Is teen auto insurance expensive?

It’s true that teen auto insurance is expensive when compared to average auto insurance rates for other drivers. Because teens lack experience behind the wheel, auto insurance companies consider teenagers high-risk drivers. However, there are ways to save on auto insurance for teenagers. The biggest way to save is for parents to add teenagers to their auto insurance policy instead of getting the child their own policy.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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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 and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Dec 10, 2021

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Here's what you need to know...

  • Insuring teen drivers is more expensive than insuring drivers with more experience
  • Having your teen take a defense driving course can help lower their premiums
  • Teen driver safety is important to most parents
  • Teens with good grades are rewarded with lower monthly rates

Teens are one of the most expensive demographics to insure, so their auto insurance policies will be expensive. A sixteen-year-old costs more to insure than a thirty-six-year-old because teens are new drivers and cause a large number of accidents.

Insurance companies have to take in enough premiums to cover their expenses across the board and make a profit, thus the reason for teen auto insurance being higher than that for adults.

However, there are things you can do so that your new teenage driver doesn’t break your budget the minute she gets that little piece of plastic on her 16th birthday.

Use our FREE comparison tool to find affordable insurance for the entire family now! Enter your ZIP code above to get started!

Tips to Save Money on Teen Auto Insurance


Here are some tips to save money on teen auto insurance:

  1. Compare Insurance Rates Online: This is the single most important thing to do when shopping for insurance whether it be for a teen or adult. It doesn’t take long to input your information and get rate quotes from several different companies. See the next section for how to compare auto insurance for teens.
  2. Making the Honor Roll: Getting good grades is a sign of responsibility and insurers have statistics that show that good students are good drivers. If your teen isn’t yet on the honor roll sit down with them to show them the differences in what they’ll pay in auto insurance and work on a plan to help them raise their grades.
  3. Wait A Year: The older your teen is, the more mature they are. If your teen isn’t begging to get behind the wheel, it might be worth it to wait a year for them to take drivers ed at their leisure, have more time to practice with a teacher and parents and
  4. Take Drivers Ed Classes: Not all states require teens to take drivers education before getting their license but you’ll be able to save on your auto insurance premiums if they do.
  5. Drive A Cheap, Sensible Car: The faster a car goes, the more it costs to get insurance for the person driving it. For a teen’s first car, choose an older, used model of a reliable brand. Make sure that it’s a model and color that are not likely to be stolen or broken into because that will cause insurance premiums to go up as well.
  6. Don’t Make Unnecessary Claims: If your teen gets in a little fender bender that can easily be paid for don’t make a claim. Dip into your emergency fund to pay for it. When you make a claim, especially on a policy held by a teen, your rates will be raised.

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How to Compare Teen Auto Insurance

Comparing auto insurance is simple to do online and you can do it any time of day or night. Make sure you have about an hour to spare so that you can take you time to compare the quotes thoroughly and inquire about discounts.

You’ll get more accomplished in less time if you do it all at once rather than in bits and pieces over several days.

First, put your zip code into the online auto insurance comparison finder. Then select from the companies that you want to get quotes from. Choose at least five or six so that you get to see what’s available and can truly find the cheapest insurance.

Next, you’ll need to input basic information about your teen, their driving record, and the car she’ll be driving.

Submit the information and you’ll get quotes almost instantly.

Once you have the basic quotes you can ask about additional discounts to see how much each one will be reduced by. There’s almost always room for negotiation with the quotes.

Feel free to start a chat with an online representative or call their toll-free number to get your questions answered.

Tips to Reduce Your Teens Risk of Making A Claim


If you are the parent of a teen, who is underage, you still have the authority to make the rules. Fewer accidents occur to teens whose parents have set and held to some simple yet effective rules pertaining to driving and owning a car.

These may or not be applicable in your family, but consider setting some limits on your teen’s driving so that you lessen the chance of them getting into an accident.

Note that some of these might apply to your teen already if you are in an area with graduated licensing, which has done wonders for lowering teen accidents and fatalities.

As your teen gets older and becomes a more experienced driver, consider relaxing the rules a bit, but only if you feel that your teen has earned the privilege:

  1. No Night Driving: Teens have few good reasons to be out driving at night so limit their nighttime driving privileges to school events and work.
  2. Let Your Teen Buy the Car: Teens who are responsible for paying for their own car with their hard earned cash tend to take better care of their car and handle it more responsibly than teens who are given a car or finance it. If your teen doesn’t have a job, you can tie additional chores to the car’s use.
  3. Have Your Teen Pay for the Insurance: Another surefire way to insure that your teen is more responsible behind the wheel.
  4. Let Your Teen Drive When the Family is Together: Always give your teen the opportunity to drive so that he gets plenty of practice when a parent will be in the passenger seat.

Always start with a comparison, even if you are long-term policyholders with a company. Chances are you can get better rates or more auto insurance discounts somewhere else.

This is extremely important since teen auto insurance is so expensive. It’ll be worth your time to compare rates.

Use our FREE online comparison tool to find affordable auto insurance now! Enter your ZIP code below to get started!



Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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