Cheapest Car Insurance for Teens 2024


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ByMark Fitzpatrick
Reviewed byMark Friedlander
Contributions by5 experts
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ByMark Fitzpatrick
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Reviewed byMark Friedlander
Contributions by5 experts
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Updated: May 20, 2024

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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 Logo IconCheapestCar InsuranceFor Teens
2024
Key Takeaways

family icon

For families with 16- to 17-year-old drivers, opting for a family car insurance policy is a wise choice. It streamlines coverage and generally saves money with a single, comprehensive plan.

car2 icon

Car choice and driving behavior influence teen insurance premiums, with safe, inexpensive vehicles and defensive driving courses potentially reducing costs.

discount icon

Numerous discounts are available for teen drivers, including good student and telematics-based discounts — shopping around will help you find the best deal.

Why Trust MoneyGeek? We collected and analyzed quote data from Quadrant Information Services and state departments of insurance to determine the cheapest and best car insurance providers for teen drivers

2,474,515Quotes Analyzed
 
607Companies Compared
 
3,523Zipcodes

Cheapest Car Insurance for 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.

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CHEAPEST CAR INSURANCE FOR TEENS - BY AGE

Cheapest for 16-year-olds: Nationwide for a family policy, State Farm for an individual policy Cheapest for 17-year-olds: Nationwide for a family policy, State Farm for an individual policy Cheapest for 18-year-olds: GEICO for a family policy, State Farm for an individual policy Cheapest for 19-year-olds: Nationwide for a family policy, State Farm for an individual policy

Cheapest Car Insurance for 16-Year-Old Teens

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
NationwideFamily Premium$2,718Individual Premium$5,108Increase in Premium$2,390
GEICOFamily Premium$2,936Individual Premium$5,463Increase in Premium$2,527
State FarmFamily Premium$3,055Individual Premium$3,732Increase in Premium$678
AllstateFamily Premium$3,292Individual Premium$6,583Increase in Premium$3,291
TravelersFamily Premium$3,436Individual Premium$5,622Increase in Premium$2,186
ProgressiveFamily Premium$3,454Individual Premium$7,481Increase in Premium$4,027
FarmersFamily Premium$3,562Individual Premium$8,864Increase in Premium$5,301

Cheapest Car Insurance for 16-Year-Olds by State

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.

Data filtered by:Results filtered by:
Gender:
Gender:Male
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
AlabamaCompanyNationwideFamily Premium$1,871Individual Premium$4,019Increase in Premium$2,149
AlaskaCompanyGEICOFamily Premium$2,109Individual Premium$3,869Increase in Premium$1,760
ArizonaCompanyTravelersFamily Premium$1,988Individual Premium$3,792Increase in Premium$1,804
ArkansasCompanyAllstateFamily Premium$1,753Individual Premium$6,682Increase in Premium$4,929
CaliforniaCompanyState FarmFamily Premium$3,021Individual Premium$3,333Increase in Premium$312

Cheapest Car Insurance for 17-Year-Old Teens

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
NationwideFamily Premium$2,685Individual Premium$4,662Increase in Premium$1,978
GEICOFamily Premium$2,863Individual Premium$4,260Increase in Premium$1,396
State FarmFamily Premium$3,030Individual Premium$3,312Increase in Premium$281
AllstateFamily Premium$3,218Individual Premium$5,292Increase in Premium$2,074
FarmersFamily Premium$3,311Individual Premium$6,664Increase in Premium$3,353
TravelersFamily Premium$3,316Individual Premium$4,287Increase in Premium$970
ProgressiveFamily Premium$3,572Individual Premium$7,262Increase in Premium$3,691

