Yes, a 17-year-old can get car insurance in their name, but the process and cost differ from adult policies
A 17-year-old can legally purchase a car insurance policy in most states, though they will face higher premiums than drivers aged 25 and older. The catch is that a minor cannot sign a binding contract, so the policy must be co-signed by a parent or guardian who becomes responsible for payment and claims. The insurance company will still rate the policy based on the teenager's driving record, age, and the vehicle being insured.
The main reason insurers charge more for teen drivers is accident and violation data: drivers aged 16 to 19 have crash rates roughly three times higher than drivers aged 20 and older, according to the National Highway Traffic Safety Administration. This risk translates directly into premium costs. A 17-year-old's policy will typically cost significantly more than adding them to a parent's existing policy, which is why many families choose the latter route instead.
Key Takeaways
- A 17-year-old can hold a policy in their name, but a parent or guardian must co-sign because minors cannot enter binding contracts.
- Premiums for a teen driver are substantially higher than for adults, often two to three times the cost of an adult policy for the same vehicle.
- Adding a teen to a parent's existing policy is usually cheaper than creating a separate policy in the teen's name.
- The teen's driving record, the vehicle type, and the coverage limits chosen all affect the final premium amount.
- Some insurers offer discounts for good grades, driver's education completion, or safe driving apps that monitor behavior.
What happens when a minor co-signs a policy
When a 17-year-old's name appears on an insurance policy, the parent or guardian's signature makes the contract legally binding. The adult is the policyholder of record and is responsible for paying premiums on time and handling claims. The teenager is listed as a driver on the policy, and their driving history—tickets, accidents, violations—will be factored into the rate.
The insurer will pull the teen's driving record from the state's Department of Motor Vehicles. If the teenager has no violations or accidents, the premium will be lower than if they have a recent ticket or at-fault collision. Some insurers also check insurance scores, which are based on credit history and payment patterns, though a 17-year-old may not have an established credit file yet.
If the teenager causes an accident and files a claim, the claim goes on the policy record. This can raise the premium when the policy renews, and the increase may explore to the entire household if the parent and teen share a multi-driver policy. This is one reason many parents choose to keep a teen on a separate policy in the parent's name rather than creating a new policy in the teen's name.
How adding a teen to an existing policy compares to a separate policy
Most families find it cheaper to add a 17-year-old to a parent's existing policy than to create a new policy in the teen's name. When a teen is added to an existing policy, the insurer typically charges an additional premium for that driver rather than creating an entirely new policy with its own base rate and administrative fees.
The difference in cost depends on the insurer and the teen's driving record. Adding a teen to a parent's policy might cost $100 to $300 per month in additional premium, while a separate policy in the teen's name could run $150 to $400 or more per month. The exact amount varies by state, the vehicle, coverage limits, and the insurer's underwriting rules.
However, there are situations where a separate policy makes sense. If the parent's policy is already expensive or has multiple drivers, adding another driver might trigger a larger increase than expected. If the teen will be the primary driver of a vehicle the parent does not use, a separate policy in the teen's name may be simpler to manage. The only way to know is to get quotes from the same insurer for both scenarios.
What information you need to get a quote
To receive an accurate quote for a 17-year-old's policy, you will need the teenager's driver's license number, date of birth, and driving history. The insurer will also ask for the vehicle identification number (VIN) of the car being insured, or at minimum the year, make, model, and body style.
You will need to choose coverage limits. Most states require a minimum amount of liability coverage, which pays for damage or injury the teen causes to someone else. Collision and comprehensive coverage are optional but are usually required if the vehicle is financed or leased. The parent or guardian will also need to provide their own information, including Social Security number and current insurance history if they have an existing policy.
Some insurers ask whether the teen has completed a driver's education course or a defensive driving course. Completion of these courses often qualifies the teen for a discount, sometimes 5 to 15 percent off the premium. A few insurers also offer discounts if the teen maintains a certain grade point average in school—typically a B average or higher—and will ask for proof such as a report card or school transcript.
Discounts that can lower a teen's premium
Insurance companies offer several discounts specifically for teen drivers. A good student discount typically requires a grade point average of 3.0 or higher and can reduce the premium by 5 to 10 percent. The insurer will ask for proof, usually a report card or transcript, and may require proof again each term.
