Car Insurance for Young Drivers with Points

Young drivers with points on their licenses could see a 41% increase in car insurance rates. Offset your costs with discounts for getting good grades and completing driver's ed.

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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...

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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...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 26, 2021

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Here's what you need to know...

  • If you have received a ticket for a moving violation, you may end up with points on your license, which are assessed according to your state’s law
  • Auto insurance companies examine your driving record before offering you a quote on auto insurance, which is why it is important to avoid getting points on your license
  • To get a lower rate on your car insurance coverage, you can sign up for a driving safety course and present the completion certificate to your auto insurance company
  • Make sure that you choose a safe car with a good insurance rating to pay as little as possible on your auto insurance
  • If you can avoid getting in any auto accidents for your first few years of driving, you may be eligible for a discount based on your improved driving record

Auto insurance companies charge more to insure teen drivers across the board. It can be even more expensive to get auto insurance coverage as a teen if you already have points on your license.

Every state has its own process for how long points will stay on your license, but there is a long list of things that you can do to get a more reasonable rate on your car insurance coverage in the meantime.

In addition to shopping around for the cheapest rates, there are all some discounts that teen drivers may be able to take advantage of.

Comparison shop today by entering your zip code above.

Finding Car Insurance as a Teen Driver

It is very rare for teen drivers to obtain a car insurance policy in their name only. The more common and cheaper option is to have a teen driver as a listed driver on his or her parent’s auto insurance policy.

You are more likely to be able to arrange for this coverage if the teen driver lives in the same house as his or her parents. You can check with your specific car insurance company to see what is required to have a teen driver added to insurance coverage.

When another driver is added to an auto insurance policy, this will raise the total premium for the policy.

The policyholder should be aware of this because he or she is responsible for making all of the premium payments so that the coverage stays active as long as you need it.

In order to ease the pain of having a teen driver on the policy, make sure that the teen driver is assigned to drive the insured car that is considered the safest to drive and costs the lowest amount to insure.

Your auto insurance company will be able to advise you about which car listed on the policy would be cheapest for your teen driver to be assigned to.

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Getting Discounts on Your Car Insurance Coverage as a Teen Driver

Even if you have some points on your driver’s license, you may still qualify for several discounts from your auto insurance company:

  • good student
  • safe driving course
  • accident-free

One of the popular discounts for teen drivers is the good student discount.

If you have a certain grade point average, your auto insurance company may offer a slight discount on your rate. You will have to check with your specific provider to see if this could apply to you.

Another common discount for teen drivers is a rate reduction for having completed a driving safety course. This is typically a course that is offered to teach young drivers how to avoid accidents and stay safe on the road.

Insurance companies want to encourage their insured drivers to avoid accidents, which is why they offer a slight incentive to their drivers to learn about ways to drive defensively.

Although you may already have some points on your driver’s license, you may not have an auto accident on your driving records. If this is true, you may qualify for an accident-free discount.

You should also ask your insurance company about whether there is a certain time period by which an accident or claim will drop off of your driving record for insurance purposes.

If you ask about any of the above discounts and find that they are not offered by your auto insurance company, this is a good reason to look for a new car insurance provider. The good news for you is that this is an easy process online.

After you submit your zip code and some other personal information about you and your vehicle in the online search tool, you can compare rates available in your region among a long list of auto insurance providers.

This is a much faster way to find out about rates because you only have to submit your information once instead of contacting each company in your area individually.

What to Do if You are Denied Car Insurance Due to Points on Your Driver’s License

As long as you have an active driver’s license, you should always make sure to obtain the proper insurance coverage before driving.

You may find that it is more difficult to find an auto insurance provider that is willing to extend coverage to a young driver who already has points on his or her driver’s license. In this case, you may need to inquire about the high-risk pool for insurance in your state.

Each state has its own method of providing a last resort insurance option for drivers who are unable to obtain coverage otherwise. Keep in mind that this coverage is probably only for auto liability coverage.

It would probably not provide coverage for your car in the following situations:

  • if you were responsible for crashing it in an accident
  • if it was vandalized
  • if it was stolen

Even though it might be more expensive to pursue this option as a last resort, you will not necessarily have to maintain this type of coverage forever.

When the points no longer appear on your driver’s license, you may qualify for more reasonable rates from traditional auto insurance drivers. This is why it is especially important for you to avoid accidents at all costs after having points on your record.

Safety Tips for Teen Drivers

When dealing with teen drivers, it is more important than ever to convey the importance of safety behind the wheel.

As a parent, you should be actively involved in making sure that your teen driver understands all of the risks and responsibility of driving on public roads.

You may need to enforce rules that are stricter than the state regulations on provisional or graduated drivers’ licenses.

To account for the additional risk of having a teen driver listed on your auto insurance policy, you may also want to increase your auto liability policy limits.

This is the amount that the auto insurance provider is responsible for paying when the insured drivers on that policy are involved in an accident.

Given that teen drivers are generally more likely to be involved in an auto accident that results in serious personal injuries and property damage, increasing the limits of your auto liability policy is a good idea.

In addition to increasing the limits of your auto liability policy, you may want to consider getting even more protection from an umbrella liability policy.

You can easily get as much as $1 million in umbrella liability protection by increasing your premium by only a small amount each month. When your teen driver is no longer on your policy, you can choose to drop that coverage and reduce your premium.

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Wrap Up on Getting Car Insurance for Young Drivers with Points on Their License

It should not come as a huge surprise that teen drivers who already have points on their driver’s license should expect to have to pay a bit more for the required car insurance coverage.

This does not mean, however, that you cannot get a more reasonable rate for your auto insurance policy by shopping around among different providers and qualifying for discounts, such as by taking a driver safety course or getting good grades in school.

You will also get a better rate by having yourself added to your parents’ auto insurance policy as an additional driver. Once you have taken steps to improve your driving record, you can eventually apply for your own auto insurance coverage on a separate policy.

Compare car insurance quotes today by entering your zip code below.

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