Cheap Car Insurance for Teen Drivers
- American Family and Travelers are both the cheapest and highest-rated car insurance options for teens.
- Use The Zebra to get cheap car insurance for teen drivers from GEICO, Progressive, Nationwide, Liberty Mutual, and Allstate (+100 other companies)
How much is car insurance for teens?
On average, teens will pay $420 per month ($5,040 per year) for car insurance.[1] This reflects their higher accident risk which the CDC credits to teens' general inexperience and tendencies for critical errors, distracted driving, and speeding. In most states, gender and age also affect teen insurance costs as accident and violation rates are statistically higher in young male drivers. The average young male driver pays $50 more per month than the average young female.
Updating data...
| Gender | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| Male | $445 | $2,670 |
| Female | $395 | $2,369 |
Source: The Zebra
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Who has the cheapest car insurance for teens?
Our data suggests American Family and Travelers offer the most affordable rates for teen drivers.
- American Family: $343/mo
- Travelers: $360/mo
- USAA: $394/mo
As you can see, auto insurance rates for teenagers are significantly higher than other age groups, even with the most affordable insurance companies. The good news is, teen car insurance rates drop significantly each year their child maintains a clean record, especially between the ages of 16 and 19 as shown below.
Updating data...
| Company | 16 year-olds | 17 year-olds | 18 year-olds | 19 year-olds |
|---|---|---|---|---|
| Allstate | $898 | $754 | $654 | $511 |
| American Family | $423 | $362 | $320 | $266 |
| Amica Mutual | $525 | $522 | $517 | $464 |
| Farmers | $972 | $807 | $744 | $431 |
| GEICO | $513 | $449 | $394 | $320 |
| Nationwide | $640 | $589 | $552 | $459 |
| Progressive | $897 | $777 | $682 | $409 |
| State Farm | $867 | $676 | $602 | $479 |
| Travelers | $477 | $378 | $326 | $259 |
| USAA | $569 | $397 | $336 | $273 |
Source: The Zebra
*The rates displayed in this table (and all subsequent tables) reflect a teen driver on their own full coverage policy.
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Remember, the most affordable company for you may differ from the options shown above, as numerous factors influence your rate. It's crucial for teens and parents to get personalized quotes, as the cheapest insurer for parents alone may change when adding a child to the policy. Don't worry, The Zebra makes this process simple! Use the calculator below to see preliminary rates:
Fetching your estimate
Here at The Zebra, we make it easy for you to find the right coverage—at the right price. We compare top companies so you can find what works for you.
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Cheap car insurance for teens by state
Location matters significantly when it comes to rating car insurance policies. While most insurance companies will weigh age more heavily than location, where you live will be considered in policy rating. Except in California, Hawaii, and Massachusetts, where insurers are not permitted to use age as a rating factor by law.
Updating data...
| Company | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| Allstate | $607 | $3,644 |
| Farmers | $1,077 | $6,464 |
| GEICO | $409 | $2,456 |
| Nationwide | $712 | $4,271 |
| Progressive | $972 | $5,834 |
| State Farm | $554 | $3,325 |
| Travelers | $292 | $1,754 |
| USAA | $368 | $2,209 |
Source: The Zebra
In this article, we have focused on displaying rates from carriers that are available in all 50 states in order to cater to a wide audience. However, smaller regional insurance companies may also offer competitive rates for teens. For example, Erie, which is available in 11 states, is a great option to consider if eligible.
What coverage level is best for teen drivers
The amount of coverage your teen needs will depend on your vehicle and personal preferences. At The Zebra, we like to simplify coverage options by sorting them into three categories: best, good, and minimum.
It's worth noting that "best" and "good" are more a reference to the amount of coverage, not to them being the best option for everyone. Expand each section below to learn more about cost and coverage the differences for each coverage category discover which one best suits your needs.
"Best" coverage includes comprehensive and collision coverage (deductibles at $500) as well as high liability limits (100/300/100).
Recommended for: Luxury or high-performance vehicle owners, loan/lease holders, or those with substantial assets.
Cost: $600/mo
*We always recommend higher levels of liability insurance, particularly for those with significant assets. It helps shield you from lawsuits if accident damages you're liable for exceed your insurance limits.
