Why teen drivers cost more
Insurers price based on risk, and new drivers have less experience behind the wheel. Teens, as a group, have higher crash rates than older drivers. That is why adding a teen is often one of the largest increases a family sees. The cost usually comes down as your teen gains experience and keeps a clean record.
When to add your teen
Rules vary by carrier and state. Some carriers want to know when your teen gets a learner's permit; others don't require you to add them until they're licensed. Call your agent when your teen gets a permit so you know what your carrier expects.
Adding a teen to your policy
Most families add teens to their existing policy. That is usually cheaper than a separate policy, because the teen can share your discounts and coverage. Your agent will need your teen's license information and which car they'll drive most. If your teen will drive a car you don't own, like a grandparent's, ask how that car should be covered.
Discounts to ask about
- Good-student discounts, often for a B average or better
- Driver training or safe-driving courses
- Telematics programs that track safe driving habits
- Distant-student discounts if your teen is away at school without a car
- Multi-policy discounts for bundling home and auto
Ways to keep it affordable
- Assign the teen to the lowest-cost car, if your carrier allows it
- Choose a safe, modest car rather than a new or high-performance one
- Raise deductibles on older cars, if you could pay them
- Consider dropping collision on an older, low-value car
- Review your coverage each year as your teen gains experience
Liability matters most
A serious accident can lead to a large claim. If damages go beyond your liability limits, your family's savings and home equity could be at risk. Many families raise their auto liability limits when a teen starts driving. An umbrella policy can add extra liability coverage above your home and auto limits.
Set expectations at home
Some families use a written driving agreement that covers phone use, passengers, curfews and who pays for tickets or a higher premium. Safe habits help your teen and can help keep your rates in check over time.
How CapCenter can help
CapCenter's in-house insurance agency compares rates from multiple carriers and can quote home and auto together. An agent can show you how adding a teen changes your premium and which discounts may apply.
