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Cheap car insurance for teens in 2023
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Your teen may be excited to get their license and get out on the road, but adding them to your insurance policy can be expensive. On average, a married couple adding a 16-year-old driver to their full coverage car insurance policy can expect to pay a total of $4,392 per year compared to just $1,898 annually without a young driver. However, you may find cheaper rates by shopping around and looking for teen discounts. Bankrate's analysis of average rate data found that Geico, Auto-Owners, Erie and Nationwide offer some of the lowest average rates for teen drivers.
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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.
Cheap auto insurance for teens
Insurance companies consider a driver’s age when determining their auto insurance premium in every state except Hawaii and Massachusetts. And even in Massachusetts, carriers can still consider the number of years a driver has been licensed for. On average, teenage drivers pay higher insurance premiums due to their inexperience behind the wheel and high crash rate.
According to the Centers for Disease Control (CDC), drivers between the ages of 16 and 19 are almost three times more likely than drivers aged 20 or older to be involved in a fatal car crash. They are also more likely to engage in risky driving behaviors like speeding.
Since car insurance for teens tends to be expensive, young drivers and their parents may want to research several options to find the cheapest carrier for their circumstances. Luckily, several car insurance companies offer premiums for teen drivers well below average auto insurance rates.
Cheapest car insurance for teens on their parents' policy
Both 16-year-olds and 17-year-olds typically need to be insured under their parents' policy since they are legally considered minors. Because these drivers are the most inexperienced of any age group, average rates are generally higher for teens than for other ages. Still, several of the nation’s best auto insurers offer cheap insurance for young teens. The companies showcased below offer some of the cheapest average car insurance rates for 16-year-olds added to their parents’ policy, based on average rates collected and analyzed from Quadrant Information Services. These rates are averages, and your rates will likely vary based on your personal rating factors.
| Car insurance company | Avg. annual min. coverage premium | Avg. annual full coverage premium |
|---|---|---|
| Geico | $886 | $2,977 |
| Nationwide | $918 | $2,262 |
| Auto-Owners | $988 | $3,196 |
| Allstate | $1,017 | $4,461 |
| Erie | $1,035 | $2,876 |
The average total annual cost of a 16-year-old added to their married parents' car insurance policy is $4,392 for full coverage. That is an additional $2,494 annually compared to an average married couple without a 16-year-old on their policy.
Cheapest car insurance for teens on their own policy
Adult teen drivers, such as 18-year-old and 19-year-old drivers, generally have more road experience than younger teens and, due to their age and status as legal adults, typically have the option to remain on their parents' policy or purchase their own. Because their average car insurance rates still tend to be higher than for more experienced adult drivers, 18-year-old drivers may still need to shop around to find affordable coverage.
The average annual cost of car insurance for 18-year olds on their own policy is $6,110 for full coverage and $1,967 for minimum coverage. The rates below represent 18-year-old renters on their own policy. While 18- and 19-year-old drivers typically save money by staying on their parents' policies, most insurance companies will require adults to purchase their own policy once they no longer live with their parents.
| Car insurance company | Avg. annual min. coverage premium | Avg. annual full coverage premium |
|---|---|---|
| Auto-Owners | $1,044 | $3,540 |
| Erie | $1,081 | $2,988 |
| USAA | $1,086 | $3,764 |
| Geico | $1,175 | $4,048 |
| State Farm | $1,359 | $4,066 |
How much does car insurance cost for teen drivers?
In most states, males tend to pay higher car insurance rates than females because they are statistically more likely to engage in risky driving behaviors. Statistically, male drivers are more likely to get into accidents than female drivers, which tend to be more serious. The average 18-year-old male driver pays 15 percent more for full coverage insurance than female drivers of the same age.
| Age | Average annual full coverage premium for males | Average annual full coverage premium for females |
|---|---|---|
| 16-year-old* | $4,584 | $4,201 |
| 17-year-old* | $4,285 | $3,919 |
| 18-year-old** | $6,541 | $5,679 |
| 19-year-old** | $5,075 | $4,365 |
*Rates reflect the total cost for two adult drivers, one teen and one vehicle
**Rates for 18- and 19-year-olds are for drivers on their own policies
How teens can save on car insurance
The cost of insuring a teen driver can be daunting. Insurance companies know this and generally offer several discounts for policyholders to take advantage of to lower their premiums. By understanding what savings programs your insurance carrier has available, you may be able to reduce the cost of insuring a teen driver. Teens may keep car insurance rates low by keeping clean driving records and looking for student discounts.
Good student discounts
Many insurance carriers offer student discounts for drivers aged 16 to 24 who are enrolled in school full-time and maintain a certain grade point average. Carriers have varying eligibility requirements, so it is always best to ask your provider what the exact requirements are to qualify for this discount.
Distant student discounts
Students who attend a school away from home and do not have a car with them may qualify for this discount. While this discount is most common with college students, younger teens who attend schools away from home might also qualify. Such programs usually stipulate the maximum age and minimum distance from home that students must be to qualify. For example, a distant student program may require that a student be under 25 and be at least 100 miles away from home to qualify.
Additional discounts
In addition to education-related discounts, teen drivers may be able to take advantage of other discounts to help lower the cost of insurance. Depending on your insurance carrier, you may be eligible for the following:
- Safe driving discount: Insurance carriers may offer safe driving discounts for policyholders with clean driving records, meaning no accidents or traffic violations in the past three to five years. If you’re a good driver, you may qualify for this discount.
- Multi-car and multi-policy discounts: These two discounts are some of the biggest contributors to teens earning cheap car insurance while on their parents’ policy. If their parents have more than one car, their auto policy likely qualifies for a multi-car discount. Similarly, if they have homeowners, condo owners or renters insurance policy with the same company, they may qualify for a bundling discount.
- Driver’s education discount: Policyholders who complete a qualifying driver training course may be eligible for some companies’ driver’s education discount.
- Telematics discounts: Whether or not you have a clean driving record, you may qualify for a telematics program. These programs use a device to track your driving in real-time and award discounts for safe driving.
- Payment discounts: Many carriers offer discounts for customers who pay their premium in full, enroll in automatic payments and choose paperless billing.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 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 2021 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 16-60 (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.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Teens: Rates were determined by adding a 16- or 17-year-old teen to a 40-year-old married parent’s policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy. Rates for 18- and 19-year-olds are for teen drivers on their own auto insurance policy.