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 19, 2020

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Key takeaways...

  • A graduated license first provides the driver with learners permit
  • The graduated license allows the young driver more privileges over time while they obtain more experience driving
  • Once the driver has reached a specified age, they become eligible for full driving privileges

The age group that is charged the most for car insurance coverage is young drivers between the ages of 15 and 20.

Based on statistics gathered by the auto insurance industry, this age group is more likely to be in or cause an accident and are generally inexperienced with tasks that involve driving.

The driving experience is acquired over the course of several months, even years, of driving a vehicle.

A number of young drivers simply have not had enough time to develop the experience required to safely maneuver the vehicle in emergencies.

Let us help you find affordable car insurance. Enter your zip code in our comparison tool above for FREE car insurance quotes.

Table of Contents

Graduated Licenses for Young Drivers

Some states are implementing a “graduated licensing” program for young drivers. The graduated license allows the young driver more privileges over time while they obtain more experience driving.

A graduated license first provides the driver with learners permit. After some time has passed, the driver is eligible for an intermediate license.

With an intermediate license, the driver is required to obtain a certain number of supervised driving hours.

In addition, the driver is restricted to the number of passengers that are allowed to ride with the driver.

Once the driver has reached a specified age, they become eligible for full driving privileges.

States that have implemented graduated licensing programs for young drivers report reductions in the number of accidents by young drivers which in turn should reduce the price of car insurance.

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Obtaining Auto Insurance for Young Drivers

Car insurance for younger drivers tends to be more expensive than for those over age 25.

Here are a few things you can do to make sure you get the best rates possible:

  • Good Student Discount – If your young driver is a good student, they may qualify for a Good Student Discount with your insurance provider. Most car insurance carriers offer students with a “B” average or better, discounts on their car insurance rates
  • Add the Young Driver to an Existing Policy – If the young driver is added to an existing policy, rates for the young driver will be better than if they are on their own policy
  • Carry Reduced Coverage on the Car Driven by the Young Driver – Allow the young driver to drive an older car that you own outright. Carry liability only for the auto
  • Require the Young Driver to Wait to Get Their License – One way to obtain better rates for a young driver is to require that they wait a while to get their drivers license. In many states, as soon as the young person receives their learners permit, they must be added to an insurance policy

Compare Auto Insurance Policies and Rates

When obtaining a new auto insurance policy for a younger driver, or any driver, compare auto insurance companies, as well as their policies and rates, using a web-based insurance comparison site.

Comparison sites allow users to enter their zip code, a bit of personal information and retrieve a list of auto insurance companies that provide coverage to drivers in their area.

Using a comparison site, select the type of policy you would like to use as a basis for comparison. For example, you can select a liability only policy or full coverage.

You will also be able to request free quotes from each insurance company listed. Compare rates for each policy type you would like to research.

Comparison sites make comparing car insurance policies and rates a quick and easy process. Enter your zip code in our comparison tool below and start comparing quotes for FREE!

References:

  1. https://en.wikipedia.org/wiki/Graduated_driver_licensing
  2. http://dor.mo.gov/drivers/teens/gradlaw.php
  3. https://www.allstate.com/tools-and-resources/car-insurance/learner-driver.aspx
  4. https://www.nationwide.com/cheap-car-insurance-young-drivers.jsp
  5. https://www.statefarm.com/insurance/auto/coverage-options/liability-coverage
  6. https://www.nationwide.com/learners-permit-insurance.jsp