Most insurance companies require you to add your teen driver to your auto insurance policy once they get the learner’s permit and start driving your vehicle.
When your teenager starts driving, there’s more to consider than just their safety — you’ll also face the added cost of insuring a young driver.
Teen licensing and insurance laws require that, as your child starts driving, you need to add them to your car insurance policy. In most states, this isn’t optional — insurance companies expect all household drivers to be listed, even if your teen only drives occasionally or uses a family car. Failing to add them could result in denied claims or even policy cancellation. While adding a young driver usually raises your premium, it also ensures your teen has proper coverage if they’re involved in an accident, protecting both them and your family financially.
Once your teen turns 18 (or reaches the age of majority in your state), they can get their own insurance policy without your help. However, teens who purchase their own insurance typically face very high rates due to their inexperience on the road and higher risk of accidents.
“It’s usually cheaper to add a teenager to their parents’ car insurance policy,” says Carole Walker, executive director of the Rocky Mountain Insurance Association, a nonprofit representing property and casualty insurers.
Key Takeaways
- On average, adding a teen driver increases car insurance premiums by 136%.
- Adding a teenager to a car insurance policy is less expensive than buying them an individual policy.
- If you don’t add your teenager to your insurance policy, your insurer may deny coverage for accidents they are in, leading to higher premiums or policy cancellation.
Our advice to parents of novice drivers
There are several things you should keep in mind when insuring a teen. They include:
- Make sure your teen is properly insured. Every driver on the road must carry car insurance, unless you live in New Hampshire. That means before your teen ever gets behind the wheel — even with a learner’s permit — you should notify your insurer. Adding them early ensures your whole family is protected if something happens
- Plan for higher costs. There’s no sugarcoating it — teen drivers are expensive to insure. Premiums rise sharply when you add a young driver, so it’s smart to plan ahead and build the extra cost into your budget.
- Look for ways to save. The good news is that plenty of discounts can help offset the higher costs. Many insurers reward teens with good grades, safe driving habits, or completion of driver’s education courses. Ask your insurer which discounts your family qualifies for so you don’t leave money on the table.
What happens if I don’t add my teenager to my car insurance?
If you don’t add your teen to your car insurance policy and they’re in an accident, your car insurance company could deny coverage, stating you committed fraud, specifically material misrepresentation, by not informing it of the licensed driver.
“Deliberate concealment could impact coverage,” Walker says.
Alternatively, your insurer may cover the accident but then require you to pay all premiums that should have been paid since your child was licensed. Instead of having their premium spread out during all the months they were licensed, it will be due all at once.
Step-by-step guide to adding a teen driver to your policy
Adding a teen to your car insurance is a standard part of the licensing process, but the timing and cost can vary depending on your insurer. The steps below outline what to check, what to compare, and how to keep your rates as reasonable as possible.
- Check your insurer’s rules. Ask your current company when your teen should be added.
- Get a quote with strong liability limits. Ask for pricing with at least 100/300/100 coverage. That provides up to $100,000 for one person’s injuries, $300,000 for all injuries, and $100,000 for property damage.
- Compare quotes from other insurers. Teen rates vary widely. Shopping around early gives you a clear picture of your options.
- Add your teen — or switch insurers if you find a better deal. When it’s time, update your current policy or move to a company offering a lower rate. Ask about discounts, especially for good students or teen driving programs.
- Encourage safe driving habits. Your teen’s driving record affects your premium. Emphasize seatbelt use, no-phone driving, and practicing in different road conditions.
- Re-shop once a year. Rates change, and so do your teen’s habits. Compare quotes annually and check for new discounts, especially if your teen’s grades have improved.
When should you add a teen to your car insurance policy?
Most insurers cover teens with a learner’s permit at no extra cost, but once they get a full license, you’ll need to add them to your policy and pay higher premiums. Some companies require you to add a teen as soon as they get a permit, so it’s best to check with your insurer early.
