Updated: January 8, 2026
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GEICO offers the cheapest car insurance for teens overall at $227 monthly, saving $108 compared to the national average of $334, representing a 32% discount across all teen age groups.
The cheapest insurer for your teen changes as they age—Amica Mutual leads for 16-year-olds at $429 monthly, while GEICO provides the lowest rates for 17, 18 and 19 year-olds starting at $376 monthly.
Adding your teen to your family policy costs $3,048 annually on average, saving $1,818 compared to individual teen coverage, making family policies the most cost-effective option for insuring young drivers.
Teen insurance rates drop significantly as drivers age, and the cheapest companies shift at each age. For 16-year-olds, Amica Mutual offers the lowest rates at $5,148 annually, resulting in a savings of $1,039 compared to the national average. By 19, GEICO becomes the most affordable at $2,810 per year—a 28% savings over typical teen rates.
Cheapest rates by age:
| Amica Mutual | $429 | $5,148 | $1,039 | 17% |
| State Farm | $436 | $5,230 | $957 | 15% |
| American Family | $481 | $5,767 | $420 | 7% |
| GEICO | $492 | $5,898 | $289 | 5% |
*The above rates are based on the average costs to add a teen driver to a family policy based on state minimum liability only, and full coverage with 100/300/100 limits with a $1000 deductible, insuring a 2012 Toyota Camry.
GEICO offers the cheapest car insurance for teens in 35 states, with rates as low as $35 monthly in Hawaii. Travelers provides the most affordable coverage in 11 states, particularly in Arkansas, Idaho and Maine where teen premiums typically exceed $2,000 annually. American Family leads in New York with rates starting at $1,185 yearly for 19-year-olds, while Progressive offers the best value in Missouri and North Carolina. Allstate secures the lowest rates in Alaska, Rhode Island and South Dakota.
| Alabama | Travelers | $319 | $3,829 | $3,857 |
| Alaska | GEICO | $283 | $3,399 | $1,540 |
| Arizona | GEICO | $297 | $3,558 | $2,346 |
| Arkansas | Travelers | $325 | $3,898 | $5,679 |
| California | Farmers | $152 | $1,822 | $1,099 |
| Colorado | GEICO | $459 | $5,503 | $2,588 |
| Connecticut | Amica Mutual | $423 | $5,080 | $1,917 |
| Delaware | GEICO | $334 | $4,013 | $4,868 |
| District of Columbia | GEICO | $421 | $5,056 | $5,321 |
| Florida | GEICO | $142 | $1,703 | $2,408 |
| Georgia | GEICO | $459 | $5,502 | $1,952 |
| Hawaii | GEICO | $35 | $423 | $389 |
| Idaho | Travelers | $420 | $5,041 | $2,724 |
| Illinois | GEICO | $436 | $5,235 | $2,008 |
| Indiana | GEICO | $389 | $4,670 | $1,960 |
| Iowa | Travelers | $385 | $4,621 | $2,328 |
| Kansas | Travelers | $314 | $3,772 | $3,079 |
| Kentucky | Travelers | $359 | $4,303 | $2,881 |
| Louisiana | GEICO | $317 | $3,805 | $1,978 |
| Maine | Travelers | $452 | $5,418 | $4,100 |
| Maryland | Nationwide | $363 | $4,356 | $1,921 |
| Massachusetts | GEICO | $199 | $2,385 | $1,302 |
| Michigan | GEICO | $146 | $1,751 | $3,135 |
| Minnesota | Travelers | $266 | $3,197 | $1,224 |
| Mississippi | Travelers | $411 | $4,938 | $3,021 |
| Missouri | Travelers | $393 | $4,713 | $2,565 |
| Montana | GEICO | $376 | $4,517 | $2,776 |
| Nebraska | GEICO | $433 | $5,201 | $1,148 |
| Nevada | Travelers | $260 | $3,119 | $1,978 |
| New Hampshire | Nationwide | $358 | $4,299 | $2,060 |
| New Jersey | GEICO | $113 | $1,351 | $3,925 |
| New Mexico | GEICO | $237 | $2,847 | $4,453 |
| New York | American Family | $134 | $1,606 | $1,222 |
