7 strategies that could help you save on car insurance for teen drivers

Changing conditions for teen drivers

Conditions for young drivers are not like they used to be. Following the pandemic, incidents of car-related fatalities, speeding and driving without a seatbelt spiked.²

Increased distractions also put teens at higher risk. Smartphone usage like texting, calling and playing music while driving can take away their focus from the road and cause accidents.

Alcohol is another significant hazard for teen drivers. In 2022, 30% of drivers ages 15–20 had BAC’s of .01 g/dL or higher when they lost their lives in car crashes.³

But on the bright side, increased safety measures in vehicles have led to some better circumstances. Modern vehicles are equipped with more safety features like forward collision warning, lane departure warning and dynamic braking.

To help protect your teen, it’s important to lead by example. Drive safely, sober and without distraction.

When does my teen need auto insurance?

Depending on where you live, laws differ on when you need to add your teen to your car insurance. Some states require teens to be insured while they learn to drive with their permit. Others let you wait until they have their official license.

Coverage options for teen drivers

In general, adding your teenage driver to your auto insurance may be the most cost-effective option. Most car insurers offer family plans that result in lower overall premiums than if you got them their own insurance.

A situation that could lead to an exception of this is if the parent/guardian or teen has already been involved in many accidents and has a high premium. Some companies offer specialized insurance for people with poor driving histories that help keep costs as low as they can.

Here are 7 different strategies to help you save on car insurance for teen drivers

1. Consider pumping the brakes on letting your teen drive

If your budget is tight and you’re not ready to pay increased premiums for your teen, you may want to consider delaying their driving. Insurance premiums for teens typically decrease in cost every year until about age 25. Try exploring current rideshare options and public transportation as they could be more budget-friendly.

2. Get discounts for good grades, safety classes and drivers ed

If your teen needs to drive, there are other options to help cut costs. Many insurance companies offer good student insurance discounts for teens in high school or college who maintain a B average GPA or better.

Enrolling your teen in driver’s ed classes is another strategy to save money on premiums. Certain high schools will even offer these classes as a course they can add to their schedule.

Getting extra support for teaching the rules of the road can help you save and encourage your teen to drive more responsibly.

3. Check out usage-based insurance

If your teen will be away at school or won’t be driving often, getting usage-based car insurance could help cut down costs.

4. Choose the right car for your new driver

If you’re planning on getting a car for your teen, consider the cost of insuring that specific vehicle. Teen auto insurance prices vary depending on how easy your car is to fix, whether it’s an easy target for thieves and how advanced its internal technology is. Cars that are larger, friendly to new drivers and rated highly in crash tests are typically considered best for teens.

Try consulting the Insurance Institute for Highway Safety ratings or another widely trusted authority for more insight on good cars for teens.

5. Take advantage of telemetric devices

It might also be wise to familiarize yourself with new technology that encourages safe driving. Insurance companies can offer discounts for using telemetric devices. These small tracking devices share your safe driving habits with your insurance company.

6. Shop around

Prices and types of auto insurance for new drivers vary by company. Doing your research and getting multiple quotes will help you find the best option for you. Many insurance companies offer extensive guides for their insurance products online. Getting quotes and purchasing online can also get you discounts.

7. Consider changing/adding coverage for your teen

It's important to think practically about the coverage your teen will need. If your teen is involved in a fender bender, you’re going to want to have the right amount of coverage.

There are multiple types of auto insurance for teens you may want to consider like comprehensive coverage, collision coverage, roadside assistance and liability coverage.

Paying extra for additional coverage could be costly, but in the event of an accident you may be glad you have it.

Helping your teen get their license is an unforgettable — and also costly — moment in parenthood. But teaching them to drive safely and applying these strategies could help you save. Get a quote today through TruStage™ Auto Insurance Program to explore which coverage could be right for your family.

¹U.S. Centers for Disease Control and Prevention. (2024, April 25). Risk Factors for Teen Drivers. https://www.cdc.gov/teen-drivers/risk-factors/index.html

²National Highway Traffic Safety Administration. (2024, April 1). NHTSA Launches Put the Phone Away or Pay Campaign; Releases 2023 Fatality Early Estimates. https://www.nhtsa.gov/press-releases/2022-traffic-deaths-2023-early-estimates

³National Highway Traffic Safety Administration. Drunk Driving. https://www.nhtsa.gov/risky-driving/drunk-driving