Cheapest Car Insurance for 17-Year-Olds by State

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
Gender:
Gender:Male
AlabamaCompanyGEICOFamily Premium$1,863Individual Premium$3,643Increase in Premium$1,780
AlaskaCompanyGEICOFamily Premium$2,038Individual Premium$3,078Increase in Premium$1,040
ArizonaCompanyTravelersFamily Premium$1,909Individual Premium$2,919Increase in Premium$1,010
ArkansasCompanyAllstateFamily Premium$1,778Individual Premium$5,552Increase in Premium$3,774
CaliforniaCompanyState FarmFamily Premium$2,958Individual Premium$2,974Increase in Premium$16

Cheapest Car Insurance for 18-Year-Old Teens

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
GEICOFamily Premium$2,431Individual Premium$3,594Increase in Premium$1,163
NationwideFamily Premium$2,476Individual Premium$4,332Increase in Premium$1,856
AllstateFamily Premium$2,673Individual Premium$4,180Increase in Premium$1,507
State FarmFamily Premium$2,716Individual Premium$2,966Increase in Premium$250
TravelersFamily Premium$2,829Individual Premium$3,566Increase in Premium$737
FarmersFamily Premium$3,062Individual Premium$6,124Increase in Premium$3,062
ProgressiveFamily Premium$3,115Individual Premium$6,246Increase in Premium$3,131

Cheapest Car Insurance for 18-Year-Olds by State

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.

Data filtered by:Results filtered by:
Gender:
Gender:Male
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
AlabamaCompanyGEICOFamily Premium$1,177Individual Premium$2,303Increase in Premium$1,125
AlaskaCompanyGEICOFamily Premium$1,727Individual Premium$2,609Increase in Premium$882
ArizonaCompanyTravelersFamily Premium$1,576Individual Premium$2,411Increase in Premium$834
ArkansasCompanyAllstateFamily Premium$1,342Individual Premium$4,191Increase in Premium$2,849
CaliforniaCompanyState FarmFamily Premium$2,791Individual Premium$2,806Increase in Premium$15

Cheapest Car Insurance for 19-Year-Old Teens

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
NationwideFamily Premium$2,066Individual Premium$3,389Increase in Premium$1,323
GEICOFamily Premium$2,168Individual Premium$2,631Increase in Premium$462
TravelersFamily Premium$2,305Individual Premium$2,817Increase in Premium$512
AllstateFamily Premium$2,326Individual Premium$2,899Increase in Premium$573
State FarmFamily Premium$2,344Individual Premium$2,531Increase in Premium$188
ProgressiveFamily Premium$2,845Individual Premium$3,473Increase in Premium$627
FarmersFamily Premium$3,111Individual Premium$3,657Increase in Premium$546

Cheapest Car Insurance for 19-Year-Olds by State

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.

Data filtered by:Results filtered by:
Gender:
Gender:Male
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
AlabamaCompanyGEICOFamily Premium$1,535Individual Premium$1,871Increase in Premium$336
AlaskaCompanyGEICOFamily Premium$1,540Individual Premium$1,838Increase in Premium$298
ArizonaCompanyTravelersFamily Premium$1,422Individual Premium$1,953Increase in Premium$531
ArkansasCompanyAllstateFamily Premium$1,475Individual Premium$2,564Increase in Premium$1,089
CaliforniaCompanyGEICOFamily Premium$2,170Individual Premium$2,536Increase in Premium$366
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Average Cost of Car Insurance for Teens

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.

Cost of Insuring Teen Males vs. Females

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.

Average Insurance Costs for 18-Year-Old Males vs. Females

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.

How to Get Cheap Insurance for Teenage Drivers

To reduce car insurance costs for teen drivers, consider limiting their driving hours and ensuring they drive fewer miles annually. Keeping the car title in a parent or guardian's name and having the teen complete a certified driving course can unlock additional discounts. Moreover, assigning the teen to an inexpensive car rather than a high-cost vehicle can further lower insurance premiums.

1
Limit their driving distances

Some companies will offer discounts to drivers who drive relatively little per year — typically under 7,500 miles. Limiting teens' driving to daylight hours can also help decrease their chances of getting in a car accident, which would increase insurance 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
Have your teen take a driving course

Some companies will offer discounts to teens who complete certified driver's education programs. Opting for usage-based telematics can also help you save if your teen drives safely.

