Do You Qualify for Teenage Driver Discounts?

How to Save When Adding a Teen Driver to Your Policy

Female teenage driver adjusting mirror in car

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"Teenage driver" is a phrase that strikes fear into parent’s hearts everywhere. This reason is not only because your child is growing up much too fast, either. You are doing things like teaching your teenager how to drive, but there is also an increase in your auto insurance premium for adding a teenage driver to your policy. But there are ways to lower my auto insurance premium.

One program that helps with reducing your insurance premium is having your teenager complete a safe teen driving program. The amount of the discount available for the safe teen driving program varies depending on your insurance provider. Check with your own insurance company to find out what discounts are available for teen drivers.

Companies Who Offer Teen Safe Driving Discounts

Here are some of the various safe driving programs and discounts available from leading automobile insurers.

AAA Insurance

AAA Insurance has a teen safe driver package available that could save you some money. In addition to the discounts available, they offer a program to guide you through the process of teaching your teen to drive safely. The program is called Keys2Drive. With this program, you can get access to:

  • Webisodes with safe driving instruction
  • A newsletter
  • "Parent-teen agreement” for you and your child to sign.

The agreement deals with the responsibilities of safe driving along with other helpful, safe driving resources. They also offer a device called AAA OnBoard Teen Safe Driver, which uses an installed device to help you monitor your teen’s driving habits.


Nationwide Insurance offers a defensive driving discount for an approved driver safety course resulting in a 5% savings on your insurance policy. You can save even more when you add your teen to your auto insurance policy if he earns at least a “B” average in school. The good student discount is an additional saving on your auto insurance policy.

State Farm

State Farm dedicates an entire website to teen driver safety. Their teen driver website has a comprehensive set of tools available to help teens and their parents through the process of learning to drive. Their safe driver discount is called “Steer Clear .” After taking the online course, you receive the discount to your auto insurance policy. The discount is not available in every state, so you will have to check with your local state farm agent to find out if the discount is available.

Safeco Insurance

Safeco Insurance offers its Teen Safety Rewards Program with several helpful benefits and discounts. These benefits include:

  • Good student discount for a 3.0 B grade or better to qualify
  • Driver training discount—available for teens who complete an approved driver education program
  • Distant student discount—available for teens in school who live more than 100 miles away from home with no car
  • Tenure reward—a discount applied for Safeco policyholders who have been with the company for more than two years
  • The road ahead guide with tips about learning to drive, obtaining a license, what to do in an accident, and more

The program also includes the parent-teen contract This contract helps you set expectations, rules, and responsibilities for your teen when driving.

Saving on Your Auto Insurance through Discounts

Adding a teenage driver to your auto insurance policy is going to add to the cost of your insurance premium, but it doesn’t have to break the bank. Most auto insurance companies offer some safe driving discounts to teens who complete a defensive driving course. This discount could be a way for you to be able to afford the additional expense of adding a teenager to your auto policy in combination with other auto insurance discounts. Check with your insurance agent to find out if there are additional discounts you may qualify for to reduce your auto insurance premium even more.

You may need to shop around to find the best price on auto insurance. Keep in mind, however, that the least expensive policy is not always necessarily the best deal. You have to consider what coverage you are getting along with things like the reputation and financial stability of the insurance company.

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