Why Is Car Insurance So Expensive for Young Drivers in Colorado?

By Jen Frisbie, Director of Personal Lines Experience, Hoery Insurance Agency

Last updated: October 26, 2026

Your teen got the keys. Then you saw the insurance quote.

Is that the new price for the whole policy—or just the extra cost? And what could you change without giving up protection you may need?

Jen Frisbie leads Hoery’s Personal Lines team. She believes families should not need to know the right insurance questions before someone helps explain the answers.

This guide explains why young drivers often cost more to insure, how to read the price you were given and what to ask before changing your policy.

The short answer

Young drivers have less practice behind the wheel. As a group, they also have a higher crash risk than more experienced drivers. That can make them more costly to insure.

But there is no fixed price for adding a teen to a policy. Your family’s vehicles, driving records, address, coverage, deductibles, discounts and insurance company all matter.

A premium is the price you pay for insurance. Before trying to lower it:

• Find out whether the amount is the extra cost or the new total.
• Check what time period it covers.
• Ask what protection would change if you chose a lower price.

What affects the cost of adding a young driver in Colorado?

Your teen is one part of the quote. The cars, policy choices and insurance company’s rates matter, too.

You can use Colorado’s auto insurance consumer information as another starting point for questions about your policy.

Ask your agent to break the price into these five parts:

Two families with teens the same age can get very different quotes. Your address, how the cars are used and the drivers’ records can all affect the price.

The useful question is: “What is changing the price of our own policy?”

First, ask which number you are looking at:

A policy term is the time your policy covers, such as six months. A monthly payment, an amount due now and a six-month total are different numbers.

A made-up six-month example

Suppose both prices cover the same full six-month term:

$2,100 − $1,400 = $700.

The new total is $2,100. The increase is $700. That does not mean the teen’s insurance alone costs $2,100.

If the teen was added partway through the term, the amount due now could be different.

These made-up figures explain the math. They are not a typical Colorado price or a prediction of your increase.

Will an older, cheaper car lower my teen’s insurance cost?

Not necessarily.

The car’s purchase price is only one part of the decision. Insurers may also look at the household’s drivers, how the cars are used and which cars your teen can drive.

Before buying a car for your teen:

1. Get an insurance estimate for its actual year, make and model.
2. Explain how your teen will use it and which other household cars they may drive.
3. Compare insurance, safety and upkeep costs along with the purchase price.

Thinking about a separate policy? Ask whether it is available for your teen’s age, where they live and who owns the car. Insurer rules matter, too.

Then compare the combined cost for the household. Do not assume two policies will cost less.

An older car can still be involved in a crash that badly hurts someone or damages their property. Changing coverage for your own car does not remove that risk.

Which young-driver discounts should parents ask about?

Start with:

“Which discounts are already in our quote? What do we need to do to keep them?”

Depending on the insurer and policy, discounts may relate to grades, driver education, more than one car or more than one policy.

The NAIC’s guidance on insuring a teen driver recommends asking about discounts and giving complete, correct vehicle information.

Ask:

• Does my teen qualify for a good-student discount?
• Does driver education qualify for a discount?
• Are there special terms if my student is away from home?
• Are our available multi-car or multi-policy discounts already included?
• What proof must we send? Does it need to be renewed?
• If we use a driving-monitoring program, what data does it collect? Could that data affect future prices?

A discount is not always added just because it exists. Who qualifies and how the program works can vary.

Should you raise your deductible to lower the price?

Maybe—but compare what you save with what you could have to pay yourself.

A deductible is the part of a covered claim you pay yourself.

For damage to your own car:

• Collision coverage generally helps pay for damage from a crash or rollover.
• Comprehensive coverage generally helps pay for certain other damage, such as theft or hail.

Policy terms apply. A higher deductible on these coverages may lower the premium. It also means you may need to pay more yourself after a covered loss.

Before changing it, ask:

• How much would the price actually go down?
• What would the new deductible be?
• Could we pay that amount after an accident, theft or hail loss?
• Does our car loan or lease require certain coverage or deductibles?

If the savings are small and the amount you could owe is much larger, pause and weigh that choice.

There is no one deductible that is right for every family.

What protection could you lose by lowering your premium?

Raising a deductible and lowering a coverage limit are different changes.

A limit is a dollar cap on what the policy could pay for a type of covered loss.

Bodily injury liability generally helps pay for other people’s injuries when an insured driver is legally responsible for a covered crash. Property damage liability applies to covered damage to other people’s property. Limits and policy terms apply to both.

Our 25/50/15 liability-limits guide explains how those caps work.

Uninsured/underinsured motorist coverage is separate. It may help with covered bodily injury losses caused by a driver with no insurance or not enough insurance. It does not itself pay to repair your car.

Before choosing a lower price, ask:

“What protection would we lose, or what limit would go down?”

You can also ask whether extra liability protection, such as an umbrella policy, fits your family’s needs. It is not something every family necessarily needs.

The goal is to understand what you would save and what would change.

When should you tell your insurer about a learner’s permit?

Contact your insurer or agency when your teen gets a permit, or before they start supervised driving.

Ask when you need to:

• Tell the company about your teen;
• Have your teen listed on the policy; and
• Have your teen included in the price of the policy.

Your insurer may call that last step “rating” the driver. These steps and their timing can vary by insurer and policy. Colorado’s licensing rules do not, by themselves, tell you when your insurer must list or rate a driver.

Our Colorado learner’s permit insurance guide explains which timing questions to ask.

Frequently asked questions

Does adding a teenager always double your car insurance?

No. There is no fixed increase. Your household, driver information, vehicles, insurer and coverage choices all affect the price.

Is a separate policy cheaper for a teen?

Not always. First, find out which arrangements are available under the insurer’s rules. Then compare the combined household cost.

When does car insurance get cheaper for a young driver?

There is no birthday or date when a lower price is guaranteed.

Experience and driving records may change over time. So can vehicles, coverage needs and insurance rates.

Should I compare insurance companies after adding a teen?

Comparing quotes may help. Make sure they use the same drivers, cars, major coverages, limits and deductibles.

A lower price does not always buy the same protection.

Start with an explanation of your household’s quote

Now that you know what can affect the price, your next step is to read your quote alongside the coverage it includes.

Have the quote that is worrying you handy. A licensed Hoery Insurance Agency team member can help explain the price, what could change and what each choice would mean for your protection.

Contact our team about your young-driver quote

This article provides general educational information and does not modify or guarantee coverage under any insurance policy. Coverage, rating factors, discounts, eligibility and policy requirements vary by insurer, household and policy. Consult a licensed insurance professional about your specific situation.