Even if your teen delays getting a license, insurers usually know there’s a new driver in the household and may list them as “unlicensed” on your policy. That won’t affect your rate, but the premium will increase once your teen starts driving.
How insurers handle teens at different stages:
- Permit stage. Usually covered automatically with no extra cost.
- License stage. Must be added to the policy — this is when rates rise.
- Insurer rules differ. Some require teens to be listed sooner, depending on the state.
- Savings tip. Discounts like good student, safe driver, or low-mileage programs can help reduce the added cost.
Bottom line
In every state except New Hampshire, anyone driving must be insured. Since insurance follows the car, not the driver, coverage is generally in place when your vehicle is insured. Still, if someone drives your car regularly, they need to be listed on the policy. Always confirm with your insurer so there are no gaps.
How much does it cost to add a teen driver to your car insurance policy?
Adding your teen to your policy increases car insurance rates by an average of 136%, largely because insurers see inexperienced drivers as high-risk.
However, the cost of coverage depends on your state and how heavily your insurer factors age and driving experience into its rates.
The table below shows how much it costs to add a teenage driver to your car insurance policy.
| Insurance company | Cost under parent’s policy | Cost to add a teen daughter | Cost to add a teen son |
|---|---|---|---|
| Allstate | $4,276 | $8,355 | $8,947 |
| Farmers | $4,107 | $8,981 | $9,521 |
| GEICO | $2,663 | $5,765 | $6,311 |
| Nationwide | $2,898 | $5,338 | $5,765 |
| Progressive | $2,706 | $7,086 | $7,688 |
| State Farm | $3,112 | $6,465 | $7,903 |
| Travelers | $2,315 | $5,086 | $5,781 |
| USAA* | $1,705 | $4,847 | $5,145 |
Parents might not incur higher insurance costs when their teen is practicing driving without a driver’s license.
“Most companies won’t charge an additional premium until the teen is a licensed driver,” Walker says.
Once your teen gets their license, adding them to your car insurance policy can increase your rate by an average of 136%.
While that might sound daunting, the good news is that there are several ways to lower the rate. For example, students who excel in school might qualify for a “good student” discount.
The best way to cut costs is to shop around and get quotes from multiple insurance companies before settling on a policy that provides the coverage you need at the best possible price.
| State | Parent’s policy | With a teen | Percent increase |
|---|---|---|---|
| Alaska | $2,407 | $6,487 | 175% |
| Alabama | $2,385 | $5,501 | 133% |
| Arkansas | $3,008 | $6,337 | 109% |
| Arizona | $3,454 | $8,093 | 144% |
| California | $3,129 | $8,960 | 187% |
| Colorado | $3,417 | $7,575 | 127% |
| Connecticut | $3,527 | $7,924 | 139% |
| Washington, D.C. | $3,023 | $6,290 | 121% |
| Delaware | $3,304 | $7,626 | 147% |
| Florida | $4,618 | $10,715 | 134% |
| Georgia | $2,936 | $7,113 | 145% |
| Hawaii | $1,333 | $1,482 | 11% |
| Iowa | $2,383 | $4,703 | 102% |
| Idaho | $1,739 | $3,667 | 115% |
| Illinois | $2,775 | $6,691 | 147% |
| Indiana | $2,354 | $5,342 | 130% |
