There’s nothing quite like the excitement of getting behind the wheel for the first time as a teenager (or the sense of panic that parents experience when their teens embark on their first solo journey by car). And while driving instructors and parents alike do their best to prepare teens for the dangers of the road, the inexperience of teen drivers still puts the age group at a higher risk of car accidents. Teens are nearly three times more likely to be involved in a fatal crash than drivers age 20 or older, according to the Centers for Disease Control and Prevention (CDC).
Because teens are a greater risk to ensure, they often pay sky-high premiums, even when added to their parents’ policies. But that doesn’t mean affordable rates aren’t available. Some insurance companies can offer lower premiums than others for teen drivers, so it’s a good idea to shop around. Fortunately, you can use a comparison tool like Insurify to find cheap car insurance for teens in minutes. You’ll just need to answer a few questions about the drivers and vehicles on your policy, and our artificial intelligence technology will do the work of finding the lowest premiums for you.
In this article
- How much is the monthly cost of car insurance for a teenager?
- Best Car Insurance Companies for Teenage Drivers
- Cheapest Car Insurance Quotes for Teenage Drivers
- Best Auto Insurance Discounts for Teenagers
- Other Car Insurance Tips for Teens and Parents
- Conclusion: The best way to compare and save on car insurance
How much is car insurance for a teenager each month?
According to proprietary Insurify data from hundreds and thousands of driver quotes, the average cost to insure a teenage driver is $424 per month. However, this can vary based on the teen’s gender, where they live, and what discounts they’re eligible for. Many teens will be able to get a lower rate just by comparing quotes across auto insurance companies.
How does age affect car insurance rates?
Young drivers will pay more on average for an auto insurance policy. In general, insurance premiums decrease with age, rising slightly only for elderly drivers. For example, while 17-year-old drivers will pay an average of $423 per month, 20-year-old drivers pay an average of $373 per month. These average rates continue to decline with age, especially for drivers who keep a clean driving record. For example, drivers in their 30s pay an average of $190 per month for insurance coverage.
How does gender affect car insurance rates?
Male drivers typically pay higher auto insurance rates than female drivers, especially in their teen years. That’s because the CDC reports that the vehicle death rate for teenage boys is almost twice as high as for female teen drivers.
How does location affect car insurance rates?
Living in areas with higher rates of theft and vandalism means drivers are more likely to file claims, so people in urban areas will pay higher annual premiums. How often you drive and where you park your car can also impact your insurance premiums.
Most Expensive States for Car Insurance for Teenage Drivers
On average, the following five states are the most expensive states for teens to obtain auto insurance:
Least Expensive States for Car Insurance for Teenage Drivers
Teenage drivers who live in the following states will enjoy the low car insurance rates that come with their location:
Is there such a thing as one-month car insurance for teens?
Insurance companies generally don’t offer one-month car insurance for teens, although some accept monthly payments and don’t charge cancellation fees. If you need car insurance for a short time, your best bet is to purchase a six-month policy and cancel early rather than going with a disreputable provider of temporary car insurance.
Teenage Drivers: Six-Month vs. One-Year Policies
Generally, when you purchase a one-year policy, your insurance premiums are locked in for the duration of the year. That means if a 16-year-old driver gets into an accident in their first year of driving, you won’t see a rate increase until your policy is up for annual renewal.
But there are advantages to choosing a six-month policy as well. For example, if an 18-year-old driver is about to turn 19, their rates may go down after six months as they gain more driving experience. The same is true if the driver has an infraction that will soon be outside of the lookback period for teen car insurance.
Whether you choose to prepay your annual premium or go with a six-month policy, you should shop around to get car insurance quotes from different insurers about every six months. Most reputable insurance providers will let you cancel penalty-free and receive a refund for premiums paid beyond the cancellation date.
Best Car Insurance Companies for Teenage Drivers
To select the best car insurance companies for teenage drivers, we evaluated the average cost of car insurance for teens, company reputation for financial strength and customer satisfaction, and available car insurance policy discounts.
