How Much Is Car Insurance for 17-Year-Olds in 2024?

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Updated: May 20, 2024

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On a family policy, the cheapest car insurance available for a 17-year-old driver is approximately $2,685 from Nationwide. In contrast, a 40-year-old faces an annual rate of $1,004 to pay the cheapest full coverage car insurance policy, making the teen's insurance about $1,681 more expensive.

Factors like age and gender heavily influence car insurance costs for teens. Younger drivers, especially males, are charged higher rates due to their higher risk and lack of driving experience. Insurers use these factors to assess the likelihood of accidents and claims.

Key Takeaways

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The average annual cost of car insurance for 17-year-old males is about $3,170, significantly higher than the rates for more experienced drivers.

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Among teen drivers, 17-year-old males typically pay the most for car insurance, reflecting insurers' assessment of higher risk based on gender and age. However, 17-year-old females can also expect to pay very high rates.

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Factors like the teen's driving record, car type and the state they live in can significantly influence premiums. Telematics programs and good student discounts may lower costs.

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These rates reflect the average cost of car insurance for 17-year-old drivers as of 2024.

Average Cost of Car Insurance for 17-Year-Olds by Gender

On average, the cost of a full coverage car insurance policy for 17-year-olds is:

  • For a female: $2,884 per year; $240 per month
  • For a male: $3,170 per year; $264 per month

For drivers under 25, gender is also a key factor. Insurers typically charge young male drivers more, considering them at higher risk on the road. Luckily, this gender-based difference in rates lessens after age 25.

Data filtered by:Results filtered by:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
FemaleFamily Policy Annual Premium$2,884Family Policy Monthly Premium$240
MaleFamily Policy Annual Premium$3,170Family Policy Monthly Premium$264

Why Car Insurance Is Expensive for Teen Drivers

Teen drivers, particularly drivers aged 16–19, face higher insurance costs due to their increased risk of motor vehicle crashes. The Centers for Disease Control and Prevention (CDC) found that the risk of motor vehicle crashes is highest among teens aged 16–19, almost three times that of drivers over age 20 per mile driven. This age group, especially male drivers, faces a significantly higher crash death rate. The risk increases with each additional teen or young adult passenger in the car.

Meanwhile, the statistics from the Insurance Institute for Highway Safety (IIHS) reveal that teen drivers are at a greater risk of being involved in fatal accidents, being nearly three times more likely to be in a fatal crash per mile driven compared to drivers over 20.

However, as teens gain driving experience and maintain safe driving records, their insurance rates tend to decrease yearly. In the meantime, there are several discounts and methods to help reduce their insurance costs immediately.

Cheapest Car Insurance Companies for 17-Year-Olds

The cheapest car insurance companies for 17-year-olds are:

  • Full Coverage Policy: Nationwide ($2,685 per year; $224 per month)
  • Liability-Only Policy: GEICO ($667 per year; $56 per month)

Regularly collect car insurance quotes for your teen before your policy renews. Insurers rate different driver profiles uniquely, and as your teen accumulates driving experience, demonstrates reliability or uses an older car, their risk profile improves. As these factors evolve, you might find cheaper coverage for your teen with another insurer.

Data filtered by:Results filtered by:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
NationwideFamily Policy Annual Premium$2,685Family Policy Monthly Premium$224
GEICOFamily Policy Annual Premium$2,863Family Policy Monthly Premium$239
State FarmFamily Policy Annual Premium$3,030Family Policy Monthly Premium$253
AllstateFamily Policy Annual Premium$3,218Family Policy Monthly Premium$268
FarmersFamily Policy Annual Premium$3,311Family Policy Monthly Premium$276
TravelersFamily Policy Annual Premium$3,316Family Policy Monthly Premium$276
ProgressiveFamily Policy Annual Premium$3,572Family Policy Monthly Premium$298

Cost of Car Insurance for 17-Year-Olds in an Individual Policy vs. Family Policy

A 17-year-old teen will pay $5,817 more on a solo policy than if their parents add them to a family insurance plan:

  • On an individual policy: $8,843 per year
  • On a family policy: $3,027 per year

The cheapest car insurance for teens comes with a family policy. A "family policy" refers to a policy that covers all household members. Adding a teen will raise the overall rates, but it's still about three times cheaper than if the teen had a separate policy.

Some insurers require assigning each driver a specific car. To lower premiums in such cases, we recommend giving the cheapest and safest car to the youngest driver, which can help reduce insurance costs.

Data filtered by:Results filtered by:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
$3,027Individual Premium$8,843Increase in Premium$5,817

Can a 17-Year-Old Buy Car Insurance?

Since they are minors, 17-year-olds can only buy an individual car insurance with the written consent of a parent or guardian.

If a 17-year-old is legally emancipated, they have the same contractual rights as an adult and can purchase their own car insurance policy. If your teen driver borrows your car, consider adding your child to your car insurance — this is often more straightforward and cost-effective than the minor obtaining an independent policy.

