Teenagers are expensive, especially once they get their driver’s license. Auto coverage for new, young drivers has always come at a higher price than their adult counterparts, but in 2025, insurance rates for these drivers reached levels that may make coverage prohibitive for many families.
According to The Zebra, the average 16-year-old driver costs more than $7,600 per year to insure, though that amount does decrease as they get older. The average 17-year-old driver pays $6,723 in premiums per year, 18-year-olds pay an average of $6,341 and 19-year-olds pay an average of $5,620.
These high costs can mainly be attributed to the extra risk insurance companies take on when they provide coverage to inexperienced drivers. Teens are more likely to misjudge road conditions and be distracted while driving. The fatal crash rate for teen drivers is also three times as high as it is for drivers over age 20.
In the slideshow above, we’ll look at five important things for parents of teens to know about insuring their new driver.
(Photo credit: motortion/Adobe Stock)
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.