Young drivers face some of the highest auto insurance rates in 2025, but there are proven strategies and discounts that can significantly lower costs.

•  Adding a teen or young adult to a household policy is almost always cheaper than getting a separate policy. On average, parents pay about $1,085 more per year to add a 16-year-old, but this is far less than the cost of a standalone teen policy.

• Shop Around and Compare Quotes: Rates vary widely by insurer and state. USAA, Geico, Travelers, Erie, and State Farm consistently offer some of the lowest rates for young drivers.

•  For older vehicles, liability-only may be sufficient; for newer cars or those with loans, full coverage is recommended.

•  Opting for a higher deductible can lower monthly premiums, but make sure it’s an amount you can afford in case of a claim.

•  Maintaining a clean driving record helps keep rates down over time.

•  State Farm, GEICO, USAA, Travelers, Allstate, and American Family all offer multiple discounts for young drivers.

• Review and update discounts annually as students progress in school or move away for college.

•  Some insurers offer special discounts in certain states or for specific driver education courses.

• Maintain good grades and safe driving habits: These are the most reliable ways to keep rates low over time.

“Nearly every company offers discounts that could apply to your teen driver. Maybe your teen driver is a good student, or they’re willing to take a driver training course — or maybe they’ll agree to install a driver monitoring device in their car. With a bit of time and effort, your teenager can qualify for teen driving discounts on their car insurance.”

Young drivers can lower their auto insurance quotes in 2025 by joining a parent’s policy, shopping around, choosing the right coverage, and stacking discounts for good grades, safe driving, and bundling. Top insurers for young driver savings include USAA, Geico, Travelers, State Farm, and Erie.