Adding a Teen Driver: How to Keep the Cost Down

Adding a newly licensed teenager is one of the biggest jumps in car insurance cost most families ever see. Inexperienced drivers have more accidents, and insurers price that in. You cannot avoid the increase entirely, but a few choices make a real difference.

Adding a teen to your policy is usually cheaper than a separate one

For most families, listing a teen driver on a parent's policy costs less than buying the teen their own policy. The household can share multi-car and bundling discounts, and the teen benefits from the parents' driving history with the carrier.

Rules for learner's permits vary — some insurers do not charge for a permit holder, others want them listed. Call your insurer when your teen gets a permit and again when they are fully licensed so the policy stays accurate.

Discounts built for young drivers

• Good student discount — many carriers offer one for students who keep a B average or better. You will usually need a report card or transcript.
• Driver education discount — completing an approved driver's ed or defensive driving course often earns a reduction.
• Distant student discount — if your teen is at school far from home without a car, you may pay less while they are away.
• Usage-based programs — tracking apps that reward smooth braking and safe speeds can work well for careful new drivers.

The car they drive matters

Insurers rate the teen together with the vehicle they use most. A modest, safe, older sedan typically costs much less to insure than a new car, a sports car or a large SUV. If your household has several cars, ask whether the teen can be assigned as the primary driver of the least expensive one.

Other ways to keep the cost down

1. Raise the deductible on the car the teen drives, if your savings allow.
2. Review collision and comprehensive on an older car you could replace yourself.
3. Keep the teen's record clean — tickets and accidents stay on a driving record for years.
4. Compare quotes. Carriers price young drivers very differently, so the company that was cheapest before your teen started driving may not be the cheapest now.