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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.

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CHEAPEST CAR INSURANCE FOR TEENS - BY AGE

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 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

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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.

Cheapest Car Insurance for 16-Year-Old Teens - By State

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  • State
    Cheapest Company
    Annual Premium
  • Alabama
    GEICO
    $1,613
  • Alaska
    GEICO
    $2,325
  • Arizona
    GEICO
    $2,083
  • Arkansas
    Allstate
    $2,800
  • California
    Allstate
    $2,244
  • Colorado
    Allstate
    $2,470
  • Connecticut
    GEICO
    $2,680
  • Delaware
    Progressive
    $3,431
  • Florida
    GEICO
    $3,058
  • Georgia
    Allstate
    $3,756
  • Hawaii
    State Farm
    $704
  • Idaho
    Allstate
    $1,636
  • Illinois
    Progressive
    $2,535
  • Indiana
    Progressive
    $1,361
  • Iowa
    GEICO
    $1,326
  • Kansas
    Progressive
    $1,915
  • Kentucky
    Allstate
    $2,545
  • Louisiana
    State Farm
    $7,658
  • Maine
    GEICO
    $1,282
  • Maryland
    Allstate
    $3,993
  • Massachusetts
    State Farm
    $2,359
  • Michigan
    Progressive
    $5,492
  • Minnesota
    State Farm
    $2,872
  • Mississippi
    Nationwide
    $2,880
  • Missouri
    Allstate
    $1,417
  • Montana
    Allied
    $1,946
  • Nebraska
    Progressive
    $1,710
  • Nevada
    Allstate
    $4,235
  • New Hampshire
    Progressive
    $1,405
  • New Jersey
    GEICO
    $2,235
  • New Mexico
    Progressive
    $2,304
  • New York
    Allstate
    $6,871
  • North Carolina
    State Farm
    $1,223
  • North Dakota
    GEICO
    $1,601
  • Ohio
    Allstate
    $1,463
  • Oklahoma
    Progressive
    $2,121
  • Oregon
    Progressive
    $2,180
  • Pennsylvania
    Allstate
    $3,700
  • Rhode Island
    State Farm
    $2,405
  • South Carolina
    GEICO
    $2,556
  • South Dakota
    Allstate
    $1,725
  • Tennessee
    Progressive
    $1,703
  • Texas
    State Farm
    $2,811
  • Utah
    GEICO
    $2,168
  • Vermont
    Allstate
    $1,788
  • Virginia
    Progressive
    $1,339
  • Washington
    GEICO
    $2,224
  • Washington D.C.
    GEICO
    $1,962
  • West Virginia
    Nationwide
    $1,790
  • Wisconsin
    Progressive
    $1,493
  • Wyoming
    Allstate
    $1,874

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

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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

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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

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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.

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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

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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 best car insurance option, 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
  • 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

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

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.

USAA

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

female
Female

18-Year-Old

$2,686
male
Male

18-Year-Old

$3,048
Premiums for males are on average::$362 more

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

car
Camry

Annual Premium

$3,048
car2
Mustang

Annual Premium

$4,454
Owning a Mustang is:$1,406 more

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:

Safeco

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.

GEICO

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.

American Family

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.

Progressive

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.

Erie

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:

1

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.

2

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.

3

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.

4

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.

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Methodology

Average teen car insurance premiums are calculated based on rates for 100/300/100 comprehensive collision coverage with a $1,000 deductible for drivers aged 16 to 19. Unless otherwise stated, the average teen driver profiled has no tickets or accidents and drives a 2010 Toyota Camry LE.

Learn More About Car Insurance

Expert Advice: Navigating Auto Insurance for Teens & Young Drivers

  1. What factors should teens or their parents take into consideration when shopping for car insurance?
  2. What features should teens and parents look for when shopping for a car, and how will this impact car insurance rates?
  3. How can parents and teens budget for the extra expense of car insurance?

  • Dr. Jose Mendoza
    Dr. Jose MendozaAssistant Professor in Marketing, Jack Welch College of Business & Technology at Sacred Heart University
    Dr. Stephen Gray
    Dr. Stephen GrayAssistant Professor of Finance at Western Illinois University
    Daniel Roccato
    Daniel RoccatoClinical Professor of Finance at the University of San Diego School of Business
    J. Franklin Potts
    J. Franklin PottsAssociate Professor - Finance, Insurance & Real Estate at Baylor University
    John Longo
    John LongoProfessor of Finance at Rutgers Business School; Author of Buffett's Tips: A Guide to Financial Literacy and Life
    Laurie Meamber
    Laurie MeamberAssociate Professor of Marketing at George Mason University

About the Author


expert-profile

Devon Delfino is an independent journalist based in the Pacific Northwest. She earned her Bachelor of Science degree in journalism from Boston University. Her personal-finance reporting has been featured in publications such as the L.A. Times, Teen Vogue, Mashable, MarketWatch, CNBC and USA Today, among others.


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