The Cheapest Car Insurance For Teenage And Young Drivers In 2021 : Scoring a lot on auto insurance isn’t easy at any age, but when you’re a young driver, there’s an added challenge. Teenagers have less road experience and are more likely to be in an accident, so car insurance for teens tends to be expensive.
But scoring a great rate is still doable. This guide will walk you through how it can be done and which auto insurance companies young drivers might want to take a closer look at.
How much is car insurance for teenagers?
When it comes to auto insurance for teens, young drivers pay more than their older, more experienced counterparts — an average of about $169 per month, according to our analysis.
It comes down to simple statistics. Teens aged 16 to 19 are nearly twice as likely to be in a fatal car accident, according to the Insurance Institute for Highway Safety (IIHS). They are also more likely to engage in distracted driving. Plus, insurance companies don’t have a lot of data to look at when assessing how responsible teen drivers are on the road. That signifies more risk for insurance companies, which is why auto insurance for teens is more expensive.
Teenage boys vs girls car insurance rates
We analyzed that male teen drivers pay about $20 more per month than female teen drivers. This is again due to statistics. Teenage boys are more likely to have accidents. They have caused two-thirds of all accidents among 16- to 19-year-olds in recent years, according to IIHS data.
How to find cheap insurance for teenagers
The best way to find cheap car insurance for teens is to compare rates from several companies. Each insurance company has its own risk algorithm. While they all considered teen drivers to be riskier to insure than older drivers, they did not all charge teens the same amount. So the only way to see which offers the best prices for young drivers is to compare the offers side by side.
In addition to shopping, look for teen-only car insurance discounts, such as those listed below. This can eliminate some of those high premium costs.
Another way to make car insurance for teens more affordable is to reduce their level of coverage. But this is risky and maybe even impossible. For example, lenders may not allow customers to get rid of collision and comprehensive coverage if they have a lease or loan on their vehicle. And even if it’s not needed, a young driver can risk missing it because they can face high costs themselves in an accident. So consider these options carefully and make the mistake of looking for better value than the lowest possible rate.
For more information, see our guide on how much auto insurance coverage do you really need?
Should teens follow their parents’ car insurance policies?
Staying on a parent’s car insurance policy usually costs teenage drivers less than trying to buy one on their own, so it’s an attractive option. Fortunately, there’s no legal reason why teens can’t take out their parents’ insurance if the family agrees.
This gives teen drivers the benefit of any discounts their parents qualify for, such as multi-policy discounts for combining home and car and discounts on continuing insurance coverage, which teens may not qualify for on their own.
Of course, adding a teen driver means higher fares for parents, so it’s something every family should consider. Parents wary of surcharges may ask their teen to pay the difference between their current premium and the new one.
There is no law on when a young driver must obtain their own insurance, but in most cases, if they are living independently, paying their own expenses, and driving their own vehicle, they may need to have their own policy.
The Cheapest Car Insurance For Teenage And Young Drivers In 2021
Here are some of the best car insurance providers for teen drivers:
Allstate: Best for the price
Allstate had the cheapest auto insurance for teens in our analysis, although the differences were slight. One of the largest insurers in the country, it also offers solid auto insurance coverage options and a variety of ways to save at any age.
State Farm: Best for claims handling
State Farm beats all the companies listed here in JD Power’s latest Auto Insurance Claims Satisfaction Survey. It also has some great teen driver discounts that can help young drivers reduce their fares.
Progressive: Best for flexible policies
Progressive is best known for its Name-Your-Price tool, which helps drivers of all ages get the most out of it. This tells drivers exactly what coverage they can afford based on how much they are willing to spend.
GEICO: Best for student discounts
GEICO offers a large selection of discounts, including some special discounts for teens, such as a great student discount for teens who maintain a B-average or better in school and driver education discounts for teens who complete approved courses.
Liberty Mutual: Best for extra coverage options
The cheapest auto insurance for teens isn’t offered by Liberty Mutual, but it does have some less common coverage options like gap insurance, new car replacement, and accident forgiveness. This may be of interest to teens who are worried about their car or their insurance rates after an accident.
Overall cheapest car insurance for teens
Here’s an overview of the average monthly auto insurance premiums, based on our analysis of quotes for drivers aged 16 to 19 from the five best insurance companies.
| CAR INSURANCE PROVIDER | AVERAGE MONTHLY PREMIUM FOR YOUTH |
|---|---|
| All states | $142.00 |
| State Ranch | $142,91 |
| Progressive | $144,08 |
| GEICO | $154,56 |
| Freedom Together | $254,65 |
Data source: Quotations from insurance companies.
Car insurance premiums by age for teens
Here’s a closer look at the average cost of auto insurance for teens with clean driving records, based on our analysis.
Average cost of car insurance for a 16 year old
The average auto insurance premium for a 16-year-old driver is about $210 per month with women paying slightly less, averaging around $198 per month, and men paying slightly more, averaging $221 per month.
Average car insurance cost for 17 year olds
Age 17 years Car insurance premiums on average around $195 per month. Men still pay slightly more, an average of $208 per month compared to $183 per month for women.
Average cost of car insurance for an 18 year old
By the age of 18, young drivers saw their average auto insurance premium drop to about $169 per month. The gap between male and female drivers is closing slightly with 18 year old males paying an average of around $177 per month while women paying around $161 per month.
Average cost of car insurance for a 19 year old
Around this age car insurance for teens tends to be cheaper. Drivers typically see a pretty significant drop in their car insurance rates if they have a clean driving record, by the age of 19.The average premium for a 19-year-old is about $116 per month, at $124 per month for men and $108 per month for women.
Compare car insurance providers for teens
The data above gives parents and young drivers an idea of how much car insurance costs for teenagers. But there are many other factors at play here, such as what discounts a teenager can receive and whether they have an accident record. The only way to know which company will offer the best rates for teens is to get a few deals.
Car insurance discounts for teens and young drivers
Here are some of the discounts that the best teen auto insurance offers to young drivers. Note that not all insurance companies have all of 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 the discount.
Good student discounts: Students who maintain a B-average or above qualify for discounts with many insurance companies because their high GPA demonstrates maturity and responsibility.
Safe driver discount:To get a safe driver’s discount, teens may not qualify right away, but they may qualify for it from time to time, especially if they enroll in a telematics program that monitors their driving via a small device placed in the vehicle.
Student discount at school: Students who live elsewhere and only drive their vehicle when they visit home may be eligible for a discount because they reduce the mileage in their car and thus, have a lower risk of an accident.
This isn’t the only discount teen drivers can receive. Always check with the insurance company for a complete list of available discounts.
Tips for finding cheap car insurance for teen and young drivers
Affordable car insurance for young drivers isn’t always easy to find, but following these tips can help parents and young drivers find the best rates:
- Compare offers from several insurance companies before making a purchase
- Ask about discounts available for young drivers
- Consider joining parent policy
- Work to create safe driving records