CarInsurance.com Insights
- Adding a teen to your policy costs $3,594 per year ($299 a month). Staying on the family policy is cheaper than buying your teen on a separate policy.
- Male teens cost more to insure than females of the same age. On a parent’s policy, a 16-year-old female averages $325 a month and a 16-year-old male $350.
- Nationwide and GEICO are among the most affordable, widely available carriers for adding a teen, at $2,441 and $2,548 a year.
- Good student discounts, telematics programs and low-mileage discounts can offset the premium increase.
- Use CarInsurance.com’s calculator to compare adding a teen to your policy against a separate policy, based on your location and your teen’s age and gender.
How much does it cost to add a teenager to car insurance?
Adding a teen to your car insurance costs about $3,594 a year on average, or $299 a month. That is far less than putting your teen on a separate policy of their own, which is why staying on the parent’s policy is the right move for most families, at least until your teen builds a few years of clean driving history.
“Teenage drivers are inexperienced drivers who are less aware of their surroundings and have a tendency to drive too fast and less responsibly, which makes it more likely that they will have a claim,” said Ben Galbreath, producer and independent insurance agent with Wallace & Turner Insurance in Springfield, Ohio.
On a parent’s policy, the average annual increase is $4,050 for a 16-year-old, $3,740 for a 17-year-old, $3,478 for an 18-year-old and $3,105 for a 19-year-old.
How much can you save on car insurance for teens?
Keeping your teen on the family policy saves most households thousands of dollars a year compared with buying two separate policies. The calculator below estimates your savings based on your state and your teen’s age and gender. For most families with a 16- or 17-year-old, staying on the parent’s policy wins by a wide margin.
How much can you save on car insurance for teens?
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Cheapest car insurance companies for teen drivers
Among widely available carriers, Nationwide is the most affordable option for adding a teen driver at $2,441 per year ($203 a month), with GEICO close behind at $2,548 a year ($212 a month). Both come in well under carriers like Allstate at $4,036 a year and Farmers at $4,872 a year.
The cost of insuring a teen varies by carrier and by your own circumstances. Some companies raise your premium less than others when you add a young driver, so it pays to compare.
The table below shows the average cost of adding a teen to an annual full coverage policy by company. Full coverage here means liability plus collision and comprehensive protection bundled into one policy.
| Company | Parent policy without a teen (annual) | Parent policy with a teen (annual) | Without a teen (monthly) | With a teen (monthly) |
|---|---|---|---|---|
| Allstate | $2,310 | $4,036 | $192 | $336 |
| Farmers | $2,939 | $4,872 | $245 | $406 |
| GEICO | $1,264 | $2,548 | $105 | $212 |
| Nationwide | $1,538 | $2,441 | $128 | $203 |
| Progressive | $1,913 | $3,857 | $159 | $321 |
| State Farm | $1,671 | $3,046 | $139 | $254 |
| Travelers | $1,806 | $3,619 | $151 | $302 |
| USAA* | $1,101 | $2,419 | $92 | $202 |
*USAA is only available to military community members and their families.
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Average cost to add a teen driver by state
Adding a teen driver to a family policy raises premiums across the country, but the increase varies widely by state.
Adding a teen more than doubles annual rates in many places. Louisiana tops the list with a $3,373 average increase, 113% above baseline, while Maine shows the steepest percentage jump at 137%, even though its overall rate stays lower than many states. Other expensive states for car insurance with a teen are New Jersey and Texas.
States with higher base rates, such as Michigan, California and Florida, also see some of the largest dollar increases, often more than $2,000 per year.
Hawaii stands out at the other end with just a 4% increase, thanks to state rules that prevent age-based pricing.
