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Almost every teenager dreams of the day they get their driver’s license so they can finally have that extra bit of freedom. However, teenage drivers tend to be much more expensive to insure than other drivers.
Data indicates that teen drivers are more likely to be involved in car accidents. They also have unproven driving records and can be easily distracted while on the road. Some may be more reckless than older drivers.
To help your teen spend less on insurance and more on filling up their gas tank, we’ve put together some resources on how you can find the cheapest deals on car insurance for teenagers.
Hear from the experts:
Families with new drivers know that car insurance for teens can be costly. Inexperienced drivers are some of the riskiest customers for insurers because they're more likely to get into accidents that result in expensive claims. However, teens' rates should decrease as they age if they have clean driving records. Additionally, those maintaining a "B" grade average in high school or college typically qualify for a good student discount, making auto coverage more affordable.
Table of contents
- Cheapest car insurance for teenagers
- Average cost of car insurance for teen drivers
- How age affects car insurance rates
- Best car insurance companies for teenagers
- How to get cheaper car insurance for teenagers
- Car insurance discounts for teenagers
- States with the cheapest car insurance for teenagers
- Car insurance for teens FAQs
Cheapest car insurance for teenagers
Car insurance quotes for teens can vary widely from company to company. Check out this list of the cheapest car insurance providers for teenagers, along with the average monthly quote each provider offers. The three most affordable auto insurance providers for teens, on average, are State Farm, Erie, and SafeAuto.
|Insurance Company||Average Monthly Quote for Teens|
Average cost of car insurance for teen drivers
Other factors besides age can affect the cost of car insurance for teenagers, including where they live, the type of vehicle they drive, their driving record, and their gender.
The following table illustrates how different factors affect the cost of car insurance for teens. For example, while the average monthly cost of liability-only insurance for girls is $346, the average for teenage boys is $379 — about 10% more.
|Gender||Liability Only||Full Coverage|
How age affects car insurance rates
Auto insurance providers often use age as a factor when setting rates, especially when insuring a younger driver.
Companies consider younger drivers, typically anyone under 25, to be riskier to insure due to their lack of experience on the road and tendency to be distracted easily. This means they can cost auto insurance providers more money in claims than other drivers do.
The good news is, insurance rates typically go down as drivers age. The following table examines how much auto insurance quotes drop, on average, as drivers get older.
|Age Group||Average Monthly Quote|
The data in the table above was sourced through Insurify’s proprietary database of more than 70 million quotes. Data scientists refined and analyzed the information by clustering quotes by age group to reveal the difference in average quotes based on driver age.
Learn More: Do I Have to Add My Teenager to My Car Insurance?
Best car insurance companies for teenagers
Here’s a closer look at some of the best car insurance companies for teenagers and what parents need to know about each option.
State Farm: Good for building safer driving skills
State Farm is a great option for families looking to save on their teen’s auto insurance while helping them improve their driving skills.
When a teen driver uses the State Farm Drive Safe & Save app, they can potentially save up to 30% while learning how to drive more safely. If those good driving habits stick, drivers younger than 25 who haven’t been involved in any at-fault accidents or moving violations within the past three years can save as much as 15% with State Farm’s Steer Clear program.
Another convenient and cost-saving feature State Farm offers drivers is a student away at school discount. If your child is away at college and only drives their car during school vacations and holidays, you can save on your policy.
Erie: Good for young driver discounts
If you’re looking to save on a teen auto insurance policy, Erie might have the price for you, thanks to the many discounts that can apply to young drivers. Teens and young adults (who meet certain standards) may be able to qualify for Erie’s youthful driver discount or its driving training discount.
You can also potentially get a discount if your child is away at college and doesn’t have access to their car during that time.
SafeAuto: Good for big families
Car insurance costs — as well as car payments, vehicle registration, gas, and maintenance costs — can add up quickly for families with multiple adult or teenage drivers. Multiple auto insurance policies can be a hard expense to manage.
If you have a lot of drivers in your home, it’s worth looking into SafeAuto’s multi-vehicle discount. Good students can also qualify for a discount.