| North Carolina | Nationwide | $321 | $3,855 | $673 |
| Ohio | GEICO | $142 | $1,707 | $5,480 |
| Oklahoma | State Farm | $375 | $4,497 | $2,998 |
| Oregon | Travelers | $251 | $3,015 | $3,564 |
| Pennsylvania | GEICO | $206 | $2,469 | $1,335 |
| Rhode Island | Allstate | $304 | $3,652 | $5,435 |
| South Carolina | GEICO | $222 | $2,664 | $3,210 |
| South Dakota | Nationwide | $344 | $4,123 | $3,246 |
| Tennessee | GEICO | $282 | $3,385 | $3,868 |
| Texas | GEICO | $175 | $2,104 | $3,582 |
| Utah | State Farm | $472 | $5,669 | $2,036 |
| Vermont | Nationwide | $365 | $4,385 | $2,617 |
| Virginia | GEICO | $222 | $2,661 | $3,404 |
| Washington | Travelers | $284 | $3,410 | $1,658 |
| West Virginia | GEICO | $428 | $5,137 | $3,497 |
| Wisconsin | Travelers | $368 | $4,417 | $4,073 |
| Wyoming | GEICO | $343 | $4,118 | $2,033 |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels and ages.
Amica Mutual and State Farm provide the cheapest car insurance for 16-year-olds, while GEICO offers the lowest rates from 17 through 19. Teen insurance costs drop sharply between the ages of 16 and 19 as drivers gain experience and prove they can handle vehicles safely. The average drop from 16 to 17 exceeds $600 annually, while 18-year-olds save another $700 compared to 17-year-olds' rates. Nineteen-year-olds see the largest single-year decrease of over $1,000 as they approach adult rating categories.
Sixteen-year-olds face the highest car insurance costs due to inexperience and elevated accident risk. GEICO offers the best family policy rates at $689 annually, followed by State Farm at $5,230, which maintains broader availability nationwide.
It's challenging to find affordable car insurance for new drivers, as insurers heavily consider driving experience when calculating rates. Sixteen-year-olds face the highest insurance costs due to inexperience and elevated accident risk. The premium difference between carriers can exceed $1,000, making comparison shopping the easiest way for families to save money when adding their first teen driver.
| Amica Mutual | $286 | $3,427 | $798 | 19% |
| State Farm | $295 | $3,544 | $681 | 16% |
| GEICO | $316 | $3,790 | $435 | 10% |
| American Family | $340 | $4,081 | $143 | 3% |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels.
Teens with learner's permits are covered under permissive use provisions rather than added as named drivers. This means they're insured while driving a family car with the owner's permission, provided the policy includes this coverage.
Seventeen-year-olds see substantial rate decreases as they gain experience. GEICO offers the lowest rates at $4,515 annually, followed by State Farm at $4,605. A 17-year-old with State Farm saves $625 compared to what they paid as a 16-year-old, rewarding that first year of safe driving.
| GEICO | $239 | $2,873 | $503 | 15% |
| State Farm | $259 | $3,104 | $272 | 8% |
| Travelers | $271 | $3,257 | $119 | 4% |
| American Family | $280 | $3,355 | $21 | 1% |
Eighteen-year-olds enjoy continued rate improvements as they approach adulthood. GEICO maintains its lead at $3,885 annually, with Travelers close behind at $3,976. The gap between cheapest and most expensive carriers widens at this age, making company selection increasingly important.
| GEICO | $205 | $2,463 | $746 | 23% |
| Travelers | $222 | $2,667 | $542 | 17% |
| State Farm | $229 | $2,752 | $457 | 14% |
| American Family | $250 | $2,996 | $213 | 7% |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels.
