Does the car a teen drives affect auto insurance rates? (2024)

Getting a driver’s license is a time to celebrate for teenagers. As they revel in newfound independence, parents grapple with high teenage car insurance rates of $500-$600/mo.

Are older cars cheaper to insure? Yes, and getting the right car can keep them safe while keeping your teenage car insurance quotes from shooting through the roof. Use this guide to compare car insurance for teens between a spanking new car, pre-owned models, and used car insurance rates.

Whether you get your teen a new or old car, type your ZIP into the FREE comparison tool above to get a list of insurance quotes from local companies.

New Car or Old Car: What Should You Get

How much is car insurance for a teenager? Teen auto insurance rates are the most expensive, usually around $600/mo. Factors that impact auto insurance rates, and which of the following affects one’s car insurance premium, depends on the type of car you drive.

While most parents would love to surprise their teen driver with a brand new car, financial considerations and practicality keep many from doing just that. Your teen might roll his or her eyes at your choice, but as a parent, it is your job to make sure that you cover all safety and insurance requirements.

Approximately 3,000 teens in the U.S. between 15-19 are killed in automobile accidents while more than 350,000 are treated in the ER for serious injuries. Given the high statistics, parents should make sure they take every safety step possible to keep their teens out of danger.

Whether you get a new car or an old one, parents must do their due diligence. Before settling on a car, make sure it has all the basic safety features such as multiple airbags, seatbelts, and anti-lock brakes, as well as additional features such as electronic stability and crash alert technologies, if possible.

There are multiple resources available online that rate vehicles on different scales. One of the most important factors is safety.

The Insurance Institute for Highway Safety (IIHS) is the standard determinant of how well a car protects its passengers in the incidence of a crash. Based on various crash test scenarios, the IIHS gives ratings to cars ranging from good, acceptable, marginal, or poor.

The IIHS produces a list of crashworthiness every year. Parents should use these results as an important parameter in researching the best cars to insure for teenage drivers.

What is the cheapest used car to insure for a teenager? The best car for teenage insurance rates depends on the make and model. If you get a pre-owned car, it needs a thorough inspection by a reputable mechanic. If you don’t have a regular mechanic you trust, make sure you ask for certification before assigning them the job.

Besides the overall inspection, what requires attention are the parts that are exposed to regular wear and tear such as brakes, tires, headlights, taillights, and windshield wipers, among others.

Adding a teenager to your auto insurance policy is certainly going to send your insurance bill soaring. So make sure you get the safest possible car to lower your premium as much as possible.

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Getting a New Car: Pros and Cons

The biggest pro for getting a new car is that your teenager will be thrilled at your gesture! Additionally, if you get a new car with top-rated crash ratings, you are ensuring your child’s safety.

A new car also does not come with worries about worn brake lines or brake pads, windshields that smear, or seat belts that suddenly stop working.

Why is car insurance so expensive for new drivers? Usually, most new cars come equipped with advanced safety features such as electronic stability control and additional add-ons such as rearview cameras. The biggest con of a new car is the whopping rise you will see in your insurance bill. This will be more so if you are financing the car and have the child as the primary driver.

Your car loan company will require you to have comprehensive and collision insurance besides the minimum state-mandated liability insurance.

Are red cars more expensive to insure? While the color of the car doesn’t matter, you have to deal with the repercussions of the actual handling of the car by your teen and its maintenance costs.

According to the Wall Street Journal, the chances of your teen driver putting a dent in the car or worse is one in four. Imagine the cost of such repair and its impact on your car insurance premium!

Getting an Old Car: Pros and Cons

Are old cars cheaper to insure for young drivers? Yes. However, getting an old car means more vigilance about the condition of the car.

Besides the engine and the transmission, parents have to make sure that all its parts are in working condition and well within the safety standards. Make sure they have anti-lock brakes. Make sure you look for any red flags in its maintenance records such as water logging, transmission failure, or past accidents.

If the car is especially old, parents should look at elements such as seatbelts, door locks, and airbags to make sure that they work properly.

Are automatic cars cheaper to insure than manual? Yes. The biggest advantage of an old car is that it is much cheaper to insure. In some cases, it might not be worth getting collision and comprehensive coverage since your insurance company’s payment in case the car is totaled will be much less than your deductible!

Sports Cars for Teens

Would my insurance be high if I own a sports car? Yes, sports car insurance costs more than average at any age, but teenage sports car insurance rates are even more expensive.

Sport cars for teens can be an enticing prospect, but the speed and compounded risk of their inexperience lead to some of the highest insurance rates on record. For example, suppose you’re wondering — how much is car insurance for a 17-year-old per month? You’ll find that car insurance costs for a 17-year-old average between $250-$300/mo.

