How Much Does It Cost to Add a Teenager To Car Insurance?

Content of the material

  1. How much is car insurance for teens?
  2. Teen male vs. female car insurance rates
  3. How to find cheap insurance for teens
  4. Should teens be on their parents' car insurance policy?
  5. Video
  6. If I add a teen to my car insurance, how does coverage work?
  7. Tips for Cheaper Car Insurance
  8. Shop Around for Car Insurance
  9. Remain on Your Parents’ Policy
  10. Drive an Older, Safer Car
  11. Select a High-Deductible Plan
  12. Opt for Liability-Only Coverage
  13. Keep a Clean Driving Record
  14. Maintain a Good Credit Score
  15. Car insurance premiums by age for teenagers
  16. Average cost of car insurance for 16-year-olds
  17. Average cost of car insurance for 17-year-olds
  18. Average cost of car insurance for 18-year-olds
  19. Average cost of car insurance for 19-year-olds
  20. Frequently asked questions about teenage insurance
  21. Do you have to add a teenage driver to your insurance?
  22. What is the cheapest way to get car insurance for a teenager?
  23. Should I add my 16-year-old to car insurance?
  24. How to get car insurance for a teenager?
  25. How much does it cost to add a 17-year-old to car insurance?
  26. How much does car insurance cost by credit score?
  27. How Much Does It Cost To Add a 16 Year Old To Car Insurance?
  28. How do rates differ between 16-year-old male and female drivers?
  29. Why is car insurance so expensive for 16-year-olds?
  30. Should My Teenager Get Their Own Insurance Policy?
  31. How to find the best car insurance rates
  32. Average Car Insurance Rates by Age and Gender
  33. How to save on the cost of auto insurance for 16-year-olds
  34. Shop around at multiple insurance companies
  35. Find discounts for 16-year-old drivers
  36. Buy a car that’s cheaper to insure
  37. Drop comprehensive and collision coverage
  38. Helpful Auto Insurance Articles & Guides

How much is car insurance for teens?

When it comes to car insurance for teens, young drivers pay more than their older, more experienced counterparts — about $169 per month on average, according to our analysis.

It comes down to simple statistics. Teens 16 to 19 are nearly twice as likely to experience fatal car accidents, according to the Insurance Institute for Highway Safety (IIHS). They're also more likely to engage in distracted driving. Plus, insurance companies don't have as much data to look at when assessing how responsible a teen driver is on the road. That signals more risk to insurers, which is why car insurance for teens is more expensive.

Teen male vs. female car insurance rates

In our analysis, we found that male teen drivers pay about $20 more per month than female teen drivers. This is again due to statistics. Teen males are more likely to get in wrecks. They've caused two-thirds of all accidents among teens 16 to 19 in recent years, according to IIHS data.

How to find cheap insurance for teens

The best way to find cheap car insurance for teens is to compare rates from several companies. Every insurer has its own risk algorithm. While they all consider teen drivers riskier to insure than older drivers, they don't all upcharge teens the same amount. So the only way to see which offers a young driver the best rate is to compare quotes side by side.

In addition to shopping around, look for teen-specific auto insurance discounts, like the ones mentioned below. These can take some of the sting out of those high premium costs.

Another way to make car insurance for teens more affordable is to reduce their coverage levels. But this is risky and may not even be possible. For example, a lender may not allow customers to get rid of collision and comprehensive coverage if they have a lease or loan on their vehicle. And even if it isn't needed, a young driver could be taking a risk skipping it because they could face high out-of-pocket costs in an accident. So weigh this option carefully and err on the side of finding a better value rather than the lowest possible rate.

For more information, check out our guide on how much car insurance coverage do you really need?

Should teens be on their parents' car insurance policy?

Remaining on a parent's car insurance policy typically costs teen drivers less than trying to purchase their own, so it's an appealing option. Fortunately, there's no legal reason why teens can't be on their parents' insurance if the family's in agreement.

This gives a teen driver the benefit of any discounts their parents qualify for, like a multi-policy discount for bundling home and auto and a discount for continuous insurance coverage, that teens may not qualify for on their own.

Of course, adding a teen driver means higher rates for parents, so that's something each family has to consider. Parents wary of taking on the extra cost may have their teen pay the difference between their current premiums and their new ones.

There's no law about when a young driver has to get their own insurance, but in most cases, if they're living independently, paying for their own expenses, and driving their own vehicle, they should probably have their own policy.

