Getting your driver’s license is a big step toward independence. But one of the first financial realities for new drivers is the cost of car insurance. The good news? Completing a driver's education course can lead to real savings on your insurance policy—often hundreds of dollars every year.
Why Insurance Companies Reward Driver's Ed
Car insurance is based on risk—the likelihood that a driver will be involved in an accident. Driver's ed helps reduce that risk. When you complete a driver's education course, insurers recognize that you've taken the time to learn safe driving habits, defensive driving techniques, and state traffic laws.
In fact, studies show that teens who complete a driver's ed program are significantly less likely to be involved in a crash during their first year of driving. Insurance companies view this training as an investment in safer roads, which is why they often offer insurance discounts for completing driver's ed.
To understand the full range of insurance benefits from driver's ed, check out our overview of insurance discounts.
How Much Can You Save with Driver's Ed?
While discounts vary, here are typical savings drivers may see:
5% to 15% off your annual premium
$200 to $500+ per year in potential savings depending on your policy, state, and insurance provider
These discounts are often available until age 21 or as long as your policy remains active with no violations. Even a modest discount can add up to big savings over time.
Explore more about insurance for young drivers
How to Get the Discount
Follow these steps to qualify:
Enroll in a state approved Drivers Ed course
Complete the course and receive your certificate of completion
Share your certificate with your insurance provider
Ask if they offer additional teen or good student discounts
If you are being added to a parent or guardian’s policy, they can also check with their insurer about eligible discounts.
Find the Right Insurance After Driver's Ed
Shopping around is key. Request quotes from multiple companies and be sure to mention your completion of a driver's ed program. Comparing policies side by side can help you understand what discounts you qualify for and where you'll get the best rate.
Other factors that influence your insurance costs:
The type of car you drive
Your driving record
Whether you're being added to an existing policy or purchasing your own
Talk to your parent or guardian to understand how your insurance coverage will be structured and what savings may be available. You can also check out our guide on ways to save on car insurance.
More Than Just Savings: Confidence on the Road
While lowering your insurance bill is a major benefit, the most important value of driver's ed is the confidence and knowledge it gives you. You'll be better prepared to:
Make safe decisions
Understand traffic signs and signals
Respond calmly to unexpected situations
Reduce your risk of accidents and violations
Driver's education builds the foundation for a lifetime of safe, responsible driving. For more insight, read our full guide on car insurance for first-time drivers.
Take the Wheel—and the Savings
Completing driver's ed is a smart step toward safety and savings. From gaining essential skills to earning a potential insurance discount, it's a win-win for new drivers and their families.
Updated 05/01/2025
