Teen pricing based on more than age.
Finding cheap insurance for teens is hard. Most traditional car insurance companies charge extremely high rates. Up until now, it’s made sense, because new drivers are statistically more likely to be involved in car accidents—plus, teenagers don’t have a credit score or driving history for risk assessment.
Root, however, uses new mobile technology in the Root app to base auto insurance rates primarily on driving behavior instead—and that applies to your teen, too. Young drivers can still be good drivers, and better drivers deserve better rates. When you sign up with Root and take the test drive, invite your teen to test drive, too. See if it’s the cheapest rate you can find.
Driving behavior is the #1 factor in rates at Root.
There's no comparison—the discounts come built in.
- A rate based primarily on how you drive
- Average savings of $1,142 annually
- Focused driving discount of up to an additional 10%
- In-app driving feedback of your focused driving and braking
- Roadside Assistance in every policy
- Insurance all in an app—buy and manage policy, file claims, and more
- A referral program where you can earn $$$
- An easy-to-use app with a 4.7 average rating
- Insurance cards on your phone
The other guys¹ may require:
- Multiple driving classes for teens to get any discount
- 3,000+ logged driving hours for a teen discount
- Proven good grades for extended time
- Participation in a teen program for a year or more
Maximize your savings when you add your teen driver.
Adding any additional drivers to your policy is going to cost more. And it makes sense that the average cost for teen drivers is high—teens are a higher risk for insurers. But there are ways you can compensate for additional expenses when your teen gets a driver’s license and is ready to join your family plan.
- Add your teen to your existing family plan, if possible.
- Make sure your teen’s car has at least basic safety features like air bags. And get a safety check from a trusted mechanic before you make a purchase.
- Choose an older, cheaper car for your young driver instead of a fancy, new car (as long as it’s safe).
- Consider increasing your policy limits on Bodily Injury and Property Damage when you add a young driver, because chances of an accident increase (and you would have to pay anything over the policy limit out of pocket).
- You could increase your deductible for Collision and Comprehensive coverages to lower your monthly or full term premium. Of course, this means that if you or your teen do cause an accident, you have to pay the deductible first.
Share a policy with your teen or get teen’s own policy?
It’s typically cheaper to include your teen on your policy, because you have an established driving record, credit score, and you help to balance the risk factors. Even if your kid is a college student and living away from home, they’re usually allowed to remain on your policy.
However, if you have multiple accidents on your record or something else that drives your rate up, it may be worth checking to see if your teen’s own policy would be cheaper. Multiple factors go into auto insurance pricing, so the best decision is specific to each situation.
How much auto insurance coverage should your teen have?
Root helps you navigate how much coverage you need at each stage of life. Financial responsibilities change over time, and it’s likely you’re still paying the bills (or most of them) for your teen.
The point of insurance is to protect you from unknowns. So you need to weigh the risks you’re willing to take and account for the specifics of your kid and statistics of their age group.
- How much insurance is legally required in your state?
- How much can you afford upfront for monthly (or full term) car insurance payments?
- How much would it cost to replace your teen’s car (or your car, if they’re driving it)?
- If a major accident happens, how much could you afford to pay? What health insurance coverage does your teen have? Are the deductibles high?
The answers will directly affect the limits and deductibles you choose for your teen or family’s policy and your decisions around including “full coverage,” Medical Payments or Personal Injury Protection (PIP).
Know the facts of teen driving.
Your teen may be an excellent driver, but it’s still important to be aware of teenage driving statistics. Plus, they’ll likely be a passenger with another teen, too.
- The crash rate of teen drivers is nearly 4 times that of drivers over 20, per mile driven.
- The fatal crash rate of drivers ages 16-19 is nearly 3 times that of drivers over 20, per mile driven.
- Alcohol was detected in 23% of fatally injured passenger vehicle drivers ages 16-19 in 2017.
- Fatal nighttime crash involvement for 16-19 year-old drivers is about 4 times as high as it is during the day and 3 times as high as night driving for adults ages 30-59.
Based on the Insurance Institute for Highway Safety
Share safe driving tips with your teens.
- Talk about ways to improve focused driving, including driving phone-free, looking up directions ahead of time, and not eating behind the wheel.
- Discuss limiting driving during high-risk times like evenings, and give boundaries or off-limit places to drive.
- Consider limiting the number of people in the car when your teen is driving (or as a passenger with a teen). Some states mandate this.
- Commit to each other to never drive or ride with someone under the influence.
- Make a plan with your teen for times when they feel unsafe or in a risky situation while riding with others.
Get a family auto insurance rate that’s fair. And see how much you can save.
¹ Based on publicly available information provided by competitors