Adding a teen driver to your car insurance policy can significantly raise your premiums—but it doesn’t have to break the bank. With the right information and documentation, you may be eligible for multiple discounts for teen drivers that can help offset the added cost. Here’s what to look for.
1. Good Student Discount
Many insurers reward students who maintain a strong academic record. A “Good Student” discount typically applies if your teen:
- Maintains a B average (3.0 GPA) or higher
- Is enrolled full-time in high school or college
- Can provide recent report cards or transcripts as proof
This discount can reduce premiums by 10–25%, depending on your provider.
2. Driver’s Education Discount
Teen drivers who complete an approved driver’s education program are seen as lower-risk and may qualify for a discount. You’ll usually need to submit:
- A certificate of completion from a licensed course
- Documentation showing the program meets state standards
Even if it’s not required in your state, taking driver’s ed can lead to significant insurance savings.
3. Distant Student Discount
If your teen is attending college more than 100 miles from home and doesn’t have regular access to a family car, some insurers will offer a “student away at school” discount. This applies when:
- The student leaves the vehicle at home
- They only drive occasionally (e.g., during breaks)
- You notify the insurer and provide proof of enrollment and distance
This discount can be especially useful for families with college-aged students attending out-of-state universities.
4. Location-Based Rates for College Students
Where your teen attends college can also influence your premiums:
- Rural locations typically cost less due to fewer accidents and claims
- Urban areas can raise rates due to higher risks and traffic congestion
Let your insurer know if your teen has relocated for school—it may impact your rates.
For more tips and eligibility requirements, visit Liberty Mutual’s guide for teen auto insurance.
Conclusion
Insurance for young drivers can be expensive, but discounts for teen drivers make it more manageable. Always review your policy and send in any necessary documentation—like report cards or driver’s ed certificates—to ensure you’re getting every discount available.Need help reviewing your policy or finding more ways to save? Contact Nebraska’s Insurance.
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