Car insurance calculator for teens

Estimating teen car insurance cost: Things to know

Even before your teen begins to drive, it’s helpful to call your insurance agent or company representative to get an estimate of how much the insurance will cost. 

It also can be helpful to shop around and gather a number of quotes for insuring your teen. Each insurance company has its own method of pricing policies for teens, and it is likely that some insurers will charge more than others. 

Because teens are inexperienced, they are at higher risk of getting into an accident. In a worst-case scenario, they could be responsible for a serious collision. That means you might want to consider increasing your liability insurance limits. 

Although this will make your policy more expensive, it could protect you from financial ruin should you be sued for hundreds of thousands of dollars — or more — in damages. 

Wherever you purchase a policy, costs are likely to be highest when your teen first starts to drive. As the teen grows older and gets more experience behind the wheel, costs should come down as long as the teen avoids accidents and driving infractions. 

How much is car insurance for teens?

Car insurance costs vary from teen to teen and company to company. The best way to get the lowest rate is to shop around and compare quotes for your individual situation.

On average, these are the cheapest car insurance companies for teens at various ages: At 16, Nationwide has the cheapest rates at $6,094, while at age 19, Travelers is cheapest at $3,476 a year.

How much does it cost to add a teenage driver to your insurance?

There is no way around it: Adding a teen driver to your insurance policy is likely to cause your insurance rates to spike.

According to our analysis of rates, it costs an average of $4,303 nationwide to insure a teen driver on a parent’s policy. Costs vary by age. Here’s how much you can expect to spend by state and company.

Tips to save on teen car insurance

Although insuring a teen is likely to be expensive, there are things you can do to trim the cost. 

• Good student discount. Generally, students who earn good grades — such as a “B” average — might qualify for a good-student discount. 
• Driver training. Some insurers also offer a price break to teens who take an approved driver training course. 
• Student away from home. When your teen goes to college, you might earn a discount if the school is located far from your home – typically at least 100 miles — and they don’t bring their car with them to campus. 
• A higher deductible. Another way to cut car insurance costs is to raise your deductible. This should lower your premium costs. However, remember that if you file a claim, you will have to pay the deductible in full before your insurance coverage will kick in to pick up the rest of the bill. 

“Some insurance companies offer discounts for teens who complete a safe driving course, and some also offer good student discounts,” She-Tom says.

“Enrolling in an auto telematics program can also help you to stay in control of your car insurance costs. Auto telematics programs use smartphone app technology to provide feedback on driving habits. Not only will it help build awareness of driving habits, it may help teens become safer drivers,” she says.

Sources

• Insurance Information Institute. “Auto insurance for teen drivers.” Accessed August 2024.