| State | Average annual rates | Average annual rates with a teen | % increase | $ increase |
|---|---|---|---|---|
| Alaska | $1,236 | $2,532 | 105% | $1,296 |
| Alabama | $1,464 | $2,612 | 78% | $1,148 |
| Arkansas | $1,436 | $2,749 | 91% | $1,313 |
| Arizona | $1,532 | $3,273 | 114% | $1,741 |
| California | $2,041 | $4,307 | 111% | $2,266 |
| Colorado | $2,048 | $3,413 | 67% | $1,365 |
| Connecticut | $1,383 | $2,547 | 84% | $1,164 |
| Washington, D.C. | $1,877 | $3,423 | 82% | $1,546 |
| Delaware | $1,636 | $2,951 | 80% | $1,315 |
| Florida | $2,993 | $5,496 | 84% | $2,503 |
| Georgia | $1,516 | $3,129 | 106% | $1,613 |
| Hawaii | $1,282 | $1,338 | 4% | $56 |
| Iowa | $1,156 | $2,089 | 81% | $933 |
| Idaho | $957 | $1,827 | 91% | $870 |
| Illinois | $1,309 | $2,821 | 116% | $1,512 |
| Indiana | $1,214 | $2,276 | 87% | $1,062 |
| Kansas | $1,422 | $2,554 | 80% | $1,132 |
| Kentucky | $1,743 | $3,211 | 84% | $1,468 |
| Louisiana | $2,991 | $6,364 | 113% | $3,373 |
| Massachusetts | $1,721 | $3,366 | 96% | $1,645 |
| Maryland | $1,923 | $3,554 | 85% | $1,631 |
| Maine | $996 | $2,360 | 137% | $1,364 |
| Michigan | $4,054 | $7,180 | 77% | $3,126 |
| Minnesota | $1,610 | $2,832 | 76% | $1,222 |
| Missouri | $2,134 | $4,294 | 101% | $2,160 |
| Mississippi | $1,342 | $2,500 | 86% | $1,158 |
| Montana | $1,782 | $3,206 | 80% | $1,424 |
| North Carolina | $1,369 | $2,575 | 88% | $1,206 |
| North Dakota | $1,154 | $1,991 | 73% | $837 |
| Nebraska | $1,798 | $2,955 | 64% | $1,157 |
| New Hampshire | $923 | $1,906 | 107% | $983 |
| New Jersey | $2,208 | $4,382 | 98% | $2,174 |
| New Mexico | $1,695 | $3,164 | 87% | $1,469 |
| Nevada | $2,287 | $4,259 | 86% | $1,972 |
| New York | $1,832 | $3,681 | 101% | $1,849 |
| Ohio | $1,065 | $2,157 | 103% | $1,092 |
| Oklahoma | $1,855 | $3,620 | 95% | $1,765 |
| Oregon | $1,430 | $2,629 | 84% | $1,199 |
| Pennsylvania | $1,245 | $2,398 | 93% | $1,153 |
| Rhode Island | $1,681 | $3,552 | 111% | $1,871 |
| South Carolina | $1,671 | $3,503 | 110% | $1,832 |
| South Dakota | $1,523 | $2,512 | 65% | $989 |
| Tennessee | $1,209 | $2,423 | 100% | $1,214 |
| Texas | $1,852 | $3,967 | 114% | $2,115 |
| Utah | $1,819 | $3,673 | 102% | $1,854 |
| Virginia | $1,133 | $2,633 | 132% | $1,500 |
| Vermont | $996 | $1,944 | 95% | $948 |
| Washington | $1,309 | $2,196 | 68% | $887 |
| Wisconsin | $1,511 | $3,198 | 112% | $1,687 |
| West Virginia | $1,386 | $3,081 | 122% | $1,695 |
| Wyoming | $1,677 | $2,847 | 70% | $1,170 |
Cost of teen car insurance at every age
A 16-year-old male on his own policy pays an average of $628 a month, the highest rate in this age range, and a 16-year-old female pays $563. Rates fall steadily as teens age and build their driving records.
Teens cannot get their own policies until they reach the age of majority in their state, which is typically 18, so most 16- and 17-year-olds are insured under a parent’s policy. For reference, an 18-year-old female on her own policy averages $413 a month and a male $462.
See rates for teens aged 16-21 in the table below.
| Age | Male teen driver monthly cost | Female teen driver monthly cost |
|---|---|---|
| 16 | $628 | $563 |
| 17 | $523 | $469 |
| 18 | $462 | $413 |
| 19 | $364 | $324 |
| 20 | $329 | $295 |
| 21 | $269 | $247 |
Expert tip: male vs. female drivers
Adding a male teenager costs more than adding a female teen driver. For 16-year-olds on a parent’s policy, females pay $325 a month and males pay $350. At age 17, males pay $323 and females pay $300.
Cost of teen car insurance on a parent’s policy at every age
A 16-year-old male on a parent’s policy averages $350 a month, $278 less than the $628 he would pay on his own plan. For 16-year-old females, it is $325 on a parent’s policy versus $563 on their own. That gap narrows as teens age, but staying on the family policy saves money at every age. See rates for teens aged 16-21 on a parent’s policy in the table below.
| Age | Parent’s policy with a male driver (monthly) | Parent’s policy with a female driver (monthly) |
|---|---|---|
| 16 | $350 | $325 |
| 17 | $323 | $300 |
| 18 | $301 | $279 |
| 19 | $268 | $249 |
| 20 | $252 | $235 |
| 21 | $236 | $220 |
Sophie’s tip
The parent’s policy always wins for a 16- or 17-year-old, and often through age 19. Pull fresh quotes at each renewal, though. Once your teen has a year or two of clean driving, a separate policy can sometimes get surprisingly competitive.
