Car Insurance for Teens: What You Need to Know

It’s an exciting time when your teen is ready to get their driver’s license. But it can also be an overwhelming and costly experience. Adding a teen driver to your car insurance policy doesn’t have to be a hassle or a financial burden. NerdWallet can help you make sense of the process and figure out how to get the best car insurance for teens.

Why is car insurance for teens so expensive?

Car insurance for teens is expensive because teens are seen as high-risk drivers by auto insurance companies. Statistically, teens are more likely to be involved in car accidents due to their lack of driving experience. The insurance companies will charge higher premiums to offset the potential losses they could incur if a teen driver is involved in an accident.

Another factor that can influence the cost of car insurance for teens is their age. Teens aged 16 to 19 will generally pay more for car insurance than teens aged 18 to 20. This is because 16- and 17-year-olds are the most likely to be involved in an accident, and insurance companies want to protect themselves from potential losses.

How can I get the best car insurance for teens?

The best way to get the best car insurance for teens is to shop around. Different insurance companies have different rates, so it’s important to compare quotes from multiple companies to get the best deal. You can also look for discounts that may be available. Many insurance companies offer discounts for good grades, safe driving, and other factors.

It’s also a good idea to add your teen driver to your existing insurance policy, rather than getting them a separate policy. This will likely be cheaper than getting them a separate policy, and it will also keep all of your insurance in one place. You may also be able to bundle your car insurance with other types of insurance, such as homeowners or renters insurance, to save money.

What other tips can help me get the best car insurance for teens?

Another way to get the best car insurance for teens is to look for ways to lower the risk. Make sure your teen driver takes a defensive driving course, which can help them develop safe driving habits and reduce their risk of being involved in an accident. You can also ask your insurance company about telematics programs, which monitor your teen’s driving habits and can provide discounts for safe driving.

Finally, make sure you shop around and get quotes from multiple insurance companies. This will help you get the best deal and make sure you’re getting the best car insurance for teens. NerdWallet can help you compare car insurance quotes and find the best option for you and your teen.