Adding a 16-year-old driver to your car insurance policy can significantly increase your premiums, with the average cost ranging from $2,712 to $3,442 per year. This increase can be attributed to the fact that teenage drivers are considered high-risk due to their lack of driving experience and higher likelihood of accidents. However, it's worth noting that adding a teenage driver to your policy is generally less expensive than purchasing an individual policy for them.
Furthermore, parents can save money through discounts offered by insurance companies. For instance, some insurers provide discounts if a young driver maintains good grades in high school or college. Additionally, comparison shopping for auto policies can help parents find the most affordable option for their family. It's also important to note that if your teen doesn't have a learner's permit yet or isn't driving, they don't need to be added to your insurance policy. However, it's a good idea to check with your insurance agent before your teen starts driving.