CarInsurance.com Insights
- USAA, Nationwide and GEICO offer the cheapest car insurance for teens on a parent’s policy.
- Car insurance is cheaper for teens on a parent’s policy than on their own policies.
- Teens can save money on car insurance by earning good student discounts.
Adding a teen to a parent’s insurance policy is cheaper than being insured separately. On average, teens pay $280 per month on a parent’s car insurance 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 car insurance 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. On average, teens pay $280 per month on a parent’s policy. See the table below for rates for teenagers on a parent’s policy.
| Company | Parent policy without a teen (annual) | Parent policy with a teen (annual) | Parent policy without a teen (monthly) | Parent policy 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 |
See how much your family could save with our teen driver savings estimator.
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 or you have a teen driver who’s getting a permit. Some policies automatically extend coverage to a newly licensed driver as a household member but make sure to verify coverage.
How teens can save on car insurance
Adding a teenager to your car insurance policy will inevitably increase your rates, but there are several ways to earn discounts for teen drivers:
- Good student discount: Many insurers offer discounts for teens with a “B” average or higher. Requirements vary, so check with your insurer for specifics, but this discount generally averages around 16%.
- Safety feature discounts: Choosing a car equipped with safety features like anti-theft devices, anti-lock brakes (ABS), adaptive cruise control, lane departure warnings, and collision preparation systems can lead to savings. While these discounts may vary, they typically offer about 4% off per qualifying feature. Confirm with your insurer which features qualify.
- Student-away discount: If your teen attends school more than 100 miles from home, you may qualify for a student-away discount, which can save you an average of 18%.
Here’s how much car insurance costs for teensSpeak with a friendly agent and get your quote in minutes!
Purchase high liability limits as a teen driver
Teen drivers should consider purchasing higher liability limits — 100/300/100 — 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.
Parents’ guide to the best and cheapest way to insure teenage drivers
Resources & Methodology
Methodology
CarInsurance.com analyzed data from Quadrant Information Services to get car insurance rates. The rates are based on sample profiles of 40-year-old male and female drivers, as well as male and female teen drivers aged 16-19, carrying full coverage policies with limits of $100,000/$300,000/$100,000 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
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