Updating data...
| Company | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| USAA | $420 | $2,520 |
| American Family | $478 | $2,868 |
| Nationwide | $506 | $3,033 |
| GEICO | $510 | $3,059 |
| State Farm | $544 | $3,263 |
| Allstate | $716 | $4,294 |
| Amica Mutual | $792 | $4,749 |
| Farmers | $851 | $5,104 |
| Progressive | $887 | $5,323 |
Source: The Zebra
Our “good” coverage offers a middle ground between state liability and top-tier coverage. It offers 50/100/50 liability limits and full coverage with a deductible of $1,000.
Recommended for: most teens and their parents without a loan or lease on their vehicle
Average cost: $512/mo
Updating data...
| Company | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| USAA | $354 | $2,123 |
| American Family | $410 | $2,457 |
| GEICO | $424 | $2,541 |
| Nationwide | $442 | $2,649 |
| State Farm | $481 | $2,885 |
| Allstate | $620 | $3,722 |
| Amica Mutual | $667 | $3,999 |
| Farmers | $726 | $4,357 |
| Progressive | $737 | $4,420 |
Source: The Zebra
While higher deductibles can help lower your overall premium, $500 deductibles are more common than $1,000. If you’d prefer a $500 deductible, it would raise the group average of the above premiums by 19%, or $977 every six months.
"Minimum" coverage meets state-mandateud liability limits and does not include full-body coverage.
Any injuries to your person or vehicle will not be covered.
Updating data...
| Company | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| USAA | $141 | $845 |
| GEICO | $161 | $966 |
| American Family | $182 | $1,095 |
| Nationwide | $192 | $1,154 |
| State Farm | $212 | $1,271 |
| Allstate | $260 | $1,559 |
| Amica Mutual | $268 | $1,609 |
| Progressive | $314 | $1,885 |
| Farmers | $356 | $2,135 |
Source: The Zebra
The Zebra (and most insurance professionals) recommend against having only minimum liability coverage because:
- It can result in higher insurance costs later, as insurers view drivers carrying only minimum coverage as riskier.
- You risk being underinsured in the event of an at-fault accident, meaning you can be sued for financial damages.
- You have no physical coverage for your vehicle for damage caused by accidents, theft, weather, etc.
However, minimum coverage is much cheaper than other coverages for both teens and parents and might be the only option some can afford. In this situation, we recommend you check out our list of other ways to save below and perhaps considering additional coverage as finances allow.
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How to save on teen car insurance
Unfortunately, there is not much you can do to avoid paying significantly more for coverage for teen drivers. As they age and get more driving experience, their risk and associated cost of insurance will lower. However, there are a few steps you can consider to lessen the financial blow now.
Having your name next to your teen's reduces risk in the eyes of insurers. It's also even required by car insurers if your child lives in your household and could potentially drive your vehicle.
Collision and comprehensive coverage is usually required if your vehicle is not leased or financed. However, if you own your vehicle outright, we recommend considering dropping to liability-only coverage if the vehicle is valued under $4,000 or its replacement parts become closer to the price of your premiums and deductibles.
If you maintain a GPA of 3.0 or higher and provide transcripts every six months, good students can save on average $283! Learn more about student discounts from leading car insurance providers.
Young drivers who have taken a professional driving course are less likely to get into an accident or receive a citation, both of which can raise your premium as well as endanger your child. Requirements for this discount vary, so consult your insurer for details before signing up for courses at school or through the state.
Insurers factor in repair costs, age, safety features, and accident risks associated with your vehicle's make and model when setting your insurance rate. That's why The Zebra suggests opting for an affordable vehicle (e.g. a used car) with high safety ratings for novice drivers. According to the Insurance Institute for Highway Safety[2], the safest moderately-priced cars for teens include used versions of the Ford C-Max Hybrid and the Mazda 3. See our article for more ideas for budget-friendly cars ($20K and under) for teens.
Telematics programs use in-car devices or phone apps to monitor driving habits. In addition to providing accountability to teens, there is also an initial sign-up discount. Safe drivers often see even lower rates over time. Learn more about telematics programs here.
How Long Can You Stay on Your Parents' Insurance Policy? | The Zebra
As long as you live at the listed address on the insurance policy, you will never "age out" of car insurance. Learn how to stay eligible and how to save on your car insurance.
