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Watching your child learn to drive is both exciting and terrifying — and your insurance company feels the same way. Adding a teen driver almost always increases your auto insurance premium, but there are ways to soften the financial impact. Here’s what to know and how to prepare.
Before your teen gets behind the wheel, make sure they’re properly insured. Most insurers won’t charge extra for a learner’s permit, but always confirm with your agent or broker. Once that permit becomes a driver’s license, however, your insurer must be notified — and that’s when the premium changes begin.
Why Teen Drivers Increase Your Insurance Costs
Driving safely depends heavily on muscle memory, instinct and experience. As an adult, you make countless driving decisions without even realizing it — adjusting speed, maintaining distance, anticipating hazards and staying aware of your surroundings. These automatic habits come from years on the road.
New drivers don’t have that history. Their skills are new, inconsistent and untested. The DMV may give them a license, but it cannot give them the years of seasoned judgment that reduce risk.
Insurance companies know this from decades of data:
- New drivers have more accidents.
- They get more speeding tickets.
- They make more mistakes behind the wheel.
Because their likelihood of causing a loss is significantly higher, the cost to insure them is also higher.
How to Prepare Before Your Teen Is Licensed
The best way to reduce risk — and future premiums — is to train your teen thoroughly while they still have a permit.
Spend as much time as possible in the passenger seat, teaching them real-world driving skills. Don’t rely solely on the school, friends or intuition. As one wise dad put it: “I’m going to make you drive every time we’re in the car, because once you get your license, I won’t have any ability to teach you.”
Those permit hours matter. They build experience, confidence and muscle memory that new drivers desperately need.
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Options for Reducing the Added Premium
You can’t avoid the increase completely, but you can make it more manageable. Ask your agent or broker about:
- Good student discounts
Many insurers reward high grades with lower premiums. - Defensive driving course discounts
A certified course shows responsibility and reduces risk. - Lower-value vehicle options
Insuring a 10-year-old sedan costs far less than insuring a brand-new luxury car. - Telematics programs
Some insurers offer discounts for safe driving tracked through an app or device.
Always ask what discounts your insurer offers — many companies have creative programs specifically designed to lower the risk (and cost) of insuring new drivers.
The Bottom Line
Yes, your premium will go up. It should — your new driver has the highest risk level they’ll ever have. But with preparation, good instruction and smart choices, you can control the cost and help your teen become a safer, more confident driver.
And remember: ask questions. Your insurance agent or broker can walk you through every available option to help keep the increase as manageable as possible.
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