Best Car Insurance for Teens; What Is the Cheapest Car Insurance for
Adding a young driver to a parent’s car insurance policy can cost thousands of dollars annually. Insurance for young drivers is notoriously high due to the expected risk new drivers pose to insurance companies. Since teenagers are inexperienced drivers, so risk factors go up, and policy can skyrocket the rate. This article will evaluate getting coverage and the best car insurance for teens.
There are many ways to save by getting quotes from multiple insurance companies. We recommend some of the best car insurance companies for young drivers. Being a teenage driver can be very expensive, but driver’s insurance is essential for driving in the United States.
As drivers under 25 pay the highest rates for car insurance, it is essential to find the best coverage at the lowest possible price and figure out the most appropriate insurance for young drivers. Remember that some companies may offer low rates to make it affordable but not all the features of coverage that teen drivers need, so be careful while making any decision.
What is the best car insurance for young drivers?
Certain best insurance companies for new drivers tailor prices policies better than others. We will guide you to reduce car insurance costs for cheap car insurance companies for young drivers.
Whenever you plan to shop for car insurance, get quotes from multiple insurance providers to compare coverage rates. As many factors affect the premium costs, make a wise choice and choose the best for you.
Reducing insurance costs for teen drivers
One can not escape a considerable rate increase while making young driver car insurance, but by opting for specific policies, one can minimize the cost without breaking the bank.
Keep your teen on your policy
If Parents are looking for cheap car insurance for young drivers, it would be less expensive to add a teenager to add your teen in your insurance policy. One can even consult any insurance agent to run quotes for both scenarios or compare quotes online and get the costs of two different procedures. Always dig deeper while taking quotes and figure out which is the cheapest.
Get discounts
Good student discounts are typical for teens; some college student discounts and students away at school discounts. Any student attending school 100 miles away from home without a car can qualify for an affordable price.
While searching for insurance for young drivers, getting into teen driver insurance programs can provide a discount and valuable skills training. Whereas keeping away from accidents in any teen’s record will affect future rates and decrease them.
Compare car insurance quotes
To get the latest prices, one must shop around and compare the quotes from different companies. There are two parents and one 16-year-old ranging from $2,000 to $6,000 a year with a typical coverage of $100,000 for bodily injury and $300,000 per accident.
Wait for it
One can wait for the right time, and car insurance rates will generally drop around 25.
How do you add teens to your car policy?
Once a teen receives a driver’s license, consider additional expenses, even if you opt for cheap car insurance companies for young drivers. Roughly, there would be an increase of 58 percent average in rates; for a three-car family, the percentage even goes higher. This significant increase is due to the additional risk that teenage drivers bring.
According to the Centers for Disease Control and Prevention, inexperienced teen drivers are most likely to get into accidents, and the leading cause is motor vehicle accidents. According to a rough estimate, almost six teenagers aged 16 – 19 will die from a motor vehicle crash.
Seek out some time for car insurance shopping for teens, do a handful of research and ask for the following features:
- Ask the insurance company when it requires coverage, whether you want to add your teen while driving with a permit or usually wait until your child has a license.
- Get various quotes on existing policies, and consider your plan with higher liability protection.
- Always ask for discounts.
- Shop around various providers whenever needs renewal.
Should anyone add a teen driver to a car insurance policy?
Although adding a teen driver to your policy is most effective instead of buying them their plan, it can increase your yearly premiums but saves the child’s money as most insurance companies provide a family discount and lower the rates.
Adding teens to your policy will give them coverage no matter what car they drive. Even if the teenager is engaged in any accident, it does not matter which vehicle is damaged.
Putting your teen driver on your own insurance policy is recommended, but be prepared for higher premiums. This way, you will not depend on your teen’s driving record.
Insurance programs from the best insurance companies for new drivers
Getting a driver’s license gives teens a sense of freedom that simultaneously gives parents stress and anxiety. Inexperienced teen drivers can cause poor driving behaviors and car accidents.
The only way to gain experience on the road is by keeping on driving, so mostly auto insurance companies have to help programs for teens to improve their driving skills. Additionally, some auto insurers offer discounts when any teen learns better-driving behavior and completes their driving program.
Some of the teen driver programs are here:
TeenSmart
TeemSmart has developed initially in partnership with Allstate. This program has policies utilize interactive learning videos, guiding parents about driving stimulations to deal with teen activities. Additionally, this program will address some top behavioral and social factors that lead to car accidents.
Teen Safe Driver
Teen Safe Driver is a free America Family Insurance app to deal with teens’ risky driving behavior. After completing 3000 miles or one year of the program, young drivers get a discount on premiums from an American family. Moreover, they apply the discount automatically if the teen turns 21.
SmartPath
SmartPath is a mobile app that helps to track teens’ driving habits and gives scores depending on various factors, that includes distracted driving, speeding, hand braking, and even the time of the day when they are driving.