Additional advice from a real-life experience
Some of our own agents have personal anecdotes about insuring a teen. Take this story from Brittany Jinnette, agency sales manager at The Zebra:
"My friend's son is a responsible, well-behaved young man with good grades - far from a troublemaker. Unfortunately, he had an accident when he collided with a vehicle carrying an elderly woman who sustained severe injuries that required an extensive hospital stay.
Despite having higher liability limits of 250/500/100, my friends didn't have an umbrella policy and weren't aware of this option before the accident. As a result, their liability limits were exceeded, leading to a $750k lawsuit against them. They had to seek legal representation at their own cost because their son, though not at fault or under the influence, was the driver under their policy, in their vehicle, and still a dependent."
This story reminds us that sometimes, preventative measures can save you if an accident occurs, even if they add on to your monthly bill. The Zebra experts recommend the following options if budget allows:
The Zebra's picks for best teen car insurance companies
The Zebra considers American Family ($343/mo), Erie ($334/mo), and Travelers ($360/mo) to be the top insurance choices for teen drivers. All three meet key criteria on our car insurance company checklist for new drivers, including comparatively lower costs, youth-focused savings, and excellent ratings from J.D. Power (customer and claims satisfaction), A.M. Best (financial stability), the NAIC (customer complaint index), and consumers.[3]
American Family
- American Family offers some of the lowest rates for teen drivers, with an average policy costing $343 per month.
- J.D. Power ranks American Family consistently highly in customer satisfaction.
Erie
- For those in available states, Erie policies for teens are $334 per month on average.
- Erie earned top marks in its region from J.D. Power and in the Zebra customer satisfaction survey.
Travelers
- Travelers consistently offers affordable rates, and teens are no exception— average monthly premiums are $360 per month.
- Travelers offers a decent amount of discount opportunities.
"Teens are going to make mistakes. Insurance is here to help and protect you and your family when an accident occurs. Will your insurance rates go up if your teenage driver causes an accident? Probably. But the comfort of knowing your insurance company will protect your family is priceless."
Katy Griffen — Licensed insurance advisor at The Zebra
The best companies according to teens and parents
The Zebra conducted a survey to understand carriers from a customer's perspective. We asked how each major carrier held up in online experience, claims satisfaction, ease of use, customer service, trustworthiness, and willingness to recommend. Teens and parents of teens surveyed consistently ranked USAA and Erie in the top two spots across the board. See how other insurers measured up below.
Note: You may notice that three companies in the table above rank higher than some listed as our Best Insurers for Teens. This is mostly due to concerns about Alfa Mutual and AIG's high pricing and MetLife's discontinuation of new home and auto policies after being acquired by Farmers.
The Zebra Customer Satisfaction Survey methodology
Methodology:
These results are based on a survey of 2,722 U.S. insurance policyholders assessing satisfaction with their car and homeowners insurance providers. The survey was conducted using Survey Monkey and designed by our in-house team. It aimed to collect detailed insights from a census-balanced sample reflecting age, gender, and region.
Questionnaire
The questionnaire included demographic questions about age and gender identification and detailed inquiries into insurance experiences. Key topics:
- Duration with insurance provider and coverage specifics, including teen drivers.
- Claim filing experiences and satisfaction with claims handling.
- Customer service interactions, trust in providers, and likelihood of recommending their insurance.
- Use and satisfaction with digital tools and usage-based insurance programs.
Respondents rated their satisfaction on a Likert scale from 1 to 10 and provided qualitative feedback.
Data Analysis
Data were analyzed focusing on descriptive and inferential statistics to identify satisfaction trends and demographic impacts. Data cleaning and weighting were applied to ensure accuracy, alongside strict confidentiality protocols to protect data security.
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Related content
- Cheap Car Insurance for 40-Year-Olds
- Cheap Car Insurance for 20-Year-Olds
- Cheap Car Insurance for 25-Year-Olds
- Cheap Car Insurance for Young Adults
- Cheap Car Insurance for 23-Year-Olds
- Cheap Car Insurance for 60-Year-Olds
- Cheap Car Insurance for 21-Year-Olds
- Cheap Car Insurance for 50-Year-Olds
- Cheap Car Insurance for 17-Year-Olds
- Cheap Car Insurance for 19-Year-Olds
Data Methodology. The Zebra’s Dynamic Insurance Rating Tool
Safe Vehicles for Teens. Insurance Institute for Highway Safety
2024 U.S. Auto Insurance Study. J.D. Power
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.