Does Driving School Lower Insurance?

Adding a teen driver to your auto insurance policy can feel like a financial shock as premiums can more than double due to the increased risk associated with young, inexperienced drivers. 

Statistically speaking, drivers aged 15 to 20 are more likely to be involved in serious car accidents, making them a high-risk group for insurers. 

But there are ways to prioritize your teen’s safety on the road – while also minimizing your financial impact.

From driving school insurance discounts to good grade discounts, working with your insurer can help you ease the cost burden. To help you understand how education, preparation, and insurance know-how can work together to protect your family – and your wallet – this blog will answer common questions like:

• Does driving school lower insurance?
• How much does Driver’s Ed save you on insurance?
• Do school grades affect car insurance?

First, let’s look at why car insurance companies offer discounts geared toward families with new drivers.

Why Insurers Value Driver’s Ed Graduates

Car insurance companies determine premiums based on risk. If you total your car or cause damage to someone else’s property while driving, the insurance company may be on the hook for a costly payout in the event you file a claim. That’s why drivers with no history or a bad driving record pay more for insurance coverage. 

A new driver – especially one with no training – presents a high risk compared to others on the road. And age is one of the top factors that affect car insurance rates. 

Why Driving School Should Be a Top Priority for Teen Drivers

Enrolling your teen in driver’s education isn’t just about checking a box for their learner’s permit – it’s an investment in safety. Driver education provides foundational skills that help teens navigate traffic laws, identify hazards, and make safer decisions behind the wheel.

A 16-year-old who skips formal training may struggle to react appropriately in adverse weather conditions or high-stress situations. Parents or other responsible adults should be hands-on in helping their teen learn how to drive but a structured class presents the best opportunity for well-rounded training. A teen who completes a comprehensive driver’s ed program will have tools and skills that serve them well for a lifetime of driving.

This preparation not only reduces the likelihood of accidents but also builds confidence, helping teens transition from nervous beginners to competent, responsible drivers.

Does Driver’s Ed School Make Insurance Cheaper?

It depends on your insurer. While not all companies offer discounts for completing driver’s ed, many recognize its value and reward graduates with reduced premiums. In most states, insurers do offer a defensive driving class insurance discount.

Many parents wonder about the difference between driver’s education and defensive driving courses. Here’s a breakdown:

• Drivers Education: Designed for new drivers, these courses teach basic skills, road rules, and safety techniques. Driver’s ed is a requirement for obtaining a license in some states. It can be completed in person, of course, and now you can take driving school online! Costs typically range from $100 to $600, depending on the program.

• Defensive Driving Courses: These are more advanced programs that focus on improving driver skills and reducing risks. Defensive driving courses are generally more expensive, starting at around $300, depending on where you live. However, completion of a defensive driving course is more likely to result in greater insurance savings, ranging from 5% to 25% off premiums.

Good Grade Discounts

Do school grades affect car insurance? Yes – if your teen has a solid report card, it might lead to savings. Many insurers offer good student discounts — up to 20% or more — for students who maintain a B average or higher. Why? Academic performance signals responsibility, which insurers associate with lower risk.

So, does education level matter on car insurance? It can! Some states allow insurers to offer more competitive rates to drivers who have college degrees. Education level can matter on car insurance costs but every underwriting department will weigh this factor differently. 

For your teen, staying on your car insurance while in college will most likely reduce their overall costs. And a combination of being older with a good driving history plus a degree will make a difference in the premium they’ll pay later on. 

With that knowledge in hand, you may be wondering: Does my teenager have to be on my car insurance? They can get their own policy but it will undoubtedly cost much more. Next, let’s look at why.

Multi-Driver Discounts: Joining Your Plan Is Cheaper 

Many insurers offer multi-driver discounts to families who share a policy, reducing the overall cost per driver. Even if you have separate coverage, your costs could go up unless you specifically ask your insurer to exclude someone of driving age in your home. 

Keep in mind, however, you could have to pay a fee or you may live in a state that doesn’t make it easy or possible to exclude a driver who lives with you unless they have their own suitable coverage. 

This complexity is one reason why it pays to work with an experienced insurance agent to make sure you’re getting the best deal with appropriate coverage. 

Teen Drivers and Car Insurance: Prepare, Protect & Save

Insuring a teen driver doesn’t have to be overwhelming. By exploring options like driver’s education, defensive driving courses, good grade discounts, and multi-driver policies, you can reduce costs and boost your teen’s confidence and safety on the road. Also, keep in mind: Your teen’s type of vehicle will impact car insurance rates so be sure to balance reliability vs. value.

Ready to discuss the best coverage for your family? Contact Independent Insurance Associates today! Our team can guide you through the process, ensuring your teen is protected and your premiums are manageable.