Teen Car Insurance Discounts Offered by Various Companies

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Many insurance companies offer discounts on a teen’s driving insurance for different things, but they generally don’t give them unless you ask. Here are some potential sources for teen auto insurance discounts:

Academic achievement

  • Progressive offers a 10% discount for students who rank in the upper 20th percentile of the class (or on standardized tests) as well as for maintaining a 3.0 GPA or higher, or by making the dean’s list or honor roll. (Discounts may vary by state.)
  • State Farm offers up to 25% off for ranking in the top 20% of the class, having a 3.0 GPA or higher, maintaining a B average, or making the dean’s list or honor roll.
  • Farmers Insurance gives 5% to 25% off for being in the top 20% of the class, earning a 3.0 GPA or higher, or making the dean’s list or honor roll.
  • Esurance gives 5% to 10% off for maintaining a 3.0 (or B) grade-point average.
  • Liberty Mutual gives 22% to 35% off for maintaining a B average.
  • GEICO gives a 10% to 15% discount for maintaining a B average or being in the top 20% of the class.

Parent-teen driving contracts

Some insurance agencies offer a discount for parents who create a driving contract with their teen. Such contracts usually highlight basics such as when a teen is allowed to drive, who can be in the car with them, and what their behavior should be while driving. As a teen gains experience, the contract is modified to allow more privileges. The idea is to spell out rules clearly, and limit driving to the basics (no midnight parties, at least not with the car) while a teen is developing driving skills.

Driver’s ed discounts

Many companies will offer discounts if your child takes a formal driver’s education class. Call ahead of time to find out if this is so, because it may matter who provides the course.

Finding additional driving discounts:

* Black boxes: Many insurance companies will offer substantial discounts if you agree to install a black box in your teen’s car that they can monitor. However, in addition to the intrusion of privacy, this can backfire later on if your teen isn’t entirely on the straight and narrow, costing you more in the long run. So think hard and make sure your teen understands this means no speeding and hard braking before you jump at this discount.

* Voluntary driving restrictions: Some companies offer discounts if you voluntarily place driving restrictions on your teen. The discounts usually aren’t big, but they’re worth inquiring about. Just be sure to ask whether you risk voiding coverage if your teen is caught breaking these rules.

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