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Cheapest Car Insurance for Teens (May 2022)
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Teenage drivers pay one of the highest average rates for car insurance. Only high-risk drivers with significant issues on their driving record pay more. However, if you understand some simple car insurance basics, you can find ways to lower your rate significantly.
Finding cheap car insurance for young drivers is possible. Just use Insurify to compare car insurance quotes from top companies. Plus, you can set up notifications to receive an email any time a lower rate is available. That means you can save now and in the future.
Although teenage drivers are expensive to insure, many auto insurance companies offer discounts for teens to help with the cost. The cheapest insurance company for teens will depend on what state you live in and other factors in your teenagers’ driving history.
We analyzed thousands of quotes for teen drivers across the country to determine which companies offer the lowest rates. Did you know college students tend to pay less than high school students of the same age ?That’s because college students tend to act more responsibly behind the wheel.
Here is our list of the best car insurance companies offering cheap rates to teenage drivers.
Since young drivers lack driving experience, they are more prone to accidents. This is reflected in a higher average monthly cost of car insurance. On average though, young male drivers could pay more than young female drivers for auto insurance, except in states where companies are prohibited from considering gender in quoting practices.
When analyzing car insurance rates by age, teenagers pay way more on average, regardless of gender. The good news is that college students tend to pay less than high schoolers of the same age, so lower car insurance premiums is something else to look forward to after graduation.
The average cost of car insurance for teen drivers is high – well over $200 a month. However, you can access lower rates with discount programs and purchase a policy that only covers liability insurance insurance. Using this and a few other techniques, you can lower your rate to less than $100 a month in most areas.
Parents might worry when they see how much it costs to get minimum coverage on teen car insurance, but it’s better to spend the money to make sure their young driver isn’t uninsured. There are also ways to save money on your teen’s insurance policy. Enrolling your new driver in driving school or a defensive driving course can lead to savings on insurance premiums.
Farmers is a long-standing insurance company that offers policyholders a range of car insurance options plus roadside assistance. The company offers a convenient mobile app with a five percent discount just for downloading it. And if you allow the app to track driving habits, you can get up to an additional 15 percent off. Farmers is available in all 50 states.
A few of the discounts that Farmers offers to teenage drivers include:
Sun Coast is a small insurer that stakes its reputation on being client-focused. Agents can help ensure you get every discount you’re entitled to. Plus, you can manage your policy online. Sun Coast is currently available in Alaska, Arizona, California, Colorado, Florida, Hawaii, Nevada, Oregon, Texas, Utah, and Washington.
A few of the discounts that Sun Coast offers to teenage drivers include:
When you choose Travelers, you get the benefits of a large insurance provider: first-rate technology and an array of insurance products for bundling. Even better, Travelers offers low rates for teen drivers, which is uncommon for such a large insurer. Travelers is available in all 50 states.
A few of the discounts that Travelers offers to teenage drivers include:
Kemper specializes in insuring high-risk drivers - people with a history of car accidents, speeding tickets, and DUIs. But new drivers and good drivers can also find affordable rates and valuable discounts. Kemper is available in all 50 states.
A few of the discounts that Kemper offers to teenage drivers include:
Aspire General is another insurer that specializes in providing affordable coverage to drivers with spotty driving records. The company offers a great website where you can manage your policy and claims easily. Aspire General is available in all 50 states.
A few of the discounts that Aspire General offers to teenage drivers include:
See More: Best Car Insurance Companies
Lower your rate quickly by taking advantage of discount programs. Not every company offers the same discounts - and some companies give you a steeper discount than others. For example, the good student discount can lower your policy 5 to 25 percent.