USAA: Good for roadside assistance
All parents worry when their teens hit the open road by themselves for the first time. USAA’s roadside assistance program can give parents peace of mind by providing handy services like towing and lock-out assistance if their teen is stranded.
USAA also makes it easy to eventually transition your teenager off your policy and onto their own when the time comes, while helping them save money with a 10% family discount. Your kids can also qualify for a driver training discount when they complete an approved basic driver training course. And in select states, they can save up to 3% on their policy with USAA’s SafePilot program.
Similar to other auto insurance companies, USAA also offers a good student discount for students who get good grades. If you have multiple vehicles in your household, you can also lower your premium with USAA’s multi-vehicle discount.
Travelers: Good for rewards for good grades and driving
Parents whose children perform well in school may benefit from the discounts Travelers offers on its auto insurance policies. To start, Travelers offers a good student discount to full-time students who maintain a B average (or better) or who are in the upper 20% of their class scholastically.
To apply for this discount, you can share your teen’s latest report card, honor roll certificate, or a newspaper clipping that confirms their honor roll status. For homeschooled students, a certification signed by a parent and cosigned by a homeschool-certifying body is required.
You can also benefit if your child passes an approved driver education course. If your teen doesn’t drive most of the year because they’re away at school, you can also qualify for a discount.
When determining which car insurance companies are the best for teens, we considered two main factors — cost and safety. To start, we looked at which insurance providers charge teen drivers the least. All these providers offer discounts for teens or young adult drivers, and many of those discounts encourage good grades and driving behavior. We also included auto insurance providers that provide resources to help teens develop better driving habits and that offer discounts to teens who pursue driving education.
How to get cheaper car insurance for teenagers
Parents and teens can take steps to save on car insurance. Here are some tips that can make saving easier.
Comparison shop among different providers
You never know which insurance company is going to have the best deal for you. That’s why you should always shop around and compare quotes from multiple providers before buying a policy.
You can do this within a matter of minutes by using a comparison site like Insurify, where you fill out just one form to view multiple quotes, as opposed to filling out a form on each provider’s website. This way, you can compare quotes, discounts, and coverages all in one place.
Use the same insurance provider
Adding your teen drivers to your existing auto insurance policy usually costs less than having them purchase their own individual policies. As an added bonus, families may be able to qualify for a multi-vehicle discount if you insure multiple vehicles through the same company. You’ll still want to crunch the numbers here and should shop around to see if any other insurers will offer you a better rate than your current company would.
Teach your teen how to qualify for discounts
Your teen can help you secure lower insurance rates, but only if they know what they need to do to qualify for special discounts.
For example, many auto insurance providers offer discounts for students who have at least a B average in school, or for teens who successfully complete a recognized driver training course. Having honest conversations with your teens about what they need to do to lower their insurance rates can help motivate them.
Assign your teen driver to the least valuable car
Double-check which driver your insurance provider assigned to which car. Your car insurers might have assigned the most expensive driver (usually the youngest driver in the family) to the most expensive car to insure. But you can save money by having the teen driver assigned to the least valuable car. For this arrangement to work though, your teen needs to drive only the car they’re insured to drive.
See Also: What Are the Best Cars for Teens to Drive?
Raise your deductible
While having a higher deductible can expose you to higher out-of-pocket costs after an accident, if your teen practices safe driving habits, you may want to consider this move.
When you increase your deductible, you lower your monthly premium — which can make it a lot easier to fit a new driver’s policy into your monthly budget. You may want to set aside some of those savings in case you do ever have to pay that deductible amount.
