If you have a child who just got their driver’s license and is eager to get behind the wheel, you’re probably wondering how much it costs to add a teenager to your car insurance policy.
The average cost for adding a teen between the ages of 16 and 19 to your policy is $299 per month. The cost of insuring a teen (age 16-19) is $468 per month on a teen policy. The cost of adding a teenager to your auto insurance policy can increase your rate from 65% to 135%.
The good news is that parents of teen drivers can save money on auto policies by taking advantage of discounts and comparison shopping.
- The average cost for adding a teen (age 16-19) to your policy is $3,594 annually.
- Female teen drivers cost less to insure than male teens of the same age group.
- Parents of teen drivers can assign cars with more safety features to teens, decreasing the car insurance cost for teenagers.
How much can you save on car insurance for teens?
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How much does adding a teenager to your car insurance policy cost?
If you add a teenager to your auto insurance policy, you’ll pay an average annual rate of $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, according to CarInsurance.com data.
“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,” says Ben Galbreath, producer and independent insurance agent with Wallace & Turner Insurance in Springfield, Ohio.
The table below shows the average cost of adding a teenage driver for full coverage in each state.
| 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 |
How much does teenage car insurance cost per month on average?
Teen drivers typically pay the most expensive rates for car insurance, especially if they are insured on their own policies. For example, the average car insurance premium for an 18-year-old female is $413 per month, and a male pays $462 per month.
For a 16-year-old male, a full coverage policy costs $628 per month, and a female pays $563 per month. Remember, teens can’t typically get their own policies until they reach the age of majority in their state – which is usually 18.
Rates tend to decrease as drivers age and gain more experience on the road. Below, you can see the average monthly cost of car insurance for teenage drivers.
| 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 |
What are car insurance rates after adding a teen to a parent’s policy?
Teens can save a ton on car insurance when they stay on a parent’s policy to the tune of hundreds of dollars per month. A 16-year-old male will pay $350 monthly on a parent’s policy vs. $628 monthly on his own policy. For 16-year-old females, the rate difference is $325 vs. $563 per month.
See more rates for teens 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 |
Does adding a male teen driver cost more than a female?
Yes, adding a male teenager to your car insurance costs more than a female teen driver. For 16-year-olds on a parent’s policy, girls pay $325 per month and boys pay $350 per month. At age 17, males pay $323 per month and females pay $300.
The average cost to add a teenager to your car insurance policy comes from risk – and male teen drivers are much riskier than females.
Katie Sopko, an insurance agent/agency manager with A Plus Insurance in Greenville, South Carolina, says statistics show male motorists cause more accidents per year than women.
“Women are, simply put, more careful drivers than men, on average,” Sopko says.
Benefits of adding your child to your car insurance policy
You are bound to see a premium increase when adding a teen to your insurance policy, but there are a few things you can do to get the cheapest car insurance possible:
- Lower premiums for your child. Teens who get their own insurance policies will pay significantly more than when added to an existing parent’s policy.
- The ability to monitor your teen. Teens are better drivers when they know they are being watched. You can monitor your teen by signing up for a pay-as-you-drive (PAYD) telematics program.
- Family plan discounts. Many insurers give discounts to young drivers whose parents have an existing policy.
- Student-away discounts. If your teen heads off to college more than 100 miles from home and doesn’t take a car, many insurers will offer a discount. The discount can range anywhere from 5% to 35% depending on the insurer.
- Multi-vehicle discounts. When adding another car to your policy, it should be eligible for a multi-vehicle discount.
How can parents of teenagers save money on car insurance?
Jim Brau, Joel C. Peterson professor of finance at Brigham Young University’s Marriott School of Business, says he 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 says. “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 he had worked with.
“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 says. “In addition to these three big-name firms, we used the internet to comparison shop many more car insurance companies.”
Real-world insight: Experience of a parent who added a teen to their policy shared on Reddit
Parents seeking teen car insurance for their child might experience sticker shock. One South Jersey parent went to Reddit in search of cheaper car insurance. Here’s their experience:
“My son is getting his driver’s license in a week, and Allstate is quoting me $2,898 for the year. He will be driving a 2014 Frontier. This is just crazy to me. Kid will be working all summer and still would not make enough to cover insurance and gas on his own. Got to pay for all those who are allowed to get away with driving without insurance!”
Many other parents facing similar prices chimed in. Some suggested only getting liability insurance and dropping comprehensive coverage to lock in lower rates. Others suggested getting the teen driver an older four-door sedan to possibly find lower rates.
Explore why 57% of parents are concerned about insuring teen drivers
How can you get a good deal on car insurance for teens?
Our guide for parents on how to best insure a teen provides more detail, but here are the top tips for getting the lowest teen driver rates.
Shop around for insurance for a teen
The more you pay for insurance, the more likely you can save money. Insurance carriers price their coverage differently, and what might be cheaper for your neighbor might not be cheaper for you. It’s a good idea to check quotes from other car insurance companies when you add a teen driver to your policy.
Buy the right car for your teenager
The best cars for teens are those with safety features and low horsepower. If the vehicle your teen is driving is old enough to get by with only liability insurance, that will also cut your insurance costs.
“Consider purchasing an older model vehicle for your team to drive. A sedan is usually best to lower your costs versus a sports car or SUV,” Galbreath says. “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.”
Do I have to add my teenager to my car insurance?
