Plain Policy Guide
Young Drivers

How to Lower Car Insurance for a Teen Driver: 10 Ways

Good-student discounts, driver training, the right car, telematics and smart coverage choices can take a real bite out of the cost of insuring a teen. Here is what works.

By Plain Policy Guide Editorial Team Published 3 min read

Insuring a teen driver is expensive, about $3,500 a year extra on average according to Experian. But parents have more control over that number than they think. These ten strategies are the ones that make the biggest difference.

1. Keep your teen on your policy

Adding a teen to a parent's policy is almost always cheaper than buying a separate one. In MoneyGeek's October 2026 analysis, the family premium with a 16-year-old at the cheapest insurer was $2,718 a year, compared with $5,108 for a separate policy, a difference of about $2,390. See when a separate policy makes sense.

2. Shop around when your teen is added

Insurers price young drivers very differently. The company that was cheapest for two adults may not be cheapest once a 16-year-old joins the policy. Get quotes with identical coverage from several insurers the moment your teen gets a permit or license.

3. Ask for a good-student discount

Experian notes that many insurers offer discounts to high school or college students who keep a B average or better. Keep a recent report card handy, and ask how often you need to resend proof.

4. Complete approved driver training

Many insurers give a discount for completing a driver safety or driver education course they approve. Check which courses qualify before you pay for one.

5. Choose the right car

Cars with high safety ratings, low theft rates and safety or anti-theft features can cost less to insure, according to Experian. For teens, safety is the priority: IIHS data shows the fatal crash rate per mile for 16- to 19-year-olds is just over three times the rate for older drivers. A mid-size car with strong crash-test ratings is usually a better choice than a small, old or high-powered one.

6. Ask how your insurer assigns drivers to cars

If your household has several cars, some insurers rate the teen on the car they drive most. Make sure your teen is listed as the main driver of the least expensive car to insure, if that matches reality.

7. Try a usage-based (telematics) program

Usage-based plans track driving through a phone app or a device in the car and can reward safe drivers who don't drive much. They also give parents useful feedback on speeding, hard braking and late-night driving.

8. Use the distant-student discount

If your student lives on campus without a car and only drives during breaks, many insurers offer a discount. Don't remove them from the policy entirely; they still need coverage when they come home.

9. Adjust deductibles and coverage, not liability

  • Raise your deductible on collision and comprehensive if you can afford it. See how deductibles work.
  • Drop collision on an older car if its value is low. See full coverage vs. liability.
  • Keep high liability limits. A serious crash involving a new driver can be very expensive, and limits protect your family's savings.

10. Keep the record clean

A single ticket or at-fault accident can add hundreds of dollars a year on top of the teen surcharge. Set clear rules on night driving and passengers, which IIHS data link to higher teen crash risk, and follow your state's graduated licensing restrictions. Each clean year brings the price down.

Don't skip the basics

Never leave a licensed teen off your policy to save money. The NAIC warns this can lead to cancellation, nonrenewal or extra premiums after an accident. Read how much adding a teen costs and 12 ways to lower car insurance for the whole family.

Next guideShould Your Teen Have Their Own Car Insurance Policy?

Frequently asked questions

What GPA do you need for a good student discount?

Many insurers offer it to high school or college students who keep a B average or better, or rank in the top part of their class. Requirements and the size of the discount vary by insurer.

Does driver's ed lower insurance?

Often, yes. Many insurers give a discount for completing an approved driver education or driver safety course. Ask your insurer which courses qualify before you sign up.

Should my teen drive an older car to save on insurance?

An older car can be cheaper to insure, especially if you drop collision and comprehensive. But safety matters most for new drivers, so choose an older car with good crash-test ratings and modern safety features where possible.

Do telematics apps really lower teen insurance?

They can, if your teen drives safely and not too much. Ask how the program scores driving and whether the price can also go up before enrolling.

Sources

  1. How to Get the Best Car Insurance for Teens and Drivers Under 25 (September 22, 2026), Experian
  2. Adding Your Child to Car Insurance (updated October 1, 2026), MoneyGeek
  3. Fatality Facts 2024: Teenagers, Insurance Institute for Highway Safety (IIHS)
  4. Does your vehicle have the right protection? Best practices for buying auto insurance, NAIC

Sources were checked on October 14, 2026. Laws, fees and prices change; always confirm with your state agency or insurer.

Keep reading

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