Adding a teen to a parent’s insurance policy is usually cheaper than being insured separately on their own policy. On average, teens can save anywhere from $503 to $3,163 by staying on a parent’s policy.

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Written by:
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
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Reviewed by:
Nupur Gambhir
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Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

How much does adding a teen to a parent’s policy cost?

The cost of adding a teenage driver to an adult’s policy varies, just like all the other factors that go into rating a policy. On average, teens can save anywhere from $503 to $3,163 by staying on a parent’s policy.

See the table below for rates for teenagers on their own policies and a parent’s policy, according to 2022 CarInsurance.com data.

Average annual insurance rates for teens with their own policies or on a parent’s policy
GenderAgeTeen PolicyParent’s Policy with Teen AddedSavings
Female16$6,782$4,144$2,638
Male16$7,625$4,462$3,163
Female17$5,576$3,861$1,715
Male17$6,272$4,156$2,116
Female18$4,918$3,584$1,334
Male18$5,565$3,865$1,700
Female19$3,615$3,112$503
Male19$4,132$3,363$769

Parents’ guide to the best and cheapest way to insure teenage drivers

Notify your insurance company if you have a learner’s permit

Company rules about charging insurance premiums for families with a driver with a learner’s permit vary, so notify the company when you get a learner’s permit. Some policies automatically extend coverage to a newly licensed driver as a household member but make sure to verify coverage.

Learn more about what a learner’s permit is and how it works with car insurance

Consider your coverage levels as a teen driver

Teen drivers should consider purchasing higher liability limits and more Personal Injury Protection (PIP) or Medical Payments coverage. If you have a health insurance policy, you may want only to increase your liability limits and rely on your health insurance policy for medical coverage if it provides coverage in an auto accident.

Your insurance premium will increase when a teenager is added to an adult’s auto policy, so find ways to save money. Shopping around is essential, but you can also ask your insurance company about discounts: Your rate can decrease if you get good grades or establish a good driving record. You also can get a discount if you live far away from your parents when you go to college.

Most companies offer discounts to students with good grades, generally a B average or higher. Be aware that you shouldn’t necessarily seek companies that offer this discount, because you could find companies that don’t offer the discount and are still cheaper than those that do.

Final thoughts: Car insurance for a teen

As a teen driver, you can save money by being insured on a parent’s policy. Earn good grades and maintain a good driving record to save money when you get your car insurance policy.

– Michelle Megna contributed to this story.

Resources & Methodology

Methodology

CarInsurance.com commissioned Quadrant Information Services in 2022 to field rates for full coverage auto coverage data by ZIP code for 19-year-old and 40-year-old drivers.

Laura Longero

Ask the Insurance Expert

Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

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John McCormick

Editorial Director

John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

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Leslie Kasperowicz

Managing Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

Ask the Insurance Expert

Nupur Gambhir

Managing Editor

Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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author image
Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.