|Discounts for Teens||How to Get It||Companies That Offer It|
|Good Student Discount||Students with good grades - typically a GPA of a B average or better - can qualify.||Allstate, American Family, Country Financial, GEICO, Nationwide, Progressive, State Farm, Travelers|
|Distant Student Discount||This is applicable for teens who only use the car when visiting home from school.||Allstate, Farmers, Progressive, State Farm, Safeco, USAA|
|Telematics Programs||Allow your insurer to monitor your driving habits with a plug-in device or mobile app. You earn a discount when you show safe driving habits.||Allstate, American Family, Esurance, Farmers, GEICO, Liberty Mutual, Metromile, Nationwide, Noblr, Progressive, Root Car Insurance, State Farm, USAA|
|Driver Education||Complete a provider-approved driver training or defensive driver course to receive discounts of up to 20 percent.||AAA, Allstate, American Family, Farmers, GEICO, Liberty Mutual, Foremost Signature, Nationwide, State Farm, Travelers, USAA|
See More: Cheap Car Insurance
Finding affordable car insurance is about more than discounts. There are many ways to lower your rate without a discount program. Make sure that you take advantage of all the ways you can adjust your policy to save.
The easiest way to get cheap car insurance is by comparison-shopping. You should compare car insurance rates before you buy a policy. After your initial purchase, you should review quotes at least every six months. You can make this process automatic when you use Insurify and sign up to get alerts when a lower rate is available.
Buying your own policy is usually more expensive than being added to an existing policy. When you stay on your parents’ policy, you get access to all their insurance discounts - most of which are hard to come by when you get your own car insurance policy. Plus, your parents likely have better credit than you, giving them better car insurance rates.
Older cars are less expensive to buy and insure, significantly so if you drop comprehensive and collision coverage coverage. There are many safe older cars on the market today. When you choose a car with safety features, you often get a discount for each one. Many companies offer discounts for antilock breaks, automatic seat belts, and even airbags.
Your deductible is what you pay in the event of a claim. The higher your deductible, the lower your monthly premium. Plus, choosing a higher deductible means you’ll be less likely to file a claim for a low-cost repair – something that’s usually not worth the added costs later. Just don’t raise your deductible higher than what you can reasonably afford.
Another benefit of driving an older vehicle (that you own outright) is the ability to purchase liability-only coverage. That means you forgo full-coverage car insurance policies, i.e., policies that include collision and comprehensive coverage. You still need to comply with state minimums.
Your driving record is the most crucial piece of the cheap car insurance puzzle. Obeying traffic laws, driving defensively, and driving under safe conditions are the best ways to ensure you get low auto insurance rates for years to come. Drivers with a clean record benefit from the lowest car insurance rates.
Did you know your credit score influences the cost of car insurance in most states? When you’re a teenager, your first task is building good credit. Once you establish credit, you must maintain it. It’s much easier to destroy your credit score than it is to maintain it. And once your credit score is low, it’s harder to raise it.
Cash in on all the car insurance discounts you might be eligible for. Some might include:
Car insurance costs vary significantly from state to state, with some states offering better rates than others. Teenage drivers who live in the following states will enjoy low car insurance rates compared to the national average:
See More: Car Insurance Quotes
Cheap car insurance for teenagers may seem like a pipe dream, but it is possible. Driving an older car, forgoing comprehensive and collision coverage, and using discounts can get you off to a great start. You can seal the best deal by comparing car insurance rates before you buy and at least every six months afterward.
You can do this the easy way with Insurify. Fill out one short form to compare top insurers in your area. Once you secure your lowest rate, turn on notifications to receive an email whenever there’s a rate drop so you never miss a chance to save.
While many factors will affect your costs, teen car insurance costs $150 to $250 a month. You could pay more if you drive a new car or one with a loan attached to it. You could pay less if you opt for liability-only coverage and access discounts.
There are a few essential tips to lower your rates. First, choose a company that gives you several discount opportunities and tweak your insurance policy (deductibles, coverage types, etc.) to lower your rate further. Teenagers have a better shot at saving on car insurance when they compare quotes from multiple insurance companies on a site like Insurify.
Speeding tickets, car accidents, and driving under the influence are the fastest ways to raise your car insurance premium - by hundreds a month depending on the violation! When you practice safe driving, it’s far less likely you’ll get a negative mark on your driving record. Plus, you’ll get access to good driver discounts.
The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.