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Car insurance for 17-year-olds
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How much is car insurance for a 17-year-old?
The average cost of a car insurance policy for two adults with a 17-year-old driver and one vehicle is $4,705 per year for a full coverage policy. Without the teen driver, the same policy could be purchased for an average price of $2,227 a year — 53 percent less than the family with a teen.
Car insurance companies generally consider teens a higher risk to insure because they have less experience behind the wheel and may be more likely to engage in risky behaviors such as texting while driving. Data from the Centers for Disease Control and Prevention shows that teen drivers between the ages of 16 and 19 are involved in more accidents than any other age group. This can translate into an increased number of claims against the policy. To mitigate this increased risk, your insurer is likely to charge more for your teen driver.
Families in Massachusetts and Hawaii may see some relief, as insurers in those states aren't allowed to consider age as a car insurance rating factor, although carriers in Massachusetts can consider the number of years you've been licensed for.
Average car insurance costs for 17-year-olds
Understanding the average cost to add a 17-year-old to your policy might help you better prepare your finances for when your teen starts driving. The table below illustrates the average annual full coverage premium for 17-year-olds compared to the average premium for their parents before adding a teen driver:
These rates are for good drivers with a clean motor vehicle record (MVR), meaning no at-fault accidents or moving violations. Drivers with incidents like these on their MVR will usually have a higher car insurance rate. Additionally, other individual rating factors impact your car insurance premium, like the make and model of your vehicle, credit history, number of miles driven annually and auto claim history.
Average car insurance cost for 17-year-olds by state
As we noted above, your location is another factor, along with age, that impacts your insurance rate. Rates differ from state to state and even from ZIP code to ZIP code. Insurers look at accident rates for each region and are likely to increase their premiums for those who live in areas that have a higher incidence of accidents.
The table below shows the annual full and minimum coverage premium rate for a family with a 17-year-old driver in each state. Note that the average rates for Hawaii and Massachusetts are considerably lower. That's because these two states do not allow insurers to consider age when determining premiums. In addition, Michigan prohibits the use of ZIP codes, while in California, the use of ZIP codes to determine rates is limited.
Best car insurance companies for 17-year-olds
Choosing a company with coverage and discount options tailored to the needs of 17-year-old drivers can be important. We chose these companies based on a review of their average rates, coverage offerings, discounts and third-party scores.
Based on our research, the following companies might be worth your consideration as you search for the best 17-year-old car insurance policy:
Car insurance company | Average annual full coverage premium |
---|---|
Allstate | $4,827 |
Amica | $5,045 |
Erie | $3,507 |
Nationwide | $2,986 |
State Farm | $4,492 |
Allstate may not be the cheapest car insurance option for a 17-year-old, but it does have a lot of savings opportunities to offer. Consider the company’s Drivewise program, which could help your teen learn safe driving habits and allow you to monitor their driving patterns via telematics — all while saving you money. Allstate’s teenSMART safety program allows teen drivers the ability to earn an additional discount by completing a driver education course. The company also offers a Safe Driving Bonus to everyone who qualifies, including teen drivers. This program rewards drivers $100 for every six months they don’t have an accident.
Amica’s car insurance offerings for families with teens include ample endorsements and discounts. Roadside assistance, gap insurance, glass coverage and rental car reimbursement are available from Amica. Additionally, it offers several discounts specifically for parents of student drivers. For instance, Amica’s Good Student discount provides savings for any full-time college or high school student ages 15 to 25 who maintains at least a B average. And, if your 17-year-old is thinking about college, Amica even has a discount for families who have a student away at college. You can get a quote through Amica’s website or contact the insurer over the phone to see what your personalized policy or policies would cost.
Erie provides competitive rates for teen drivers and plenty of coverage types and discounts tailored for this age group. For example, the carrier’s roadside and rentals bundle might give you peace of mind that your 17-year-old driver would be taken care of during a roadside emergency. Additionally, with Erie’s Rate Lock feature, policyholders may be able to lock in their rates, only experiencing a change if they make certain adjustments to their policy, like changing their address or adding a vehicle. Erie also offers a Youthful Driver discount to unmarried drivers under 21 who live with their parents in all states where it offers auto coverage (except North Carolina) as well as discounts in many states for drivers under 21 who complete an accredited driver training course. Erie is a regional insurer only available in 12 states and Washington, D.C., so it may not be an option for drivers in many parts of the country. However, the company carries an A+ (Superior) financial strength rating from AM Best.
