Car insurance for teens is expensive, but not everything is out of your control. There are things you can do to save money, including adding the 18-year-old driver to your family policy, shopping around often and looking for specific discounts.
Add the Teen to a Parent’s Policy
If you live in the same household, you can add a teen driver to your family policy to save hundreds or even thousands of dollars per year. This won’t work if the 18-year-old owns a car registered in their name, in which case they’ll need their own policy.
Also, it may not make the most sense if the parents have bad driving histories or very poor credit scores. An 18-year-old may find cheaper rates on their own policy in these cases.
Look for the Right Discounts
Car insurance discounts can make a world of difference in finding good rates for young adults. Young drivers can qualify for student discounts, and parents can save when their children attend school over 100 miles away without cars.
Bundling can also be a good idea if you have other types of insurance policies, like renters. Some car insurance companies offer safe driving discounts to people with short driving histories, while others require four or five years of claim-free driving to qualify.
Companies with the best car insurance for 18-year-olds offer a variety of applicable discounts. Look for the following discounts when comparing car insurance quotes:
- New driver discount
- Safe driver discount
- Good student discount
- Student away at school discount
- Usage-based discounts
- Multi-policy discount
- Multi-car discount
- New vehicle discount
Choose the Right Coverage and Deductible
Your coverage levels and deductibles have a direct impact on your car insurance rates. Consider what level of protection you’d want in case of an accident, and reduce your coverage to that amount to save money. You can also raise your deductible to take on a bit more risk and lower your overall premium. An auto insurance policy with minimum coverage will be the cheapest option.
Pick an Affordable Vehicle
If you’re thinking of getting a family car for your 18-year-old to drive, consider paying cash for an affordable used sedan or midsize SUV. Without an auto loan, you won’t be required to have comprehensive or collision coverage on the vehicle.
You’ll just need to have whichever levels of bodily injury and property damage liability coverage are required in your state. Some states require more coverage, but companies aren’t allowed to sell you less than the baseline amount.
Try Usage-Based Insurance
Telematics insurance programs like State Farm’s Drive Safe & Save™ award discounts based on your current driving habits, not your past driving history. Families with teens can take advantage of discounts if they all participate in the program. Be aware that some usage-based insurance options can raise car insurance premiums, so research programs before starting one.