4
Have them driver an inexpensive car

Having a teen driver operate a cheaper car model can lead to significant savings on insurance premiums. Cheaper cars often cost less to repair or replace, reducing the insurer's potential payout in case of an accident.

5
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.

Cars With Lowest Insurance Rates for Teenage Drivers

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age:
Age:16
Subaru ForesterPremium$5,777
Subaru OutbackPremium$5,853
MINI CooperPremium$5,958
Honda CR-VPremium$5,996
Mazda CX-5Premium$6,099

Average 16-year-old Insurance Cost By Vehicle Type

car
Subaru Forester

Annual Premium

$5,777
car2
Mazda CX-5

Annual Premium

$6,099
Owning a Mazda CX-5 is::$322 more

This is 6% more expensive.

Car Insurance Discounts for Teens

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.

Discount
How it Works

Good Student Discount

Offers savings to students who maintain a certain GPA or rank in the top percentage of their class.

Defensive Driving Discount

Rewards drivers who complete a certified defensive driving course.

Safe Driver Discount

Reduced rates for drivers with no at-fault accidents or traffic violations for a specific period.

Distant Driver Discount

Discounts for students who attend school far from home — usually at least 100 miles away — and don't drive the insured vehicle often.

Telematics-Based Programs

Rates based on driving behavior monitored by a device or app, rewarding safe driving habits. Allstate's teenSMART and State Farm's Steer Clear are two examples.

Multi-Car Discount

Savings for households insuring multiple vehicles on the same policy.

Annual Mileage Discount

Reduced rates for drivers who drive below a certain number of miles annually, usually 7,500 miles.

Family Policy Discount

Significant savings when adding a teen driver to a parent or guardian's existing policy instead of a separate one.

Driver's Education Discount

Rewards teen drivers who complete a certified driver's education program.

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.

Erie

Erie Insurance is a super-regional insurer only available in 12 states and Washington, D.C. It offers various discounts to help teens and their parents save on auto insurance. Teens can benefit from the youthful driver discount, student away discount for those studying far from home and good student discount for maintaining a strong GPA. Parents can take advantage of the multi-car discount for insuring multiple vehicles and the safe driver discount for maintaining a clean driving record.

Bundling auto with home or renters insurance can also offer savings, and Erie's accident forgiveness policy can prevent your premium from rising after your first at-fault accident. Keep in mind that discounts may vary by state and other factors. It's best to consult an Erie representative for the most accurate information.

State Farm

State Farm offers a range of auto insurance discounts that can benefit both teens and their parents. The good student discount is available for teens who maintain strong academic performance. The Steer Clear program offers another way for young drivers to save by completing a safe driving course.

Meanwhile, the multi-car discount is available for families insuring more than one vehicle, and the safe driver discount rewards those with a clean driving record. Bundling home and auto insurance can also lead to significant savings. To get the most accurate and personalized information, we recommend speaking directly with a State Farm agent.

GEICO

Teens on a GEICO Policy can qualify for the good student discount if they maintain a certain GPA and the driver's education discount if they complete a driver's education course.

For parents, the multi-vehicle discount is available for insuring more than one car with GEICO. The company also offers a safe driver discount for those with a clean driving record, and bundling auto with other types of insurance like home or renters can result in more savings.

GEICO also has a unique military discount, which could be beneficial for families with a military background. The availability and specifics of these discounts can vary by state and other individual factors, so it's best to contact a GEICO representative for the most tailored information.

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.

Expert Advice: Navigating Car Insurance for Teen 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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Teen Car Insurance FAQ

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.

Which insurance companies offer the most affordable rates for teen drivers?
Why are car insurance premiums higher for teen drivers?
How can teen drivers earn discounts on car insurance?
Can a teen driver get an insurance policy?
Are there benefits to choosing a specific type of car for a teen driver?

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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