Best and Cheapest Car Insurance for Teenagers (2023)

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.^[1]

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.

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.

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.^[2]

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.

Data methodology

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.^[2]

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.^[3]

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.^[4]

Methodology

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.

Check Out: Cheapest Car Insurance for 17-Year-Olds (2022)

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.^[5]

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.^[1]

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.^[1] 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.^[1]

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.

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.^[6]

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.

Car insurance for teens FAQs