Straight talk for parents
Teens crash more because they are new to judgment calls. Insurers price in that risk, which is why your bill jumps. The goal here: keep strong coverage, cut waste, and train your driver with a simple plan. Pair this with our new driver guide and the premium math explainer.
Adding a teen can double your premium because new drivers have more crashes. To cut the cost, stack the good student discount, pick a safe used car, enroll in telematics, raise deductibles only if you have cash, and ask for a "student away" discount when they go to school.
1) Why teen rates spike
Insurers price risk, not age. Teens have less road time and a higher claim frequency, so carriers add a surcharge. The good news: you can chip away at that surcharge with simple moves that do not reduce protection.
2) Quick savings checklist
| Move | How it saves | What to watch |
|---|---|---|
| Good student (B average) | 10%-25% off for the teen | Send grades every 6-12 months |
| Telematics app | Up to 20%-40% after safe driving | Avoid hard braking and late-night trips |
| Driver training | 5%-15% for approved courses | State-approved provider required |
| Student away (100+ miles, no car) | Big drop while they're away | Keep proof of school address |
| Right car choice | Lower symbol = lower premium | Avoid high horsepower and luxury parts |
3) Pick the right car
Safe, boring, and cheap to fix wins. If the car is paid off and modest, your collision/comprehensive deductibles can stay low without killing the budget.
- Avoid: Sports cars, luxury SUVs, and anything with custom parts.
- Choose: Mid-size sedans or small SUVs with 5-star crash scores and automatic braking.
- Check: The insurance loss cost (vehicle symbol) before buying.
4) Training plan for the first 90 days
You can't afford a surprise claim in the first few months. Use this simple schedule to build habits while telematics tracks progress.
| Week | Focus | Metric to watch |
|---|---|---|
| 1-2 | Parking lots, turns, smooth braking | Zero hard brakes in telematics app |
| 3-4 | Daytime routes, lane changes, mirrors | No speeding alerts |
| 5-6 | Light rain, highway merges | Keep following distance score high |
| 7-9 | Night drives with a parent | Limit late-night trips after midnight |
| 10-12 | Solo practice on known routes | Maintain A/B grade in app |
5) Set deductibles with cash, not hope
Teens bump into things. Choose deductibles you can actually pay this weekend if needed.
- If your emergency fund is under $1,000, keep deductibles at $500.
- If you have $2,000+ saved, consider $1,000 deductibles to lower premiums.
- Don't drop collision or comprehensive; teens need the protection.
6) Scripts you can copy
Good student proof:
"I'm adding my teen. Apply the good student discount. I'm sending the report card now. Confirm the new six-month premium."
Student away:
"My student is 150 miles away without a car. Add the student-away discount and send an updated declarations page."
Telematics sign-up:
"Enroll us in your safe-driving app. Tell me the starting discount and when the score adjusts the price."
7) Extra coverages to keep
Teens need strong liability and medical protection. Do not strip these to save a few dollars.
- Liability limits that beat state minimums.
- UM/UIM for hit-and-runs and underinsured drivers.
- MedPay/PIP for quick medical bills regardless of fault.
- Roadside assistance so your teen is not stranded at night.
8) Common mistakes that cost families
- Putting the teen on the newest, most expensive car.
- Skipping telematics because they're worried about being "watched." The data usually saves money.
- Letting the good student discount lapse by not sending updated grades.
- Forgetting to notify the insurer when the teen goes to college without a car.
- Dropping collision too soon; repair costs can exceed the car's value after one crash.
9) Quick cost scenarios
Here is how small moves add up on a six-month premium.
| Change | Impact | Notes |
|---|---|---|
| Add teen, no discounts | +$700 to +$1,200 | Depends on state and vehicle |
| Good student applied | - $70 to - $300 | 10%-25% on teen portion |
| Telematics grade A/B | - $100 to - $300 | After first 60-90 days |
| Student away | - $150 to - $400 | If 100+ miles, no car |
| Raise deductibles | - $50 to - $150 | Only if cash is ready |
10) FAQ (quick answers)
Do I have to add my teen if they only drive occasionally?
Yes. Any household driver must be listed. Hiding them risks claim denial.
Does a learner's permit require coverage?
Usually they're covered under your policy while supervised, but confirm with your carrier and your state rules.
Should I title the car in the teen's name?
Keep it in your name to control coverage and avoid higher stand-alone teen rates.
Will speeding tickets ruin discounts?
Yes. One ticket can cancel telematics and good student discounts. Coach calm driving early.
11) Action plan (do this today)
- Enroll in telematics before the teen drives solo.
- Send the latest report card and confirm the good student credit.
- Choose a safe, modest car and keep collision/comprehensive in place.
- Set deductibles based on cash, not hope.
- Save your updated declarations with your policy guide.
Your teen wants freedom. You want them safe. Stack discounts, train them with a clear plan, and keep strong coverage so one mistake doesn't wreck your finances. Next step: review how renewals work so you refresh every six months without losing savings.