| Kansas | $2,658 | $5,435 | 113% |
| Kentucky | $2,948 | $6,006 | 106% |
| Louisiana | $4,441 | $11,533 | 161% |
| Massachusetts | $2,684 | $6,951 | 158% |
| Maryland | $2,806 | $6,884 | 145% |
| Maine | $1,618 | $3,918 | 135% |
| Michigan | $5,564 | $10,666 | 107% |
| Minnesota | $3,160 | $6,617 | 118% |
| Missouri | $2,955 | $6,379 | 120% |
| Mississippi | $2,472 | $5,754 | 139% |
| Montana | $2,660 | $5,872 | 126% |
| North Carolina | $2,747 | $6,829 | 154% |
| North Dakota | $2,469 | $5,253 | 108% |
| Nebraska | $2,503 | $5,269 | 124% |
| New Hampshire | $1,711 | $4,130 | 135% |
| New Jersey | $3,139 | $8,627 | 173% |
| New Mexico | $2,989 | $5,952 | 103% |
| Nevada | $4,232 | $10,226 | 142% |
| New York | $5,788 | $11,263 | 96% |
| Ohio | $1,967 | $4,559 | 137% |
| Oklahoma | $3,667 | $8,047 | 117% |
| Oregon | $2,702 | $6,739 | 153% |
| Pennsylvania | $3,575 | $8,616 | 140% |
| Rhode Island | $3,256 | $8,733 | 173% |
| South Carolina | $2,289 | $5,445 | 156% |
| South Dakota | $3,159 | $5,459 | 74% |
| Tennessee | $2,455 | $5,671 | 132% |
| Texas | $3,897 | $9,081 | 139% |
| Utah | $2,672 | $6,206 | 136% |
| Virginia | $2,215 | $6,650 | 190% |
| Vermont | $1,586 | $4,018 | 154% |
| Washington | $2,539 | $5,138 | 100% |
| Wisconsin | $2,225 | $5,096 | 130% |
| West Virginia | $2,315 | $5,458 | 148% |
| Wyoming | $1,919 | $4,804 | 164% |
How much does it cost to add a new driver to car insurance by coverage type?
Adding a teen driver to your car insurance policy usually brings a steep rate increase, with the exact cost depending on your child’s age and the coverage limits you select.
At age 16, the average annual premium is about $2,690 for state-minimum liability, $3,333 for liability-only coverage, and $9,825 for a full-coverage policy.
The table below shows the cost to add a new driver to your insurance policy by coverage level.
| Age | Non-owner, state-minimum liability | Owner, state-minimum liability | Liability-only coverage | Full-coverage policy |
|---|---|---|---|---|
| 16 | $1,292 | $2,690 | $3,333 | $9,825 |
| 17 | $1,064 | $2,223 | $2,755 | $8,162 |
| 18 | $930 | $1,881 | $2,333 | $7,146 |
| 19 | $721 | $1,416 | $1,750 | $5,470 |
| 20 | $659 | $1,259 | $1,562 | $4,970 |
| 21 | $562 | $1,014 | $1,262 | $4,094 |
| 22 | $532 | $930 | $1,156 | $3,773 |
| 23 | $505 | $859 | $1,076 | $3,515 |
| 24 | $484 | $805 | $1,015 | $3,326 |
| 25 | $461 | $719 | $915 | $2,970 |
| 30 | $424 | $643 | $828 | $2,663 |
| 35 | $414 | $628 | $813 | $2,582 |
| 40 | $407 | $618 | $801 | $2,513 |
| 45 | $402 | $608 | $791 | $2,463 |
| 50 | $393 | $588 | $768 | $2,358 |
| 55 | $387 | $574 | $749 | $2,277 |
| 60 | $388 | $574 | $750 | $2,250 |
| 65 | $401 | $597 | $775 | $2,274 |
| 70 | $429 | $647 | $831 | $2,410 |
| 75 | $465 | $719 | $917 | $2,620 |
How much insurance goes up after adding a teen driver, by age
Adding a teen driver to your car insurance policy can cause premiums to skyrocket. A 16-year-old typically more than doubles your rate, while the increase gets smaller as your teen gets older and gains experience behind the wheel. By the early 20s, costs start to come down, but policies are still noticeably more expensive compared to adding an adult driver.