Teens drive carefully to improve their driving scores and receive Amazon rewards and discounts on car insurance.
Steer Clear
Steer Clear is a State Farm car insurance program that offers five hours of training modules, which include driving scenarios, videos, and puzzles. Young drivers complete five hours of practice driving with at least ten trips to attain a certificate of completion, on which they can get a car insurance discount.
Good student discount
The best insurance companies for young drivers offer a good student discount if the teen driver receives good grades. For instance, Geico offers discounts for young drivers with a B average or higher.
Low mileage discount
A low mileage discount is available for everyone but is most useful for the students who drive to their schools daily. The provider calculates how many miles your child will be going daily.
Student away discount
If the teen is not driving for much time of the year while he is away at school, the provider can receive a lower rate. Some full-time students earn discounts for months when they are not actively driving.
Safe driving discount
There are some apps and unique devices out there to monitor the driving habits of any young driver. This technology will help your child to become more aware of road happenings, and the positive behavior will allow them to get a discount on car insurance policy.
Best young driver car insurance
All popular companies offer great discounts and specific discount programs, but you can also consider some providers that provide average rates for teen drivers. Teenagers usually file more claims than mature drivers, so insurance companies raise rates for young drivers.
One must expect higher costs if they are adding a 16-years old to their policy, but prices usually drop significantly with each passing year. It is always a good idea to compare your company prices with other companies while buying car insurance for young drivers. We provide the national average across the ages of 17, 18, and 19 to get a rough idea.
Car insurance for 16-years old
The average car insurance for a 16 years old teen driver is around $6,912, which is in average factoring cost for over 80 companies across 50 states. This figure is the estimated amount, and one can even get a lower quotation than this amount.
Car insurance for 17-years old
The national average cost for a 17-years old teen is $5,612, which can vary through different states by car insurance providers. According to the National Highway Traffic Safety Administration (NHTSA), 17 years old young drivers are more at risk due to immaturity with limited driving experience.
Such a higher-risk demographic means higher rates for auto insurance, so the best way to get affordable car insurance is by looking for student and young driver discounts.
Car insurance for 18-years old
The national average cost for 18-years old is around $4,958 as in this age, and teen drivers do not have much experience, so they are still considered at higher risk.
Car insurance for 19-years old
The average auto insurance for 19-years old is around $3,708 at this age, and teen drivers gain more experience. Now providers trust them more due to their driving history. Auto insurance rates go down yearly, even if you purchase it from the same insurance company.
What affects the price of auto insurance while exploring car insurance for young drivers?
While exploring the best insurance company for young drivers, you will find that most companies use the same criteria while estimating the program’s total cost and premiums. Here are some cost-effective factors for auto insurance.
● Age
Teen drivers have less experience on the road with a wheel, so the companies cost it high due to higher risk.
● Credit scores
Credit scores are an excellent gauge of responsibility and will also affect premiums. Most teenagers do not have a credit history which becomes a disadvantage for them, and lower credit scores will raise the premiums.
● Driving record
Usually, teen drivers do not have a record to speak of, and that would be challenging for car insurance companies to detect the risk for each person. The insurance provider will charge more than average due to high-risk factors.
● Vehicle
Driving a car with advanced safety technology will help you lower the costs. As car insurance companies evaluate the type of car, how many wheels would it cost to repair or replace?
● Location
Your vicinity plays a massive role while deciding the number of premiums. As if you are living in a city, there would be a risk of car theft than in rural areas.
● Demographics
Female drivers tend to pay fewer premiums during their teen years than male teens. Various other factors will make you pay less, such as your college degree or if you are married, which teenagers usually can not attain.
● Choose the Best Coverage
Insurance companies adjust based on your desired protection level. Higher plans cost more, while deductibles impact premium prices.
Opting for minimum car insurance is tempting, but full coverage offers many benefits. Liability coverage handles property damage and bodily injury. Collision coverage provides comprehensive insurance, covering medical payments or personal injury protection.
What is the best auto insurance for teenage drivers?
To determine the best car insurance company for young drivers, we will recommend some of the large companies available in almost every state.
StateFarm
StatFarm provides the best affordable multifaceted coverage for young drivers, along with the availability of its signature Steer Clear Program.
StateFarm ensures nationwide coverage, which includes most states.
Customers have plenty of options for car insurance:
- Collision coverage
- Comprehensive coverage
- Liability coverage
- Car rental and travel expenses coverage
- Uninsured motor vehicle coverage
- Medical payment coverage
- Emergency roadside assistance
- Rideshare driver coverage
Teens can benefit by enrolling in the Steer Clear program that offers a discount for those under 25 but does not have any violation or accident on the record. Simultaneously, the Drive Safe and Save program allows you to save up to 30% on premiums.
