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How Can Teen Drivers Save Money on Auto Insurance?

Teen drivers with good grades might be eligible for a good student discount.

Kimberly Olson
April 3, 2026

Why are car insurance rates higher for teen drivers?

Teenagers don’t have much driving experience, so they’re more prone to getting into accidents. Some teens tend to speed, and they may not sense (or underestimate) dangerous situations, according to the Centers for Disease Control. 

Because teen drivers generally engage in riskier behavior and have more accidents, they’re also more likely to file an insurance claim. That’s why they generally pay higher rates for a car insurance policy.

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How can teen drivers stay safe on the road?

Teens can greatly reduce their risk of an accident by taking a few simple steps.

Wear a Seat Belt

Teens (and other age groups) should always wear a seat belt when driving or riding in a vehicle, even when traveling a short distance.

Avoid Speeding

Follow the speed limit. Speeding is a common cause of fatal accidents.

Avoid Drinking and Drug Use

Drinking under age 21 is illegal throughout the United States. Driving under the influence can cause drivers to lose their driver’s license, end up in jail, and get into some serious accidents. Many drunk driving accidents have deadly consequences. In fact, someone dies in a drunk driving accident every 42 minutes in the U.S., according to a 2023 study by the National Highway Traffic Safety Administration. 

Take a Driver’s Education Course

Teens who take a driver’s education course are familiar with the rules of the road, learn safe driving habits, and become more confident drivers.

How can a parent save money on auto insurance for their teenager?

Is your teenage driver a high school or college student who gets good grades? If so, that good report card may lead to a good student discount. This discount is available to full-time students who maintain a certain grade point average, usually a 3.0 or higher.

If your teen is away at college and only drives their car when they’re at home during breaks, they may qualify for a distant student discount. Most insurers require that the student’s school be a certain distance from home, such as 100 miles away or further. If your child’s school is closer but he or she rarely drives, getting a low-mileage discount is another way to save money on auto insurance premiums. 

Does the type of vehicle a teen drives affect auto insurance premiums?

Yes, it does. A new or expensive vehicle costs more to replace if your teen has a fender bender. Teens who drive a used car of moderate value may save money on auto insurance. Keep in mind that safety features like blind spot detection and anti-theft devices may lower a driver's insurance premiums, too. 

What else should I know before buying auto insurance for a teen driver?

Compare quotes to make sure you’re getting a good deal, but make sure your teen is also getting the best coverage. Teens do tend to have more accidents than other age groups. Hopefully your teen will avoid them, but it’s important to have enough liability coverage, just in case.

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Content on this page is for informational purposes only and should not be considered as official recommendations or advice from AAA Northern California, Nevada & Utah.