First-Time Driver Insurance Tips for Teens & Parents

Getting a teen ready to drive is a major milestone — and for many parents, it also comes with big questions about auto insurance. From new driver safety programs to changing insurance rates, understanding your coverage options can help you protect your teen and your wallet.

Whether your child is getting a learner’s permit or their first car, here are practical tips to help families navigate first-time driver insurance with confidence.

Add Your Teen to an Existing Policy — Don’t Create a New One

In most cases, it’s more affordable to add a teen driver to a parent or guardian’s existing policy instead of opening a separate policy in their name.

Why this typically costs less:

• Teens benefit from your established insurance history
• Multi-driver and multi-vehicle discounts may apply
• You maintain full visibility of coverage and limits

If your teen will be driving multiple household vehicles, be sure they’re listed as a rated driver on the cars they’ll use most often. Your agent can help verify how drivers and vehicles are assigned to avoid surprises later.

Choose the Right Car — Safety Ratings Matter

The vehicle your teen drives can significantly impact insurance costs. High-performance cars, sports models, and vehicles with expensive repair costs usually come with higher premiums.

For new drivers, insurers often favor vehicles that are:

• Newer and equipped with modern safety technology
• Mid-sized rather than compact
• Highly rated by IIHS and NHTSA

Features such as backup cameras, lane-assist technology, and automatic braking may also help reduce risk — and in some cases, may qualify for safety-related discounts.

Consider Higher Liability Coverage for Peace of Mind

Teens are some of the least-experienced drivers on the road, which means accident risk is naturally higher during their first few years behind the wheel.

For families with young drivers, many agents recommend reviewing — and often increasing — liability limits.

Higher limits may provide added financial protection in the event of:

• Injury to another driver
• Damage to another vehicle or property
• Multi-car collisions

Umbrella insurance may also be worth considering for households with multiple drivers or higher-value assets.

Look for Teen-Friendly Discounts

Fortunately, there are several discount opportunities that can help offset the cost of insuring a new driver. Common options include:

• Good student discount — for teens who maintain strong grades
• Driver safety or defensive driving course credit
• Telematics or safe-driving programs
• Bundling home and auto insurance

Usage-based programs — which track driving habits such as braking, speed, and mileage — are becoming increasingly popular in 2026. Families who enroll may see lower premiums when teens demonstrate safe driving behavior.

Your insurance agent can help you compare which programs make the most sense for your situation.

Set Expectations Early — And Talk About Safe Driving

Insurance is only part of the picture. The most important factor in keeping premiums down — and keeping teens safe — is responsible driving.

Have open conversations about:

• Avoiding texting and phone use behind the wheel
• Limiting passengers during the first driving year
• Driving in winter weather or after dark
• Knowing what to do in case of an accident

Many families also choose to create a written “family driving agreement” outlining expectations, curfews, and rules — especially during the first year of independent driving.

When Should Parents Call Their Insurance Agent?

Reach out to your insurance agent when:

• Your teen gets a learner’s permit
• They pass their road test
• They purchase or start driving a dedicated vehicle
• Their driving habits or mileage change

Your agent can walk you through coverage options, discounts, and recommendations tailored to your household — helping you balance safety, cost, and protection.

Helping Your Teen Start Their Driving Journey Safely

Adding a teen driver may increase your insurance costs, but with the right guidance, discounts, and safety habits, families can manage expenses while supporting a safe and confident new driver.

If you’d like help reviewing your coverage or discussing options for a first-time driver, our team is here to help you find the right fit for your family.