Car insurance for young and teen drivers
Adding a teen driver can double a family's premium — but several proven moves keep the cost of insuring young drivers under control.
Key takeaways
- Adding a teen to a parent's policy is almost always cheaper than a separate one.
- Good-student and driver-training discounts can meaningfully cut the cost.
- Rates fall as young drivers gain experience — re-shop every year.
Young drivers are expensive to insure because, statistically, they crash more. Adding a teen to a policy can dramatically raise the bill. The good news is there are several legitimate ways to soften the blow.
Smart moves for insuring young drivers:
- Add the teen to a parent's policy rather than buying a separate one — it's almost always cheaper
- Ask for the good-student discount (usually a B average or better)
- Have them complete a driver-training or defensive-driving course
- Assign the teen to the oldest, cheapest-to-insure car, not the newest one
- Enroll in a telematics/safe-driver app that rewards good habits
- Consider a higher deductible if the family has savings
- Shop around, since insurers price young drivers very differently
It also helps to explain to the young driver how a clean record pays off: tickets and accidents raise everyone's rate on the policy. As they gain experience and stay claim-free, premiums drop — usually noticeably by their mid-twenties. Re-shop each year, because the company that was cheapest for a brand-new driver may not be the best once they've built a clean record.
What this is
Why it matters
What you can do next
Related FAQs
Common questions about this topic, answered simply.
Is it cheaper to add my teen to my policy or get them their own?
Almost always cheaper to add them to yours. A separate policy for a young, inexperienced driver is typically far more expensive because they don't benefit from your history and multi-car discounts.
What discounts help young drivers most?
The good-student discount (for a B average or better), driver-training or defensive-driving course discounts, and safe-driver telematics programs. Stacking these can offset a big chunk of the added cost.
When will the rate go down?
As the young driver gains experience and stays claim-free, rates drop steadily and are usually much lower by their mid-twenties. Re-shopping each year ensures you capture those decreases.
Keep reading
Bundling insurance policies: when it saves
Bundling your policies with one insurer usually earns a discount — but it's worth checking that the bundled price really beats buying separately.
Read Insurance basicsHow to save on health insurance
Health insurance is a major expense, but subsidies, the right plan choice, and tax-advantaged accounts can lower what you pay.
Read Insurance basicsHow to lower your homeowners insurance
Homeowners insurance is a big annual bill, so trimming it can free up real money — without leaving your home underprotected.
Read Insurance basicsHow to lower your renters insurance
Renters insurance is already cheap, but a few moves can make it even cheaper while keeping you protected.
ReadTest what you learned & earn points
Take a quick 3-question quiz on this article to earn MoneyFAQ points, build your streak, and unlock badges. Free account required.
Want answers personalized to your situation?
Tell us your #1 money goal and we'll tailor MoneyFAQ to you — free, takes 10 seconds.
When you're ready, here are some options
These are ads from partners — always optional. Looking is free and never affects your credit score. Reading the guide above is completely free either way.