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- On average, adding a newly licensed 16-year-old to a married couple’s full coverage auto policy typically raises premiums by about 80%–100% nationally, with higher increases for male teens and in high-cost states; in some scenarios, the jump can exceed 120% (see recent analyses from Bankrate, Forbes Advisor, The Zebra, and NerdWallet).
- There is a larger average increase in car insurance premiums if the teenager is male, especially at age 16, in states where gender is an allowed rating factor; however, California, Hawaii, Massachusetts, and Michigan prohibit the use of gender in private passenger auto rating.
- The type of vehicle you choose for your teen, as well as the coverages and levels of coverage you buy, can affect your premium. EVs and many performance/luxury models tend to carry higher physical-damage costs, while many minivans and mainstream small–midsize SUVs often rate lower; theft risk also matters (EV repairs; ADAS/repair costs; vehicle class losses; theft trends).
A 16th birthday is a milestone birthday for many teenagers who are eligible to graduate from a learner’s permit to a driver’s license. This change presents a challenge for many parents when faced with adding a teen driver to their car insurance policy. A study by Bankrate.com and other 2025 analyses indicate that adding a newly licensed teen to a parent’s full coverage policy typically raises premiums by roughly 70%–100% on average nationally, with higher increases for 16-year-old males and in high-cost states; in some scenarios, increases can exceed 120% (see Forbes Advisor, The Zebra, NerdWallet).
With such a large potential percentage increase layered onto already elevated auto insurance prices, is there any way for parents to offset the cost? Auto insurance premiums have climbed broadly in recent years as claim severity, parts and labor costs, medical inflation, and weather losses pushed prices higher (BLS CPI; Insurance Information Institute). Adding a teen driver to car insurance without intense premium increases requires taking advantage of discounts, utilizing safe driver programs, and being intentional with coverage limits.
How to Add a Teen Driver to Your Car Insurance
Follow these steps for adding a teen driver to your car insurance policy.
- Speak with your insurance agent: Before your teen gets their learner’s permit, have a conversation with an insurance agent about when to add the teenager to the policy. Some companies may recommend the teen be added upon getting their permit, while others may require you to wait until the teen receives their driver’s license.
- Get a quote: Ask for a quote to add your teen to the car insurance so you can be prepared for the cost increase. While quoted premiums can change, getting a quote ahead of time can at least give you a ballpark figure, so you know how to budget for the future cost of adding your teen — and revisit quotes at license milestones as prices and discount options can shift (see J.D. Power 2025 Insurance Shopping Study).
- Ask about discounts: Ask the agent about discount eligibility for your teen to help lower the cost of adding them to the car insurance policy. Many carriers offer good student discounts, driver training discounts, or telematics programs that could give your teen a discount for safe driving behaviors. For example, good student savings can be significant with some insurers (State Farm up to 25%; Travelers up to 8% where available), and usage-based programs can offer sizable, behavior-based savings.
- Shop around: Get quotes from other car insurance companies to see which offers the best rates and coverage for your family when adding a teen to the insurance policy, and compare telematics/usage-based options as part of your quote shopping (NAIC telematics overview).
- Take advantage of usage-based telematics programs: Many insurance companies offer monitoring programs for teen drivers. These programs usually track your speed, hard brakes and acceleration, idle time, and other driving metrics. If your teen is a safe driver, they may earn a personalized discount — for instance, Nationwide SmartRide advertises up to 40% based on driving (with 10% just for enrolling, where available) and Travelers IntelliDrive up to 30% in many states (note that risky driving can increase premiums in some jurisdictions).
- Stay current with your policy: As your life changes, your insurance needs may change too. Review your policy regularly and make sure you talk to an agent on occasion to help ensure the coverage types and levels still work for your situation.
How a Teen Driver Affects Car Insurance Premiums
Although the average cost increase for adding a teen driver to car insurance is already steep — commonly about 70%–100% in recent national analyses — the cost may be even higher if the teenager is male. The Centers for Disease Control and Prevention (CDC) consider male teen drivers riskier to insure than females, so parents of male teenagers may need to be prepared for even higher premiums. However, a handful of states — California, Hawaii, Massachusetts, and Michigan — ban the use of gender as a car insurance rating factor.
The state you live in will also play a big role in the car insurance rate you pay for your teen. Some states have lower average car insurance premiums in general, so the cost for adding a teen is typically lower as well. Hawaii doesn’t allow car insurance companies to factor in age as a rating factor, so rates for teens may be quite a bit lower in the Aloha State (see statute). Additionally, the coverage types and levels you choose, as well as the type of vehicle your teen drives, will impact premiums — EVs and many performance/luxury models often cost more to insure than comparable mainstream models, while many minivans and small–midsize SUVs tend to be cheaper on average (HLDI losses by model; CCC Crash Course). When in doubt, you can get quotes for a few different levels of coverage to figure out which works best for your needs. And if you’re shopping for a car for your teen, getting an insurance quote before you buy could help you avoid expensive surprises.
How to save on teen car insurance
Because adding a teen driver is almost guaranteed to cause a huge premium increase, it can pay to find ways to save on car insurance. Here are four ways to reduce the cost of adding a teenager to your auto insurance policy:
Insurance Coverage Teens May Need
When adding a teen driver to car insurance, there are some coverages that may benefit you to consider including in your policy. Although it may cost more initially, these coverages can provide financial protection if the teenager is involved in an accident.
- Collision: This coverage is part of what is considered full coverage. It pays to repair or replace a vehicle damaged in an at-fault collision. If the teen driver is responsible for an accident, there is no coverage for the damages to their car unless collision coverage is in the policy.
- Comprehensive: Another part of full coverage, comprehensive provides physical damage coverage for many instances that collision doesn’t cover. This includes vandalism, theft of the car, hitting an animal, damage due to weather events, and broken glass (note that theft risk varies by model and location; see NICB’s latest theft trends).
- Higher liability limits: Increasing liability limits beyond state minimum requirements adds a layer of protection if a teenager causes damages or injury in a collision. The bodily injury and property damage liability coverage pays for the other parties involved. Higher limits could help you avoid high out-of-pocket costs after an accident.
Teen Car Insurance FAQ
Methodology
Reviews.com reviews products, services, and companies based on five criteria to help readers understand how companies compare based on similar metrics. As for average pricing, we used Bankrate.com’s most recent analyses of car insurance rates (leveraging industry rate data such as Quadrant) to benchmark the typical range of premium changes when adding a teen driver. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a Toyota Camry, commute five days a week, and drive about 12,000 miles annually.
Age: Rates were calculated by evaluating our base profile (40 years of age) with a 16-year-old driver applied. Depending on age, drivers may be a renter or homeowner. Hawaii rates indicate age is not a contributing factor.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan.
Rates are accurate as of 2025. These are sample rates and should only be used for comparative purposes.
