Did your car insurance premium increase after adding your child to your policy?

Adding a teenager to your auto insurance policy is one of the more jarring premium increases most families experience. We get calls about it constantly, and the question is always some version of: “Why is it THIS much?” Here’s what’s actually happening — and what you can do about it.

Why Teen Drivers Raise Rates

Insurance pricing is based on risk, and teen drivers statistically have significantly higher crash rates than any other age group. Your teenager may be a responsible driver — insurance companies price on population data, not individual behavior. Adding a 16-year-old to a policy typically increases premium by 50% to 100% depending on the carrier, the vehicle, and where you live. A 19-year-old usually has less impact, but it’s still substantial.

In the DMV area, rates for teen drivers also reflect the region’s traffic density and higher-than-average accident frequency. If you’re in Maryland, note that Maryland prohibits insurers from using gender as a rating factor — so male and female teen drivers are rated the same. In DC and Virginia, gender can still be used as a factor.

Discounts That Actually Help

• Good student discount: Most carriers offer a meaningful discount for students maintaining a B average (3.0 GPA) or better. It applies through high school and college.
• Telematics programs: Carriers like Erie (YourTurn), Progressive (Snapshot), and Travelers (IntelliDrive) offer usage-based programs that monitor driving behavior — speed, braking, phone use. A teen who drives safely can earn significant discounts. Some programs also provide useful feedback to parents.
• Away-at-school discount: If your teenager is attending college more than 100 miles from home and not taking a car, many carriers offer a discount since they’re driving much less.
• Low-mileage discount: If the teenager uses the car primarily for school and local errands, confirm whether a low-mileage discount applies.

The Other Consideration: Making Sure Coverage Is Right

When you add a teen driver, it’s also a good time to review your liability limits. Teens are more likely to cause accidents, and a serious one can generate claims well above minimum limits. Making sure your policy has adequate liability and UM/UIM coverage matters more when there’s a new driver on the policy.

Capitol Benefits works with families across DC, Maryland, and Virginia to find the best pricing when adding young drivers. Reach out here or call (301) 431-0000 and we’ll shop it across our carriers.