Video

If I add a teen to my car insurance, how does coverage work?

If you add your teen driver to your car insurance policy, they’ll benefit from the same protection that you do. All covered drivers have access to all cars listed on the policy, and the liability limits are the same for all drivers on the policy. Since teen drivers pose a greater risk of accidents, you may want to increase your liability limits on the policy, especially if your current limits aren’t covering your entire net worth. Learn more about liability coverage.

All extra coverages on the policy will also apply to your teen, including roadside assistance, , rental car reimbursement, and disappearing deductibles.

Tips for Cheaper Car Insurance

Finding affordable car insurance is about more than discounts. There are many ways to lower your rate without a discount program. Make sure that you take advantage of all the ways you can adjust your policy to save.

Shop Around for Car Insurance

The easiest way to get cheap car insurance is by comparison-shopping. You should compare car insurance rates before you buy a policy. After your initial purchase, you should review quotes at least every six months. You can make this process automatic when you use Insurify and sign up to get alerts when a lower rate is available.

Remain on Your Parents’ Policy

Buying your own policy is usually more expensive than being added to an existing policy. When you stay on your parents’ policy, you get access to all their insurance discounts – most of which are hard to come by when you get your own car insurance policy. Plus, your parents likely have better credit than you, giving them better car insurance rates.

Drive an Older, Safer Car

Older cars are less expensive to buy and insure, significantly so if you drop comprehensive and collision coverage coverage. There are many safe older cars on the market today. When you choose a car with safety features, you often get a discount for each one. Many companies offer discounts for antilock breaks, automatic seat belts, and even airbags.

Select a High-Deductible Plan

Your deductible is what you pay in the event of a claim. The higher your deductible, the lower your monthly premium. Plus, choosing a higher deductible means you’ll be less likely to file a claim for a low-cost repair – something that’s usually not worth the added costs later. Just don’t raise your deductible higher than what you can reasonably afford.

Opt for Liability-Only Coverage

Another benefit of driving an older vehicle (that you own outright) is the ability to purchase liability-only coverage. That means you forgo full-coverage car insurance policies, i.e., policies that include collision and comprehensive coverage. You still need to comply with state minimums.

Keep a Clean Driving Record

Your driving record is the most crucial piece of the cheap car insurance puzzle. Obeying traffic laws, driving defensively, and driving under safe conditions are the best ways to ensure you get low auto insurance rates for years to come.

Maintain a Good Credit Score

Did you know your credit score influences the cost of car insurance in most states? When you’re a teenager, your first task is building good credit. Once you establish credit, you must maintain it. It’s much easier to destroy your credit score than it is to maintain it. And once your credit score is low, it’s harder to raise it.

Car insurance premiums by age for teenagers

Here's a closer look at the average cost of car insurance for teens with clean driving records, based on our analysis.

Average cost of car insurance for 16-year-olds

The average car insurance premium for a 16-year-old driver is approximately $210 per month with females paying slightly less, at about $198 per month on average, and males paying slightly more, averaging $221 per month.

Average cost of car insurance for 17-year-olds

Auto insurance premiums for 17-year-olds average around $195 per month. Males still pay quite a bit more, averaging $208 per month compared to $183 per month for females.

Average cost of car insurance for 18-year-olds

At 18, young drivers see their average auto insurance premium fall to around $169 per month. The gap between male and female drivers closes slightly with male 18-year-olds paying about $177 per month on average while females pay approximately $161 per month.

Average cost of car insurance for 19-year-olds

Car insurance for teens tends to become less expensive around this age. At 19, drivers usually see a fairly significant drop in their auto insurance rates if they have a clean driving record. The average premium for 19-year-olds is about $116 per month, with rates of $124 per month for males and $108 per month for females.

Frequently asked questions about teenage insurance

Do you have to add a teenage driver to your insurance?

Yes, you’ll have to add your teenager to your car insurance policy if they live with you and drive your car. Some states will require you to add your teen driver as an additional insured person when they get their learner’s permit.

What is the cheapest way to get car insurance for a teenager?

The cheapest way to get car insurance for a teenager is by adding them to your own insurance policy. It is not advised to buy a teen their own insurance because it can be very expensive. Insurance companies charge teens more for auto coverage than adults because they believe drivers under 25 have a higher chance of causing accidents.

Should I add my 16-year-old to car insurance?

