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.

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

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.

Learn more about what is a learner’s permit and whether can you get car insurance with a learner’s permit.

Consider 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.

– 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.

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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.