Check Out: First-Time Car Insurance: Cheap Car Insurance for First-Time Drivers
Car insurance discounts for teenagers
Many different auto insurance discounts are available for teenagers and their families. The following table shows some examples of discounts popular auto insurance providers offer.
|Discount||How to Be Eligible||Companies That Offer It|
|Good student||Earn a certain GPA or meet other academic standards||SafeAuto, USAA, Travelers|
|Multi-vehicle||Insure multiple cars||SafeAuto, USAA|
|Driver education||Teen driver has to complete driver education training||SafeAuto, USAA, Travelers|
|Away at school||Teen must be a student driver who isn’t driving while away at college||State Farm, Erie, Travelers|
Read More: Cheapest Car Insurance for 19-Year-Olds
States with the cheapest car insurance for teenagers
Where you live can also greatly affect your car insurance rates. Your location can influence the likelihood that your car will fall prey to theft or vandalism and how likely your teen driver is to get in an accident.
For example, urban drivers tend to pay more for their auto insurance than those who live in rural areas or small towns. How much it costs to repair a car, the frequency of litigation (and average costs), and medical care costs in a state can also affect auto insurance rates since they affect how much a claim can cost the insurance provider. The weather in your area can also play a role in pricing since severe weather can damage cars and make it more likely you’ll get into an accident.
Here are the top 10 states with the cheapest car insurance rates for teens to give you an idea of how costs can vary by location.
|State||Average Monthly Quote for Teenagers|
Car insurance for teens FAQs
Insuring a teenager driver can be expensive, so it’s a smart idea to learn as much as you can about the best and cheapest car insurance for teen drivers. Here are some answers to commonly asked questions about teenagers and car insurance.
Why is car insurance for teens so expensive?
Teenagers tend to have less experience behind the wheel, which could lead to mistakes that cause them to file an insurance claim. Insurers want to offset these potential claims. Out of all the age groups, teens also have the highest risk of getting into a fatal crash, according to the Centers for Disease Control and Prevention. Young drivers are also more likely to drive without a seat belt, text or email while driving, and engage in risky behaviors like speeding, the CDC says. These factors cause car insurance to be more expensive for teenagers.
What car insurance company is the cheapest for teenagers?
Some of the cheapest car insurance companies for teenagers also happen to be the best for teen drivers due to the discounts they offer and the resources they provide.
For example, State Farm ($307 average monthly quote for teens) rewards good driving behavior with discounts and gives you a discount when you’re away at college and not driving your car. Erie ($310 average monthly quote for teens) also provides teen-friendly discounts, like helping them save when they’re away at school. SafeAuto ($318 average monthly quote for teens) helps big families with multiple drivers save when they insure multiple cars. If you get good grades, it’s also a good idea to inquire about good student discounts.
Does adding a teenage boy cost more than adding a teenage girl?
While adding a teen driver to a parent’s policy is the cheapest way to insure them, it does cost more to insure a teenage boy. Teen boys are much more likely to be involved in fatal accidents than girls, more likely to speed, and more likely to drink while driving, according to CDC data.
What are some ways teenagers can lower car insurance premiums?
One of the best ways to save is by comparing quotes from different auto insurance providers to see which can offer the best rates for the amount of coverage you need.
If your teen driver doesn’t drive all that far or often, you can also consider buying pay-per-mile car insurance, which only charges for the miles they drive. Another good rule of thumb for saving on auto insurance is not to buy your teenager an expensive car. It costs more to insure expensive cars, and you can generally save by choosing a moderately priced and smaller vehicle that doesn’t have a high theft rate.
How much does it cost to add a teen to your car insurance?
To better understand how much it can cost to add a teen to your car insurance policy, let’s look at the monthly cost of auto insurance for different family structures.
The following data is sourced from Insurify’s proprietary database:
Multiple people, added teenager: $599 per month
No teenagers: $369 per month
Single teenager applicant: $448 per month
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
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- State Farm. "Car insurance for teens and new drivers." Accessed December 1, 2022
- USAA. "Car Insurance for Young Drivers and Teens." Accessed November 30, 2022
- Travelers Insurance. "Car Insurance Good Student Discount." Accessed November 30, 2022
- III. "How to find the right auto insurance." Accessed November 30, 2022
- III. "What determines the price of an auto insurance policy?." Accessed November 30, 2022
- Erie Insurance. "Auto Insurance Discounts and Customer Incentives." Accessed November 30, 2022
- SafeAuto. "Discounts." Accessed November 30, 2022