Why Adding a Teen Driver Raises Your Insurance Rates

Adding a teen driver to your auto insurance policy can be a shock to your budget. Even the most responsible young drivers are still considered high risk by insurance companies. That is because teens are more likely to be involved in accidents due to limited experience and a higher likelihood of distracted driving. These factors raise the chances of a claim, which leads to higher premiums.

However, there are several ways families can manage these costs without sacrificing coverage.

Good Student Discount

One of the most common ways to save is through a Good Student Discount. Many insurers reward academic performance, often requiring a B average or 3.0 GPA(or better). If your teen meets this requirement, you may qualify for a discount each year they remain in school.

Driving Courses

Another savings opportunity is completing a driver training or defensive driving course. Some insurers offer lower rates for teens who finish an approved program, since formal training can reduce the risk of accidents.

Telematics

Many carriers also offer telematics programs. These involve installing a mobile app or a device in the car that monitors driving habits, such as speed, braking, and time of day. If your teen practices safe driving, the data can lead to additional discounts over time.

Choose the Right Vehicle

You can also save by being strategic about which vehicle your teen drives. It is often cheaper to add them as an occasional driver of a family car rather than buying them a separate vehicle. If you do purchase a car for them, look for one with strong safety features and a good insurance rating.

While rates will always be higher when a teen is added to a policy, making smart choices can help you control the increase. A clean driving record, good grades, and safe habits can all lead to savings now and in the future.

If your teen is about to start driving, now is the perfect time to review your coverage and explore every available discount. We are here to help make the process easier and more affordable.