If you have a teenage driver in your home, we don’t have to tell you how expensive car insurance can be. On average, it costs about $1,500 per year to add a teen driver to a family insurance policy. The coverage is expensive because teen drivers are a major risk for car insurance companies. Drivers between the ages of 16 and 19 are three times more likely to be involved in a fatal crash than older drivers, and car crashes are the leading cause of death for drivers in that age group.
When adding a teen driver to your insurance policy, it’s essential to shop around and compare prices from multiple insurance companies. Also, ask about discounts that may help you save on your premiums. Here are a few more tips for finding the best car insurance for teens.
Teen-Friendly Insurance Companies
While not available in every state, there are a few insurance providers with a reputation to offering affordable coverage for teen drivers and their families:
USAA. USAA insurance is only available to active-duty military members, veterans, and their families. They offer affordable rates and up to a 10% discount for good students. They also a 25% discount for students attending school at least 100 miles away from home without their car.
Nationwide. Nationwide offers a discount of up to 15% for drivers between the ages of 16 and 24 who maintain a B average or better.
State Farm. State Farm offers multiple discounts to help young drivers save money. Good students save up to 25%, and teen drivers who complete and approved safety course go at least three years without getting a ticket or being involved in an at-fault accident are eligible for a discount of up to 15%.
Geico. Geico allows teen drivers to switch from a family plan to their own policy at the same rate. They also offer good students discounts of up to 15%, and there are additional discounts for car safety features.
How To Save
When you add a teenage driver to your car insurance policy, your rate is going to go up. Unfortunately, that’s unavoidable. There are, however, several things you and your child can do to lessen the impact. Many companies offer discounts of up to 25%, and some offer multiple discounts that can be combined for maximum savings. Here are some of the best ways to save:
Get good grades. Research indicates that students who maintain a B average or better are 33% less likely to have an accident during their first year of driving. As a result, many insurance providers offer discounts ranging from 10% to 25% to students with good grades.
Take a driver training course. Young drivers who take a driver training course are less likely to have an accident or get a ticket. Many insurers offer discounts to drivers under the age of 21 who pass an approved course.
Sign a driving contract. Some insurance companies offer discounts to teen drivers who sign a driving contract. In this contract, the teen agrees to always wear a seat belt, never text or talk on the phone while driving, never drive while impaired, etc.
Leave the car at home. Families can save big when students who are attending school more than 100 miles away leave their car at home. They’ll still be fully covered when driving while at home on breaks, but their insurance rates could drop by as much as 25%.
When you’re shopping for the best car insurance for teens, take the time to compare policies from multiple insurance companies. Ask questions regarding any discounts that are available to students. You may also qualify for discounts for any safety features your car may have. Car insurance for teens isn’t cheap, but finding the right company and taking advantage of all the available discounts can drastically reduce the financial burden.