Average Cost of Car Insurance for 17-Year-Olds by State

In our table below, you can compare average costs for teen drivers between the states, demonstrating considerable differences in premiums. For example, teens in Florida pay $1,875 a year more for the same coverage as teens in California. The cheapest state for 17-year-olds is Hawaii, with a $998 average annual premium, while teens in Louisiana tend to pay the most with a $7,459 premium.

Car insurance rates for teens vary by state due to different factors. In Michigan, no-fault insurance laws and a high number of uninsured drivers hike up rates. New York's dense population increases risks, leading to higher costs. However, Hawaii rates are so low for teen drivers because insurers are prohibited from using age or driving experience as a rating factor.

Data filtered by:Results filtered by:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
AlabamaFamily Policy Annual Premium$2,865Family Policy Monthly Premium$239
AlaskaFamily Policy Annual Premium$2,997Family Policy Monthly Premium$250
ArizonaFamily Policy Annual Premium$2,932Family Policy Monthly Premium$244
ArkansasFamily Policy Annual Premium$2,448Family Policy Monthly Premium$204
CaliforniaFamily Policy Annual Premium$3,758Family Policy Monthly Premium$313
ColoradoFamily Policy Annual Premium$3,018Family Policy Monthly Premium$252
ConnecticutFamily Policy Annual Premium$2,573Family Policy Monthly Premium$214
DelawareFamily Policy Annual Premium$3,167Family Policy Monthly Premium$264
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Teen drivers often can't access accident forgiveness due to age and experience requirements. Insurers typically need the driver to have a clean record for five years and be over 25. Their best option is to enroll in telematics programs, which are great for learning safe driving habits early on.

How to Get Cheap Car Insurance for 17-Year-Olds

For cheap car insurance for 17-year-olds, we recommend adding them to your family policy. We explore this option and more below to lower your teen driver's premiums:

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    Encourage good grades

    Many insurers offer "good student" discounts for teens maintaining a high GPA. Encourage your teen to keep their grades up to qualify for these savings.

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    Enroll in defensive driving courses

    Have your teen take a defensive driving course. Not only do these courses teach valuable driving skills, but they can also lead to insurance discounts. Insurers like State Farm and Allstate also offer teen-focused telematics programs that provide savings if your teen drives safely.

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    Select a safe vehicle

    Choose a car for your teen that's known for safety and is not high-performance. Safer, more economical cars often attract lower insurance rates. Some providers will allow you to assign a primary driver for each vehicle. Assigning your teen to a specific, budget-friendly car can help lower insurance costs. The cheapest cars to insure are typically older, less expensive models with good safety ratings.

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    Opt for higher deductibles

    Consider choosing a higher car insurance deductible to reduce your premium. Ensure it's an amount you're comfortable paying in the event of a claim. Deductibles only apply to collision and comprehensive coverages, so if you have a liability-only policy, no deductibles are applied.

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    Keep them on your policy

    Adding your teen to your own policy can be more cost-effective than a separate policy, taking advantage of your longer driving history and potentially better credit. Additionally, minors cannot legally purchase their own policy without a parent or guardian to co-sign.

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    Limit their driving

    Lower mileage generally means lower premiums with specific policies. Encourage your teen to drive less by carpooling, using public transit, rideshare services or biking when possible.

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    Compare insurance options

    Shop around and compare insurance quotes from various providers to find your teen driver's best rates and coverage.

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    Maintain a clean driving record

    Emphasize the importance of safe driving to your teen. Traffic violations and at-fault accidents can significantly increase insurance costs.

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    Consider safe driving programs

    Many insurers offer discounts for enrolling in telematics programs that monitor driving habits. This option is particularly relevant for 17-year-olds who may start driving unsupervised, as it encourages them to maintain safe driving practices. These programs provide potential discounts and valuable feedback on driving habits, helping young drivers develop safer behaviors on the road.

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    Regularly review coverage

    As your teen gains more driving experience, their insurance needs may change. Regularly review and adjust your policy to ensure it remains cost-effective.

Car Insurance Discounts for Teen Drivers

Stack all available car insurance discounts to get cheap car insurance for teens. Enroll in telematics-based programs and secure safe driver discounts to encourage responsible driving, qualifying your teen for savings. Additional discounts can provide further financial relief for teens who drive less, such as students away at college or teens with low annual mileage.

How It Works

Good Student Discount

Rewards students excelling academically, like those with high GPAs or top class rankings.

Benefits drivers who finish an accredited defensive driving program, an intelligent choice for 17-year-olds honing their skills.

Safe Driver Discount

Reduces premiums for maintaining a spotless driving record.

Student Away at College

Rewards students studying over 100 miles from home without regular access to a car.

Lowers rates for safe and responsible driving, monitored through technology. These discounts are ideal for young drivers establishing safe driving habits.

FAQ About Car Insurance Costs for 17-Year-Olds in 2024

Whether you're a parent looking to add a teen to your policy or a young driver seeking information, we cover a range of topics to guide you through the ins and outs of car insurance for 17-year-olds.

How much is car insurance for a 17-year-old monthly?
Can a 17-year-old driver buy their own car insurance policy?
Can you buy insurance for a 17-year-old driver?
Does a learner’s permit driver need car insurance?

About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.