When a teenager gets behind the wheel for the first time, it’s a big moment full of freedom, responsibility, and excitement. But for many parents and young drivers, one of the next things to face is sticker shock over insurance premiums.
At Northpoint Insurance Agency, we understand. Many of our team members are parents to teens or young adults who are in their early years of driving. That’s why we want to walk you through what’s going on, why the costs are what they are, and how you can work to control them while building a foundation of safe driving.
Why are Premiums More Expensive for Teen Drivers?
There are a few key reasons young drivers often pay more:
- Novice Status: Teen drivers lack years of driving experience. According to the National Highway Traffic Safety Administration (NHTSA), young drivers (ages 16–19) are involved in fatal crashes at rates far higher than older drivers, due largely to inexperience and distractions.
- Higher Risk Profile: Distractions, peer passengers, unfamiliar driving situations, and less established habits all contribute.
- Insurance Math: Insurers assess risk, and more risk results in higher premiums.
While it is true that premiums are higher for younger drivers there are strategies you and your teen can use to build toward lower costs and, more importantly, safer driving.
Good Driving isn’t Just Cheaper—it’s Priceless
Cost matters, but so too does your teen developing safe driving habits for the long term future. We encourage parents and young drivers to think of insurance not just as a bill, but as a partner in safety. One of the tools that we strongly recommend is telematic apps from insurance companies. One example is the “Your Turn” program offered by Erie Insurance.
With this app-based program safe driving can translate into real dollars. In many cases, a young driver in the household can earn up to $390 in a year (per driver, per household) for maintaining good driving habits. Your Turn assesses the quality of driving—not by tracking every move—but by looking at meaningful behaviors like good speed choices, smooth stops, attention in driving, and consistent habits. This helps the teenager build awareness and habits on top of providing financial incentives. Other apps like this include Progressive Snapshot, Travelers IntelliDrive, Geico DriveEasy, and Utica’s DriveSteady.
Your Turn, and app programs like it, supports the bigger goal: fewer distractions, more mindful driving, and a young driver who is aware of the road and what the vehicle requires. This is infinitely more important than just lowering a premium because it encourages your young driver to be safe.
How to Keep Insurance Costs More Manageable While Your Teen is Learning
- Use the learner’s phase wisely. Research shows that driver licensing systems designed with graduated phases reduce crash rates for novice drivers significantly—for example crash reductions of 11–21 % for 16-year-olds under strong graduated licensing programs. The more supervised, thoughtful practice a teen gets (while you’re still riding shotgun!), the better prepared they’ll be when they drive on their own. A study conducted by Virginia Tech (Go Hokies!) also confirms this.
- Know what affects your premium. Moving violations and at-fault accidents will increase premiums. Educate your young driver about all the possible negative outcomes of an accident, to include the financial aspects. This helps them drive with greater awareness and encourages them to cultivate wisdom behind the wheel.
- Consider when to file a claim. Minor fender benders where only your vehicle is involved, and no one is injured, could be situations where paying out of pocket might make sense—especially if the damage is small and the repair cost isn’t significantly higher than your deductible. However, if another vehicle was involved, someone was injured, or you’re unsure, always file the claim. Medical costs or delayed injuries can emerge months later and prove to be extremely expensive.
- Make driving an ongoing conversation. Even after the learner’s permit phase concludes make sure you are an active participant in your child’s safe driving skills. No, we aren’t asking you to be a helicopter parent. What we are asking you to do is to mentor them through those early and inexperienced years. You can encourage them to follow best practices for safe driving like:
- Limit distractions: no phone use, limit passengers, especially at first.
- Drive during lower-risk times (daytime, familiar roads).
- Stick to vehicle safety basics: seat belts, following safe distance, good vehicle maintenance.
- Expect the costs to change as the teen moves into their early 20s. As your driver ages, gains experience, has a clean record, and has been driving safely, insurance premiums will typically start to come down.
- Explore savings through programs like the teenSMART® discount through Erie. This program can provide a significant savings—typically around $400 per year—on an Erie auto policy when a teen driver completes the course. There is a small cost to sign up for the course but then it lowers premiums for young drivers while also helping improve their safety.
The Hopeful Takeaway About Teen Driving
If you’re feeling overwhelmed by the premium number right now, know this: it’s a snapshot in time. It reflects risk but risk can be reduced. Most importantly, safe driving skills can be built. Programs like Erie’s “Your Turn” help make that a reality – and they reward it.
At Northpoint, we’re honored to support you and your young driver as you build toward greater confidence and navigate those early years of driving. If you have questions about your policy, how Erie’s “Your Turn” program works, or strategies to manage insurance costs — just let us know. We’re in this together.
