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Driving for the first time is an exciting milestone for many teenagers. However, as a parent, you may have concerns regarding car insurance for teenagers, especially regarding affordability.
Auto insurance rates will rise when adding a teen driver. But prices vary by company and state. Some companies also offer more discounts to help you stay on a budget.
Best Cheap Car Insurance for Teens in 2023
Best for Cheap Coverage: Erie Auto Insurance – Product Name OnlyBest for Military: USAA Auto Insurance – Product Name OnlyBest for Bundling: Nationwide Auto Insurance – Product Name OnlyBest for Low Credit Scores: GEICO Auto Insurance – Product Name OnlyBest for Discounts: State Farm Auto Insurance – Product Name Only
Some states allow a 16-year-old to get a car insurance policy independently. Still, most states require that you be at least 18 years old to purchase insurance, Laura Adams, an analyst for Coverage.com, told Insider. Therefore, when we are talking about car insurance for teenagers, we mean the cost of adding them to a parent or guardian’s existing policy. Unfortunately, a study by Coverage shows that the cost of adding a teen to an adult’s policy is high.
Adams says the average parent can expect a 130% increase or an extra $2,300 premium when adding a teen driver. However, having insurance is essential to protect you and your child in the event of an accident.
Compare The Best Cheap Car Insurance for Teens
Methodology: How We Chose the Best Cheap Car Insurance for Teenagers
Finding the right auto insurance for your family can save you money. It also ensures you’ll be protected if you get in an accident. Teens inevitably drive auto insurance rates up, but it doesn’t have the same impact with every auto insurance provider. As such, a teen can be added to most plans. However, some parents choose to buy a separate auto insurance policy for their teen.
We look at the many factors that go into choosing auto insurance from price to coverage, discounts, customer service, and much more. Then we provide more information so you can see what makes sense. Most auto insurance companies are not licensed in all 50 states. However, many of the best options we’ve seen are.
Frequently Asked Questions
What discounts can you get for adding a teen driver?
Auto insurance companies may offer some programs to get a discount on coverage for your teen. You can’t “stack” your discounts or combine them to get a massive discount in most cases. But still, you’ll want to ask your provider what, if anything, they offer for teens to earn discounts. Common examples include good student discounts, away from home discounts, safe driving discounts, and monitoring and usage apps.
When Do Car Insurance Rates Go Down?
Car insurance goes down every year a driver is insured and remains claim-free. Data from ValuePenguin illustrates that at 18 years old, the average male rate is $7,561 while the average female rate is $6,797. At 23, the average male rate is $3,965 and the average female rate is $3,716. At 25, the average male rate is $3,247 and the average female rate is $3,167.
What’s the best car insurance for teenagers in college?
According to Insider’s research, Erie Insurance is generally the best insurance for young adults and new drivers (in states where it’s available).
One of the best ways to save on car insurance for a teen or young adult driver is to join a family policy. On a family car insurance policy, your premiums will be about 20% lower than having a separate plan, according to reporting by The Balance. If joining a family plan is an option, it might be the best for a teen driver.
Many insurance companies also offer discount opportunities if a student lives away from home and does not use their car often, as well as discounts for having good grades. So, it would be beneficial to look into carriers that have those options.
How can I find the best car insurance rates for teenagers?
Everyone’s car insurance rates will vary depending on the coverage you choose. Other factors can go into pricing a premium. Every car insurance company will evaluate you on different factors and weigh those factors differently.
These factors might include credit scores, driving history, accidents, type of car, mileage, and where you live.
Shop for affordable carriers that meet your coverage needs by getting quotes from several insurance companies and comparing them.
To find the best one for you out of the quotes you’ve obtained, compare the coverage types, limits, and deductible, or the amount you’ll pay out of pocket if you’re involved in an accident. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you.
Best for Cheap Coverage
Erie Insurance
With Erie Auto Insurance, the cost to insure an 18-year-old driver on a parent’s policy is approximately $2,532. This makes Erie the cheapest option for parents with teen drivers. While it has high marks in claims satisfaction and has relatively affordable rates, it is only available in 12 states.
Other features and discounts include:
Diminishing deductible. Offers up to $100 off your deductible for every year a driver is claims-free up to a maximum of $500.YourTurn program. YourTurn is a telematics smartphone app that allows safe drivers to earn cash. Drivers ages 16-23 can earn rewards of up to $10 every two weeks, and ages 24+ can earn rewards of up to $5 every two weeks, based on driving 50 tracked miles and the participating driver’s score during the scoring period. It may not be available in all states.Rate lock. Allows customers to lock a rate for an indefinite period as long drivers and cars remain the same.Auto security endorsement.If your vehicle is less than two years old and totaled, it will be replaced with the newest model year. If your vehicle is older than two years, it will be replaced with the same model but two years newer and 30,000 fewer miles than your original vehicle.Pet coverage. If your pet is injured in your vehicle.
Read our Erie insurance review.
Best for Military
USAA
On average, USAA Auto Insurance will cost parents $2,588. USAA Auto Insurance is one of the most affordable options for teen drivers, however, it is only available to active-duty military, veterans, and their families.
Other features and discounts include:
Safe Pilot— This app gives drivers discounts based on driving behavior and mileage.Rideshare coverage— Coverage if you deliver for an app-based Transportation Network Company (TNC), like Uber or Lyft.Accident forgiveness— If you’re accident-free for five years, the policy surcharge will be waived for your first at-fault accident.Pro-Active Crash Detection— You’ll be prompted to start the claims process when a collision is detected.Telematics Enabled Claims (TEC)— Expedites the claims process for Safe Pilot app users by letting claims reps auto-fill data.Good student discount— A discount for students who maintain a certain grade average.
