Updated: October 11, 2025
Advertising & Editorial Disclosure
Keeping your teen on your family plan almost always saves money. An individual teen policy costs an average of $4,866 per year, while adding a teen to a family policy averages $3,048. Read More
Targeted shopping with insurers that are specifically cheapest in your state can save you thousands on teen insurance. For 16-year-olds, the cheapest coverage ranges from $742 in Hawaii with State Farm to $5,074 in Louisiana with State Farm — a difference of nearly $4,300 annually that makes location your biggest cost factor. Read More
The cheapest insurer for your teen can change as they age. It's hard to find cheap car insurance for new drivers as insurers heavily weigh driving experience while calculating rates. While GEICO offers the lowest national rates for 16-year-olds at $689 for family policies, it remains the cheapest option for 19-year-olds at $492 annually — showing how rates decrease with age and experience. Read More
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.
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.
Cheapest Companies | Average Annual Cost of a Family Policy | Average Annual Cost of an Individual Policy |
|---|---|---|
GEICO | $601 | $935 |
Nationwide | $645 | $1,170 |
Travelers | $657 | $947 |
State Farm | $699 | $781 |
Progressive | $743 | $1,385 |
Allstate | $759 | $1,266 |
Farmers | $820 | $1,634 |
*The above rates are based on the average costs of minimum coverage policies for teens aged 16 to 19.
What is the Cheapest Car Insurance for Teens in My State?
Click below to instantly find the most affordable auto insurance company specializing in family policies offering the lowest rates nationwide.
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:
While GEICO is the most affordable auto insurer nationally, the least expensive company varies by state. 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.
| GEICO | $689 | $1,306 | $617 |
| Nationwide | $705 | $1,364 | $659 |
| State Farm | $775 | $940 | $166 |
| Travelers | $777 | $1,361 | $583 |
| Progressive | $795 | $1,710 | $915 |
| Allstate | $902 | $1,828 | $926 |
| Farmers | $906 | $2,332 | $1,426 |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels.
Teens with learner's permits are covered under permissive use provisions rather than added as named drivers. This means they're insured while driving a family car with the owner's permission, provided the policy includes this coverage.
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.
| GEICO | $667 | $1,001 | $334 |
| Nationwide | $692 | $1,245 | $552 |
| Travelers | $739 | $999 | $259 |
| State Farm | $763 | $828 | $65 |
| Progressive | $826 | $1,659 | $832 |
| Farmers | $835 | $1,722 | $888 |
| Allstate | $856 | $1,421 | $565 |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels.
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.
| GEICO | $557 | $835 | $279 |
| Travelers | $613 | $803 | $190 |
| Nationwide | $645 | $1,164 | $518 |
| State Farm | $678 | $735 | $57 |
| Allstate | $689 | $1,083 | $395 |
| Progressive | $704 | $1,390 | $687 |
| Farmers | $764 | $1,565 | $801 |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels.
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.
| GEICO | $492 | $598 | $107 |
| Travelers | $497 | $624 | $127 |
| Nationwide | $537 | $905 | $367 |
| State Farm | $579 | $622 | $43 |
| Allstate | $587 | $731 | $144 |
| Progressive | $645 | $780 | $135 |
| Farmers | $774 | $915 | $141 |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels.
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.
| Alabama | Nationwide | $1,791 |
| Alaska | GEICO | $2,031 |
| Arizona | Travelers | $1,828 |
| Arkansas | Allstate | $1,694 |
| California | State Farm | $3,021 |
| Colorado | Kemper | $1,696 |
| Connecticut | GEICO | $1,607 |
| Delaware | State Farm | $2,888 |
| District of Columbia | GEICO | $1,774 |
| Florida | Nationwide | $4,064 |
| Georgia | Allstate | $1,688 |
| Hawaii | State Farm | $742 |
| Idaho | State Farm | $1,184 |
| Illinois | Progressive | $1,947 |
| Indiana | Nationwide | $1,701 |
| Iowa | State Farm | $1,624 |
| Kansas | Nationwide | $1,108 |
| Kentucky | Nationwide | $1,958 |
| Louisiana | State Farm | $5,074 |
| Maine | Concord Group | $1,027 |
| Maryland | Kemper | $1,917 |
| Massachusetts | State Farm | $1,220 |
| Michigan | GEICO | $2,469 |
| Minnesota | Nationwide | $1,866 |
| Mississippi | Progressive | $733 |
| Missouri | GEICO | $1,416 |
| Montana | Progressive | $1,601 |
| Nebraska | Allstate | $2,005 |
| Nevada | Nationwide | $2,334 |
| New Hampshire | Concord Group | $1,125 |
| New Jersey | GEICO | $2,466 |
| New Mexico | Allstate | $1,792 |
| New York | Kemper | $1,209 |
| North Carolina | State Farm | $1,237 |
| North Dakota | Nationwide | $1,107 |
| Ohio | Nationwide | $1,095 |
| Oklahoma | Allstate | $1,977 |
| Oregon | Nationwide | $1,454 |
| Pennsylvania | Nationwide | $1,330 |
| Rhode Island | State Farm | $1,851 |
| South Carolina | Auto-Owners Insurance Co | $2,506 |
| South Dakota | Allstate | $1,179 |
| Tennessee | Nationwide | $1,477 |
| Texas | Nationwide | $1,842 |
| Utah | Nationwide | $1,483 |
| Vermont | Concord Group | $1,280 |
| Virginia | Nationwide | $1,233 |
| Washington | Kemper | $1,776 |
| West Virginia | Nationwide | $1,570 |
| Wisconsin | Nationwide | $1,191 |
| Wyoming | Allstate | $1,516 |
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.
| Subaru Forester | $5,777 |
| Subaru Outback | $5,853 |
| MINI Cooper | $5,958 |
| Honda CR-V | $5,996 |
| Mazda CX-5 | $6,099 |
Teenagers are often considered high-risk drivers, so choosing a car that's cheaper to insure can substantially lower premiums. Vehicles rated high for safety help reduce costs, while expensive, fast cars may increase them.
