Adding a teen to your auto insurance policy could double or even triple your monthly payments. Getting them their own policy isn't any cheaper, either. While teen insurance is expensive — and we'll go over why that is — there are things you and your teen can do to save money. You just have to know where to look. This guide will help you find worthwhile deals and discounts.
Crunching the Numbers on Teen Insurance
On average, full coverage insurance plans for parents and a 16-year-old new driver cost $4,584 per year. That's more than double what adults pay for the same type of coverage. In some states, rates are even steeper: Florida families pay $6,738 per year. Teens buying their own insurance still pay a lot, approximately $3,775 yearly.
Why Is Adding a Teen to a Policy Expensive?
Insurers charge higher monthly premiums because teenagers may be more likely to text and drive, not wear a seatbelt, speed, and engage in other risky behaviors. As a consequence, they're more likely to get into an accident. Because covering a more crash-prone driver can be expensive for insurance companies, they hike up the rates.
It may seem unfair if your teen is a responsible driver, but insurers apply that logic to all teens across the country — except in Hawaii and Massachusetts. Those are the only two states where insurance providers cannot charge more based on a driver's age.
How to Make Teen Auto Insurance More Affordable
On the flip side, insurers offer lower rates to safe drivers. Thus, the best way to bring down your family's payment is to prove to insurance companies that you — and everyone else on your policy — can be trusted behind the wheel.
Typically, that means keeping a clean driving record with no infractions. Amassing a lot of driving experience also brings down the rates, too: 17-year-olds pay $300 less per year than 16-year-olds, for example. But that's not all.
Take a Defensive Driving Course
The best way to save on insurance is for everyone in your policy to take a defensive driving course. Brushing up your skills tells your insurer your family is serious about being safe (and claim-free!) on the road — even if you have a statistically more crash-prone team on your plan.
Plus, if someone has recently gotten a traffic ticket, they may be able to dismiss it through defensive driving. That way, your insurer never has to hear about that slip-up.
5 Insurance Discounts for Teens and Families
Let's get to the money-saving deals. Every insurer is different, and they may not all offer these discounts, so be sure to shop around and ask for quotes.
1. Good Student Discount
A lot of insurance companies reward teens with good grades. If you have a responsible teen at home who gets Bs and As at school, they may qualify for a good student discount.
2. Partnership Discounts
Your family may be entitled to a discount and not know it. Some insurers offer reduced rates for military personnel, members of fraternities, sororities, honors societies, college alumni organizations, and so on. Aceable and AARP have even partnered to give students' families access to even more affordable perks.
3. Safe Driver Programs
Installing a small device in your family's vehicles could save you money. These gadgets track your driving behaviors, like how often you slam on your brakes or speed. Then, they reward good habits with monthly discounts.
4. Low Mileage Deals
Generally speaking, the less you drive, the less likely you are to get into a fender bender. Thus, low-mileage drivers tend to pay less in monthly premiums. If your family drives 7,500 miles per year, for example, you could save a few hundred dollars.
5. Away-at-School Discounts
If your teen is away at school and leaves their vehicle at home, you can save money. After all, they won't be driving. Look for away-at-school (or distant driver) discounts to see if your family qualifies.
Don't Miss Out on Defensive Driving Perks
Defensive driving discounts are wins all around: your family learns life-saving road skills, and you all save money every month. It's a great investment, especially since Aceable offers affordable defensive driving courses fully online. Everyone can take them at their own pace no matter their busy schedule.