Car Insurance For Teens & Young Drivers: Cheapest and Best Companies in 2023

• The cheapest car insurance companies for teens
  
• The best car insurance companies for teens
  
• How much does car insurance for teens cost on average?
  
• How to get insurer discounts for teen car insurance
  
• Other ways to save on car insurance for teens

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.

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 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.

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.

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.

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.

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 consider other insurers if they are seeking a better family rate.

Although 18-year-old teens are finishing up high school or may already be in college, 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.

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 getting multiple quotes when shopping for coverage when you have a teenager on your policy, as the cheapest company can change depending on many factors, including your location and other individual rating factors such as credit history, gender and motor vehicle records of all drivers on the policy.

If a teen decides to move out of their family’s home and establishes a new permanent address, they will need to purchase their own car insurance policy. But a 19-year-old away at college with a car is still considered a member of the family household if they have not established residency in their school’s location — they can remain on the family 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.

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.

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.

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.

State Farm offers four primary student-related discounts that can help lower costs, along with driving behavior programs that help you save.

If you're a teen student living away from home, your parents can often get a discount on their premium. Allstate offers one of the most competitive examples of this.

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.

Many car insurance companies offer discounts specifically tailored to teen drivers. These can include good student and student away at college discounts. Here are some specific examples worth noting:

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 upfront cost. At a minimum, you must make the first month's premium payment to activate a car insurance policy.