Read our USAA insurance review here.
Best for Bundling
Nationwide
Nationwide Auto Insurance is offered at approximately $3,406 for parents with teen drivers. It ranks high in claims satisfaction and offers many discounts and bundling opportunities to curb your auto premiums. Nationwide Auto Insurance is also available everywhere in the US.
Other features and discounts include:
Accident forgiveness – Avoid a rate increase after the first at-fault accident or minor violation on your policy.Vanishing deductible – Earn $100 off your deductible for each year of safe driving, up to $500.Roadside assistance – 24/7 emergency help if you need fuel, a tire change, a jump-start, or a tow.Total loss deductible waiver— Have the physical damage deductible (comprehensive or collision) waived in the event your car is totaled in an accident.SmartRide – Earn discounts for using your smartphone to track driving habits.SmartMiles – If you’re an infrequent driver, pay less with a flexible monthly rate based on how many miles you drive.Good student discount —Discount for students 16 to 24 years old who maintain a B or better.Anti-theft discount – Get a discount if your vehicle is equipped with certain anti-theft devices.
Read our Nationwide review here.
Best for Low Credit Scores
GEICO
With GEICO Auto Insurance, the average premium for parents with teen drivers is $3,432. It has high marks in claims satisfaction and is available everywhere in the US. GEICO Auto Insurance is also friendly to drivers with poor credit scores.
Other features and discounts include:
Military – Receive up to 15% off for military and up to 25% for emergency deployment.Federal employees – Get up to 12% off for active or retired federal workers with GS-7 or above designation.Partner groups – Discounts for alumni associations, fraternities and sororities, and professional organizations that have partnered with GEICO.Airbag discount – Receive up to 23% off for a vehicle with airbags.Anti-lock brakes – Get up to 5% off for a vehicle with factory-installed anti-lock brakes.Anti-theft system – Receive up to 23% off for a vehicle with a built-in anti-theft system.New vehicle – Get up to 15% off for three models years or newer vehicles.Good driver – Receive up to 22% off if you are five or more years accident-free.Good student – Get up to 15% off for high school or college students with a B or better grade average.
Read our GEICO insurance review.
Best for Discounts
State Farm
State Farm Auto Insurance is the most expensive option on this list with premiums priced at $5,176. However, State Farm Auto Insurance’s premiums are still lower than the national average. Additionally, it offers a number of discount opportunities for bundling and safe driving and has a national presence with high marks in auto claims satisfaction.
Other features and discounts include:
Rideshare insurance —Covers you if you operate your car as an Uber or Lyft driver.Rental car reimbursement— Covers you if your car is in the repair shop or undrivable.Drive Safe & Save— This telematics smartphone app gives drivers discounts based on driving behavior and mileage.OnStardiscount— Earn a discount by enrolling your eligible OnStar-enabled vehicle in Drive Safe & Save.Steer Clear discount— Young drivers up to age 25 can earn a discount for demonstrating safe driving habits.Accident-free discount —Get a discount if State Farm has insured your car for at least three consecutive years without an accident.Good student discount —Discount for students 16 to 25 years old enrolled full-time in high school or college with a B or 3.0 GPA or a class ranking in the top 20%.Student away at school discount— This discount applies if your student moves away to school and only uses the car while at home during school vacations and holidays.Defensive driving course discount— Taking a driver safety course may help you get car insurance discounts with State Farm.
Read our State Farm insurance review.
The Most Expensive States to Add A Teen Driver
While some states can charge younger people higher premiums, other states regulate insurance prices differently. For instance, age cannot be a determining factor for car insurance premiums in California and Massachusetts.
These are the top five most expensive states to insure your daughter by percentage added to your premium and by annual premium costs:
Most expensive states to insure 16-year-old female (by %)Most expensive states to insure 16-year-old female (by premium)
Vermont: 190%
Tennessee: 158%
Massachusetts: 155%
Virginia: 154%
Ohio: 153%
Louisiana: $5,787Florida: $4,949New York: $4,914Nevada: $4,858Michigan: $4,759
Data from Coverage.com
These are the top five most expensive states to insure your son by percentage added to your premium, and by annual premium costs:
Most expensive states to insure 16-year-old male (by %)Most expensive states to insure 16-year-old male (by premium)
Vermont: 216%
Tennessee: 194%
Ohio: 186%
Virginia: 176%
West Virginia: 172%
Louisiana: $5,988Florida: $5,362New York: $5,264Nevada: $5,116Rhode Island: $4,888
Data from Coverage.com
The Least Expensive States to Add A Teen Driver
The following states do not allow gender to be a determining factor: Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania. Additionally, Hawaii doesn’t allow time behind the wheel to be used.
These are the top five least expensive states to insure your daughter by percentage added to your premium, and by annual premium costs:
Least expensive states to insure 16-year-old female (by %)Least expensive states to insure 16-year-old female (by premium)
Hawaii: 4%
New York: 79%
Michigan: 80%
Delaware: 92%
South Dakota: 94%
Hawaii: $1,276Idaho: $2,165Iowa: $2,226North Dakota: $2,255Maine: $2,356
Data from Coverage.com
These are the top five least expensive states to insure your son by percentage added to your premium, and by annual premium costs
Least expensive states to insure 16-year-old male (by %)Least expensive states to insure 16-year-old male (by premium)
Hawaii: 4%
Michigan: 83%
New York: 92%
District of Columbia: 107%
Delaware: 114%
Hawaii: $,1,275Idaho: $2,372North Dakota: $2,581Iowa: $2,592Wisconsin: $2,720