How to save when adding a teen to your policy
Jim Brau, Joel C. Peterson, professor of finance at Brigham Young University’s Marriott School of Business, had four teenagers who started driving when they were 16.
“Parents of teenagers can save money on car insurance by encouraging their teen to earn/maintain good grades, as many insurers offer discounts for academic achievement,” he said. “Additionally, enrolling their teen in a driver’s education course and adding them to the family’s policy rather than getting a separate policy can further reduce costs.”
He compared rates of reputable companies with which he had worked.
“We worked with each agent to get the most competitive rate quote for an apples-to-apples coverage comparison. Through those teen years, we actually had to switch car insurance a couple of times due to various circumstances, when one firm would be more competitive than the others,” Brau said. “In addition to these three big-name firms, we used the internet to comparison shop many more car insurance companies.”
Benefits of adding your child to your car insurance policy
You will see a premium increase when you add a teen, but a few moves help you keep it as low as possible:
- Lower premiums for your child. Teens on their own policies pay significantly more than when added to a parent’s policy.
- The ability to monitor your teen. Teens drive more carefully when they know they are being watched. A pay-as-you-drive (PAYD) telematics program lets you keep an eye on habits.
- Family plan discounts. Many insurers give discounts to young drivers whose parents already hold a policy.
- Student-away discounts. If your teen heads to college more than 100 miles from home without a car, many insurers offer a discount, ranging from 5% to 35% depending on the insurer.
- Multi-vehicle discounts. Adding another car to your policy should qualify you for a multi-vehicle discount.
How can you get a good deal on car insurance for teens?
Comparing carriers and stacking the right discounts are the two biggest levers you have. Assigning your teen to an older, lower-value vehicle also trims your premium. Our guide on insuring a teen driver goes deeper, but here are the top moves.
Shop around for teen insurance
The more you pay for insurance, the more you stand to save by shopping. Carriers price coverage differently, and what is cheaper for your neighbor may not be cheaper for you. Check quotes from several companies when you add a teen driver to your policy.
Buy the right car for your teenager
The best cars for teens pair safety features with low horsepower. If the vehicle is old enough to carry liability only, that cuts your costs further.
“Consider purchasing an older model vehicle for your teen to drive. A sedan is usually best to lower your costs versus a sports car or SUV,” Galbreath said. “I recommend covering the teen for liability only until they are about 20 years old, which is the age when coverage rates tend to come down.”
Must I add my teenager to my car insurance?
Yes. State laws vary, so notify your insurer when you have a young driver. A few general guidelines apply:
- All licensed drivers in a household must be listed on your policy. If they are not, your insurer may deny an accident or other claim.
- Some states let insurers require you to list teens with driving permits, even those not yet licensed: Illinois, Indiana, Maryland, New York, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia.
- Most states will not let teens younger than the age of majority title a car in their own names.
- Even where there is no age restriction on titling, teens younger than 18 rarely find insurance on their own, since they cannot sign a legal contract. A parent must sign the teen’s liability policy if the child is younger than 18.
How can I monitor my teen’s driving habits to reduce costs?
“One effective way parents can keep an eye on their teen’s driving is by using apps that track driving behavior,” said Rob Roughley, senior advisor at Roughley Insurance. “These tools can monitor speed, braking and overall safety, providing valuable feedback that can spark conversations about safe driving practices.”
A clean driving record unlocks the cheapest rates, so safe driving and avoiding violations should be the priority.
“Additionally, many insurance companies offer telematics programs that allow parents to see how their teen is driving, making it easier to discuss any areas for improvement,” Roughley said.
Educating teens on insurance responsibility
Helping teens understand car insurance teaches fiscal responsibility and smart decision-making. Parents play a significant role in demystifying how coverage works and why it matters.
- Explain the basics. Cover what insurance pays for, why it is legally required and how it protects them financially after a crash. Breaking down liability, collision and comprehensive coverage with real-life scenarios makes the concepts stick.
- Show how rates are set. Driving history, age, vehicle type and even grades all influence cost. Safe habits like avoiding distractions and speeding lower the risk of accidents and can reduce premiums over time.
- Have your teen share the cost. Whether through part-time work or part of an allowance, contributing teaches budgeting and accountability, and makes teens more mindful behind the wheel.
What discounts are available for teen drivers?
You can save a lot on premiums if you qualify for the right discounts. Most carriers offer several for households with teen drivers.
