A drivers ed insurance discount is a car insurance discount that rewards new drivers for state-approved driver education. The drivers ed insurance discount takes 5% to 15% off a new driver's premium. Adding a 16-year-old driver to a family policy raises the premium by $1,500 to $3,500 a year. According to IIHS, 2,899 teenagers died in motor vehicle crashes across the United States in 2024. Most insurers require a completion certificate from a state-licensed school to apply the discount. Insurance Navy helps teen drivers and parents find the right insurance at the right price. This guide explains drivers ed insurance discount amounts, eligibility rules, participating carriers, discount duration, and online courses.
Table of contents
- What are Driving School Discounts?
- Why Insurers Reward Drivers Ed: Safe Driving Habits and Fewer Claims
- How Do I Get A Driving Safety Course Insurance Discount?
- How Long Does a Drivers Ed Discount Last?
- Does Drivers Ed Lower My Car Insurance Rates?
- Drivers Ed vs. Defensive Driving Discounts: What's the Difference?
- Do All Insurance Companies Offer Driving School Discounts?
- Other Ways Teen Drivers Save
- Where Can You Find Driving Schools?
- Online Driving Schools
A drivers ed insurance discount takes 5% to 15% off a new driver's car insurance premium, and a 10% discount saves about $150 to $350 a year on a teen policy.
A driver earns the discount by completing a state-approved driver's education course. State Farm, GEICO, Progressive, and Allstate offer the discount. The savings matter most for teen drivers, who typically pay $2,000 to $6,000 a year for car insurance..
What are Driving School Discounts?
A driving school discount is a car insurance discount that an insurer gives to a new driver, usually under 25, who completes a state-approved drivers ed course. Each insurer sets the discount amount and the eligibility rules.
State Farm offers up to 15% off your premiums if you complete an approved drivers ed course.
Geico on the other hand will give you a 10% discount if you're under 21 and finish a course that's been certified by the state. Progressive and Allstate offer similar discounts, ranging from 5 to 10% depending on your specific circumstances.
In Illinois, drivers under 18 must complete an approved driver education course with 30 hours of classroom instruction and at least 6 hours of on-street driving with a certified instructor. Drivers 18 to 20 who skipped driver education must finish a 6-hour adult driver education course before Illinois licenses them.
Texas requires 32 hours of classroom time and 44 hours of supervised driving time for drivers under 18. California requires driver's ed for anyone under 17½. A state-required course earns the insurance discount right after completion.
Why Insurers Reward Drivers Ed: Safe Driving Habits and Fewer Claims
Insurers give the drivers ed discount because trained new drivers file fewer claims. Teen drivers have crash rates over 4 times those of drivers 20 and older per mile driven, according to the Insurance Institute for Highway Safety. A driver education course is the first structured place where a new driver practices the habits that lower that crash rate: scanning for hazards, keeping a safe following distance, handling night driving, and managing speed. An insurer that receives a completion certificate prices a lower expected loss. The discount rewards the training, not the certificate.
How Do I Get A Driving Safety Course Insurance Discount?
After you finish the course, send the completion certificate to your insurance company, and the insurer adds the discount to the policy. The process is usually simple.
Most insurance companies accept the certificate online through the insurer's app or website. State Farm and Allstate let you upload the certificate into your online account. Progressive and GEICO require a call to an agent.
How Long Does a Drivers Ed Discount Last?
Most insurers keep the drivers ed discount on the policy for 2 to 3 years after the driver completes the course, or until the driver turns 21 or 25, depending on the company. State Farm applies the discount for 3 years and then requires a defensive driving course to keep the savings. Progressive keeps the discount until the driver turns 21. Allstate reviews eligibility at every policy renewal. State Farm and Farmers require the driver to retake a course every 3 years. Nationwide requires proof of course completion within 12 months of licensing before Nationwide applies the discount.
Does Drivers Ed Lower My Car Insurance Rates?
Yes. Drivers ed lowers car insurance rates with most major carriers, and the savings are largest on a teen policy. Adding a 16-year-old driver to a family policy raises the premium by $1,500 to $3,500 a year.
Drivers Ed vs. Defensive Driving Discounts: What's the Difference?
A drivers ed discount applies to new drivers, usually under 25, who complete a state-approved driver education course before or soon after licensing.
A defensive driving discount applies to licensed drivers of any age, and most often to drivers 55 and older, who complete a shorter safety course. Insurers set the 2 discounts separately. Drivers who are 55 or older, or who want to remove points from a ticket, can read the Insurance Navy guide to the defensive driving insurance discount, which lists senior-driver discounts by carrier.
Do All Insurance Companies Offer Driving School Discounts?
No. Most major carriers offer a drivers ed discount, but many non-standard carriers that insure high-risk drivers do not. Confirm the discount with your own insurer before you pay for a course.
Major car insurance companies that currently offer driver's ed discounts include: Progressive, State Farm, GEICO, Allstate, Farmers, Nationwide, Liberty Mutual and The Hartford.
Regional carriers such as Mercury, Illinois Casualty Company, and Bristol West also offer the discount.
To get the discount most insurers require three things: a completion certificate from a state-licensed school, course completion within 12 months of application, and the driver is actually listed on the policy.
Other Ways Teen Drivers Save
The drivers ed discount is rarely the largest discount on a teen policy. Most carriers stack the drivers ed discount with a good student discount for a B average or better, and the combined savings can reach 25%. GEICO also stacks the drivers ed discount with the DriveEasy telematics program, which prices the teen driver on actual driving behavior. Keeping the teen on the family policy instead of a standalone policy, and choosing an older car that costs less to insure, lower the base premium that the percentage discount applies to.
Where Can You Find Driving Schools?
Each state's licensing agency lists the approved driving schools for that state. Texas publishes the provider list on the Texas Department of Licensing and Regulation website. Illinois drivers can verify approved courses with the Illinois Secretary of State.
Online Driving Schools
Illinois, Texas, California, Georgia, Nevada, and Indiana accept online driver's ed in most cases. An online course costs $30 to $150, depending on the provider and the state requirements.
Some state-approved online providers include Aceable (which is accepted in 13 states), DriversEd.com (accepted in 15 states) and iDriveSafely (accepted in 10 states).
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