Cheap Car Insurance for Teen Drivers

GEICO leads family policy rates at $601 per year, while State Farm offers the most affordable individual coverage at $781. Family policies almost always cost less because you're bundling multiple drivers and vehicles.

Our comparison of average costs across major insurers shows substantial differences between companies — sometimes hundreds of dollars annually for the same coverage. These rates reflect minimum coverage policies for teens aged 16 to 19, demonstrating how choosing the right company and keeping your teen on the family plan can reduce costs by thousands each year.

*The above rates are based on the average costs of minimum coverage policies for teens aged 16 to 19.

Car insurance costs for teen drivers depend on several factors, including age, location, driving history, vehicle type, policy details, insurer and claims history. An individual policy for a teen driver costs an average of $4,866 per year. Adding a teen to your family policy saves over $1,800 compared to individual coverage, with family policies averaging $3,048 annually. Male teens pay 13% more than female teens due to higher accident risks, with the gender gap representing about $362 in additional annual costs.

Adding a teen driver to your family policy can save over $1,800 compared to getting them individual coverage. The average cost for a teen driver on a family policy is $3,048.

*The rates above are based on average costs. In some cases, an individual policy may make more sense. For example, if the teen drives a high-performance or luxury vehicle with high insurance costs, an individual policy prevents a large increase in the family's overall premium.

Car insurance rates are affected by both age and gender, especially for teens. Adding a male teen driver to your family policy costs 13% more annually, or $362, than adding a female teen. Male teens cost more to insure because they're more likely to engage in risky driving and have higher accident rates than female teens.

*Seven states don't use gender as a rating factor: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

Cheap teen car insurance rates vary dramatically across states, with 16-year-olds paying as little as $742 in Hawaii or as much as $5,074 in Louisiana. Nationwide dominates the cheapest teen rates, appearing as the lowest-cost option in 15 states, followed by State Farm and GEICO. These massive cost differences make shopping with state-specific insurers crucial for finding your teen's cheapest car insurance rates.

The cheapest car insurance company for teens changes by age, making it crucial to compare rates as your teen gets older. MoneyGeek analyzed the cheapest company for every teen age in every state to identify these national winners:

• 16-year-olds: GEICO offers the lowest family policy rates at $689 annually
• 17-year-olds: GEICO maintains the lead with $667 per year
• 18-year-olds: GEICO continues as the cheapest option at $557 annually
• 19-year-olds: GEICO remains the most affordable at $492 per year

While GEICO dominates nationally, the cheapest insurer varies significantly by state and age combination. Shopping by state remains essential since local market conditions, regulations, and competition create different winners in each location.

Sixteen-year-olds face the highest cheap car insurance costs due to inexperience and elevated accident risk. GEICO offers the best family policy rates at $689 annually, while State Farm leads individual policies at $940. The premium difference between family and individual coverage averages $617, making family policies the clear winner for cheapest teen car insurance.

*The above quotes are for minimum coverage policies. You can filter for different coverage levels.

Nationwide dominates cheap car insurance for 16-year-olds across states, offering the lowest rates in 15 locations. State-specific rates vary dramatically, from Hawaii's $742 to Louisiana's $5,074 annually.

Seventeen-year-olds see modest rate decreases but still face high costs for cheap car insurance. GEICO maintains its lead for family policies at $667 annually, while State Farm offers the best individual rates at $828. Premium savings from choosing family coverage over individual policies average $334 per year.

*The above quotes are for minimum coverage policies. You can filter for different coverage levels.

GEICO leads cheap teen car insurance in the most states for 17-year-olds, securing top rates in 8 locations. Rate variations by state remain substantial, making local comparison shopping essential for finding the cheapest coverage.

Eighteen-year-olds enjoy slightly better rates as they gain experience with cheap car insurance options. GEICO offers family policies at $557 annually, while State Farm provides individual coverage at $735. The family policy advantage continues with average savings of $279 compared to individual teen insurance.

*The above quotes are for minimum coverage policies. You can filter for different coverage levels.

GEICO dominates cheap car insurance for 18-year-olds in most states, claiming the lowest rates in 11 locations. Geographic rate differences persist, reinforcing the importance of state-specific shopping for cheapest teen coverage.

Nineteen-year-olds see continued rate improvements but still pay more than older drivers for cheap car insurance. GEICO maintains its advantage with family policies at $492 annually, while State Farm offers individual coverage at $622. Family policy savings average $107 over individual teen insurance plans.

*The above quotes are for minimum coverage policies. You can filter for different coverage levels.

GEICO secures cheap teen car insurance leadership in the most states for 19-year-olds, winning in 8 locations. State rate variations continue making local insurer comparison crucial for finding the cheapest teen driver coverage.

Based on the latest models and full coverage policies, the Subaru Forester is the cheapest car to insure for teen drivers aged 16 to 19. Vehicles with strong safety ratings and lower theft rates cost less to insure since they reduce claim risks for insurers. You can find the cheapest car models to insure based on the teen driver's age and coverage level in our comparison data.

These strategies help you find cheap car insurance for teens while maintaining adequate financial protection.

Teens can reduce insurance costs with multiple discounts. Whether your teen has an individual policy or joins the family plan, these discounts help manage the costs of insuring young drivers while encouraging safe and responsible driving.

In addition to discounts, opting for no-down-payment car insurance can provide affordable coverage with a low upfront cost. To activate the policy, you must pay at least the first month’s premium.

You can save on cheap teen car insurance by comparing top providers like State Farm, GEICO and Nationwide. They offer excellent policies at competitive rates, along with discounts for good grades, safe driving and family policies. Choosing cars with high safety ratings and maintaining a clean driving record can reduce premiums and help you secure adequate coverage without overspending.

MoneyGeek answers the most common questions about finding the cheapest car insurance for teens.

Study Overview

MoneyGeek gathered quote data to determine the cheapest car insurance for teens by age.

Data Acquisition, Depth and Analysis

We collected data from Quadrant Information Services and state insurance departments. MoneyGeek analyzed 83,056 quotes from 46 companies across 473 ZIP codes.

Driver Profiles

The sample profile used for rate collection includes:

• 100/300/100 liability limits
• Comprehensive and collision coverages
• $1,000 deductible
• No history of tickets or accidents
• 2010 Toyota Camry LE

We adjusted this profile by age to compare rates for 16, 17, 18 and 19-year-olds. We also modified it by gender to analyze rate differences and by vehicle (Ford Mustang) to compare insurance prices for teens by car.

Coverages and Deductibles Explained

A deductible is paid out of pocket before certain coverages, like collision and comprehensive, apply.

A 100/300/100 policy includes:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

Learn more about MoneyGeek's methodology.