Scoring a great deal on auto insurance isn't easy at any age, but when you're a young driver, there's an added challenge. Teens have less experience on the roads and are more likely to get in accidents, so car insurance for teens tends to be pricey. But it's still possible to get a great rate. This guide will walk you through how it can be done and which car insurers young drivers may want to check out.
2024 Award Winner
Best for technology and toolsAllstate
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Allstate offers tools and programs designed to create and reinforce safe driving skills. Drivewise® delivers personalized driving feedback and insights that can translate into savings for safe driving. Its teenSMART® training program can help reduce teens' collision risk by providing them with immediate, interactive driving feedback on specific skills. As one of the largest insurers in the nation, the company also offers solid car insurance coverage options and a variety of ways to save at any age.
Best for claims handlingAmica Mutual
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Amica is the oldest mutual insurer of automobiles in the country and ranks highest in J.D. Power's 2022 Auto Insurance Claims Satisfaction, with a score of 903. Amica offers a large number of discounts. There are discounts for bundling auto, home, renters, life, umbrella, and more. It offers discounts for young drivers who complete a driver training program, good students, and if drivers under 30 have parents who have had a policy for at least five years. Amica also offers discounts for how you drive (accident-free and driver training) and discounts for features of the car you drive (anti-theft, forward-collision warning, and more).
2024 Award Winner
Best for flexible policiesProgressive
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Progressive is famous for its Name-Your-Price tool, which helps drivers of all ages get the most bang for their buck. This tells drivers exactly what coverage they can afford based on how much they're willing to spend. Progressive states that rates drop by an average of 8% when a driver turns 19 and another 7% at 21. As a young driver becomes more experienced and avoids tickets and accidents, the price for teen auto insurance will continue to decrease.
2024 Award Winner
Best for student discountsGeico
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Geico offers a huge selection of discounts, including some specific to teens, like a good student discount for teens who maintain a B-average or better in school and a driver's education discount for teens who complete an approved course. Geico also offers a good driver discount for those who have not been in an accident within the last five years. They can also qualify for fraternity, sorority, and honor society membership discounts as well as alumni associations, colleges, universities, and student organization discounts.
Best for extra coverage optionsLiberty Mutual
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Liberty Mutual doesn't offer the cheapest car insurance for teens, but it does have some less-common coverage options like new car replacement, gap insurance, and accident forgiveness. These may appeal to teens worried about their car or their insurance rates following an accident. In addition, Liberty Mutual offers several basic coverage packages and dozens of add-ons, meaning drivers can pick and choose what's important to them.
How much is car insurance for teens?
When it comes to car insurance for teens, young drivers pay more than their older, more experienced counterparts. The average auto insurance premium is $3,017 per year. Premiums for young drivers, however, are $6,291 per year, more than double that of the national average.
It comes down to simple statistics. Teens aged 16 to 19 are nearly twice as likely to experience fatal car accidents, according to the Insurance Institute for Highway Safety (IIHS). They're also more likely to engage in distracted driving. Plus, insurance companies don't have as much data to look at when assessing how responsible a teen driver is on the road. That signals more risk to insurers, which is why car insurance for teens is more expensive.
Teen male vs. female car insurance rates
In our analysis, we found that male teen drivers pay about $20 more per month than female teen drivers. This is again due to statistics. Teen male drivers are more likely to get in wrecks. They've caused two-thirds of all accidents among teens 16 to 19 in recent years, according to IIHS data.
How to find cheap insurance for teens
The best way to find cheap car insurance for teens is to compare rates from several companies. Every insurer has its own risk algorithm. While they all consider teen drivers riskier to insure than older drivers, they don't all upcharge teens the same amount. So the only way to see which offers a young driver the best rate is to compare quotes side by side.
In addition to shopping around, look for teen-specific auto insurance discounts, like the ones mentioned below. These can take some of the sting out of those high premium costs.
Another way to make car insurance for teens more affordable is to reduce their coverage levels. But this is risky and may not even be possible. For example, a lender may not allow you to get rid of collision and comprehensive coverage if you have a lease or loan on your vehicle. And even if it isn't needed, a young driver could be taking a risk skipping it because they could face high out-of-pocket costs in an accident. So weigh this option carefully and err on the side of finding a better value rather than the lowest possible rate.