Nineteen-year-olds see the most dramatic rate reductions, with premiums dropping to near-adult levels. GEICO offers the lowest rates at $2,810 annually, saving $1,093 compared to the national average. A 19-year-old with GEICO pays 52% less than a 16-year-old with GEICO ($5,898 to $2,810), showing how rates drop for drivers who maintain clean records.
| GEICO | $146.12 | $1,753 | $842 | 32% |
| Travelers | $173.10 | $2,077 | $519 | 20% |
| State Farm | $192.53 | $2,310 | $285 | 11% |
| American Family | $215.93 | $2,591 | $5 | 0% |
*The above quotes are for minimum coverage policies. You can filter for different coverage levels.
The MINI Cooper is the cheapest car to insure for teen drivers, with an annual cost of $1,730 for minimum coverage, saving $443 compared to the average vehicle. The Subaru Forester follows at $1,891, while the MINI Electric and Subaru Outback round out the top four at $1,910 and $1,929, respectively.
| MINI Cooper | $144 | $1,730 | $443 | 20% |
| Subaru Forester | $158 | $1,891 | $282 | 13% |
| MINI Electric | $159 | $1,910 | $263 | 12% |
| Subaru Outback | $161 | $1,929 | $244 | 11% |
| Mazda CX-5 | $163 | $1,957 | $216 | 10% |
| Honda Pilot | $166 | $1,996 | $177 | 8% |
| Honda Odyssey | $167 | $2,006 | $167 | 8% |
| Subaru Impreza | $171 | $2,046 | $127 | 6% |
| Toyota Sienna | $171 | $2,053 | $120 | 6% |
| Subaru Legacy | $172 | $2,058 | $115 | 5% |
Your teen's insurance costs depend on coverage type, vehicle choice, driving record and available discounts. This guide outlines six proven strategies to reduce premiums without compromising protection, including keeping teens on family policies and maximizing discount opportunities. We detail the specific discounts available to teen drivers and explain how vehicle selection impacts costs, helping you balance safety with affordability.
You can slash your teen's insurance costs through smart policy decisions and discount maximization. The most effective strategies include keeping your teen on the family policy, limiting their mileage, enrolling in driver's education, and comparing rates across multiple carriers. Adding your teen to your family car insurance policy costs $3,048 annually on average, saving you $1,818 compared to an individual teen policy.
Choosing the right company cuts teen insurance costs by 50% or more. Families switching to the cheapest carrier in their state save between $420 and $2,000 annually depending on location, with savings compounding as teens age and maintain clean driving records.
Some companies offer discounts for drivers who travel fewer than 7,500 miles annually. Restricting teens to daylight driving also reduces accident risk and keeps costs down.
Putting your teen's name on the title may force them to get individual insurance, which costs more. Teens under 18 can't legally purchase car insurance without a parent or guardian co-signing the policy.
Many companies offer discounts for teens who complete certified driver's education programs. Usage-based telematics can also provide savings if your teen drives safely.
Vehicles with strong safety ratings and lower theft rates cost less to insure since they reduce claim risks for insurers. Models like compact SUVs and family-oriented vehicles like the Honda Pilot at $1,996 and Honda Odyssey at $2,006 also offer competitive rates, combining affordability with the space and safety features parents prefer for teen drivers.
Family policies offer multi-car and multi-driver discounts that can reduce overall premiums by up to 20%. With one renewal date and payment, you'll also simplify management.
Teens can reduce insurance costs with multiple discounts. Whether your teen has an individual policy or joins the family plan, these discounts help manage the costs of insuring young drivers while encouraging safe and responsible driving. In addition to discounts, opting for no-down-payment car insurance can provide affordable coverage with a low upfront cost. To activate the policy, you must pay at least the first month’s premium.
