How much is teen car insurance?

Learning to drive is a major rite of passage in a teen's life … and a pivotal turning point for parents. While your teen is probably counting down the minutes until they finally get their driver's license, odds are good that you're counting pennies in anticipation of the costs associated with teen car insurance.

We're here to answer your questions, help you navigate auto insurance options for your teen and take advantage of discounts that can help lower your costs at every turn. Our priority is helping you keep your teen driver safe on the road while ensuring your family is protected with the right USAA coverage for your teen driver.

What's the average cost of car insurance for teens?

It's true that car insurance for teens is more expensive than the cost to insure older, more experienced drivers. Because they're “newbies” behind the wheel, teen drivers are considered a high risk by insurance companies. And here's why.

According to the Centers for Disease Control (CDC), teen drivers ages 16 to 19 are nearly three times as likely to be involved in a fatal car accident as drivers aged 20 and older. For companies to offset that higher risk level, teen car insurance will cost you a higher premium.

So how much does it cost to insure a teen driver? The cost of adding a teen driver to your auto insurance policy will vary among insurance companies. And the exact amount your insurance will go up depends on many factors, including the level of coverage you choose, where you live, your driving history, your credit score, the make and model of the car and the number of vehicles on your policy.

However, on average, adding a teen driver to your car insurance policy can raise rates by approximately $1,400 a year. And while this isn't an insignificant amount, putting your 16-year-old driver on a separate policy could cost substantially more. It'll also cost more to cover teen boys than teen girls.

Are there ways to reduce the cost of car insurance for my teen?

Insuring a teen by adding them to your USAA auto insurance policy is the most cost-effective way to get them covered. USAA also offers a variety of auto insurance discounts. These may help you cut costs on teen auto insurance even more.

• Driver Training Discount.^{See note1} You could save when your teen driver completes a basic driver training course.
• Good Student Discount.^{See note1} You could save up to 25% when your teen driver makes and maintains good grades.
• USAA SafePilot® Discount.^{See note2} You could save up to 30% with our safe driving program if you live in an eligible state. Learn more about USAA SafePilot®.
• Multi-Vehicle Discount.^{See note1} Will your teen be driving their own vehicle? You may be able to lower the total premiums you pay if you add your teen's car to your existing policy. Whether you buy your teen a new car, or buy yourself a new car, and let your teen drive your old one, ask your insurance provider if they offer a multi-vehicle discount.
• Newer Vehicle or Anti-Theft Device Discount.^{See note1See note,See note3} You may also get a discount if the car is less than three years old or has an anti-theft device installed.
• Safe Driving Discount.^{See note4} You may also save on premiums when drivers on your policy maintain a good driving record for more than five years.

Does my teen need coverage before passing their driving test?

While your teen has their learner's permit, most insurance companies will automatically allow them to be covered by your policy without you having to do anything. However, the day your teen passes their driver's test and becomes a licensed driver, you'll be required to add them as a driver to your policy to be covered with teen car insurance.

How do I choose a car for my teen?

If your teen is trying to convince you to greenlight a super cool car or tricked out truck to drive when they get their license, be prepared to burst their bubble. Your teen can use all the protection available as they hone their skills to become a good defensive driver. And that means instead of that snazzy car, you shop for a safer one. Talk with your teen about the importance of choosing a vehicle that has a track record for providing solid protection in an accident.

Here are some points to consider:

• Mini or compact cars may get better gas mileage, but don't provide as much of a “buffer” during impact as compared to a larger, longer car.
• Sportier models beg to be driven fast. Too fast for a young driver.
• Some models and makes of vehicles that sit up higher may be more of rollover risk.

It's also important for the car to be easy for your teen to drive so they'll feel more in control and comfortable on the road. You may want to opt for an automatic transmission, as opposed to a standard, to help make the learning curve less steep.

Does the type of car affect the cost of insurance?

Insurance companies like to insure cars with safety features that help reduce the number of potential claims. For example, auto-braking can help reduce accidents, thus reducing claims. And airbags can help reduce more serious injuries, thus reducing medical payouts.

However, safety features and the degree to which your car's make and model protects the driver and passengers in an accident aren't the only criteria insurance companies use to assess the risk level of damage or injury. Insurers also consider the potential damage your car could inflict on another car and its occupants in a crash.

For example, say you buy a Jeep Cherokee that's the same age as your teen. It's heavy, solid as a rock, you can pay cash for it and your teen thinks it's cool. Plus, because it's not financed, you're only required to have liability insurance and can forego paying for collision or comprehensive insurance.

Not only does this type of vehicle lack important safety features (airbags for one), but the amount you'll pay for liability insurance will be higher than you might expect because of the severe damage it could do to another vehicle in a crash.

As a parent, you've got to choose a car that's safe for your inexperienced teen to drive — while being cost effective for you to maintain and insure. If you're considering a new car, learn about the latest safety features. If you're looking for a used car without all the sensors and cameras equipped on new cars, safety should still be your primary concern.

How do I keep my teen driver safe?

Being the parent of a teen won't win you a popularity contest. Whether it's grounding them for breaking curfew or taking the keys until they exhibit more responsible behavior, keeping them accountable and safe means making tough decisions that probably won't earn you any brownie points.

But that's ok. Remain calm and carry on. A car is a powerful machine that can inflict a lot of damage and destruction. In fact, for U.S. teens, the second leading cause of death is motor vehicle crashes Opens in a New Window.^{See note5}

As the parent of teen, you need to do whatever it takes to drive home how critically important it is for them to stay focused behind the wheel, put the cell phone out of arms reach and drive defensively to avoid accidents and potentially catastrophic consequences.

At USAA, your teen's safety is our top priority. Practice driving with your teen as often as possible and teach them helpful safety tips.

Does a car's safety rating influence insurance cost?

Because driving a car with a superior safety rating can help reduce the number of accidents and claims, auto insurance companies may pass on their savings by offering lower rates.

So when shopping for a car with your teen, be sure to pay close attention to the safety features and ratings. Not only will you be putting your teen into a safer vehicle, but every discount helps.

What if my teen driver's in the military?

If the car your teen typically drives is titled in your name and doesn't reside with them while they're away at military school, deployed, or living on base, you may be able to save even more money on your car insurance.

Many car insurance companies offer a "resident student" or “distant student” teen auto insurance discount to those who are away at military school or live away from home during high school.

Even if your military teen is stationed in a different state for months or longer, most states will allow you to keep their car registered in your state and insured on your policy because your home is still their “legal residence.” At USAA, members of the military may be eligible for special discounts.

What other ways can I cut costs on car insurance?

Consider your family's car insurance needs and tailor a unique policy from USAA's various coverage options. It may be helpful to understand how USAA calculates auto insurance rates. This can go a long way towards helping you identify other ways you may be able to reduce costs and still have the protection you need.