Read more: How much car insurance coverage do you really need?
Should teens be on their parents' car insurance policy?
Remaining on a parent's car insurance policy typically costs teen drivers less than trying to purchase their own, so it's an appealing option. Fortunately, there's no legal reason why teens can't be on their parents' insurance if the family's in agreement.
This gives a teen driver the benefit of any discounts their parents qualify for, like a multi-policy discount for bundling home and auto and a discount for continuous insurance coverage, that teens may not qualify for on their own.
Of course, adding a teen driver means higher rates for parents, so that's something each family has to consider. Parents wary of taking on the extra cost may have their teen pay the difference between their current premiums and their new ones.
There's no law about when a young driver has to get their own insurance, but in most cases, if they're living independently, paying for their own expenses, and driving their own vehicle, they should probably have their own policy.
Overall cheapest car insurance for teens
Here's an overview of average monthly car insurance premiums, based on our analysis of quotes from some of the best insurance companies. These costs are for a separate policy for an 18-year-old. It's usually cheaper to add a teen driver to an existing insurance policy instead of buying a separate policy. A teen driver on their own policy means they don't benefit from the lower rate a more experienced driver has. In addition, teen drivers have a greater risk of getting into an accident, which means a separate policy would be more expensive to offset the increased risk of a claim.
| Car Insurance Provider | Average Monthly Premium for Teens |
|---|---|
| Allstate | $665 |
| Amica | $803 |
| Progressive | $526 |
| Geico | $378 |
| Liberty Mutual | $254.65* |
Data source: Quotes from insurers, *2022 data; most recent available
Compare providers for auto insurance for teens
The data above gives parents and young drivers some idea of how much car insurance for teens will cost. But there are many other factors that come into play here, like what discounts a teen may qualify for and whether they have accidents on their record. The only way to know which company will offer a teen the best rate is to get some quotes.
Discounts on car insurance for teens and young drivers
Here are some discounts the best car insurance for teens offers to young drivers. Note that not all insurers have all these discounts and not all discounts are available in all states.
- Driver safety course discount: Young drivers who complete an approved defensive driving course may qualify for a discount.
- Good student discount: Students who maintain average grades of B or better qualify for discounts with many insurers, as their high GPA shows maturity and responsibility.
- Safe driver discount: Teens may not qualify for a safe driver discount immediately, but they may qualify for one over time, especially if they enroll in a telematics program that monitors their driving via a small device placed in the vehicle.
- Student away at school discount: College students who live elsewhere and only drive their vehicles when they're visiting home may qualify for a discount because they're putting fewer miles on their cars and thus, have a reduced risk of accidents.
These aren't the only discounts a teen driver may qualify for. Always check with an insurer for a full list of available discounts.
Tips for finding cheap car insurance for teens and young drivers
Finding affordable auto insurance for young drivers isn't always easy, but following these tips can help parents and young drivers find the best rate:
- Compare quotes from several insurers before making a purchase.
- Inquire about discounts available to young drivers.
- Consider joining a parent's policy.
- Work to establish a safe driving record.
FAQs
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Yes, car insurers will sell directly to teens, though in some states, the teen may need a parent to cosign. Going solo is usually more expensive than remaining on a parent's insurance policy, though, so it's not ideal for those trying to keep costs low.
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There's no single company that offers the best car insurance for teens. But if parents and young drivers get some quotes, they can find the one that offers the best deal right now.
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Every company calculates its rates differently, based on age, driving history, vehicle make and model, location, and more. So the only way to determine which has the cheapest rate for teenagers is to get quotes and compare them.
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Most auto insurance policies cover teen drivers in their parents' vehicle even if the teen is not on the policy themselves. However, the teen must have the parent's consent to drive the vehicle in order for any claims to be covered.
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It is usually cheaper for a teenage driver to be on their parents' car insurance policy than to be on their own policy, but it's up to each family to decide how they want to handle their teen's auto insurance.
Our Insurance Expert
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.