How much is the average car insurance for teens?

Getting a driver's license is a big milestone for teens that comes with more responsibility, for both the teen and their parents. One of those responsibilities is obtaining and paying for car insurance for the new teen driver in your household.

Teen drivers are considered high-risk by insurers, which means higher premiums. Because teens tend to be inexperienced drivers, they are more likely to be involved in accidents, especially in the first year or two on the road. This guide breaks down average teen insurance costs, why the rates are so high, and ways to save.

Average car insurance rates for teens

Insurance costs vary based on the provider and your teen’s specific profile, but here are some average annual premiums based on national data:

Average annual car insurance costs by teen age:

• Age 16: $6,200

• Age 17: $5,500

• Age 18: $4,900

• Age 19: $3,600

Rates are typically highest at age 16 and decrease as your teen gains experience and maintains a clean driving record.

By gender:

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• On average, male teen drivers pay 10 to 15% more than female drivers due to higher risk profiles.

By policy type:

• Individual teen policy: $5,500 to $7,000 annually

• Added to parent’s policy: $2,000 to $3,500 annually (depending on vehicle and driver history)

Factors affecting teen car insurance rates

There are a couple of different things that can affect your teen’s car insurance rate. We break them down below. 

• Age and gender: Younger and male drivers usually face higher rates.

• Driving record: Accidents, speeding tickets, and moving violations will increase premiums.

• Vehicle type: Sports cars and luxury vehicles cost more to insure than sedans.

• Location: Urban areas with more traffic and theft have higher rates than rural areas.

• Credit history (for parents): In some states, insurers consider a parent’s credit score when pricing teen add-ons.

• Coverage level: More coverage (like comprehensive and collision) = higher premium.

How to save money on teen car insurance

Even with high base rates, there are ways to reduce the premium for your teen driver. Follow these tips to help bring the cost down and save some money. 

Add your teen to your policy

Rather than starting a separate insurance policy, most families can save significantly by adding their teen to an existing parent policy. This bundled approach spreads the risk and often qualifies for multi-driver or family discounts. Talk to your provider about the steps and documentation needed to add your teen without triggering new fees.

Encourage good grades

Many insurers reward academic achievement. Teens with a B average or higher often qualify for good student discounts that can shave 10% to 15% off premiums. To take advantage, submit a current report card or school transcript each term to your insurer.

Choose a safe, modest vehicle

The type of car your teen drives plays a big role in your premium. Vehicles with strong crash-test ratings, good reliability, and low repair costs generally come with lower insurance rates. If you're in the market, this guide on what to know before buying a first car can help you make a decision that’s both cost-effective and teen-friendly. Stick with practical sedans or SUVs over flashy models with high horsepower.

Take a defensive driving course

Enrolling your teen in a state-approved defensive driving program not only builds safer habits, but often earns a discount of 5% to 15%. Courses can usually be taken online and completed over a weekend. You’ll have to provide proof of completion to your insurer for the credit.

Limit mileage

If your teen won’t be driving daily—say, they carpool or only use the car on weekends—report a lower annual mileage to your provider. Less time on the road means lower exposure to accidents, which many insurers reward with a reduced rate.

Shop around

Prices for the same teen driver can vary widely between insurers. Make sure to compare quotes from at least three providers before committing to a policy. Be sure to ask about teen-specific discounts, telematics programs, and bundling options.

FAQs

What’s the cheapest way to insure a teen driver?

Adding your teen driver to an existing family policy is usually the most affordable option.

Does a teen need their own policy?

No, unless they own their own vehicle titled in their name. Most teens are added to a parent or guardian’s policy.

When will car insurance rates start to go down for a teen?

Rates typically decline each year a teen maintains a clean driving record, with bigger drops around ages 18 to 19.

Can I remove my teen from my policy if they go to college without a car?

Yes, most insurers offer a “student away” discount or allow removal if the teen won’t be driving for extended periods.

Steering your teen toward safer (and cheaper) roads

Teen car insurance is pricey, but with a little planning and smart choices, families can manage the cost and even teach their teens about financial responsibility along the way.

Greenlight can help with that. Our driving safety tools offer crash detection, location tracking, and real-time alerts*, so parents can stay in the loop when their teen hits the road.

Keep your teen driver safe! Protect them with Greenlight’s money and safety app. From crash detection to emergency alerts, we have your back. Try Greenlight, one month, risk-free.† 

This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.

*Requires mobile data or a WiFi connection, and access to sensory and motion data from cell phone to utilize safety features including family location sharing and driving alerts and reports. Messaging and data rates and other terms may apply.