Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 16, 2020

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Things to Remember...

  • Teen drivers have high insurance rates because they are seen as high-risk drivers
  • Providing your teen with an older car can help lower their insurance rates
  • Find out about all available discounts for your teen such as a discount for good grades

Teenagers have a profound impact on those auto insurance rates of yours. There are ways to help keep those rates lower when that 16-year-old decides to start driving, though.

The following information can help or hurt your insurance rates:

  • Type of car
  • Age of your teen
  • Teen’s grades

Here are some tips to surviving the long haul of your teenager being on your auto insurance policy.

Get free online auto insurance quotes by typing your ZIP code now!

Younger Kids Get Older Cars

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New cars are expensive on that auto insurance budget because of the coverage that has to be carried on that sleek new ride.

A brand new car might not be the best type of car for your new driver in the family.

The teenager might be asking for a fast sporty car, but in reality, they really need to be learning with an older sedan.

Older cars often need less coverage than newer cars. Getting a sedan also helps with that monthly auto insurance bill as sedans often come with the “not going to play speed racer” stigma.

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Scholarly Rates Are a Win-Win Situation

Some auto insurance companies will give discounts for good grades.

Studies have found that students with good grades are often involved in fewer accidents and acquire few traffic violations.

Not only do you get the benefits of cheaper auto insurance, but you get a rocket scientist as a benefit.

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How Do You Define That Teenager?

How you define your teenager can have a drastic impact on your auto insurance. You might be asked if they are an occasional driver or the primary driver.

The answer to this question might mean the difference between steak or ramen noodles for dinner.

If they are defined as a hobby driver, the teenager might need to drive the family car. Your teenager might be on the constant go, but they don’t need to be the only driver amongst their friends.

Teach your kids the value of sharing the driving responsibilities.

Make Them Pay

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Parents don’t have to take on the burden of everything their kids do. If your kid wants to drive, now might be the prime opportunity to start teaching them budgeting skills.

Make that kid pay some of your auto insurance bills, too.

Remember, you want them doing important things like learning in school and developing good money habits.

One of the most common practices is to make your kids pay the difference in auto insurance rates when you add them to your policies.

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Take More Than Just Driver’s Education Courses

Driver’s education gave your teenager the basics they needed to get driving. However, it might be time for them to consider more education.

Defensive driving and road rage classes are available. Have your teenager successfully complete these types of courses and watch your auto insurance premiums return to your bank accounts.

Don’t let your teens suck your bank account dry with the auto insurance premiums as well.

Teach your kids good driving techniques on the road and enjoy that extra money in your pocket.

Enter your ZIP code in on this page to get started comparing free auto insurance rates and start saving some money!

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