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Clayton Hanley Insurance Blog

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How to save money on teenagers car insurance

How much is my insurance going to go up when I add my son?  He is only 15 now and on his permit, but we are trying to budget.  Or I am taking my daughter to her driver's test next week or the one that really makes us cringe - my twin boys both want to go on their 16th birthday to get their driver's license and I bought each of them a new Cadillac Esclade - how much will this cost?   I did hear this once and my stomach dropped.  

We get questions all the time about adding kids, probably because everyone I know is above 40 and all their babies have grown up so quickly. 

The answer: Plan on $150 a month.  Buy them a car, that is a whole other story.  Have claims or tickets on the parents, that just adds to the fun.  I always tell clients I have two girls 24 & 19, and two bonus kids 19 & 17.  Three of them are in this picture. 

My 18 year old totaled her car last year in on a windy road and ended up in corn field in Millstadt,Illinois and my 24 year old drives a hand me down liability only car and we pay well over $400 a month.  No, I don't get discounts for being an insurance professional, but do I wish I did.  

Insurance rates on teenagers/kids are high, plain and simple.  There are valid reasons why.  The longer I work in insurance the more I see why teenagers have such high insurance.  Whether the accident is their fault or not, teens are in accidents at a higher percentage.  That is a Fact!!

1 in 5 of 16-year old drivers has an accident within their first year of driving

I can suggest ways to save, hopefully this helps.

#1  Report Cards - 3.0 GPA or higher is big $$

#2 Driver's Education Class - saves a little bit, but well worth the extra education and time behind the wheel

#3 If you cannot resist buying your new driver a car - try liability only car instead of shiny new present on four wheels.

#4 Send them off to college without a car - Distant Students save $$

#5 Speeding or traffic light ticket - get it fixed.

#6 Install an insurance related tracking device in the car or your child's phone.  User Based Insurance (UBI) is the new fad that all insurance companies are starting now.  Follows driving habits and allows the named insured to see driving activity of all drivers on the policy. 

Call, email, text or fill out our online form Contact Us for more info or to send us a report card to make sure your policy is up to date. 

Another day in the life of the 'The Insurance Lady'.  Thanks for reading.

BTW it is so cold here in St. Louis- yesterday was 4 degrees when I drove to work.  Cannot wait for warm weather.  This is getting old

Peggy L Manes


Thomas Clarence

Thursday, April 21, 2022 at 4:19pm CDT

Thank you for helping me to understand that it is a good idea to install some kind of insurance-related tracking device in your teenager’s car. My son is wanting to purchase his first car soon, and I told him that we would help him if he would pay for his own insurance. I will have to tell my son that he should look for an insurance company that can provide a tracking device for him.

Eve Mitchell

Monday, September 19, 2022 at 2:09pm CDT

I had no idea that teenagers can get better insurance depending on their GPA. My daughter is turning 17 and she wants to buy a car to put on my insurance. I’ll help her find a good car with a decent policy so she is covered.

Thomas Clarence

Monday, January 16, 2023 at 11:10am CST

You made an interesting point when you mentioned that it is a good idea to plan on $150 when you are trying to save money on teenagers’ car insurance. I would think that it would be a good idea to make sure that you get enough coverage because teenagers are more likely to get into accidents. If you have enough coverage for a teenager, you won’t have to worry about losing too much money after an accident.

Olivia Smart

Friday, March 3, 2023 at 11:31am CST

Thank you for explaining how their GPA can help with saving on insurance. I’ve been wondering about car insurance for my daughter once she gets her license next month. I’ll be sure to ask her about her grades to see if this is something that she’ll qualify for.

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