Here’s how much rates typically increase by age:
| Teen driver age | Average premium increase |
|---|---|
| 16 | 148% |
| 17 | 138% |
| 18 | 134% |
| 19 | 125% |
| 20 | 115% |
| 21 | 100% |
Discounts that can help you save on teen car insurance
Skyrocketing rates caused by adding a teenager to car insurance can be reduced a bit by getting discounts. Here are the common discounts teens or your household can receive:
- Good student discount. Insurers advertise discounts of about 12% if your young driver does well in high school or college, typically defined as obtaining a GPA of 3.0 or above or ranking in the top 20% of their class.
- Good-driver discount. Keeping a clean record will allow your child to eventually receive a good-driver discount, generally 10% to 25%. However, insurers may require the person to have a clean license for three to five years.
- Driver training discount. Some car insurance providers offer a discount for driving training courses, usually up to 7%. Other insurers do not since it’s part of the licensing process. If driver education training courses don’t get your teen driver a discount, see if defensive driving or other classes will.
- Low-mileage discount. Discounts start at driving under 10,000 miles a year, but they might be even higher if you drive less than 7,000 or 5,000 miles annually.
- Monitor your teen. Teens often drive more safely when enrolled in a pay-as-you-drive (PAYD) program. Insurers like Allstate and Progressive track driving habits — such as speed, mileage, and braking — through a device or app, and safe driving can earn discounts up to 11%.
- Family plan discount. Some insurers give discounts to young drivers who obtain their own insurance plan with their parents’ insurer.
- Student-away discount. If your child attends college more than 100 miles from home and doesn’t bring a car, many insurers offer a “student away” discount. Depending on the company, the savings can range widely, typically from about 10% up to 30%.
- Multi-vehicle discount. When adding another car to your policy, it should be eligible for a multi-vehicle discount.
Recommended coverage levels for teen drivers
There are many types of coverage you should carry when you add a teen driver to your policy. They include:
- Liability coverage. It covers damages your young driver may cause to others, both injuries and property damage. It is important to carry adequate levels of coverage. Injury claims can easily cost hundreds of thousands of dollars in medical treatments.
- Comprehensive and collision coverage. These types of insurance cover damages to your vehicle. Collision coverage reimburses you for damages to your car that result from a collision with another car or object. Comprehensive coverage covers most other types of damage that occur to your car that are not the result of a collision.
- Uninsured and underinsured motorist coverage. Uninsured motorist insurance helps cover damages when you are in an accident with a driver who does not have insurance. Underinsured motorist insurance can help pay your bills when the other driver has inadequate coverage.
- Medical payments coverage and personal injury protection. These types of insurance cover you for medical care related to injuries to you, or to a passenger in your car.
- Gap insurance. This type of coverage protects you when you have a loan of the car. It pays the difference between what your vehicle is currently worth and what you owe on it.
Why teen crash statistics matter
Car crashes remain one of the leading causes of death for teenagers, making this a difficult but important topic for parents. Understanding the risks can help families make informed decisions about driving rules, insurance coverage, and safety habits.
The chart below shows teen motor vehicle crash deaths as a share of all motor vehicle fatalities in 2023 — the most recent year available from the Insurance Institute for Highway Safety — and illustrates the percentage of overall crash deaths that involved teenagers.
| Type of crash fatality | Teen fatalities | All-age fatalities | Teens’ share of total fatalities |
|---|---|---|---|
| Passenger vehicle occupant | 2,255 | 24,238 | 9% |
| Pedestrian | 241 | 7,314 | 3% |
| Motorcyclist | 344 | 6,335 | 5% |
| Bicyclist | 71 | 1,155 | 6% |
| All-terrain vehicle riders | 41 | 235 | 17% |
Keep in mind: Car insurance rates will eventually go down
Car insurance is highest during the early years of being licensed. Parents must stress how important it is to be free from accidents and violations. As teens mature and demonstrate they’re good drivers, they can obtain good driver discounts, which can significantly help auto insurance rates. Also, auto premiums for drivers normally go down slightly each year from age 16 until age 25.
