How to Get a Lower Insurance Rate for Teen Drivers

While your teenager might be thrilled to finally start driving on their own, there's a great chance it will cause sleepless nights for you.

Not only will they be operating a car unsupervised, but the cost of insuring them is absurd and you're likely to be the one footing the bill! 

Drivers under the age of 18 require, at the bare minimum, parental approval to acquire a car insurance. Most states mandate that underage drivers be added to a parent's insurance policy.

If you've been enjoying a cheap monthly car insurance rate, that means it's time to say goodbye! The most expensive group of drivers to cover are those between the ages of 18-24. 

A higher annual premium is unavoidable, but there are a few tricks you can use to limit how much it increases by.

We'll cover some useful information for helping to lower the cost of adding a teen driver to your insurance policy below!

Teenagers Are Typically Added to Your Policy

Most states require that drivers under the age of 18 be added directly to a parent's insurance policy. If they're older, you have the option of getting them an individual policy.

Even then, there's a good chance you'll add them to your policy anyway. Some states will allow you to insure an underage driver on an individual policy if the vehicle they drive is under their name, but this will still require your consent.

The reason for adding them to your policy is that it tends to be cheaper. Teens on an individual plan can expect to pay upwards of $300 per month.

As soon as a teenager gets their license, they'll need to be added to your insurance policy per your provider's requirements.

A Higher Premium is Guaranteed

The unfortunate reality of adding a teen driver to your policy is that it will increase your monthly rate.

Even if you're accustomed to a comfortable lowly rate, that won't be the case when you add a young driver. The highest risk category for insurance companies is drivers that are under 25. 

The increase will be drastic, with anywhere from a 50% to 100% rate increase. If you were paying just $75 per month previously, it can easily increase to $150 or more. 

Fortunately, this is mitigatable through looking for discounts, dropping coverages, or installing driving monitor devices to give an insurance company proof your teen can and will drive safely.   

Focus on Discounts

Discounts are always important when it comes to getting car insurance, but especially so if you're adding a teen driver.

There are two main discounts that you should focus on; one for being a good student and another for driving a safe car.

Good student discounts are quite effective because higher grades usually correlate to making smarter decisions behind the wheel. If your teen is a straight-A or even B student, this can allow a significant decrease in premium cost.

Safe car discounts are useful because they reduce the risk posed to an insurance company. If there's less of a chance that they'll need to pay a large sum for an injury stemming from an accident, the less you'll need to pay for insurance as a result.

Lower Coverages

Another option is lowering the amount of coverage you have. While this isn't necessarily a great idea, it does provide an option of lowering your insurance cost.

The only auto insurance coverages that are required include property damage and personal liability. Opting for these at the lowest-legal coverage amounts are a quick way to reduce your premium total.

Collision and comprehensive coverage are good choices for auto insurance, but they come at the cost of being much more expensive. They're also optional. 

Consider this as a last resort if you can't fathom paying a high cost for car insurance because collision and comprehensive tend to be worth it depending on the vehicle driven.

Driving Monitors

One final option you have is a driving monitor. 

This is usually a device that plugs directly into your vehicle or a phone app that tracks and monitors your teen's driving habits. 

It will look at specific criteria, like how rapidly a car accelerates, if it needs to brake hard, and whether or not it speeds. Any of these are considered unsafe driving habits.

On the other hand, having a driving monitor installed in a teen's car can lead to discounts if they exhibit safe driving behavior. This means gradual acceleration, no hard braking, and obeying speed limits.

Driving monitors are a perfect way of showing that your teen is a safe driver as they'll have physical proof. Just knowing that their driving is being watched can also encourage a teen out of poor driving habits.

Closing Thoughts

When you're looking to get car insurance coverage for your teenager, you'll likely need to add them directly to your insurance policy.

This will directly result in a massive increase in your annual premium. Increases of 50% are quite common but don't be surprised if it goes higher.

There are ways of reducing the increased cost. This includes looking for discounts, opting for less coverage, and installing a driving monitor. 

You can't fully avoid a higher monthly auto insurance cost, but it's a necessary evil for keeping your teen driver insured. Your rates won't stay high forever, but try to appreciate the freedom they're enjoying in the meantime.