Teenage car insurance rates: How much car insurance costs for teens in 2024

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As a parent, you may be concerned about the cost of car insurance for your teenage driver. We understand that it can be quite expensive, but it’s important to consider the reasons behind it. Teenagers have limited driving experience and are at a higher risk of accidents, which is why insurance rates are higher for them.

Learn more about car insurance costs for teen drivers and how it varies depending on their age.

Teenage car insurance average cost per month and per year

Picture this: your teenager is finally ready to hit the road, but the cost of car insurance is putting a strain on their wallet. On average, car insurance for teenagers costs around $3,775 per year or $315 per month. We understand that this can be quite expensive, especially considering their inexperience on the road and the higher likelihood of accidents.

However, there is hope! By shopping around and comparing different insurance quotes, you can find more affordable coverage for your teen driver. It’s important to find the best coverage at a reasonable price, so you can have peace of mind while your teen is behind the wheel.

How much it costs to add a permit driver to insurance by state

Now let’s dive into the specific costs of adding a permit driver to your insurance policy, and how it varies by state. The amount of the additional premium can vary greatly depending on where you live.

For example, in Alabama, the average car insurance cost is $1,304 per year. But for a teenage driver, it increases to $3,504– that’s $2,200 more. On the other hand, in Hawaii, the average car insurance cost is relatively low at $1,255 per year, and the additional premium for a teen is only $37.

These numbers may vary depending on the specific circumstances and insurance provider, so it’s important to do your research and find the best option for your family.

Where we got the information?
*Based on a Honda Accord driven by a 40-year-old male buying 100/300/100 liability coverages with comprehensive and collision coverage and the addition of the average rates for a 16-year-old driver.

How much it costs to add a 16-year-old to a car insurance policy

Now let’s talk about adding your 16-year-old to your car insurance policy. Brace yourself, because it can be a costly endeavor. On average, the cost of your own policy is $1,693 per year. But when you add a 16-year-old to the policy, the price skyrockets to $3,960. That’s an average increase of $2,267!

This significant increase emphasizes the higher risk associated with teen drivers. It’s important for parents to plan and budget accordingly, so they’re not caught off guard by the added expense.

How much it costs to add a 17-year-old to a car insurance policy

Adding a 17-year-old to your car insurance policy also leads to an increase in cost. While your own policy still costs around $1,693 per year, adding a 17-year-old raises the cost to $3,384—That’s an average increase of $1,691.

As a parent, it’s important to understand the financial implications of adding a teenage driver to your car insurance.

Tips for parents and teens

Parents and their teen drivers can work together to find smart ways to save on car insurance. Here are some tips to help you keep your premiums low.

For parents:

• Add your teen to your policy: Instead of getting a separate policy for your teen, consider adding them to your existing policy. This often comes with multi-car and multi-driver discounts.
• Choose the right car: Opt for a safe and reliable vehicle that is not too expensive to insure. Avoid high-performance cars or luxury vehicles, as they generally come with higher insurance costs.
• Encourage good grades: Many insurers offer discounts for teens who maintain good grades. This not only rewards academic achievement but also suggests responsible behavior.
• Explore discounts: Discounts such as safe driver, good student and multi-policy can significantly reduce premiums.
• Raise deductibles: Increasing your deductible (the amount you pay before insurance kicks in) can lower your premium. However, make sure you can afford to cover the deductible cost.

For teen drivers:

• Focus on safe driving: Your driving record plays a big role in insurance costs. Avoid speeding, distractions, and risky behaviors to maintain a clean record.
• Take a defensive driving course: Completing a defensive driving course not only enhances your skills but can also qualify you for discounts with some insurers.
• Drive less, pay less: Some insurance companies offer discounts for low annual mileage. If you don’t drive your vehicle regularly, you can take advantage of pay-per-mile car insurance. 
• Avoid tickets and accidents: Traffic violations and accidents can significantly increase your insurance rates. Practice caution and follow traffic rules diligently.

Car insurance rates for teen drivers are generally higher compared to older and more experienced drivers. This is due to the higher risk associated with a lack of driving experience and the tendency for riskier behavior on the road. Insurance companies consider various factors when determining rates for teenage drivers, including age, gender, location, type of vehicle, and academic performance.

Statistics show that teen drivers have a higher likelihood of being involved in accidents and as a result, insurance companies charge higher premiums.