Most states require you to add your 16-year-old teen to your car insurance as soon as they get their license. It is mandatory in some states, and many insurance companies also require it. Even if it is not mandatory, it’s always a good idea to make sure you’re covered by car insurance.

How to get car insurance for a teenager?

It is possible for a teenager to get car insurance with a permit, but most insurance providers will include the permitted teen on their parent’s policy without any other formalities. Teenagers should get car insurance after they receive their driving permit to stay protected in the event of an accident.

How much does it cost to add a 17-year-old to car insurance? The average car insurance cost for a 17-year-old for full coverage is $5,836 a year. Your auto insurance rate will depend on where you live, the coverage level you choose, the make and model of your car, among other factors.

How much does car insurance cost by credit score?

Statistically, drivers with poor credit file more claims and have higher claim severity than drivers with good credit, according to the Triple-I. This means that, in general, the better your credit rating, the lower your premium. Your insurance credit tier is determined by each car insurance provider and is based on various factors; it probably won’t exactly match the scores from Experian, TransUnion or Equifax as it is a credit-based insurance score, not a credit score. The table below showcases how credit can affect your annual full coverage car insurance premium.

Regulations in California, Hawaii, Massachusetts and Michigan prohibit auto insurers from using credit as a factor when setting rates. The state of Washington continues to evaluate whether or not credit will be banned as a rating factor, but currently allows its use.

Average cost of full coverage car insurance by credit score
Poor Average Good Excellent
National average $3,873 $1,865 $1,674 $1,487

How Much Does It Cost To Add a 16 Year Old To Car Insurance?

As mentioned above, it can cost a lot of money to add your 16 year old to your car insurance. However, there are few things you can do to make sure you’re not over paying.

Take advantage of the few discounts available to young drivers.

Good Student Discount– Generally a 3.0 or better GPA will qualify you for this discount. This can save you anywhere from 3% to 15%.

Driver Training– This discount is not available with as many insurance companies as it used to be. But it can still be a sizeable discount and it’s still a valuable course for your young driver to take.

Monitoring App/Device– Most every insurance company has the option to add a monitoring device. These devices monitor driving habits such as miles driven, speed, hard breaks, etc and give discounts depending on how the driver performs. Since a young driver does not have a driving history, this is the best way to quickly learn driving habits and adjust the insurance rate accordingly.

Older Car– Unless you are wanting to pay an insane amount for your teenagers car insurance, don’t go buy them a brand new car. An older car, that doesn’t need full coverage, will be the best priced car for your young driver.

How do rates differ between 16-year-old male and female drivers?

The average cost of car insurance for 16-year-old female drivers is generally cheaper than the cost for male drivers. This is because young male drivers tend to display more risky driving behavior compared to young female drivers, such as speeding or driving drunk.

Age Monthly cost – male driver Monthly cost – female driver 16$845$78217$768$70518$647$586

Why is car insurance so expensive for 16-year-olds?

Car insurance is much more expensive for 16-year-old drivers because they are more likely to get in accidents than older drivers. According to the Centers for Disease Control and Prevention (CDC), teen drivers are three times more likely than other drivers to get in a fatal crash.

Rates for 16-year-olds are also higher because insurance companies don’t have existing data to base their models on. Car insurance rates are partly based on your driving history, as someone who has driven accident-free for several years will pay less for insurance than someone who has caused several car accidents.

But for these teens, who have typically had their driver’s licenses for a year or less, there’s very little data for insurance companies to base their decision on. This leads to higher costs for every teenage driver, no matter how careful they are.

Should My Teenager Get Their Own Insurance Policy?

No, your teenage driver should not get their own insurance. They should be insured under your policy. This is the case so long as they are living in your house and driving your car. Not only is it more cost efficient to add your teenager to your car insurance but it also ensures you have the correct coverage. Getting your teenager their own car insurance policy while they are living in your house creates all kinds of coverage issues that may affect you at the time of a claim.

How to find the best car insurance rates

Buying car insurance doesn’t have to mean breaking the bank; there are ways to save. Discounts are one of the best ways to lower your premium. Most major car insurance carriers offer discounts. Here are some of the most common insurance discounts in the U.S.

