How to Save on Car Insurance for Teen Drivers

What is the best way to save on car insurance for teen drivers?

Adding a teen driver to your car insurance policy can significantly increase your premiums. To help families manage these costs, we’ve compiled a list of practical strategies to reduce your car insurance expenses while keeping your teen protected on the road. Here are the top ways to save on car insurance for teen drivers:

1. Good Student Discount

If your teen maintains a GPA of 3.0 or higher, many insurance companies offer a good student discount—often around 7% off your premium. This is a great way to reward academic achievement while lowering your insurance costs.

2. Defensive Driving Course Discount

Teens who complete a certified driver education or defensive driving course may qualify for additional savings. Most insurers honor this discount for up to three years after course completion. Be sure to submit a copy of the certificate to your insurance provider.

3. Student Away at School Discount

If your teen is attending college more than 100 miles from home and doesn’t have a car with them, you may be eligible for a student away discount. This allows your teen to remain covered when they’re home on break, without paying full-time driver rates.

Tip: You don't need to remove your student from the policy - just ask your insurer about this specific discount.

4. Choose the Right Vehicle

The type of car your teen drives has a major impact on your insurance premium. Avoid high-performance or luxury vehicles, which are more expensive to insure. Instead, look for:

• Vehicles with strong safety ratings
• Moderate value and repair costs
• Features like automatic emergency braking or lane assist

5. Enroll in a Telematics Program

Many insurers offer usage-based insurance (UBI) or telematics programs that track driving behavior. Safe driving habits—like smooth braking, low mileage, and avoiding late-night driving—can lead to significant discounts.

Lean more about telematics programs and whether they're right for your family in this article.

6. Leverage Parent Discounts

It’s usually more cost-effective to add your teen to your existing policy rather than purchasing a separate one. Why? Because parents often qualify for discounts such as:

• Multi-car discount
• Homeowner discount
• Continuous insurance history

Explore the pros and cons of separate vs. combined policies in this article.

7. Maintain a Clean Driving Record

Avoiding accidents and tickets is one of the most effective ways to keep premiums low—especially for teen drivers. A single accident can raise your rates dramatically.

To help your teen stay safe and accountable:

• Create a parent-teen driving agreement outlining expectations and consequences.
• Use tools like Life360 or your insurer’s telematics app to monitor driving behavior.
• Request a copy of our Parent-Teen driving agreement here.
  
  

Final Thoughts

Adding a teen driver doesn’t have to break the bank. By taking advantage of available discounts, choosing the right vehicle, and encouraging safe driving habits, you can significantly reduce your insurance costs.

Always consult with a licensed insurance agent to explore the best options and discounts available for your specific situation.