Tips for Managing Teen Driver Insurance Costs
You’re stressed! Aside from the mere thought of your kid behind the wheel, the cost of insurance can also be stressful. It’s no secret that adding a teen driver to your auto insurance policy increases the cost. A lot. Unfortunately, it’s an outcome of insurance providers looking at the scary statistics and managing risks. But there are opportunities to save without compromising the quality of your coverage.
Did you know?
When parents add a teenager to their car insurance policy, their rates are likely to go up an average of 78%, according to one study. Based on the average national car insurance bill, that’s $1,028–$3,000 more. Prices jump even more for boys—89%—but girls are expensive too, raising bills by 66%.
What can you do?
Take advantage of teen driver discounts. Fortunately, there are opportunities to get teen driver discounts on your auto policy. The added benefit is that they often encourage safe driving habits to give you some peace of mind.
Good student discount
Most insurance providers offer a discount for good grades. Discount amounts (and the required grades) may vary; Electric Insurance’s Good Student discount savings average $330.1 Take the time to follow the requirements for submitting documentation, and pay attention to deadlines to provide updates so the discounts don’t expire.
Driving analysis apps
Some insurance providers offer discounts for using apps that analyze driver habits and driving environment. Electric Insurance offers a 5–10% discount for drivers in many states just for signing up for its free Great Driver™ app when you buy an auto policy.2 The app not only monitors driving patterns—it also provides feedback and improvement tips, perfect for new drivers.
While it can be less expensive upfront to forgo driving school and go it alone, it often makes financial sense in the long run. Look for a discount on a teen driver premium if they learned to drive from an accredited driving school. The average savings here is $330 per year1! Besides, teens typically listen to instruction from anyone but a parent, right?
Another savings + safety win is an online driver safety course. Many auto insurance policies offer discounts if you take an accredited safety course. This is another discount opportunity that isn’t just for teen drivers. Different companies may require different courses. A great example is the National Safety Council’s “Defensive Driving Safety Training.”
Many auto insurance companies offer discounts for newer cars. That’s because, typically, they come equipped with more safety features than older ones. It doesn’t have to be fancy or expensive to be newer and safer. Discount plus added safety? Win-win.
For more tips on how you can encourage safe driving for your teen drivers, check out some key teen driving tips.
Our Risk Coaches are licensed insurance professionals who are trained to look at coverage from your perspective.3 They’re glad to help you navigate the often-perplexing world of insurance coverage. Contact your local Risk Coach™ professional or call us at 800.227.2757, Monday through Friday, from 8:00 a.m. to 8:00 p.m. ET.