But are sports cars more expensive to insure? Yes, insuring a sports car would double those rates to closer to $600/mo for that same 17-year-old.

Sports car insurance rates tend to be higher because they are more expensive to repair and replace due to their specialized parts and advanced technology. Additionally, their high-performance capabilities increase the likelihood of accidents, leading to greater insurance risk.

Insurers also consider factors such as theft rates and driver demographics, and sports car insurance for young drivers will vary based on make and model.

What makes a car a sports car for insurance? While there isn’t a universal definition, insurers typically classify sports cars based on high horsepower, quick acceleration, and sleek design. These cars are often two-door models with powerful engines designed for performance, like the Ford Mustang, Chevrolet Camaro, and Subaru WRX. One of the most affordable sports cars for teens is the Honda Civic.

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Safety and Insurance Busting Cars

While your teenager might be drooling over the svelte contours of a sports car, or lusting after a powered-up muscle car, these cars are magnets for trouble. Not only are they expensive to insure, but they also compel high speeds and in the hands of a teenager have a higher probability of rash driving and impulsive decisions.

Is insurance cheaper on a car or SUV? Insurance rates vary depending on the make and model.

For example, the safest jeeps for new drivers for the Jeep Wrangler and Jeep Compass, but subcompact and mini cars are not very stable and don’t provide a lot of protection in a crash.

The latest safety ratings from IIHS have given the nod to certain Jeeps and crossover SUVs for teens because of decreased instances of rollover accidents.

However, avoid getting larger SUVs and pickups since they are heavier to drive, have higher gas mileage, and can be unwieldy. Given their large capacity, your teen driver can ferry a large number of passengers, which can easily distract them and lead to an accident.

Are AWD cars more expensive to insure? Not always. Such cars are more expensive to buy and SUV insurance rates often cost more for this reason.

Best Cars: How to Judge

Each automobile expert you ask will give you a different answer when you ask them to recommend the best car for your teenager. While older cars are cheaper to buy and insure, they lack the advanced safety features of new cars, which are expensive to buy and insure. So it becomes a tough balancing job for parents between safety, reliability, and cost.

Most auto experts agree that the best choice for a teen car is a later model, four-door, four-cylinder car that provides balance, just the right amount of power, sharp performance, advanced safety features, and good gas mileage.

Not only are these cars easier and cheaper to insure, but they come with enough cool factors like fuel efficiency, automatic transmission, and running costs.

The cheapest sedans to insure for teens include:

• 2006-2007 Volvo S40: Recognized for its safety features such as frame integrity, air bag technology, and blind spot sensors, this car is designed beautifully with a five-cylinder engine that delivers great gas mileage.
• 2008-2009 Mazda3: This Japanese car with its four-cylinder engine is most practical for new drivers, either in its sedan or Touring/hatchback incarnations.
• 2005-2006 Ford Escape Hybrid: This hybrid SUV with its four-cylinder engine does not guzzle gas and is a solid vehicle. Buying a used Escape often gets you premium options such as navigation and stereo system without any extra cost.
• 2008-2009 Toyota Camry: The mantra of this car is reliability. With four cylinders and rather homely contours, this workhorse of a car is a practical parent’s dream come true.
• 2006-2007 Mercedes-Benz C230: The name is synonymous with European workmanship, safety, and engineering. With proper maintenance, the Sport model with its 201-hp V6 is likely to last a long time, without eating you out of house and home!

Read more: Volvo Auto Insurance

You can also find a similar list of top cars for teens at Consumer Reports. Their compilation includes:

• Acura TSX
• Nissan Altima (2010 or later)
• Chevrolet Malibu (2008 or later)
• Nissan Sentra (2010 or later)
• Ford Focus sedan (2009-2011)
• Scion xB (2008 or later)

Chevy Malibu insurance costs around $400/mo for teens with good driving records, but teenage insurance rates after an accident can climb to $800/mo or more. Likewise, Acura TSX insurance is between $300-$400 for young drivers with no accidents.

Read more: Scion Auto Insurance

While your teenager might be drooling over the svelte contours of a sports car, they are expensive to insure, they also compel high speeds. In the hands of a teenager have a higher probability for rash driving and impulsive decisions

Buying Insurance for Teen Drivers

Sending your teenage son or daughter out in the world to drive on their own is a stressful proposition. Make sure you have the right insurance to protect them in case of an unfortunate accident.

Do not automatically settle on your own insurance company for your teenager’s coverage. Do your research. Go online and seek quotes from competing insurance companies.

How do young people afford car insurance? Talk to your family and friends with older teenagers, who have been driving. They might have some beneficial advice for you.

There are multiple car insurance discounts available in the insurance market. Make sure you take advantage of all the offers that apply to you and your family.

If all flashy advertising online and on TV confuses you, just click here to enter your ZIP in our FREE quote tool now!

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