Teen-Driver Discounts 2025

When your teenager comes of driving age, you’ve got a whole bunch of new things to worry about, and adding them to your auto insurance policy is often one of them. Here at Glover Family Independent Insurance, we want to lessen the financial shock of adding your new teen driver, so that you can focus on the exciting things. The cost of insuring a teen driver can be daunting, but there is a range of teen-driver discounts that can help ease the burden without compromising your coverage, so let’s dive in and explore what discounts might be available to you in 2025.

Before we highlight the six top teen-driver discounts available to you this year, we thought you might be asking why exactly teen insurance rates are so high. Unfortunately, due to the inexperience and riskier driving behaviors inherent in teen drivers, they are statistically more likely to be involved in accidents. While instilling good driving habits in your own teen driver and helping them gain experience can ensure they don’t become a part of that statistic, insurance companies still charge higher premiums to offset the increased risk.

Despite the increased risk, plenty of major auto insurance providers out there offer great discounts to help offset the increased costs. The following is a list of the top six teen-driver discounts we could find, all of which are available to you in 2025 depending on your provider.

1. Good Student Discount — up to 25%
   • One of the most generous discounts available, the good student discount rewards academic achievement. Most insurers offer savings to students who maintain a B average or higher. This discount not only encourages strong study habits but can also shave hundreds off your annual premium.
2. Driver’s Education Discount — up to 20%
   • You can have your teenager complete a certified driver’s education course to not only help them establish those good driving habits and gain driving experience, as we mentioned earlier, but also to reduce the cost of insuring them. Certain insurers will offer respectable discounts for teens who can submit proof of course completion.
3. Safe Driver Program — up to 18%
   • While not restricted to teenagers, after your teen gains some experience they might qualify for some insurers’ Safe Driver Programs. These offer discounts for anyone who remains accident- and ticket-free for a set period. Some will even use telematics or app-based monitoring to track driving behavior and reward safe habits like smooth braking and avoiding late-night driving.
4. Multi-Car or Family Policy Discount — up to 15%
   • Adding your teen to an existing family policy is almost always cheaper than getting them a separate one. Many providers offer multi-car discounts or family bundling incentives, especially when multiple vehicles are insured under the same roof.
5. Usage-Based Insurance — up to 12%
   • If your teen doesn’t drive often, usage-based insurance (UBI) could be a great fit. These programs track mileage and driving behavior, offering discounts for low usage and safe habits. It’s a win-win for part-time drivers and cautious parents.
6. Away-at-School Discount — up to 5%
   • If your teen is attending college more than 100 miles from home and doesn’t take a car, you may qualify for a discount that reflects the reduced risk since the teen isn’t driving regularly.

While these discounts are a great starting point for ensuring savings when adding your new teen driver to your policy, there are some other tricks that will help you maximize your savings. For starters, you should always bundle your policies whenever possible — by combining auto, home and life insurance under one provider, you’ll often open up additional discounts and savings.

You should also shop around to make sure you’re getting the best rates and discounts available to you, as they vary widely from insurer to insurer. Furthermore, you should review annually, as your teen’s rates should improve the more experience they get and the longer they maintain a clean driving record. Speaking of which, our final tip is to simply encourage safe driving!

If you have any further questions or would like us to help you compare rates and discounts between available providers, don’t hesitate to give us a call right here at Glover Family Independent Insurance! We would be thrilled to help make sure your family gets the best rates available to them.