Nationwide has some of the most affordable average rates on our list and is one of the best insurance companies for 17-year-old drivers for its coverage options and available discounts. Nationwide offers special auto coverage options such as accident forgiveness, which helps you avoid rate increases following your first at-fault accident. Additionally, full-time high school and college students between the ages of 16 and 24 who maintain at least a B grade average are eligible for a discount on their premium. Nationwide does have a lower-than-average claims satisfaction score from J.D. Power, though, which means that current customers may be less than satisfied with the carrier’s claims process.
For teens whose parents like to keep all their policies in one place, State Farm might be a good option. The company, which is the largest U.S. auto insurer by market share, offers a wide range of insurance and financial products sold and managed by an exclusive network of more than 19,000 local agents. Teens might be able to save money with State Farm by being good students, taking a driver education course and participating in the company’s Steer Clear safe driving program that tracks the driving habits of young drivers.
Cheapest car insurance for 17-year-olds
No one wants to pay more for their car insurance coverage than is necessary, and that includes the parents of teen drivers. Finding affordable insurance may be a high priority for many families. Using data from Quadrant Information Services, Bankrate's insurance editorial team reviewed average premium rates from a broad range of the insurance companies that are writing the most policies in the U.S. to find the best rates for teen drivers.
While price was our primary metric here, we also took a careful look at other aspects worth considering, such as the quality of each insurer's customer service, available discounts and range of coverage options. The insurers in the table below are rated highly across the board and may be good choices if you are looking for robust coverage for your family that includes a teen.
Car insurance company | Average annual full coverage premium | Average annual minimum coverage premium |
---|---|---|
USAA | $3,323 | $919 |
Geico | $3,500 | $991 |
Auto-Owners | $3,221 | $1,059 |
Nationwide | $2,986 | $1,202 |
Allstate | $4,827 | $1,161 |
Although the average rates offered by these companies are generally lower than the average premium for a 17-year-old driver, remember that the premium you will pay for your teenage driver will depend on multiple individual rating factors. The car they drive as well as the coverage types, limits and deductibles you choose will impact your premium. Additionally, 17-year-old drivers who demonstrate good driving habits will generally pay lower premiums; if your child has had a ticket or accident in their first year of driving, you’ll likely pay a higher amount for car insurance.
How to save on car insurance when insuring a 17-year-old
Although the price of insuring a teenage driver can be unnerving, there are numerous ways to save money. Most insurance companies offer car insurance discounts for students to help offset the premium increase you will likely experience after adding your 17-year-old driver.
Shop around and compare quotes
Insurance pricing is risk-based, but every insurance company follows a different set of calculations to estimate a given driver’s potential risk. In order to insure a high-risk driver like a 17-year-old, comparison shopping can help to identify the carriers whose risk calculations and rates are the best fit. Comparing rates from at least three to five different companies may help you find cheaper insurance without reducing coverage.
Talk to your teen about safe driving habits
The high cost of car insurance for teens is partly a result of the high incidence of unsafe driving habits — like distracted driving or texting and driving — among young drivers. Helping your teen avoid or reduce these behaviors might not directly bring your insurance costs down, but it’s an essential way to reduce your risk of a premium increase as a result of violations or accidents.
Reduce mileage on your vehicles
Reduced mileage means a lower chance of accidents, which some insurers may reward with discounts. If you’re able to significantly lower your annual mileage — such as if you work from home or can take public transportation — some insurance companies may offer unique low-mileage insurance programs with low rates.
Look for discounts
Many insurers offer discounts to young drivers that may help lower their high average rates. Often, these are focused on students. Some insurers, for example, offer a discount to students who carry a certain grade point average — usually a B or above. This discount is available to both high school and college students and is available at companies including State Farm, Nationwide and Progressive. The amount varies from company to company but is often a 10 percent discount. Another common student discount is one that reduces your premium rate if your teen is attending college more than 100 miles from home and has left their car at home. Ask your insurance agent about other discounts you and your teen may be eligible for, such as a discount for completing an accredited driver education course.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze October 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the ages 17-40 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Teens: Rates were determined by adding a 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
Bankrate Scores
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.