It is usually cheaper to add a teen to a parent’s insurance policy rather than be insured separately on their own policy. Teens can save anywhere from $503 to $3,163, on average, by staying on a parent’s policy.
How much does it cost to add a teen to a parent’s policy?
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. Teens can save anywhere from $503 to $3,163, on average, by staying on a parent’s policy.
See the table below for rates for teenagers on their own policies and on a parent’s policy, according to 2022 CarInsurance.com data.
| Gender | Age | Teen Policy | Parent’s Policy with Teen Added | Savings |
|---|---|---|---|---|
| Female | 16 | $6,782 | $4,144 | $2,638 |
| Male | 16 | $7,625 | $4,462 | $3,163 |
| Female | 17 | $5,576 | $3,861 | $1,715 |
| Male | 17 | $6,272 | $4,156 | $2,116 |
| Female | 18 | $4,918 | $3,584 | $1,334 |
| Male | 18 | $5,565 | $3,865 | $1,700 |
| Female | 19 | $3,615 | $3,112 | $503 |
| Male | 19 | $4,132 | $3,363 | $769 |
Check out our parents’ guide on 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.
Here’s how much car insurance costs for teensConsider your coverage levels as a teen driver
Teen drivers should consider purchasing higher liability limits and higher 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 important, but you can also ask your insurance company about discounts: Your rate can go down 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 you money when you get your own car insurance policy down the road.
You might also be interested in– Michelle Megna contributed to this story.
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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.