Good student discounts
Students who keep better grades tend to make fewer mistakes behind the wheel, and that lower risk can translate into savings. If your child maintains a solid grade point average, many insurers offer a good student discount, which averages 8% to 20%.
“If your child is currently in college or taking college classes, most carriers will offer a student discount. And if your child took a defensive course before getting their license, most companies will offer a discount for this as well,” said Katie Sopko, an insurance agent/agency manager with A Plus Insurance in Greenville, South Carolina.
Low-mileage discounts
The more a teen drives, the higher their odds of an accident or violation. Teens who log fewer annual miles may qualify for a discount.
Telematics discounts
Many insurers run telematics programs that reward safe driving with a discount based on a score from a smartphone app or plug-in device.
Student-away discounts
Young drivers who live on campus or attend school in another state or country and leave their car at the family home, may qualify for a student-away discount, said Justin Yoshizawa, director of product management at Mercury Insurance in Brea, California.
“Many insurers provide discounts for students who live 100 miles away or more. Combined with a good student discount, this could provide substantial savings for families when it comes to car insurance,” Yoshizawa said.
People also ask
My husband and I have full coverage on our van, but our teen with a permit was not listed as a driver. She was driving with my husband and ended up in a ditch. Should our insurance cover the damage done to our van?
In most cases, since your teen was driving with a valid permit and under the supervision of a licensed driver (your husband), your insurance should cover the damage to the van. Typically, insurance policies extend coverage to family members who drive your vehicle occasionally with your permission, including permit drivers, even if they are not explicitly listed on the policy. Since you have full coverage, collision coverage will likely cover the damage from the accident.
I am divorced and have joint custody. My son just got his license. His father is adding him to his insurance policy, but my agent advises that he should also be added to mine. Is that correct?
Generally, insurance companies require that all licensed household members be listed on the car insurance policy because they have access to the vehicle and are likely to drive it.
In cases of joint custody, where the child splits time between two households, it’s common for insurance companies to require the child to be listed on the policies of both parents if they drive vehicles in both households.
FAQs about adding a teen driver
Does adding a second teen to a policy increase car insurance premiums?
Yes, a second teen will push your premium higher. The increase for a second teen is often smaller than the first, since your policy already accounts for one young driver. The exact amount depends on your insurer and your teens’ ages. Pull a quote before renewal so you can see what the additional driver actually costs you.
How do you decide which parent covers a teen after a divorce?
If your teenager is split relatively evenly between two houses regarding living and driving, both parents’ vehicle insurance policies should include their child. Car insurance follows the car, not the driver, so the teen should be listed on any policy that includes a car the teen will drive.
Can you add a stepchild to your auto insurance?
Stepchildren can be added to your auto insurance policy. Most insurers allow you to add anyone who lives in your household as a driver to your auto policy.
Can a grandparent add a teen to their car insurance?
If your grandchildren live with you and regularly drive your vehicle, they can be added to your policy. If your grandchild only uses your car occasionally, they may be covered as a permissive user, covering anyone you allow to drive your car now and then.
If your grandchild uses your car but has their own auto insurance policy, their coverage will be secondary, and you will be the first one held liable for claims.
How do you decide which vehicle to attach to your teen?
“Newer cars come with the most recent and sophisticated safety technology to keep your teen safe behind the wheel,” Yoshizawa said. “But used cars that are well maintained and function properly will still offer standard safety equipment and be a cost-effective way for many families to get their teens on the road.”
In a nutshell: teen driver insurance
You have more control over teen insurance costs than it might seem. Comparing carriers, stacking discounts like good student, telematics and student-away, and assigning your teen to the right vehicle each chip away at the bill.
“As always, buyer beware, and insuring teens may be quite different for parents than what they’ve experienced insuring themselves before the kids could drive,” Brau said.
Your next steps
- Run your numbers in the teen driver savings calculator to compare adding your teen against a separate policy.
- Get quotes from at least three carriers before your renewal date.
- Ask each insurer which teen discounts you qualify for, starting with good student and telematics.
Resources & Methodology
Sources
- Insurance Information Institute “Auto insurance for teen drivers.” Accessed June 2026.
- Insurance Information Institute “Safety tips for teen drivers.” Accessed June 2026.
- Insurance Information Institute. “Students.” Accessed June 2026.
Methodology
CarInsurance.com editors collected rates from Quadrant Information Services for a 40-year-old male and female driver carrying a full coverage policy with 100/300/100 limits and $500 comprehensive and collision deductibles. The cost to add a teen driver is the average increase when putting a teen on a single-adult or adult-couple policy. Read the detailed methodology for more information.
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