Your teen's insurance costs depend on coverage type, vehicle choice, driving record and available discounts. We analyzed teen insurance rates to identify the most effective cost-reduction strategies while maintaining adequate financial protection.
You can slash your teen's insurance costs through smart policy decisions and discount maximization. Adding your teen to your family car insurance policy costs $3,048 annually on average, saving you $1,818 compared to an individual teen policy.
Follow the strategies below to reduce premiums while preserving the financial protection your family needs.
Some companies offer discounts for drivers who travel fewer than 7,500 miles annually. Restricting teens to daylight driving also reduces accident risk and keeps costs down.
Putting your teen's name on the title may force them to get individual insurance, which costs more. Teens under 18 can't legally purchase car insurance without a parent or guardian co-signing the policy.
Many companies offer discounts for teens who complete certified driver's education programs. Usage-based telematics can also provide savings if your teen drives safely.
Some companies automatically assign the highest-cost driver (usually the teen) to the most expensive vehicle. Specify which car should be assigned to your teen to avoid unnecessary costs.
Family policies offer multi-car and multi-driver discounts that can reduce overall premiums by up to 20%. With one renewal date and payment, you'll also simplify management.
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.
Discount | How It Works |
|---|---|
Good student | Offers savings to students who maintain a certain GPA or rank in the top percentage of their class |
Defensive driving | Rewards drivers who complete a certified defensive driving course |
Safe driver | Reduces rates for drivers with no at-fault accidents or traffic violations for a certain period |
Distant driver | Discounts for students who attend school far from home (usually at least 100 miles away) and don't drive the insured vehicle often |
Telematics-based programs | Rates based on driving behavior monitored by a device or app (such as Allstate's teenSMART and State Farm's Steer Clear), rewarding safe driving habits |
Multi-car | Savings for households insuring multiple vehicles on the same policy |
Annual mileage | Reduces rates for drivers who drive below a certain number of miles (usually 7,500) annually |
Family policy | Big savings when adding a teen driver to a parent or guardian's existing policy instead of a separate one |
Driver's education | Rewards teen drivers who complete a certified driver's education program |
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.
18-Year-Old
$4,866
18-Year-Old
$3,048This is 37% less expensive.
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.
18-Year-Old
$2,68618-Year-Old
$3,048This is 13% more expensive.
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.
*Seven states don't use gender as a rating factor: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.
MoneyGeek answers the most common questions about finding the cheapest car insurance for teens.
MoneyGeek answers the most common questions about finding the cheapest car insurance for teens.
Nationwide and GEICO offer the lowest rates for teen drivers on family policies. State Farm is often the top choice for affordable individual policies across age groups.
Insurers consider teen drivers high-risk due to inexperience and higher accident likelihood, leading to higher premiums than experienced drivers. Hawaii and Massachusetts are the only states that don't use age as a rating factor, resulting in lower rates for teen drivers. However, Massachusetts bases rates on years of driving experience.
Your teen can score discounts in several ways, including good student, distant student, defensive driving and telematics-based discounts. Check with your insurer about all options.
Teenagers under 18 can't legally sign insurance contracts on their own, but a parent or guardian can co-sign a policy. While this provides an individual policy, adding them to a family plan usually offers significant savings, even for older teens in college.
A car's make and model impact insurance costs. Vehicles with good safety ratings can lower premiums, while luxury or high-performance cars increase them. Research and choose safe and reliable vehicles.
Telematics monitors driving behavior through devices or apps, offering feedback and potential discounts based on safe driving habits. Teen drivers can benefit from telematics, as it helps them develop safer habits and may lower their premiums through programs that reward responsible driving.
Your insurance rates will likely increase after an at-fault accident, but the impact varies by company and state. Some insurers offer accident forgiveness for first-time incidents, while others may raise rates by 20% to 40%. The teen's driving record affects the entire family policy, so discuss safe driving expectations early.
Remove your teen when they move out permanently, get married or purchase their own vehicle and policy. College students living away from home can often stay on family policies with distant student discounts. If your teen joins the military, they may qualify for specialized coverage through providers like USAA.
Most insurers don't require adding teens with learner's permits since they're covered under permissive use provisions while driving with licensed adults. However, you should add them once they get their full license. Some companies offer better rates if you add them earlier, so check with your insurer.
Yes, most insurers offer good student discounts for teens maintaining a B average or 3.0 GPA. Some companies require verification through report cards or transcripts. These discounts can reduce premiums by 10% to 25%, making academic performance pay off for your family's insurance costs.
*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.
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:
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:
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