A driver's education discount applies when the teen has completed an approved driver's education course before or shortly after getting their license. This discount is often 5 to 15 percent and is a one-time reduction. Some insurers also offer discounts for defensive driving courses, which teach collision avoidance and hazard recognition.
A safe driving app discount is available from many insurers and involves the teen installing an app on their phone that monitors driving behavior—speed, hard braking, phone use while driving. If the teen drives safely over a set period, usually 30 to 90 days, the discount can range from 10 to 30 percent. The parent can usually view a dashboard showing the teen's driving patterns, which some families find useful for conversations about safety.
Other discounts include bundling the car policy with the parent's home or renters insurance, paying the premium in full rather than monthly, or setting up automatic payments. The total discount available varies by insurer and state, but combining two or three discounts can meaningfully reduce the cost.
State requirements for teen drivers and insurance
Every state requires a minimum amount of liability insurance to drive legally, but the minimum amount varies. Most states require at least $25,000 in bodily injury liability per person and $50,000 per accident, plus $25,000 in property damage liability, though some states require higher amounts. A 17-year-old's policy must meet the state minimum to be legal.
Some states have special rules for teen drivers, such as restrictions on when they can drive (no driving between 11 p.m. and 5 a.m., for example) or how many passengers they can carry. These restrictions do not affect insurance rates directly, but violating them can result in a ticket, which will raise the teen's premium when the policy renews.
A few states allow 17-year-olds to hold a policy in their own name without a co-signer if they meet certain conditions, such as being emancipated or having a court order. However, this is rare, and most insurers will still require a parent or guardian to co-sign. Check with your state's Department of Motor Vehicles or insurance commissioner's office if you are unsure about your state's rules.
What to expect at renewal and after an accident
When the policy renews—usually every six or twelve months—the insurer will review the teen's driving record again. If there have been no violations or accidents, the premium may stay the same or increase slightly due to the teen's age moving into a lower-risk bracket (rates typically drop at age 18, 19, 21, and 25). If the teen has received a ticket or been in an accident, the premium will increase, sometimes substantially.
An at-fault accident or a violation like speeding or reckless driving can raise a teen's premium by 20 to 40 percent or more, depending on the severity and the insurer's underwriting guidelines. These increases usually last three to five years, meaning the teen will pay higher premiums for several renewal periods. This is why many parents use the policy as a teaching tool: the teen sees the direct financial consequence of unsafe driving.
If the teen causes a serious accident or receives multiple violations, the insurer may non-renew the policy, meaning they will not offer coverage again when the term ends. The teen would then need to find coverage through a different insurer, often at a higher cost, or through a high-risk pool if available in the state.
Frequently Asked Questions
Can a 17-year-old buy car insurance without a parent?
No. A minor cannot sign a binding contract, so a parent or legal guardian must co-sign the policy. The adult becomes the policyholder and is responsible for payment and claims. Some states allow emancipated minors to hold policies independently, but this is rare and requires a court order.
Will a teen's insurance go down when they turn 18?
Possibly. Many insurers lower rates at age 18, 19, 21, and 25 because accident rates decline with age. However, the reduction depends on the insurer's rating rules and whether the teen has a clean driving record. A teen with tickets or accidents may not see a rate decrease at 18.
What happens if the teen is not the primary driver of the vehicle?
The teen must still be listed as a driver on the policy if they will ever drive the vehicle, even occasionally. Failing to list a driver can result in a claim denial if that driver causes an accident. Some policies allow a "listed driver" designation for someone who drives rarely, but the insurer must know about them.
Can a 17-year-old get their own insurance policy without being on a parent's policy?
Yes, a 17-year-old can have a policy in their name with a parent as co-signer. This is different from being added to a parent's existing policy. A separate policy is usually more expensive but may be necessary if the teen will be the primary driver of a vehicle or if the parent's policy is already at capacity.
Do teen drivers need full coverage or just liability?
If the vehicle is owned outright, only liability coverage is legally required. However, if the car is financed or leased, the lender or lessor will require collision and comprehensive coverage. Many parents also choose full coverage for a teen's vehicle to protect against theft, weather damage, or accidents where the teen is not at fault.