Teen Drivers in Minnesota: Coverage Choices That Actually Reduce Risk

Insuring Teen Drivers in Minnesota

Adding a teen driver to your auto insurance policy significantly impacts your premiums, but understanding your options can help you manage costs while maintaining adequate protection.

The Cost Reality

Adding a teen driver typically increases premiums by:

• 50-100% or more for the vehicle they drive
• Varies by gender, driving record, vehicle type, and location
• Minnesota rates are often higher than national average

Coverage Considerations

Liability Coverage

Don't skimp on liability coverage for teen drivers:

• Higher risk: Teens have higher accident rates
• Serious accidents: When teens cause accidents, they can be severe
• Asset protection: Adequate liability protects your family's assets
• Recommendation: At least $250,000/$500,000, consider $500,000/$500,000

Collision and Comprehensive

Consider:

• Vehicle value: If the car is worth less than $3,000-$5,000, collision may not be cost-effective
• Deductible strategy: Higher deductibles can reduce premiums
• New driver risk: Higher likelihood of accidents, so coverage is important

Uninsured/Underinsured Motorist

Essential coverage, especially for teen drivers who may be more vulnerable in accidents.

Discounts Available

Good Student Discount

Most insurers offer discounts (often 10-25%) for students with:

• B average or better: Typically 3.0 GPA or higher
• Dean's list or honor roll: Additional discounts possible
• Full-time student status: Usually required

Driver Training Discount

Completion of driver's education or defensive driving courses can provide:

• 5-15% discount: Varies by insurer
• State-approved courses: Minnesota driver's ed typically qualifies
• Defensive driving: Additional courses may provide further discounts

Distant Student Discount

If your teen goes to college more than 100 miles away and doesn't take a car:

• Significant savings: Often 30-50% reduction
• Vehicle stays home: Car remains on policy but teen has limited access
• Periodic use: Coverage when home on breaks

Multi-Policy Discount

Bundling auto with home insurance can save 10-20%.

Safety Features

Vehicles with safety features may qualify for discounts:

• Anti-theft devices
• Anti-lock brakes
• Airbags
• Electronic stability control

Strategies to Manage Costs

1. Add to Existing Policy

Adding teen to your policy is usually cheaper than separate policy, but increases your overall premium.

2. Choose the Right Vehicle

• Older, safer vehicles: Lower premiums than new sports cars
• Safety ratings: Vehicles with good safety ratings may cost less to insure
• Avoid sports cars: Higher premiums and higher risk

3. Set Appropriate Deductibles

Higher deductibles reduce premiums but increase out-of-pocket costs if there's a claim.

4. Monitor Driving Behavior

Some insurers offer usage-based discounts for safe driving:

• Telematics devices: Track driving behavior
• Safe driver discounts: Rewards for good driving habits
• Parental monitoring: Apps that help parents monitor teen driving

5. Review Coverage Annually

As your teen gains experience and maintains a clean record, premiums should decrease.

What to Avoid

Insufficient Coverage

Don't reduce coverage to save money—teen drivers need adequate protection.

High-Risk Vehicles

Avoid insuring teens on:

• Sports cars
• High-performance vehicles
• Expensive luxury vehicles
• Vehicles with high theft rates

Separate Policies Too Early

Separate policies are usually more expensive until the teen is older and has established a driving record.

Minnesota-Specific Considerations

Winter Driving

Minnesota winters create additional risks:

• Icy roads: Higher accident risk
• Snow conditions: More challenging driving
• Consider: Additional training in winter driving

Urban vs Rural

Twin Cities driving may have different risk profiles than rural Minnesota:

• Traffic density: Higher in metro areas
• Parking: More risk of parking lot accidents
• Premiums: May vary by location

Questions to Ask Your Agent

• What discounts are available for my teen driver?
• How much will adding my teen increase my premium?
• What's the recommended coverage level for a teen driver?
• Are there usage-based programs that could save money?
• When should I consider a separate policy?
• What happens if my teen gets a ticket or has an accident?

The Bottom Line

Insuring teen drivers is expensive, but it's a necessary cost. Focus on getting adequate coverage, taking advantage of available discounts, and choosing strategies that balance cost with protection. As your teen gains experience and maintains a clean record, premiums should decrease over time.

If you're in Minnesota and adding a teen driver to your policy, consider speaking with a licensed insurance professional who can help you understand your options, maximize available discounts, and ensure adequate coverage.