State laws vary, so make sure to notify your car insurance company that you have a young driver but there are a few general guidelines:
- All licensed drivers in a household must be added to your insurance policy. If not, your insurer may not cover an accident or other claim.
- Some states allow car insurance companies to require you to list teens with driving permits – even those not yet licensed – on your insurance policy: Illinois, Indiana, Maryland, New York, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia.
- Most states will not allow teens younger than the age of majority – when states grant young people the rights and responsibilities of an adult– to title a car in their names.
- Even if your state has no age restrictions on car titling, teen drivers younger than 18 are unlikely to find insurance independently. Teens are not old enough to sign a legal contract. You must also sign the teen liability insurance policy if your child is younger than 18.
How can I monitor my teen’s driving habits to reduce cost?
“One effective way parents can keep an eye on their teen’s driving is by using apps that track driving behavior,” says 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.”
Generally, a clean driving record translates into access to the cheapest car insurance rates available. With that, safe driving and avoiding any traffic violations is a top 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 says.
Educating teens on insurance responsibility
Helping teens understand the importance of car insurance is a valuable step in teaching financial responsibility and smart decision-making. Parents play a crucial role in demystifying how car insurance works and why it’s essential.
Start by explaining the basics of car insurance: what it covers, why it’s legally required, and how it protects them financially in case of accidents or damage. Breaking down terms like liability, collision, and comprehensive coverage makes these concepts relatable. Highlighting real-life scenarios, such as how insurance can cover medical bills or repair costs after a crash, helps teens grasp its importance.
Parents can also help teens understand how insurance rates are determined. Factors such as driving history, age, the type of car they drive and even their academic performance (good grades can earn discounts) influence the cost of insurance. Encouraging safe driving habits, like avoiding distractions and speeding, not only reduces the risk of accidents but can also lead to lower premiums over time.
To foster a sense of responsibility, consider having your teen contribute to the cost of their insurance. Whether it’s through part-time work or allocating a portion of their allowance, sharing this financial responsibility teaches them the value of budgeting and accountability. This investment also encourages them to be more mindful of their driving habits, knowing their actions directly impact their wallet.
By educating teens about car insurance and involving them in the process, parents empower their young drivers to make informed choices and develop habits that will benefit them for years to come.
What discounts are available to teen drivers?
You can save a lot on your car insurance premiums if you qualify for specific discounts. Fortunately, most car insurance companies offer a range of discounts to policyholders with teenage drivers, including the following:
Good student discounts
Statistics show that student drivers who maintain better grades are less likely to make mistakes behind the wheel. The correlation between academic performance and responsible behavior can translate into savings. If your child maintains a good grade point average, many insurance companies offer a good student discount, which averages 8%-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,” Sopko says.
Low mileage discounts
The more time a teen drives a vehicle, the greater their chances of being involved in an auto accident or moving violation. Adolescents who drive fewer annual miles may be entitled to a discount.
Telematics discounts
Insurance providers often offer telematics programs, which reward safe driving practices with a discount based on a driving score determined by a smartphone app or plug-in device.
Student-away discount
Young drivers who live on campus for college or attend school in another state and leave their car parked at the family home may be eligible for a distant student discount, says 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 says.
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 damages 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 will be driving vehicles in both households.
Best car insurance companies for adding teen drivers
It’s hard to avoid a big rate increase after adding a teen to your car insurance policy. Nationwide and Geico offer the cheapest rates with teen drivers.
However, the cost of insuring a teen driver varies based on the insurance carrier. Some car insurance companies will raise your premium less than others when you insure a young driver. In the table below, see the average cost of adding a teen to your car insurance policy based on the insurance company.
| Company | Parent policy without teens (annual) | Parent policy with teens (annual) | Parent policy without teens (monthly) | Parent policy with teens (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.
How do you decide which vehicle to attach to your teen for your insurance policy?
Take the time to carefully consider which vehicle your teen should be assigned to drive and which vehicles are off-limits. But remember that most auto insurance policies will allow the teen to drive any car in the household.
“Newer cars come with the most recent and sophisticated safety technology to keep your teen safe behind the wheel,” Yoshizawa says. “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.”
FAQ: Cost of adding a teenager to your car insurance
Does adding a second teen to a policy increase car insurance premiums?
Yes, adding another teen driver will increase your car insurance rates. Contact your insurer to see exactly how much your rate will increase.
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 auto insurance coverage will be secondary, and you will be the first one held liable for claims.
Final thoughts: Car insurance cost for a teenager
Adding a teenager to your car insurance will increase your cost, but there are some things you can do to make it less painful: Shop around, ask about discounts and teach your teen about good driving habits.
“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 says.
Resources & Methodology
Sources
- Insurance Information Institute “Auto insurance for teen drivers.” Accessed November 2024.
- Insurance Information Institute “Safety tips for teen drivers.” Accessed November 2024.
- Insurance Information Institute. “Students.” Accessed November 2024.
Methodology
CarInsurance.com analyzed car insurance quotes for both male and female drivers, focusing on policies with 100/300/100 coverage and a $500 deductible for collision and comprehensive.The study centered on Honda Accord LX drivers with clean driving records and good insurance scores.
Data was collected across 51 states and 1,467 ZIP codes, encompassing 73 companies. A total of 694,408 insurance quotes were examined, considering a daily commute of 12 miles and an annual mileage of 10,000 miles.
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