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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. Teens under the age of 18 cannot legally purchase car insurance, but a parent or guardian can purchase a separate policy for them or co-sign a policy with them, but it would cost thousands more a year than adding the 16 or 17-year-old to the family policy.

But even if you already know to add a teen to your family 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 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
Company
Annual Premium

1.

Allstate

$3,146

2.

GEICO

$3,152

3.

State Farm

$3,406

4.

Progressive

$3,570

5.

Nationwide

$3,787

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
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
Company
Premium

1.

GEICO

$2,823

2.

Allstate

$2,850

3.

State Farm

$3,019

4.

Progressive

$3,571

5.

Nationwide

$3,751

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.

Cheapest Car Insurance for 17-Year-Old Teens - By State
State
Cheapest Company
Annual Premium

Alabama

GEICO

$1,331

Alaska

GEICO

$2,325

Arizona

GEICO

$1,757

Arkansas

Allstate

$2,514

California

Allstate

$2,244

Colorado

Allstate

$2,122

Connecticut

GEICO

$2,637

Delaware

GEICO

$2,960

Florida

GEICO

$3,058

Georgia

Allstate

$3,347

Hawaii

State Farm

$704

Idaho

Allstate

$1,471

Illinois

GEICO

$2,430

Indiana

GEICO

$1,290

Iowa

GEICO

$1,061

Kansas

Allstate

$2,035

Kentucky

Allstate

$2,276

Louisiana

State Farm

$6,674

Maine

GEICO

$1,282

Maryland

Allstate

$3,993

Massachusetts

State Farm

$2,359

Michigan

Progressive

$5,492

Minnesota

State Farm

$2,584

Mississippi

Allstate

$2,711

Missouri

Allstate

$1,237

Montana

State Farm

$1,882

Nebraska

Progressive

$1,846

Nevada

Allstate

$3,755

New Hampshire

Progressive

$1,438

New Jersey

GEICO

$2,203

New Mexico

Progressive

$2,304

New York

Allstate

$6,219

North Carolina

State Farm

$1,197

North Dakota

GEICO

$1,601

Ohio

GEICO

$1,348

Oklahoma

Allstate

$1,917

Oregon

GEICO

$1,824

Pennsylvania

Allstate

$3,398

Rhode Island

State Farm

$2,184

South Carolina

GEICO

$2,556

South Dakota

Allstate

$1,543

Tennessee

GEICO

$1,790

Texas

State Farm

$2,533

Utah

GEICO

$1,815

Vermont

Allstate

$1,488

Virginia

Progressive

$1,339

Washington

GEICO

$2,224

Washington D.C.

GEICO

$1,614

West Virginia

State Farm

$1,677

Wisconsin

GEICO

$1,498

Wyoming

Allstate

$1,668

Cheapest Car Insurance for 18-Year-Old Teens - Nationally and by State

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.

Cheapest Car Insurance for 18-Year-Old Teens - National
Company
Annual Premium

1.

GEICO

$2,526

2.

Allstate

$2,639

3.

State Farm

$2,702

4.

Progressive

$3,177

5.

Nationwide

$3,687

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.

State
Cheapest Company
Annual Premium

Alabama

GEICO

$1,222

Alaska

GEICO

$2,146

Arizona

GEICO

$1,618

Arkansas

Allstate

$2,250

California

Allstate

$2,121

Colorado

Allstate

$2,037

Connecticut

GEICO

$2,449

Delaware

GEICO

$2,623

Florida

GEICO

$2,864

Georgia

Allstate

$2,913

Hawaii

State Farm

$704

Idaho

Allstate

$1,301

Illinois

Progressive

$2,076

Indiana

GEICO

$1,184

Iowa

GEICO

$966

Kansas

Progressive

$1,790

Kentucky

Allstate

$2,001

Louisiana

State Farm

$5,866

Maine

Allstate

$1,190

Maryland

Allstate

$3,419

Massachusetts

State Farm

$2,359

Michigan

Progressive

$4,614

Minnesota

State Farm

$2,330

Mississippi

Allstate

$2,459

Missouri

Allstate

$1,173

Montana

State Farm

$1,703

Nebraska

Progressive

$1,675

Nevada

Allstate

$3,204

New Hampshire

Progressive

$1,172

New Jersey

GEICO

$2,158

New Mexico

Progressive

$1,844

New York

Allstate

$5,589

North Carolina

State Farm

$1,168

North Dakota

Progressive

$1,431

Ohio

GEICO

$1,238

Oklahoma

Allstate

$1,755

Oregon

GEICO

$1,660

Pennsylvania

Allstate

$3,019

Rhode Island

State Farm

$1,998

South Carolina

GEICO

$2,175

South Dakota

Allstate

$1,413

Tennessee

GEICO

$1,635

Texas

State Farm

$2,275

Utah

GEICO

$1,669

Vermont

Allstate

$1,416

Virginia

Progressive

$1,040

Washington

GEICO

$2,075

Washington D.C.

