount or two, make sure to get teen car insurance quotes to find the best deal. Our free quote finder will help you locate the cheapest company in your area.
Frequently Asked Questions
How can you get the best insurance discounts for teenage drivers?
The most common discounts for young drivers are good student discounts, safe driver discounts, and defensive driver discounts. To qualify for these discounts, you must show proof of good grades or course completion.
What is the cheapest insurance for teenage drivers?
Minimum state coverage will be the cheapest insurance available to teenage drivers, but it is recommended to avoid carrying just minimum coverage, as it provides little financial protection.
What is the best car insurance for teenage drivers?
Full coverage is the best teen car insurance coverage, as it provides protection for a variety of accidents (Read More: Best Full Coverage Car Insurance).
Why is car insurance so expensive for young drivers?
Teenage auto insurance rates are so expensive because teens have a lack of driving experience. This makes them more likely to crash and file a claim.
When does car insurance get cheaper for young drivers?
Once drivers hit age 25, they will see rates start to decrease.
Who has the best insurance rates for young drivers?
United Services Automobile Association (USAA) has the cheapest car insurance rates for teens, with rates starting at $59/mo for teens with a clean driving record.
How much does teenage car insurance cost?
Teenage car insurance rates start at $59/mo for teens with a clean driving record.
Where can I get car insurance quotes for teenage drivers?
You can get quotes directly from companies or use a free quote tool like ours to compare multiple companies’ rates at once.
Can an 18-year-old get car insurance?
Yes, an 18-year-old can buy their own car insurance policy (Read More: Auto Insurance Cost for an 18-Year-Old). However, it is easier to get cheap insurance for teens if they join a parent’s policy rather than purchasing their own.
What are some cheap teenage car insurance tips?
Applying teen car insurance discounts and shopping for teen auto insurance quotes are the best ways to reduce the cost of teen car insurance.
Enter your ZIP code below to compare cheap insurance rates.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
