Car insurance for teenagers has always been expensive, and that will probably never change. It’s common for most parents to add their teen as a specified driver to the family's insurance policy if financially dependent and resides at the same address or students.

However, less expensive doesn’t mean cheap. That’s because insurers calculate their rates based on the likelihood of a driver being involved in an accident. Statistics show that drivers under the age of 21 are more likely to be involved in a car accident than older drivers.


There are some other important factors that affect how much you will pay when adding your teen to your insurance:

  • Gender – Teenage boys are considered to be more reckless and bigger risk takers than teenage girls. 

  • Experience – Lack of driving experience translates into higher premiums because insurers assume that inexperience makes the driver more prone to accidents.

  • Geography – Driving in a high-traffic geographic area is another rate booster because it increases the probability of being involved in an accident.


However, there are ways you can lower premiums:  

  • Avoid the extras – All of those add-ons that teenagers love, like chrome rims and big stereo systems, will increase the premium you’ll pay.

  • You may consider insuring your teenager's car for Third Party, Fire and Theft only if the value of the car is relatively low, and justifies this choice.

  • Raise your excess – A higher excess can lower your car insurance rate by up to 25 percent.

  • Enrol your teen in an advanced driving class – This could result in a premium decrease.

  • Obtain car insurance from the same company that provides your home contents and home owner’s insurance.– Many insurers will offer a discount for multiple lines of coverage.