Discount | How It Works |
|---|---|
Good student | Offers savings to students who maintain a certain GPA or rank in the top percentage of their class |
Defensive driving | Rewards drivers who complete a certified defensive driving course |
Safe driver | Reduces rates for drivers with no at-fault accidents or traffic violations for a certain period |
Distant driver | 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 (such as Allstate's teenSMART and State Farm's Steer Clear), rewarding safe driving habits |
Multi-car | Savings for households insuring multiple vehicles on the same policy |
Annual mileage | Reduces rates for drivers who drive below a certain number of miles (usually 7,500) annually |
Family policy | Big savings when adding a teen driver to a parent or guardian's existing policy instead of a separate one |
Driver's education | Rewards teen drivers who complete a certified driver's education program |
Car insurance costs for teen drivers depend on several factors, including age, location, driving history, vehicle type, policy details, insurer and claims history. Teen insurance costs decrease substantially with each year of driving experience, dropping from $4,890 annually at 16 to $2,432 by age 19.
The rate reductions accelerate as teens age. Seventeen-year-olds save 21% compared to 16-year-olds, paying $3,879 annually instead of $4,890. By 18, premiums drop 31% to $3,357, and 19-year-olds see the most dramatic decrease at 50% off initial rates, paying just $2,432 per year. This progression rewards safe driving and reflects reduced risk as teens gain experience behind the wheel.
You can save on cheap teen car insurance by comparing top providers like State Farm, GEICO and Nationwide. They offer excellent policies at competitive rates, along with discounts for good grades, safe driving and family policies. Choosing cars with high safety ratings and maintaining a clean driving record can reduce premiums and help you secure adequate coverage without overspending.
*Seven states don't use gender as a rating factor: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.
Insurers consider teen drivers high-risk due to inexperience and higher accident likelihood, leading to higher premiums than experienced drivers. Hawaii and Massachusetts are the only states that don't use age as a rating factor, resulting in lower rates for teen drivers. Massachusetts bases rates on years of driving experience.
Your teen can score discounts in several ways, including good student, distant student, defensive driving and telematics-based discounts. Check with your insurer about all options.
A car's make and model impact insurance costs. Vehicles with good safety ratings can lower premiums, while luxury or high-performance cars increase them. Research and choose safe and reliable vehicles.
Telematics monitors driving behavior through devices or apps, offering feedback and potential discounts based on safe driving habits. Teen drivers can benefit from telematics, as it helps them develop safer habits and may lower their premiums through programs that reward responsible driving.
Your insurance rates will likely increase after an at-fault accident, but the impact varies by company and state. Some insurers offer accident forgiveness for first-time incidents, while others may raise rates by 20% to 40%. The teen's driving record affects the entire family policy, so discuss safe driving expectations early.
Most insurers don't require adding teens with learner's permits since they're covered under permissive use provisions while driving with licensed adults. However, you should add them once they get their full license. Some companies offer better rates if you add them earlier, so check with your insurer.
Yes, most insurers offer good student discounts for teens maintaining a B average or 3.0 GPA. Some companies require verification through report cards or transcripts. These discounts can reduce premiums by 10% to 25%, making academic performance pay off for your family's insurance costs.
*The rates above are based on average costs. In some cases, an individual policy may make more sense. For example, if the teen drives a high-performance or luxury vehicle with high insurance costs, an individual policy prevents a large increase in the family's overall premium.
Study Overview
MoneyGeek gathered quote data to determine the cheapest car insurance for teens by age.
Data Acquisition, Depth and Analysis
We collected data from Quadrant Information Services and state insurance departments. MoneyGeek analyzed 83,056 quotes from 46 companies across 473 ZIP codes.
Driver Profiles
The sample profile used for rate collection includes:
We adjusted this profile by age to compare rates for 16, 17, 18 and 19-year-olds. We also modified it by gender to analyze rate differences and by vehicle (Ford Mustang) to compare insurance prices for teens by car.
Coverages and Deductibles Explained
A deductible is paid out of pocket before certain coverages, like collision and comprehensive, apply.
A 100/300/100 policy includes:
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