  • Claims-free: Drivers who have no auto claims on their record for the past several years typically qualify for savings.
  • Bundling insurance policies: You can often reduce your auto insurance premium when you bundle your car insurance policy with a home insurance policy or another type of policy offered by your insurer, earning discounts on both policies.
  • Good student discounts: Many auto insurers offer discounts for young drivers who earn good grades in high school or college.
  • Paying in full: If you can afford to pay your car insurance premium in full, versus monthly or quarterly, it may reduce your premium.
  • Telematics: Most car insurance companies offer telematics programs where you can allow them to track your driving habits with an app or device for possible savings.

Because every auto insurer offers a different suite of discounts, speaking with your insurance agent or company representative may be the best way to learn about savings opportunities.

Additionally, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost vastly different amounts with different providers. Comparing quotes might help you find the lowest price for the coverage you need.

Average Car Insurance Rates by Age and Gender

Since young drivers lack driving experience, they are more prone to accidents. This is reflected in a higher average monthly cost of car insurance. On average though, young male drivers could pay more than young female drivers for auto insurance, except in states where companies are prohibited from considering gender in quoting practices.

When analyzing car insurance rates by age, teenagers pay way more on average, regardless of gender. The good news is that college students tend to pay less than high schoolers of the same age, so lower car insurance premiums is something else to look forward to after graduation.

How to save on the cost of auto insurance for 16-year-olds

Car insurance rates for 16-year-old drivers are very high, but there are ways to bring your monthly premium down. The best thing to do is to be added to a family member’s policy rather than buying your own.

But there are other ways to get the cheapest possible car insurance for a 16-year-old.

Shop around at multiple insurance companies

Every insurance company offers different prices, and the discrepancy is particularly high when it comes to teenagers — we found that going with one insurer over another can amount to thousands of dollars saved over the course of a year.

However, the cheapest insurers for 16-year-old drivers will vary by region. You should collect quotes from several different insurance companies to be confident you’re paying as little as possible.

Find discounts for 16-year-old drivers

To offset the high cost of insurance for 16-year-olds, many insurance companies offer a variety of discounts targeted specifically for young drivers. Here are some common deductions to look out for.

Good grades: If you’re a full-time high school or college student with a certain GPA (often a “B”/3.0 or better), you can see a reduction in rates. Driving tracker: Many insurance companies will provide you with a telematics driving tracker, which reduces your rates after you’ve demonstrated that you drive safely. For example, it may show that you don’t suddenly start or stop, or swerve on the road. These plug into your car’s diagnostic port, or use a mobile app, to track your habits. Driving class: Sixteen-year-old drivers are likely to have recently taken driver’s education, but many states allow you to take a driver’s education course to automatically reduce your car insurance rates — in New York state, the discount is 10%. Student away from home: This discount applies more often to college students than 16-year-old high schoolers, but if you’re more than 100 miles away from home for school (such as boarding school), and you don’t have a car with you, you’ll usually qualify to have your insurance rates reduced. Pay-in-full: You can get a discount on your car insurance from most insurers by paying for the entire plan in full, rather than breaking the cost up by month.

Buy a car that’s cheaper to insure

If you or your parents are buying a new or used car for you to drive once you turn 16, one major consideration is how much it costs to insure. The price of car insurance varies significantly by car model — for example, we found in our study of the cheapest cars to insure that a Honda CR-V, the car with the lowest monthly rates, is 33% cheaper to insure than a Ford Mustang.

Buying a fun or fast car — like a Mustang — may seem appealing, but it’s likely to be much more expensive to buy, drive and insure than a car like a Honda Civic. Plus, if you do get in an accident, a sports car will be more expensive to repair.

Drop comprehensive and collision coverage

One of the simplest ways for teenagers to lower their insurance bills is to reduce the amount of coverage they’re paying for. The most commonly removed portions of car insurance are comprehensive and collision coverage, which pay for the repair of your own vehicle. Collision covers you if your car is damaged in a crash and no one else is at fault. Comprehensive coverage pays for damage caused by something other than a collision, like vandalism or theft.

Both coverages are optional unless you have a car loan or lease. Dropping comprehensive and collision coverage is generally a better idea when your car is older and not worth as much money. This is because the maximum possible payout of coverage — the replacement cost of your car — is often less than the cost of coverage. However, you should only drop these coverages if you can afford to repair or replace your car without them.

Helpful Auto Insurance Articles & Guides

Liability Car Insurance: Coverage, Cost, Requirements, Limits

Car insurance for a financed car – Everything you need to know

Comprehensive vs Collision insurance: Do You Need It?

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