teen car insurance: what you should know when your child takes the wheel

For parents, keeping teen drivers safe takes top priority, which is why car insurance for teens is so important. Here's what to expect when you add your young ones to your policy (and tips on how to save).

pros and cons when adding your teen driver

If you allow your child to become licensed, he or she must join your auto policy. Here's what you can expect when it comes to car insurance for teens:


  • Your child enjoys your coverage options. There's big-time peace of mind in knowing your teen's hitting the road with the same coverages, limits, and deductibles that you have. And if you're adding a car for your young driver to use, you can even customize more coverage for that vehicle.
  • You could qualify for new discounts. You may be dreading the added cost of having new drivers and possibly vehicles on your policy. But your teen can also help you score discounts to (at least partially) ease the sting. For instance, adding your teenager's car to your plan could qualify you for our Multi-Vehicle discount. And if your child has taken an approved driver safety course, you could benefit with our Driver Training discount.
  • Stress-free policy management. With Esurance, adding your son or daughter to your policy is a snap (and avoiding hoops and red tape is always a great feeling). Just log in to you policy anytime and make your changes with a few clicks. Or call us at 1-888-ESURANCE (1-888-378-7262) if you prefer to handle things over the phone.


  • You could have higher auto insurance rates. With limited experience behind the wheel, teens typically present a greater accident risk than older drivers. And adding more risk to your policy can increase what you pay. You could also see additional rate increases if your child racks up multiple moving violations.
  • You could have to pay for accidents yourself. If your young driver causes accidents that exceed your coverage limits, you might have to pay out of pocket for damage or injuries. While this is also true of accidents you cause, you may be more confident in your own driving abilities than your inexperienced teen's (for this reason, you might consider raising your limits before insuring any freshly licensed family members.)

how to save on car insurance for teens

Yes, teens can be risky drivers. But there are easy ways to help make them less expensive to insure.

Get a safe car

While driving the generations-old family station wagon can be something of a rite-of-passage for teens, it might not be very wise from an insurance standpoint. Newer, safer cars often mean less risk (music to your insurer's ears). There are always exceptions, of course, so we recommend checking out the Insurance Bureau of Canada's (IBC) list of cars with the highest and lowest claims costs if your lucky teen is in the market for a new car.

Rearrange your coverages

If you don't go the new-car route, however, you could opt to skip comprehensive and collision coverage on a particularly old and battered ride.

Why? Simple: the payouts on these coverages will be limited by the typically low actual cash value of an older vehicle. In other words, the amount you receive if the car is totalled could be less than your deductible (the out-of-pocket amount you owe before insurance kicks in). So it might not be worth the higher premium to have these coverages on your policy. And remember, even if you remove comprehensive or collision from one car, the others on your policy can still include them.

Raise your deductibles

Raising certain deductibles — from, say, $500 to $1,000 — could cut down on your monthly premium. But keep in mind, a higher deductible (like that tattoo you're always warning your teen about) could be something you come to regret. That's because if an incident does occur, you'll owe more out of pocket.

But if your child is especially cautious or rarely takes the car out, this could be a cost-saving move you're comfortable with.

always disclose your teen driver to your insurer

Given the extra cost of car insurance for teens, it might be tempting to not tell your insurer about your young driver at all.

On top of being a breach of your insurance agreement, this is a bad idea for a couple key reasons. First, you wouldn't receive coverage for injuries or property damage if your teen causes a car accident (as teens are occasionally known to do). That means all expenses would come out of your pocket. What's more, your child wouldn't be able to establish a solid insurance or driving track record, putting him or her at a disadvantage when getting individual coverage down the road.

No one likes paying more for auto insurance. But it's a small sacrifice to protect your child now and in the future.

secure car insurance for teens from esurance

When you're ready to add your teen to your policy, we're here to make the transition as smooth as possible.

Start your free quote to begin customizing a policy directly online, or give us a call at 1-888-ESURANCE (1-888-378-7262) to talk through your options.