21st Century (Owned by Farmers)
With an average premium of just $105 per month, 21st Century is our top choice for teen drivers. The company has A (excellent) financial stability rating from A.M. Best and ranked above average in J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study. 21st Century offers several attractive discounts that will appeal to teen drivers, but the company reports that the biggest savings come from switching from another car insurance provider. For example, customers who switched from State Farm saved an average of $465, and customers who switched from Allstate saved an average of $402 annually. 21st Century writes policies nationwide.
A few of the discounts that 21st Century offers to teen drivers include:
- Good driver discount: Save an average of 20 percent for remaining free of accidents or tickets for three years.
- Good student discount: If you maintain good grades, you can receive an average discount of 15 percent. You’ll need a 3.0 GPA (a B average) or better to qualify.
- Multi-car discount: If you’re listed on your parents’ policy or if you have your own policy and multiple vehicles, you’ll be awarded additional savings.
While Bluefire is only available in select states (Alabama, Arizona, California, Illinois, Indiana, Texas, Louisiana, Mississippi, South Carolina, and Washington), the company is able to provide cheap auto insurance quotes to teen drivers, with an average monthly premium of $219. Furthermore, Bluefire is known to provide affordable rates to high-risk drivers, so teens with a problematic driving history might find the best rates from Bluefire. However, underwriters and financial strength ratings vary by state, so you should do your research into Bluefire’s reputation in your state.
A few of the discounts that Bluefire offers to teen drivers include:
- Multi-car discount
- Transfer discount
- Renewal discount
Clearcover currently offers car insurance in 13 states and is expanding. Policies are underwritten by subsidiaries of Fortegra, which has an A- financial strength rating from A.M. Best. The company was founded in 2016 and is not yet rated by J.D. Power, but customer service reviews on third-party websites are favorable. Clearcover will appeal to drivers looking for an entirely online quote, application, and policy management process.
You won’t have to ask about discounts with Clearcover, since savings for vehicle safety features, safe driver discounts, and more are built into your auto insurance quote. There’s also an additional discount for teens with a parent serving in the military.
Cheapest Car Insurance Quotes for Teenage Drivers
We’ve rounded up the top 10 car insurance companies with the cheapest quotes for drivers in their teens. Keep in mind that not all providers issue policies nationwide, and some are more reputable than others. Price is not the only factor you should consider when choosing an auto insurance company, so do your research into each company’s reputation before deciding on the right policy for you.
|Insurance Company||Average Monthly Premium for Teens||States Available||A.M. Best Rating|
|Amigo USA||$195||Illinois, Indiana, Wisconsin, Texas||Not Rated|
|Bluefire||$219||Alabama, Arizona, California, Indiana, Illinois, Mississippi, Louisiana, Texas, Washington, South Carolina||Not Rated|
|Elephant||$244||Illinois, Indiana, Maryland, Ohio, Tennessee, Texas, Virginia||Not Rated|
|Freedom National||$247||California, Arizona, Utah||Not rated|
|Anchor Motor Club||$260||California, Arizona, Washington, Oregon||B|
|USH&C||$261||Arizona, Arkansas, Illinois, Indiana, Missouri, Nebraska, Oklahoma, Texas||C+|
|Motion Auto||$270||Arizona, Utah||Not Rated|
Keep in mind that these premiums are averages across thousands of policies. Though 21st Century has a much lower average premium than other companies on our list, it’s possible for a teen driver to get a lower rate from another company. If you want to compare rates across all the top providers, including larger insurers like GEICO and Progressive, just use Insurify to compare customized quotes from several car insurance companies in one place.
Best Auto Insurance Discounts for Teenagers
When a teen driver gets their driver’s license, it’s not uncommon for parents to panic at the astronomical cost of an insurance policy. Luckily, there are some discounts designed for teen drivers that can help reduce the cost.
Good Student Discount
Many car insurance providers offer a discount for students who maintain good grades. Typically, you’ll need a B average to qualify, and the discount amount varies by insurer.
Distant Student Discount
If a teen driver is away at college and the car is parked at home, parents can earn a significant discount on their auto insurance policy.
Defensive Driving Course Discount
Many car insurance companies offer a discount for both teens and older drivers who take a defensive driving course. It’s often worth the cost and time commitment since it can lead to a significant discount.
