If you’re looking for the cheapest car insurance for a teen driver, the most affordable way to cover them is to add them to the family policy, which can save families thousands of dollars per year compared to buying individual policies.
But even if you already know to add a teen to your policy, you can still save by getting quotes from multiple insurance companies. MoneyGeek collected hundreds of quotes to find the cheapest car insurance companies for teens on average. We also have provided recommendations for the best car insurance companies for teens overall, as certain companies tailor policies to young drivers better than others.
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Cheapest Car Insurance for Teens and Young Drivers
Car insurance companies are taking a more significant risk by insuring teens because young and inexperienced drivers are more likely to get into an accident. As a result, car insurance for teens is more expensive, but you can still find savings by shopping around. MoneyGeek found that Allstate or GEICO are the cheapest options on average for families looking to add a teen to a car insurance policy, but that it could change depending on our driver’s age and state.
Cheapest for 16-year-olds: Allstate
Cheapest for 17-year-olds: GEICO
Cheapest for 18-year-olds: GEICO
Cheapest for 19-year-olds: State Farm
Our data provides guidance on cheap car insurance for teens, nationally and in your state. But your quote will differ based on many factors, including your own driving history. That’s why it’s crucial to comparison shop for teen auto insurance to get the best rate and find out how to reduce your car insurance costs.
Cheapest Car Insurance for 16-Year-Old Teens - Nationally and by State
If you’re adding a 16-year-old teen to a family policy, the cheapest company on a national level is Allstate or GEICO. These companies charged our sample family an average of $3,146 and $3,152 per year. Competitors tended to charge hundreds of dollars more.
Cheapest Car Insurance for 16-Year-Old Teens - National
Insurance may be priced differently depending on your state. In the 50 states and Washington D.C. Allstate is the cheapest in 15 states for 16-year-old teens, more than any other company. GEICO and Progressive are a close second, the cheapest in 13 states. Browse to your state to find which company is cheapest on average where you live. Parents should also note that a learner's permit may not be enough to get a driver covered by your insurance.
Cheapest Car Insurance for 16-Year-Old Teens - By State
Cheapest Car Insurance for 17-Year-Old Teens - Nationally and by State
If you’re insuring a 17-year-old teen on your family policy, GEICO and Allstate are the most affordable national companies on average. Unlike the 16-year-old age group, GEICO is the cheapest overall with an average cost of $2,823 per year. State Farm, Progressive and Nationwide all quoted our sample family at over $3,000 per year.
Cheapest Car Insurance for 17-Year-Old Teens - National
At a state level, GEICO and Allstate are still your best bet for affordable coverage for a 17-year old teen. GEICO is the cheapest company in 20 states and Allstate is the cheapest in 17. There is no state in which Nationwide is the cheapest insurer on average, so families with a teenager looking for a quote should start with other insurers.
Cheapest Car Insurance for 17-Year-Old Teens - By State
Cheapest Car Insurance for 18-Year-Old Teens - Nationally and by State
Although 18-year-old teens are finishing up high-school, it still makes sense to add them to a family policy to save money. Nationally, GEICO is the clear winner for affordability. Families paid an average of $2,526 per year, more than $100 cheaper than the runner-up, Allstate.
Cheapest Car Insurance for 18-Year-Old Teens - National
At a state level, our results for 18-year-old teens are more divided. GEICO and Allstate are the cheapest companies in 17 states each, but there are nine states in which State Farm is the cheapest and eight in which Progressive is the most affordable option. The range of quotes shows the importance of shopping between insurers when you have a teenager on your policy, as the cheapest company can change depending on many factors, including your location.
Cheapest Car Insurance for 19-Year-Old Teens - Nationally and by State
Once teenagers get older and move out of their parent’s home, they will need to purchase their own car insurance policy. For 19-year-old teens who buy their own policy, we found that State Farm and Allstate are the cheapest companies on average. State Farm quoted our sample teenager at a rate of $2,462 per year.
Cheapest Car Insurance for 19-Year-Old Teens - National
However, it could be a different story for 19-year-old teenagers depending on their state. Although State Farm is the cheapest insurer nationally, it’s only the cheapest company for our sample teen in 13 states. GEICO is the most affordable option for 19-year-old teens in 26 states, meaning there’s a good chance it’s one of the cheapest for you where you live.
Cheapest Car Insurance for 19-Year-Old Teens - States
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Four Best Car Insurance Companies for Teens and Young Drivers
Car insurance for teen drivers still depends on many factors, and your goals will figure into that equation. For example, you may be looking for the cheapest option for the average teen or looking for good student or military discounts. Those will impact your car insurance options, though rates will still vary from person to person.
With that in mind, consider the best options for four different situations.
Best Teen Car Insurance for Affordability: Allstate
Allstate stands out in the teen driver category because it is consistently among the cheapest insurers for all ages, and it also offers a wide array of money-saving options for policyholders with a teen driver on their family policy.
- Allstate has a program called Drivewise, which gives teen drivers feedback and can translate to savings for safe drivers.
- It also has other options for saving in the form of “smart student” discounts for good grades, which can help lower costs.
Best Teen Car insurance for Student Discounts: State Farm
State Farm offers four primary student-related discounts that can help lower costs, along with driving behavior programs that help you save.
