Can A New Teenage Driver Raise Your Insurance Rates?

Teenage drivers can raise your insurance rates significantly. In states like Maine, teenage drivers can raise your insurance rates by $101.17/mo for boys and $93.25/mo for girls.

Free Car Insurance Comparison

 Secured with SHA-256 Encryption

Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

Full Bio →

Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 20, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • Teens will cost a significant amount of money to insure
  • Boys cost more to insure than girls do
  • There are a number of discounts your teen may be eligible for
  • Look for ways to save money on your teen’s car insurance premium

Any parent with a new teenage driver will face a huge car insurance premium hike. In fact, you should expect to pay at least a couple of thousand extra per year in car insurance premiums when your teen is licensed.

For many parents, this number is a shock and they look in earnest for better rates.

Thankfully, there are are a number of different strategies for finding cheap auto insurance even with a new teenage driver on the family auto insurance policy.

Read through this article to learn some money saving tips for finding cheap teenage car insurance for your new driver and then, above all, be sure to enter your ZIP code in the box above to get FREE car insurance quotes today!

Factors That Impact Teen Car Insurance Premiums

There are a wide variety of factors that cause car insurance premiums to differ greatly from one teen to another.

By understanding these factors, you will see the logic in decisions made by underwriters and you may even have a better chance of finding a good deal on teen car insurance.

Gender makes a huge difference in premiums.

Boys always have higher rates than girls in their teen years. At age 25, it ceases to be important, as rates drop for both.

If your teen has taken a driver training course, his or her car insurance premiums will be lower than premiums for a teen who hasn’t taken such a course.

If you list your child as a driver on all your vehicles, you will also find that the premiums are higher than necessary, especially if you have a vehicle which is costly to insure. Limit the coverage to one car and permit your teen to only use it.

Where you live will also affect the price of car insurance. Urban dwellers are more likely to have higher rates than rural residents.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Teen Driver Discounts Help Lower Insurance Costs

When you are looking for car insurance for new teenage drivers, be sure to ask about the different discounts that the insurer may offer.

Each company has a different line-up of discounts and some are very unique, so it is important to check with every company. Some of the ones that may be most helpful include discounts for:

  • Good students
  • Students living more than 100 miles away at college
  • Members of certain groups
  • Low annual mileage
  • Vehicles equipped with factory installed safety features
  • Having a good driving record

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Tips for Parents of Teenage Drivers

You can take some control of the hefty cost of insuring your new teenage driver in a variety of ways.

  • Purchase an older vehicle for your child and take out a new policy for it.
  • Exclude him from coverage on your own vehicles and make sure that his driving is done on his own vehicle.
  • Make sure your teenager takes driver education, in order to best prepare him to drive but also to help the insurance rates you pay.
  • Encourage him or her to have good grades and to keep his driving record spotless. By doing so, you can help keep insurance rates as low as possible.
  • If you choose to get collision and comprehensive coverage on the vehicle, opt for higher deductible options. This will help you keep your overall premiums down.

Older cars can usually get away without collision and comprehensive coverage because of their lower values. You can also feel more confident that many of the older vehicles are more sturdily made than newer vehicles and are harder to drive recklessly in.

You will also protect your own coverage from rising by opting to do this.

Know Your Insurer

Shop around for insurance companies that lower premiums for every year of good driving.

Compare the different insurers carefully as there each have different guidelines and you want to find the one serving your area that is most accepting of new teenage drivers. Investigate the companies you are considering taking a policy with.

You should find out their insurance rating from one of the independent insurance ratings companies like A.M. Best or Moody’s. This will tell you if they are economically stable or not. Avoid companies that have less than a B rating.

In addition, you will want to check into the company’s customer service record. This can be done through your state’s department of insurance, which usually carries lots of information about each insurer and the complaints received.

When you are ready to get the best rate possible for your new teen driver, start by shopping around. Get a variety of quotes from top insurers serving your area quickly and easily by using a free online car insurance quote tool.

This will provide you with an excellent starting place for finding the best coverage at the best price.

Get started with our FREE online quote tool today and in no time you’ll be comparing the many car insurance quotes you need to consider! Enter your ZIP code below now!

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Average Monthly Car Insurance Rates by State