State Farm insures other vehicles and car insurance, including motorcycles, boats, ATVs, etc. As available online, you can get quick car insurance quotes or seek help from 19,000 agents working nationwide. As a parent, if you want to add teens to your policy, you must talk to an agent to customize the best coverage.
| Age | Average full coverage rate | Average minimum coverage rate |
| 16 | $6,329 | $2,613 |
| 17 | $4,922 | $2,007 |
| 18 | $4,414 | $1,774 |
| 19 | $3,455 | $1,365 |
Purchasing options: Online, local agent, phone
| Pros | Cons |
| Multiple discounts | Mediocre claims satisfaction |
| Extensive network of agents | Expensive than others |
| Rideshare insurance available | May have to purchase via agent |
Geico
Geico is famous for being an adorable gecko spokesperson and one of the top insurance providers in the country. It has maintained an A+ BBB rating, making it the best auto insurance for young adults. Additionally, it offers a long list of discounts and incentives such as Good student discounts, Good driver, Airbag, Seat belt use, and Defensive driving discounts.
Geico provides a high-tech app to many young drivers that include:
- Vehicle care features to monitor car maintenance.
- App locator to find gas, parking, and even nearby attractions.
- Voice-activated resource
| Age | Average full coverage rate | Average minimum coverage rate |
| 16 | $4,148 | $1,574 |
| 17 | $3,566 | $1,333 |
| 18 | $3,158 | $1,167 |
| 19 | $2,533 | $916 |
Allstate
A very reasonable option for teens to save exclusive Drivewise program and other discounts is to save up to 40% of your policy if you show a safe driving record. Allstate offers insurance in all 50 states and D.C. with much comfort and accessibility. Policies are sold in six months terms which makes them unique.
Some standard car insurance discounts include anti-theft and anti-lock security savings so the teen drivers can save money on receiving good grades in school and or on purchasing a new car.
Allstate provides a few types of car insurance:
- Collision
- Liability
- Comprehensive
- Medical payments
- Uninsured and underinsured drivers
- Personal injury protection
- Custom equipment
- Rental reimbursement
- Personal Umbrella
- Classic car insurance
- Mexico tourist car insurance
- Roadside assistance
| Age | Average full coverage rate | Average minimum coverage rate |
| 16 | $7,779 | $2,892 |
| 17 | $6,356 | $2,278 |
| 18 | $5,545 | $1,831 |
| 19 | $4,299 | $1,327 |
Progressive car insurance
Progressive car insurance has some significant perks that make it the best car insurance for young drivers. It is one of the largest insurance providers, although it did not rank higher in claims. They hold an excellent reputation and are renowned for offering fair prices for high-risk drivers with a clean record.
Teenagers will find Progressive very helpful if they get usage-based coverage, good student discount, or multi-vehicle discount. Progressive also offers the provider’s price comparison tool to see competing companies’ rates, making it more transparent and reliable.
| Age | Average full coverage rate | Average minimum coverage rate |
| 16 | $9,139 | $3,460 |
| 17 | $7,684 | $2,874 |
| 18 | $6,514 | $2,393 |
| 19 | $3,911 | $1,417 |
USAA car insurance
The USAA military-only insurer offers several ways to save teens and young drivers on auto insurance while providing the best customer service. United States Automobile Association (USAA) provides its services in all 50 states of America.
To purchase auto insurance from USAA, you must become a member, so you must be active duty military, a veteran, or any eligible family member. Additionally, it offers multiple ways of discounts, from safe driving to low mileage. One can earn discounts on receiving good grades at school or complete an approved defensive driving course.
Teen and young drivers can avail various types of auto insurance:
- Comprehensive
- Liability
- Collision
- Uninsured and Underinsured
- Roadside assistance
- Rideshare insurance
- Rental reimbursement
- Legacy discount
Moreover, USAA is a top customer service provider and is financially stable and well-reputed in paying claims.
| Pros | Cons |
| Top notch customer services | Only for military community |
| Availability of banking and financial services | Maintaining USAA membership |
| Military resources | No locat agent network |
Advice for parents
To grab the best car insurance for new drivers with lower rates, parents must focus on the following advice:
Limit the driving distance of teens
Most companies offer discounts on young drivers who drive less per year. Drive only during daylight hours to decrease the chances of a car accident.
Keep the car title in your name
Putting the child’s name on the title will be expensive as there would be a need to get their insurance.
Cheap car insurance for young drivers
Insurance companies assign the teen as the highest-cost driver to the most expensive vehicle if you ask your insurance agent to set your teen to the cheapest car, reducing costs.
Driving course for your teen
Many companies offer a discount for teens who completed driving courses or driver’s education.
Conclusion
When searching for the best car insurance for teens, many factors come into play. Your goals will influence your choice. Typically, people seek affordable car insurance for young drivers, with discounts for students or military families.
However, rates and premiums vary for each person.
Young driver auto insurance companies often offer discounts, especially for teens. These include good student discounts or discounts for college students living far from home. The cost of insuring a teen depends on several factors: what they drive, how they drive, and where they live.