State Farm's core discounts include:
- Good student
- Student away at school
- Driver training
- Safe driving habits
The insurer also have Steer Clear and Drive Safe and Save programs, which fit into that last discount category, and the latter can save you up to 30% on your car insurance costs. Both programs can be completed via an app, and Drive Safe and Save can be completed via OnStar. These factors help make it the cheapest option for those with student drivers.
Best Teen Car insurance for Student Away from Home: Allstate
If you're a teen student living away from home, your parents can often get a discount on their bill. Allstate offers one of the most competitive examples of this.
Allstate offers a discount for those whose teen drivers are under 21 and attend school at least 100 miles away from where their car is garaged. That’s just one of three ways to access the company’s smart student discount. If your young driver fits that description, this can decrease the cost of insuring them while attending college. This is generally the cheapest option for policyholders in that situation.
Best Teen Car insurance for Military Students: USAA
USAA specializes in insuring drivers in the military, and it's cheap for teens and their parents who want to save on their car insurance.
MoneyGeek’s found that USAA is the cheapest option for teen drivers who are in military school or whose parents have a military background. The company offers a robust array of discounts for these young drivers, including safe driving and good student discounts and a driver training discount. Plus, it sets up that teen driver for success, giving qualifying drivers a 10% family legacy discount once they get their own policy.
What Is the Average Cost of Car Insurance for Teens?
It depends on how you look at it. For example, you could either consider the cost of an individual policy for a teen driver — this tends to be the more expensive option. Or you could consider the cost of adding that driver to a family policy. Here are the averages for those two segments:
- Average cost for an individual teen policy: $4,866
- Average cost to add a teen to a family policy: $3,048
Keep in mind that the above figures are calculated based on an 18-year-old driver. The average cost to add car insurance for a 16-year-old or an older teen to a parent’s policy includes only the teen driver’s coverage cost. It does not represent the combined costs.
Cost of Insuring Teen Males vs. Females
On average, it costs more to add a male teen driver to your family policy than a female teen driver. In fact, the cost is a difference of over $350 per year, according to MoneyGeek’s analysis. During these critical teen years, insurance companies have to go by average statistics, rather than an earned driving record to calculate the costs. According data from the National Highway Traffic Safety Administration, male drivers are more likely to be involved in fatal accidents than female drivers. This makes them a higher risk and therefore more expensive to insure.
Average Insurance Costs for 18-Year-Olds Male vs. Female
This is 13% more expensive.
Cost of Insuring a Teen With a Camry vs. a Mustang
The type of car your teen drives will also impact the premium cost. For example, a vehicle that’s rated high for safety can help lower the costs while an expensive, fast car might increase the costs. The type of vehicle is an important consideration when adding a teen and a second or third vehicle to your family policy. For reference, here’s how that scenario might play out with two different cars:
Average Teen Insurance Cost by Vehicle Type
This is 46% more expensive.
The Insurance Institute for Highway Safety is a great place to start looking at safety ratings for specific vehicles.
Car Insurance Discounts for Teens
Many car insurance companies offer discounts specifically tailored to teen drivers. These can include things like good student discounts and distance college students. Here are some specific examples worth noting:
For those who have a policy with the company for at least a year, there is a new teen reward discount, which can save up to 27% when a teen is added to a policy.
Students with at least a B average or who have landed on the dean’s list or achieved similar accolades may access a discount of up to 15% off.
This company offers young volunteers an option to earn a discount on their auto insurance. You’d have to be under 25 and complete at least 40 hours of volunteer work per year to qualify.
Those who turn 18 and have an existing policy can earn an average of a 10% drop in rates and another 16% drop at age 21. The Snapshot program can also help young drivers save.
For those who have been with the company for at least three years (in some cases, though, this is waived), the company will forgive the first at-fault accident. Erie Insurance offers a rate-lock, which would freeze your rates year after year unless you alter the policies by adding another car or driver.
How to Get Cheaper Car Insurance for Teens and More Advice for Parents
There are other ways to get affordable car insurance for teens and lower your rates. For example:
Limit their driving distances
Some companies will offer discounts to drivers who drive a relatively low amount per year. Limited driving to daylight hours can also help decrease their chances of getting in a car accident, which would increase the costs.
Keep the car title in your name
In some cases, putting your child’s name on the title will mean they need to get their own insurance, which tends to be more expensive.
Ask your insurance agent to assign your teen to the cheapest car.
Some companies may automatically assign the highest-cost driver (typically a teen) to the most expensive vehicle, which can further inflate costs. So it’s always worth specifying which car should be assigned to them.
Have your teen take a driving course
Some companies will offer discounts for those who complete such courses like driver’s education.
The costs for insuring a teen driver vary greatly depending on factors such as what they drive, how well they drive and where they live. Thankfully, there are many discounts available that reward teens for being good drivers and citizens and getting good grades. It’s important to get several quotes so you can compare policies and keep your costs down.
In addition to discounts, opting for a no down payment car insurance allows you to get affordable car insurance with a low up front cost.
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Learn More About Car Insurance
Expert Advice: Navigating Auto Insurance for Teens & Young Drivers
- What factors should teens or their parents take into consideration when shopping for car insurance?
- What features should teens and parents look for when shopping for a car, and how will this impact car insurance rates?
- How can parents and teens budget for the extra expense of car insurance?
- What steps can teens take to improve their driving habits and stay safe on the road?
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