A parent’s guide to car insurance for teens
This guide provides helpful tips on insurance for teen drivers, including what to expect, options to consider and ways to help manage expenses.
Overview: Car insurance for teenagers is often more expensive due to the higher risks associated with their limited experience. Factors influencing premiums may include age, vehicle type and location. Parents can choose to add their teen to an existing policy or secure a separate one. To help manage costs, families can explore various discounts, such as those for good grades or participation in safe driving programs. It's important to keep the insurance provider informed of any changes in the teen's driving status. It’s helpful to educate the teen and promote safe driving habits. By proactively addressing these, families can navigate the challenges of insuring teen drivers while encouraging responsible driving behavior.
What to expect when insuring a teen driver
Teen driver insurance typically costs more due to the higher risk associated with younger drivers. However, understanding how car insurance is calculated and the factors influencing premiums can help you make informed decisions and manage costs.
Do I have to add my child to my car insurance?
Adding your teen to your existing auto policy is often easier and more competitively priced than getting them their own policy.
When should your teen consider their own policy?
There are several situations where it may be more beneficial or necessary for your teen to have their own policy:
- Vehicle ownership — if the vehicle is titled and registered in their name, many insurers require the policy to be in that name.
- Permanent residence — if your teen has moved out permanently (not just away at college), they may no longer qualify as a household member under your existing policy.
- Coverage restrictions — some insurers limit the number of drivers or cars covered under a single policy, while others may require high-risk drivers (like teens with tickets or accidents) to be insured separately.
- Cost savings — if your family policy has high premiums due to other drivers, it may be more economical for your teen to have their own policy with lower rates.
Potential ways to save money
Although insuring a teen driver can lead to higher premiums, there are strategies you may use to help manage costs.
Take advantage of discounts
Many insurers offer a variety of auto insurance discounts for teen drivers, helping make it easier to save on premiums while encouraging safe driving habits. Here are some common options to consider:
- Student discounts — teens who maintain good grades may qualify for savings through programs like the Good Student Discount from State Farm.
- Driver education discounts — driver education programs like Steer Clear® from State Farm can be a great way for your teen to improve their defensive driving skills while also earning a discount.
- Multiple vehicle discounts — insuring multiple vehicles under one policy can often lead to discounts.
- Bundling discountsfootnote 1— combining insurance policies, like auto insurance and homeowners insurance, can provide further savings.
Consider usage-based programs
Some insurers offer usage-based programs that track your driving habits to help determine premiums. State Farm offers a program called Drive Safe & Save® that gives you 10% off just for signing upfootnote 2 and an opportunity to save up to 30%.footnote 3 In addition to potential savings, usage-based programs can provide valuable insights into driving habits, which can help parents understand how their teen is driving.
Compare vehicles and features
When choosing a vehicle for your teen, it's helpful to compare cars and safety features, as these factors can influence insurance costs.
- Safety features — vehicles with certain safety ratings and features, like anti-lock brakes and multiple airbags, may qualify for discounts.
- Vehicle make and model — generally, sedans and compact cars have lower insurance rates, while sports cars often incur higher premiums due to their performance and risk factors.
Promote safe driving habits
Encouraging safe driving habits can help keep your teen safer on the road and contribute to a better driving record, which may lead to lower insurance premiums.
- Lead by example — model responsible driving behaviors, such as adhering to speed limits and avoiding phone use while driving.
- Limit nighttime and passenger driving — research shows that crash risks increase for teens driving at night or with multiple passengers.
When to contact your insurance provider
It's important to keep your insurance provider informed about your teen's driving status. While requirements vary by state and insurer, most require anyone driving a vehicle, including those with a learner’s permit, to be listed on the policy.
Notify your insurer
- Learner’s permit — inform your insurance provider when your teen obtains their learner’s permit.
- Driver’s license — notify your insurance company immediately when your teen receives their driver’s license to officially add them to your policy.
Understanding auto insurance coverage
When insuring your teen driver, it's essential to understand the various types of coverage available and what they cover.
Steps to consider
Taking proactive steps can help ensure your teen understands their responsibilities as a driver and the importance of being informed. Here are some important steps to consider:
- Keep your insurer informed — notify your insurance provider of any changes in your teen's driving status, such as obtaining a learner's permit or driver's license, to help ensure appropriate coverage.
- Educate your teen — help them understand the financial implications of their driving behavior and the importance of liability coverage to protect family assets.
- Encourage safe driving — emphasize safe driving habits to help your teen be safer on the roads .
- Discuss risks — talk about the dangers of distracted driving and the importance of staying focused behind the wheel.
- Be prepared — make a plan with your teen for what to do after an accident or if the car breaks down.
By taking these steps, you can help your teen understand the responsibilities that come with driving and encourage safer driving practices, ultimately helping benefit both their safety and your family’s financial security.
Still have questions?
You can get an auto insurance quote now, or give us a few details and a State Farm® agent will reach out to you.
return to reference 1 Customers may always choose to purchase only one policy but the discount for two or more purchases of different lines of insurance will not then apply. Savings, discount names, percentages, availability and eligibility may vary by state.
return to reference 2 Setup required.
return to reference 3 Discounts may exceed 30% and vary state-to-state (NY capped at 30%). Not available in CA, MA, RI. A discount may not be available in NC depending on individual facts and circumstances.
The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.
This article was drafted with the help of AI and reviewed by State Farm editors.
State Farm Mutual Automobile Insurance Company
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Bloomington, IL
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Richardson, TX
