How to get the best car insurance rate for teens and new drivers under 25

"One thing that comes up often with families is the assumption that insuring a teen driver has to break the bank," says Chelsey Bowman, Director of Product Research at Liberty Mutual. "In reality, we make it possible to see significant savings through youthful specific discounts and our Telematics save driving program."

Being under 25 does not limit the types of car insurance coverage you can choose from. You may even be eligible for special discounts, and if you're an existing Liberty Mutual customer, you can add a teen or new driver by managing your policy online. Read on to find out how to get cheap car insurance for teens and new drivers.

How can I get the cheapest car insurance for teens or other new drivers?

Add your teen or new driver to an existing policy

Often, the most cost-effective car insurance option for drivers under 25 is to add the new driver to an existing policy of a parent or guardian. However, the right choice depends on several factors, including your household structure, the vehicles involved, and your driving history. Adding a new driver will likely increase the existing policy's premium, but it's typically the most affordable starting point.

Your teen may be eligible for a New Teen Discount if you have been with Liberty Mutual for at least one year when adding a teen to your policy.¹

If you're adding an additional vehicle to your policy at the same time, you may also qualify for a Multi-Car Discount to help offset some of the added costs.²

Because every household situation is different (including who owns the vehicles and what state you live in) the best way to find the right solution is to speak with a Liberty Mutual sales representative or get a quote online to see how your premium may change.

Choose a higher deductible

Raising your collision and comprehensive coverage deductibles is another way to lower your monthly premium when adding a teen or new driver to your policy.

Your deductible is the amount you pay out of pocket before your coverage kicks in after a covered incident. In most cases, this amount is deducted from your payout at the time of a claim. Keep in mind: while a higher deductible means a lower premium, it also means greater out-of-pocket costs if a claim occurs. Make sure the deductible you choose is an amount you could comfortably pay if you needed to file a claim.

See if you qualify for discounts

According to Liberty Mutual's 2026 Teen Driving Survey, 61% of parents asked their insurance company or agent about available discounts. It's a smart move — discounts can meaningfully reduce the cost of adding a teen driver to your policy. Below, are three ways to save money:

Good Student discounts

If your teen maintains strong academic performance, they may qualify for Liberty Mutual's Good Student Discount, which is available to students who achieve a GPA of B or higher.³ Proof of grades may be required to apply the discount.

Multi-policy discounts

Bundling your insurance policies is another way to save. A multi-policy discount may be available in either of these scenarios:

• Teen on a parent's policy: If your household has a home or renters insurance policy, bundling it with your auto policy may qualify you for a multi-policy discount.
• Teen on their own policy: If a young driver has their own renters or home insurance policy separate from their parents, bundling that with their auto insurance may also unlock a multi-policy discount.

RightTrack®

With Liberty Mutual's optional RightTrack® program, your teen's safe driving habits behind the wheel could earn a discount at renewal. Available through the Liberty Mutual mobile app, RightTrack® monitors driving behavior and rewards safer performance with a personalized rate. This means the better your teen drives, the more you could save. You'll also get a 15% participation discount for the full duration of your time in the program, assuming your full household enrolls. In Liberty Mutual's 2026 Teen Driving Survey, 81% of parents said they were likely to opt into RightTrack® for their teen, citing safer driving habits, added peace of mind, plus potential savings as their top reasons.

Always drive safe

Safe driving not only protects you and others while you're on the road, it can help you save money in the long term.

Distracted driving is one of the lead causes of accidents for teens and young drivers. Be sure you're creating a safe environment for your teen or yourself when driving. Cellphone use should be for navigation or emergencies only and make sure it's in a secure location. Avoid eating and multi-tasking so your focus can be 100% on the road and your surroundings.

Avoid accidents and moving violations to help keep your insurance costs low. Most insurance companies reward safe driving with discounts and having an accident-free and moving violation-free record will prevent your insurance rate from increasing.

Why is car insurance more expensive for teenagers and drivers under 25?

Unfortunately, the rate of car accidents per mile driven is disproportionately high among young drivers, and particularly, drivers under the age of 20 according to data from the National Highway Traffic Safety Administration.

Teens and other young drivers are less likely to safely navigate difficult driving conditions or react as effectively to unexpected hazards compared to more experienced drivers. Increased accidents lead to more claims and insurance companies compensate for these costs through the premiums they charge to younger, higher risk drivers. Learn more about how to help keep teens save while driving.

Do car insurance premiums decrease at age 25?

There is no single age at which rates are guaranteed to decrease for all drivers or all coverage types. Car insurance costs for new and young drivers are generally influenced by driving experience, age, and driving record. The relationship between these factors can vary depending on your insurer and the specific coverages on your policy.

As a new driver builds experience behind the wheel and maintains a clean driving record, their risk profile may improve over time, which can be reflected in their premium. However, rate changes depend on many variables, including the type of coverage you carry, your location, and your insurer's rates.

The best way to understand how your premium may change over time is to speak directly with your Liberty Mutual agent or representative, who can walk you through your specific policy and coverage options.

How much is car insurance for someone under 25?

Car insurance for drivers under 25 is typically more expensive than coverage for older, more experienced drivers — and costs can vary widely from person to person. According to Insurify, drivers under the age of 25 typically pay an average of $289 per month for full coverage, compared to $142 per month for all drivers.

What you will actually pay depends on a combination of factors unique to your situation. These are some factors that may affect car insurance costs for young drivers:

• Age and driving experience: New drivers statistically have a higher risk of accidents, which is reflected in premiums.
• Location: Where you live (down to your ZIP code!) plays a significant role in what you pay.
• Vehicle type: The make, model, year, and safety features of the car being insured all affect your rate.
• Driving history: A clean record generally means a lower premium over time.
• Coverage selections: The types and amounts of coverage you choose directly impacts your cost.
• Discounts: Qualifying for discounts can meaningfully reduce your premium.

Because so many variables are involved, the most accurate way to understand what car insurance will cost for a teen or driver under 25 is to get a personalized quote.

What is the best car insurance coverage for teens and other new drivers?

Every driver's coverage needs are different, and there is no single "best" policy that fits everyone. That said, teens and drivers under 25 may want to think carefully about their coverage choices given their higher statistical risk of accidents compared to more experienced drivers.

Here's what to consider when choosing coverage for a teen or young driver:

• State minimum requirements: All states set a legal minimum for car insurance coverage. Your policy must meet these requirements regardless of the driver's age.
• Lender or lease requirements: If the vehicle is financed or leased, your lender may require you to carry comprehensive and collision coverage in addition to state minimums.
• Collision coverage: Helps cover the cost of damage to the vehicle your teen is driving, as well as damage to other vehicles involved in an accident they cause.
• Comprehensive coverage: Covers damage to the insured vehicle from non-collision events, such as theft, weather, or falling objects.
• 24-Hour Roadside Assistance: A practical addition for teen drivers — and peace of mind for parents. This coverage can help 24/7 in the event of a flat tire, breakdown, or lockout.
• Rental car reimbursement: If your car is in for repairs at a Liberty Mutual approved repair facility, this coverage covers the expense of your rental car so you are never without a car.
• Liberty Mutual Deductible Fund®: Similar to a rainy day fund, this is a way to set aside money to apply to your collision deductible.

Not sure where to start? A Liberty Mutual representative can help you understand your options and find coverage that makes sense for your household and budget. Get a quote online or call 844-428-3554 to speak with a representative.