If you have kids, you know they can get expensive. This is especially true as they become teenagers and begin driving. Not only might you be trying to decide what kind of car to get for your teen, but you might also need to deal with insurance.
Car insurance rates for teenagers can be relatively high, but one way to reduce the cost of having a teen driver is to carefully consider what car to get for them. Here are some things to consider when choosing a car for your teen driver.
10 cheapest cars to insure for new teenager drivers
The cost of insurance varies according to a number of factors, but some cars might be cheaper to insure, according to insurance website Policygenius. Choosing an older car can help, but there are certain models that might be cheaper to insure than others. These cars include:
- Honda CR-V
- Chevy Equinox
- Ford F-150
- Ford Escape
- Subaru Forester
- Subaru Outback
- Toyota Tacoma
- GMC Sierra
- Jeep Grand Cherokee
- Jeep Wrangler
In many cases, the cheapest cars to insure for teenage drivers seem to be trucks, SUVs, and crossover vehicles. When choosing a car for your teen, you might want to consider the safety features as well: The Insurance Institute for Highway Safety reports that teen drivers have disproportionately high crash rates, amounting to four times the crash rates of drivers in their twenties.
What are the average car insurance rates for teens?
The average car insurance rates for teens depend on a number of factors, including the insurer and the car they drive. However, you can still get an idea of what to expect. Policygenius lists the average rates of a family policy with a new 16-year-old driver as between $190 and $291 per month.
As you can see, then, there is a fairly wide variance with insurance rates, and it’s possible that adding a teenager to your family auto insurance plan can lead to paying extra each month. For example, Policygenius cites the average car insurance rate for 2023 as $136 per month for full coverage. Even at the lowest price of $190 per month for a family policy with a teen driver, that results in an extra $54 per month, or $648 per year. For higher-cost policies, the difference could be even bigger.
What affects car insurance rates?
There are a number of factors that determine your insurance rates. Some of the things that an insurer will consider when setting your policy premium include:
- Your ZIP code: Where you live matters. Some areas have a higher incidence of claims and accidents, so if you live in a neighborhood with higher potential issues, you could pay a higher rate.
- Age of drivers: This can also include the experience of drivers. For example, teenagers are costlier to insure because they are considered less experienced and more likely to get into an accident. Once a driver reaches age 25, they are likely to see lower insurance rates.
- Driving history: A clean driving record is likely to result in lower insurance rates. If you have a history of traffic accidents and serious violations, you might end up paying more for auto insurance.
- Gender: Women often pay less for auto insurance. Statistically, according to the Insurance Information Institute, women are less likely to be cited for driving under the influence (DUI), and the accidents they are involved in tend to be less damaging. If you’re adding a teenage boy to your family’s insurance policy, you’re likely to have some of the highest auto premium rates out there.
- Type of car: If the car you choose for your teen has safety features, you might get a lower rate. Additionally, cars that are more likely to be stolen, or that are often in accidents, might come with higher insurance price tags.
- How often the car is driven: The more the car is driven, the more likely it is to be in an accident. If a teen drives the car every day to school, it can potentially result in a higher insurance rate.
How to lower car insurance rates for teens
Depending on the insurer you use, there might be discounts for teen drivers that can help you save money on the premium. It makes sense to shop around for car insurance when you add a teen driver to your policy and get quotes that take into account your teen, as well as asking for discounts.
Here are some ways you might be able to lower the car insurance rate for your teen:
- Good student discount: By providing a report card each grading period, you might be able to see lower rates if your student maintains a minimum GPA.
- Approved driver training: Find out if the insurer will give your teen a discount for completing a specific driver course.
- Carefully choose a car for your teen: Cars with certain safety features can be less expensive to insure than others. Additionally, if you choose an older car with a relatively low value, you might be able to just get the liability coverage. Comprehensive and collision coverage can be more expensive, so sticking with liability can be a way to save money if you can replace the car without too much trouble.
- Boost your deductible: The more you’re willing to pay out of your pocket, the lower your premium is likely to be. If you have an emergency fund that can handle a higher deductible, that might be a way to reduce your auto insurance premium with a teen driver.
- Use an app: Some insurers offer an app that will monitor driving behaviors. If your teen is a responsible driver, adding that app could lead to a lower premium, especially if your new driver can remain accident-free during their initial driving years.
Every savings counts
Adding a newly licensed teen driver to your family insurance policy can feel like a daunting—and expensive—task. However, by researching different cars and looking for other ways to save on insurance, you can reduce the bill by some amount. There’s no getting around paying more once a teen driver is in the mix, but you can take steps to reduce the impact.
