Chances are, if you have a young driver in your family, you’re well aware of the impact on your car insurance premiums. Rates can increase by up to 50 percent, depending on where you live and other factors such as your teen’s age and gender. If you’re going to add a young driver to your policy, here are some ways to save money on your premiums.

1. Good Grades Pay Off

Many auto insurance carriers offer a Good Student Discount for teens who maintain a “B” average or better. Discounts can range from 15 to 35 percent, and your young driver must meet certain requirements such as full-time enrollment in an accredited high school, university, or home-school program.

You will need to show proof of their academic standing for each premium renewal or payment period.

2. Teen Safe Driving Courses

The Automobile Club offers a TEEN Smart Defensive Driving course. Once your teen or young adult completes the course, you will receive a discount code or coupon for your insurance carrier. This program is available in 18 states, including Utah. Check with your insurance agent to see if your carrier will offer a discount for completing the TEEN Smart course.

3. Older Cars

Sure, most young drivers dream of having a shiny new car to drive. However, an older car costs less overall to insure versus a newer car. A reliable, airbag-equipped older car is a great bargain, both in terms of sticker price and insurance.

4. Distant-Student Discounts

If your teen is headed off to college 100 or more miles from home, you may be able to take advantage of a distant-student discount. This program applies to teens that won’t have use of a vehicle while away at school. You will be able to drop them temporarily from your policy during the academic year, which in turn will reduce your premium.


5. Technology

Some insurance carriers offer a small device you can place under the dashboard. The sensor monitors for excessive speed, sudden stops, and other erratic driving behaviors.

The device then generates an online report that you can review with your young driver. If your teen hits certain benchmarks for good driving behavior, you can earn a discount on your insurance premium.

Young driver discount programs vary by carrier. Some will cover young drivers up to age 18 while others extend their discounts to drivers up to 25. Having a young driver in your family is a big adjustment, both in terms of your insurance premiums and your lifestyle. Contact us today to find out the available discounts offered by our carrier partners. We work with only the finest insurance companies, and we can help you sidestep those premium increases.