Car insurance for teens is expensive, but it’s not all 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 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 a year. This won’t work if the 18-year-old has a car registered in his name, in which case he will need his own police.
Plus, it might not make a whole lot of sense if the parents have bad driving histories or really bad credit scores. An 18 year old may find cheaper rates on their own policy in these cases.
Look for good discounts
Car insurance discounts can make all the difference in finding good rates for young adults. Young drivers can get student discounts and parents can save when their kids go to school 100+ miles without a car.
Bundling can also be a good idea if you have other types of insurance policies, such as renters. Some auto 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.
The companies with the best auto 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 absent from school
- Usage-Based Discounts
- Multi-policy discount
- Multi-car discount
- Discount on new vehicles
Choose the right coverage and deductible
Your coverage levels and deductibles have a direct impact on your auto insurance rates. Consider the level of protection you want in the event of an accident and reduce your coverage to that amount to save money. You can also increase your deductible to take on a little more risk and lower your overall premium. A car insurance policy with minimal coverage will be the cheapest option.
Choose an affordable vehicle
If you’re considering buying a family car for your 18-year-old, consider paying cash for an affordable used midsize sedan or SUV. Without an auto loan, you won’t need to have comprehensive or collision coverage on the vehicle.
You will just need to have whounprecedented levels of personal injury and property damage Liability coverage are required in your state. Some states require more coverage, but companies are not allowed to sell you less than the Baseline amount.
Try usage-based insurance
Telematics insurance programs such as State Farm’s Drive Safe & Save™ provide rebates based on your current driving habits, not your driving history. Families with teenagers can take advantage of discounts if they all participate in the program. Be aware that some usage-based insurance options can increase car insurance premiums, so research programs before starting one.