Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 15, 2020

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Here's what you need to know...

  • Many states mandate that each driver and vehicle needs to be covered by car insurance.
  • Teen drivers with good grades and safe driving histories usually receive lower rates
  • Taking a defensive driving course can also lower your monthly premium

Parents everywhere know that one day their little boy or girl is suddenly going to become a driver. Where does the time go?

One of the major milestones in a teenager’s life is obtaining a driver’s license; the ability to drive is often related to the feeling of personal freedom and growing up.

However, the new teen driver must deal with a grown-up dilemma which is finding affordable car insurance.

Many states mandate that each driver and vehicle needs to be covered by car insurance. How does a teenager find an insurance company that will offer a reasonable rate?

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Table of Contents

#1: Drivers Training Courses

Many parents teach their children how to drive in the family car; but, this informal teaching practice should be supplemented with formal training courses.

State certified formal drivers training courses are normally offered throughout the year by different companies.

By taking these courses and graduating, the teenage driver can have a reduction in the auto insurance policy.

Most courses require students to drive at least 50 hours with a certified driving coach. As a result, the teenager will have a better understanding of the road’s rules and less chance of a collision.

Car insurance companies see these courses as a way to lower their risk of insuring the teenager and the policy should reflect a reduced premium; comparing different insurance policies will help the teenager find the best discount with the applied training courses.

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#2: Car Type

Buying the flashy, sports car for the teenager seems like a movie dream come true, but in reality, it will cost the parents greatly in higher insurance premiums.

An expensive car is naturally more expensive to repair in the event of an accident, as well as attracting criminals that can potentially steal the car.

Alternatively, the parents should provide a vehicle that is more practical, such as a basic passenger vehicle, for lower rates.

In case you already bought your teen the flashy sports car we can help you find the best sports car insurance.

Parents should also make sure that the vehicle has the current safety features, like airbags. Cars with multiple airbags will lower the insurance rate as well.

Comparing different rates from various insurance companies, based on safety features, will help lower the overall policy price.

#3: Add-Ons

Many parents simply add their teenager to their current car insurance policy.

If the parents have a good record with the company, especially if it has been held for a number of years without a claim in place, the savings can be substantial.

Current policyholders should contact their insurance representative to ensure the best pricing.

#4: Standalone Policy

Some parents do not have auto insurance since they do not drive, but they would like their teenager to have the freedom of the road.

A teenage standalone policy can be affordable if the parents shop around to different insurance companies; many of these new driver policies will have contingencies.

However, the contingencies will keep the policy premium low, as well as protect the teenager.

Some of the most common stipulations are imposed curfews or simply not allowing the teenager to drive at night. Each company will have their own details so it is important to compare and contrast different policies.

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#5: Tracking Systems

Modern technology has allowed car insurance companies to offer lower premiums for teenagers based on actual driving data.

Specialized tracking systems can be voluntarily placed on the teenager’s car to monitor speed and location.

As a result, the insurance company can see if the driver is staying within the posted speed limit or abusing the right to drive.

This real-life data can work for and against a teenager. The parents must stress to the teenager that this device can directly influence the policy’s premium.

#6: Deductible

Another strategy to keep an affordable car insurance policy for a teenager is a high deductible. A deductible is an amount that a policyholder must pay for repairs before the insurance company will yield the remaining amount in the event of a car accident.

A higher deductible will place more risk on the part of the customer, as opposed to a low deductible that places more risk in the hands of the insurance company.

As a result, the premium will be lower since the risk is reduced for the insurance company.

Consumers should be wary about using an extremely high deductible; consumers must evaluate their personal finances to ensure that they will have that deductible amount to spend if an accident occurs. The deductible should only be as high as the consumer can manage to pay.

Most insurance companies differ on pricing when it comes to deductible choices. Consumers should shop around to different insurance providers for the best rates.

#7: Good Grades

Teenagers that exhibit responsibility with good school grades will normally exhibit the same care during driving.

As a result, many insurance companies offer discounts on their policies for teenagers that show steady As and Bs on their report cards.

Parents can encourage both good grades and safe driving as a means to obtain a great insurance quote. There are also other car discounts for teenagers.

Teenage car insurance does not need to be horribly expensive for the parents.

Comparing different rates with various insurance companies will ensure the best premium pricing for the parents, as well as the teenager.

Enter your zip code below and to compare car insurance quotes for teenagers.

References:

  1. https://www.nationwide.com/adding-a-driver-to-car-insurance.jsp
  2. https://www.geico.com/information/safety/auto/teendriving/
  3. https://www.usaa.com/inet/pages/auto_teen_safe_driving_main?akredirect=true
  4. https://www.esurance.com/info/car/car-insurance-deductibles-the-basics