AP Photo/Wilfredo Lee

How to Insure Your Teen Driver Without Breaking the Bank


Oh boy, your teen has reached driving age.

Now, you have to contend with nerve-wracking driver education lessons, and the fun doesn't end once they earn their driver's license. Wait until you see that first insurance bill. You'll be saying "Oh boy" or a more colorful derivative.

Your new driver is expensive, thanks in part to the risk that teen driving represents to insurance companies. Teen drivers are the segment most likely to have an accident. Therefore, to lower your insurance bill for them, you must show the insurance company your teen isn't a risky prospect. Here's how you do this.

Take a Driver Training Course

Enroll your teen in a safe driving course, so they can better learn the rules of the road and have a more confident driving experience. Upon completion, take the certificate and send it to your insurance company, who could discount your policy thanks to your teen's initiative. Not only does it lower your insurance premium, it allows your teen to to appreciate their driving privileges.


Limit Miles Driven

Driving, like most activities, is a game of chance. The more you drive, the higher the odds of you being involved in an accident. This amplifies with teen and novice drivers, who have no situational awareness, due to their lack of experience.

Having your teen practice driving is important, but it's also vital to balance experience and miles driven, especially at the start. If your teen drives fewer miles, it can also discount your insurance rate.

Participate in a Safe Driving Program

Many insurance companies have safe driving programs, where you install a device that monitors your driving behaviors. Based on these behaviors, you can earn substantial discounts--to the tune of up to 40% in some instances.


The same applies to teens with teen driver safety programs. If they drive safely by remembering consistent seat belt use, practicing traffic safety and highway safety, limiting cell phone use, and practicing cautious nighttime driving, you could receive a discount for the safe behaviors they employ.

Earn Good Grades

Your teen's good grades can lower your insurance bill. Ask your insurance provider if they have a good grades discount.

Normally, this is where your 14, 15, or 16-year-old carries an A-B average on their high school report card. It's another way to reward their good behavior and save you money. Therefore, if your current insurance company doesn't offer a discount, find one who does.

This post was originally published on December 19, 2019.


WATCH: Where Is Adrienne Janic From "Overhaulin'" Today?