Cheapest Car Insurance for Teens 2024

Nationwide and GEICO offer the cheapest full coverage family car insurance policy for teen drivers. However, on an individual policy, teen drivers can find the most affordable average rates with State Farm.

An individual teen policy costs $4,866 per year on average, while adding a teen to a family policy averages $3,048 annually. The teen's gender also influences the rate; male teens are generally 13% more expensive to insure than females, largely because they are statistically more likely to engage in risky driving behavior and have a higher accident rate than female teens.

MoneyGeek found that Nationwide and GEICO are the cheapest options on average for families looking to add a teen to a car insurance policy. However, the cheapest options could change depending on the teen driver's age and state.

Teen drivers typically face the highest car insurance premiums compared to other age groups. Their relative inexperience on the road, coupled with statistics showing they are more prone to accidents, classifies them as high-risk for insurers.

Opting for a family car insurance policy is generally more cost-effective than securing individual coverage for a teenager. Insurance companies often offer multi-car and multi-driver discounts, which can substantially lower the overall premium — adding a teen to a family policy could result in a 10-20% discount on the total cost. This bundled approach also simplifies management, as there's only one renewal date and one premium payment to remember.

The cheapest car insurance companies for 16-year-old drivers are:

• On a family policy: Nationwide ($2,718 annually)
• On an individual policy: State Farm ($3,732 annually)

The average cost of car insurance for 16-year-olds is significantly more expensive due to their limited driving experience and higher risk profile. However, there are ways to manage these costs. Families can add 16-year-olds to their existing policies for discounts or research the cheapest cars to insure for teenagers. Compare rates and coverage options to find the most cost-effective solution.

The cheapest insurance can vary widely based on your state. Nationwide offers the cheapest insurance for 16-year-olds in 17 states, while Allstate and GEICO are the cheapest options in eight and seven states, respectively.

Browse the table below to find which company is cheapest on average where you live. Parents should also note that teens with learners' permits may not be able to be formally added to an insurance policy. In this case, they would likely be covered by permissive use.

The most affordable insurance providers for 17-year-old teen drivers are:

• On a family policy: Nationwide ($2,685 annually)
• On an individual policy: State Farm ($3,312 annually)

Car insurance for 17-year-olds remains expensive but costs may start to decrease slightly as they gain more driving experience. Being added to a family policy can still offer cost benefits, and good student discounts may also apply. Shop around and consider the type of car they'll be driving to find the most affordable rates.

Nationwide offers the most affordable insurance for 17-year-old drivers in 17 states, making it the top option in this list overall, followed by GEICO and Allstate.

Filter the table below to help you find the most affordable insurer in your state and pinpoint the best options for your specific needs.

The most budget-friendly car insurance companies for 18-year-old teen drivers are:

• On a family policy: GEICO ($2,431 annually)
• On an individual policy: State Farm ($2,966 annually)

At 18, drivers have more experience, which can lead to a modest reduction in insurance premiums. However, rates are still relatively high compared to older age groups. Many 18-year-olds are heading to college, and some insurers offer distant student discounts for those studying away from home without a car. In addition, college students can stay on their family's policy as long as their family home is considered their permanent residence. As always, compare different providers and consider vehicle type to find the most budget-friendly insurance options.

Allstate is the most affordable insurance provider for 18-year-olds in 14 states, followed by GEICO and Nationwide. In addition to age, your location can also significantly impact your car insurance costs.

The cost of car insurance for an 18-year-old driver can differ greatly between states. Insurance companies might also have state-specific discounts or varying eligibility criteria. Compare quotes from at least three providers in your state to find the best deal.

The providers that offer the cheapest full coverage car insurance for 19-year-old drivers are:

• On a family policy: Nationwide ($2,066 annually)
• On an individual policy: State Farm ($2,531 annually)

The cost of car insurance for 19-year-olds is often higher than for older age groups yet slightly cheaper than for 16- to 18-year-olds. Leveraging good student and distant student discounts, opting for sensible vehicles and maintaining a clean driving record can be key to navigating through these transitional insurance years effectively and affordably.

Nationwide offers the lowest premiums for 19-year-old drivers in 12 states, with GEICO and Allstate each offering the most competitive rates in eight states.

Auto insurance premiums can vary significantly from one state to another, so it's key to shop locally and compare. Use the table below to find the cheapest average insurer in your state.

The average cost of car insurance for a teen driver is:

• On a family policy: $3,048
• On an individual policy: $4,866

Adding an 18-year-old to your policy could save over a thousand dollars compared to getting them their own policy. However, there are scenarios where individual insurance may be more advantageous. For example, if the teenager drives a high-performance or luxury vehicle that's costly to insure, separating them into an individual policy could prevent a steep increase in the family's overall premium. This allows the rest of the family to maintain lower rates while tailoring the teen's coverage to their specific needs.

Adding a male teen driver to your family policy typically costs over $350 more annually than adding a female teen. Six states do not allow gender as a rating factor: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

Insurance companies rely on statistics during these years since teens lack an extensive driving record. Data from the National Highway Traffic Safety Administration shows male teen drivers face higher fatal accident risks than females, making them costlier to insure.

MoneyGeek found that for teen drivers aged 16–19, the following cars are the cheapest to insure based on the newest car models for a full coverage policy:

• 16-year-old: Subaru Forester ($5,777)
• 17-year-old: Subaru Forester ($4,698)
• 18-year-old: Subaru Forester ($4,132)
• 19-year-old: Subaru Forester ($2,865)

Premiums can skyrocket for teenagers, who are often categorized as high-risk drivers, so opting for a car that's cheaper to insure can significantly lower these costs. 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.

The Insurance Institute for Highway Safety is a great place to start looking at safety ratings.

The table below shows the cheapest car models to insure based on the teen driver's age and desired coverage level.

Teen drivers can benefit from a variety of discounts to reduce insurance costs. Good student discounts reward academic achievements, while defensive driving discounts are granted to those who complete approved driving courses. Additionally, telematics-based programs offer savings based on safe driving habits monitored via devices or apps.

Many insurance providers, including Erie, State Farm, Allstate and GEICO, have special car insurance discounts tailored for teen drivers. If your teen is gearing up to hit the road, whether on their own policy or as an addition to the family's, these discounts can be a helpful way to manage the expenses associated with insuring young drivers.

The costs of insuring a teen driver vary greatly depending on what type of car they drive, how well they drive and where they live. Thankfully, many discounts are available that reward teens for being good drivers and getting good grades. Always get several quotes to 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.

MoneyGeek answered the most common questions about securing the cheapest car insurance options specifically for teens. Equip yourself with the knowledge you need to make a smart financial decision for your family.