GEICO

$1,478

West Virginia

State Farm

$1,536

Wisconsin

GEICO

$1,367

Wyoming

Allstate

$1,453

Cheapest Car Insurance for 19-Year-Old Teens - Nationally and by State

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.

Cheapest Car Insurance for 19-Year-Old Teens - National
Company
Annual Premium

1.

State Farm

$2,462

2.

Allstate

$2,467

3.

GEICO

$2,473

4.

Progressive

$3,415

5.

Nationwide

$3,521

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
State
Cheapest Company
Annual Premium

Alaska

GEICO

$2,017

Alabama

GEICO

$1,449

Arkansas

GEICO

$2,197

Arizona

GEICO

$1,275

California

Allstate

$2,148

Colorado

Allstate

$2,001

Connecticut

GEICO

$2,373

Washington D.C.

GEICO

$1,567

Delaware

State Farm

$2,827

Florida

GEICO

$2,534

Georgia

Allstate

$2,723

Hawaii

GEICO

$708

Iowa

GEICO

$979

Idaho

State Farm

$1,277

Illinois

GEICO

$2,012

Indiana

GEICO

$1,109

Kansas

Allstate

$1,773

Kentucky

State Farm

$2,022

Louisiana

State Farm

$5,480

Massachusetts

GEICO

$1,680

Maryland

Allstate

$2,979

Maine

GEICO

$1,154

Michigan

GEICO

$4,769

Minnesota

State Farm

$2,275

Missouri

Allstate

$1,346

Mississippi

Allstate

$2,112

Montana

State Farm

$1,578

North Carolina

GEICO

$727

North Dakota

State Farm

$1,390

Nebraska

Allstate

$1,376

New Hampshire

GEICO

$1,273

New Jersey

GEICO

$2,120

New Mexico

State Farm

$2,263

Nevada

GEICO

$2,559

New York

Allstate

$5,585

Ohio

GEICO

$1,356

Oklahoma

GEICO

$1,740

Oregon

GEICO

$1,943

Pennsylvania

State Farm

$2,763

Rhode Island

State Farm

$1,840

South Carolina

GEICO

$2,003

South Dakota

State Farm

$1,473

Tennessee

State Farm

$1,799

Texas

GEICO

$1,850

Utah

GEICO

$1,616

Virginia

Progressive

$1,324

Vermont

Allstate

$1,416

Washington

GEICO

$1,794

Wisconsin

GEICO

$1,385

West Virginia

State Farm

$1,521

Wyoming

Allstate

$1,565

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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
  • Allstate has a program called Drivewise, a telematics program, which gives teen drivers feedback on their driving habits.
  • 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 student-focused discounts include:

  • Good student
  • Student away at school
  • Driver training
  • Safe driving habits

The insurer also has 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 a mobile 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 premium. 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 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 (who is 18 or over and can legally purchase it themselves or at 16 or 17 has an individual policy with a co-signer) — this tends to be the much 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 to data from the National Highway Traffic Safety Administration, teen male drivers are more likely to be involved in fatal accidents than female teen 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.

RELATED TOPIC ABOUT SPORT CARS INSURANCE

Car Insurance Discounts for Teens

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:

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 family 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 Insurance

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% reduction 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 rate year after year unless you alter the policy 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 teen's name on the title will mean they need to get their own insurance, which tends to be more expensive.

If your under-18 teen has their own car, most states require the title to include the parent or guardian, even if the teen actually paid for the vehicle. And as a reminder, teens under age 18 are not legally allowed to purchase car insurance; however, a parent or guardian can purchase or co-sign a separate policy for a minor teen.

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 to teens who complete certified driver's education programs.

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.

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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?
  4. What steps can teens take to improve their driving habits and stay safe on the road?
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Joe Roberts, Ph.D.

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Chad Nehring

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Dr. Stephen Gray

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About Devon Delfino


Devon Delfino headshot

Devon Delfino is an independent financial journalist covering topics in finance and marketing for six years. 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.

Devon earned a Bachelor of Science degree in Journalism from Boston University.


sources