Having a teen that is ready to start driving is an exciting time, but it presents new challenges and expenses for families. Under most circumstances, parents will want to add their child to their existing driver’s insurance policy to make sure they are covered while they are behind the wheel. While taking this approach versus purchasing a standalone policy for your teen is typically cheaper, the fact is that teens are considered to be high-risk drivers and can be expensive to cover. Luckily, there are methods for securing insurance discounts for teenage drivers. Whether you’re shopping for the cheapest auto insurance for teens or just looking for ways to score some teen car insurance discounts on your existing coverage, Bankrate has you covered.
How to save on car insurance when adding a teen driver
Insurers charge higher rates on average for teens than for any other group of drivers, but cheap car insurance for teens is possible. In particular, driving behavior programs, good student discounts and telematics can help provide reductions in premiums. Here are a few discount opportunities to explore:
Good student discount
It’s common for car insurance companies to offer discounts for full-time students who maintain good grades. For instance, Allstate offers a good student discount to unmarried drivers, under 25 years of age, who have at least a B- average. Additionally, State Farm offers up to 25% savings for students with good grades, up to age 25 or their last year of school. If your teen is a top student, you may want to call your agent to ask about savings. Some companies require you to submit proof of grades by sending in a copy of your child’s report card, but the small amount of time it takes to do so could be worth it.
Enroll in a safe driving course
At-fault accidents on a teen’s driving record can cause rates to increase substantially, especially compared to drivers in other age groups. Many insurers now promote driver safety courses as a way to teach young, inexperienced drivers the rules of the road and provide teen driver discounts. Geico, State Farm, Allstate and Travelers are all examples of carriers that reward drivers with a premium discount upon completion of required driver safety training courses.
Distant student savings
If your young adult driver moves away from home to attend college and leaves their car behind, they might be eligible for a lower rate. For some companies, this savings comes in the form of a distant student discount. For others, the savings isn’t a discount but is instead an “away-at-school“ driver status that can cause a decrease in your premium. Either way, your child must usually be a certain distance away from home (typically 100 miles or more). Whether your company offers a distant student discount or an away-at-school status, this could be a great savings opportunity to have, especially when combined with the good student discount.
Low-mileage savings
Similar to the distant student, if your teen drives the car a low number of miles each year, then usage-based insurance may be a good option. For example, Nationwide offers the pay-per-mile option through its SmartMiles program, providing coverage with a premium that changes each month, depending on the number of miles actually driven — though it is not available in all states.
Consider the teen’s car
The car insurance rates. With this in mind, you may want to be strategic when buying a car for your teen driver. If you want the lowest rates, a used sedan could be a more economic option than a new, sporty coupe. However, remember that older vehicles may lack safety features such as anti-theft devices and anti-lock braking systems, which might lead to a higher premium. Most insurance professionals recommend that you get separate quotes for all of the vehicles you are considering purchasing before making your decision, but be sure to list your newly-licensed teen as the driver to get the most accurate rate.
Take advantage of telematics
Installing a telematics device in your teen’s car or downloading a telematics-based app from your insurer may help you monitor their driving habits, and it could net you a discount, too. Keep in mind that under some insurers telematics programs, your rates could also increase if the company detects poor driving habits. A telematics device is a small piece of equipment that you plug into your vehicle, but could also work through your smart phone with the proper app installed, and gathers driving data such as rate of braking, average speed and the time of day a car is driven. Many companies now offer a telematics discount, including:
- Allstate
- Geico
- Progressive
- Nationwide