Other Car Insurance Tips for Teen Drivers (and Their Parents!):
- Add the teen driver to the family policy: In most cases, getting a separate policy for your teen will cost more than adding your teen to the family policy, with few exceptions.
- Purchase full coverage: If you can afford the premiums, you should purchase comprehensive coverage and collision coverage for your teen. It’s the best way to protect your finances in the event that your teen is at fault in an accident.
- Consider accident forgiveness: Given the higher crash rate for younger drivers, you might want to choose a policy that offers accident forgiveness. This will ensure your premiums don’t become even more expensive should the teen driver cause an accident.
- Choose a high deductible: To keep your insurance costs affordable, consider choosing a higher deductible. Just make sure you have enough cash stashed away in an emergency fund to handle your portion of the financial responsibility for an accident.
- Opt for an older, reliable motor vehicle: While your teen might beg and plead for a flashy new sports car, buying a used Honda will result in lower insurance costs in most cases.
What to do if you can’t make a car insurance payment:
Start by calling your car insurance provider to see if you can change your due date. If you’re struggling to pay because of the coronavirus crisis, ask about relief programs. If you’re paying for full coverage and you can no longer afford it, drop to minimum coverage liability insurance. It’s also a good idea to use Insurify to check rates at other companies, in case switching could save you enough to keep your payments affordable.
Avoid letting your insurance policy lapse at all costs since this will result in higher premiums when you purchase coverage again. If you need to cancel your policy, follow the laws in your state, which will most likely require you to surrender your license plates before canceling your policy. Or if your teen drives your family car and you need to remove them from your policy to save money, ensure your teen never has access to the keys. It’s illegal to drive without insurance coverage in almost all states.
Quick Questions: How much is car insurance for a teenager each month?
How much is car insurance for a teenager each month?
According to Insurify data from thousands of policies, teen drivers pay an average of $424 per month for car insurance. For drivers in their 20s, the average drops to $257 per month. 16- to 18-year-olds pay the most for car insurance; 19-year-old drivers pay an average of $404 per month, and that average drops to $373 per month for 20-year-old drivers.
What is the easiest way to find the cheapest car insurance quotes for teenage drivers?
Getting quotes from individual insurers can be time-consuming and frustrating. The easiest way to compare customized quotes in one place is to use an insurance comparison tool like Insurify . You’ll just need to answer a few questions about your vehicle and driving history, and you’ll be able to view quotes from up to 20 different providers so you can find a policy that fits your needs and your budget.
Will car insurance for my teenager get less expensive over time?
Yes. Car insurance is most expensive for 16- to 18-year-old drivers because they are inexperienced and pose a greater risk to insurance companies. According to Insurify data from thousands of policies, car insurance rates start to drop at age 19 and continue to decline when the driver reaches their 20s. At age 18, drivers pay an average of $459 per month for car insurance. By age 25, the average premium is just $249 per month.
Is there such a thing as one-month car insurance for teenage drivers?
Reputable car insurance providers in the U.S. don’t provide temporary car insurance policies for terms shorter than six months. If you just need car insurance for one month, you can consider buying a six-month policy with a flexible cancellation policy.
Conclusion: The best way to compare and save on car insurance
For parents, allowing a teen driver to hit the road alone can be frightening. Another top concern? The astronomical cost of car insurance for teen drivers. While teens will almost always pay more than older drivers for car insurance, there are ways to mitigate the cost with discounts. And some insurers are able to provide surprisingly affordable rates for young drivers.
So, how do you find the cheapest car insurance policy for a teen driver? The best way to ensure you’re getting a good price is to compare customized quotes from multiple providers. Instead of getting quotes from each company individually, you can use Insurify to compare insurance quotes all in one place. This way, you’ll only need to enter your information once. You can also toggle between coverage limits and deductible amounts until you find a policy that fits your budget.
When you’ve narrowed down your options to a few companies with the cheapest premiums, check the Insurify composite score for the companies and research their financial strength and customer satisfaction ratings. That way, you’ll be able to make an informed decision about the best auto insurance company for you.