Cheap Car Insurance for Teen Drivers
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 $445 per month ($5,340 per year) for car insurance. This reflects their higher accident risk which the CDC credits to teens' general inexperience and tendencies for critical errors, distracted driving, and speeding.[1]
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 $74 more per month than the average young female. However, the exact difference may vary depending on the insurer and other factors like age, location, driving history, and vehicle type.
Updating data...
| Gender | Avg. Monthly Premium | Avg. Annual Premium |
|---|---|---|
| Female | $457 | $5,479 |
| Male | $531 | $6,372 |
Source: The Zebra
The good news for parents of all genders is that 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.
Monthly Car Insurance Rates for Teens by State and Age
*Please note that insurers are not permitted to use age in California, Hawaii, and Massachusetts. Insurers are not permitted to use gender in California, Hawaii, Massachusetts, Montana, Pennsylvania, North Carolina, or Michigan.
What is the cheapest car insurance for teens?
According to our data, USAA ($320/mo) and State Farm ($394/mo) offer the cheapest average car insurance for those aged 16-19. While teen car insurance is innately expensive, some companies are cheaper than others. This is because each company has its own unique risk assessment and business model. See how other insurers' average rates compare below. Or, skip to the section discussing tips to save on teen insurance.
Updating data...
| Company | Avg. Monthly Premium | Avg. Annual Premium |
|---|---|---|
| USAA | $320 | $3,838 |
| State Farm | $394 | $4,726 |
| American Family | $404 | $4,843 |
| GEICO | $442 | $5,303 |
| Nationwide | $471 | $5,652 |
| Allstate | $569 | $6,834 |
| Amica Mutual | $582 | $6,980 |
| Farmers | $600 | $7,206 |
| Progressive | $654 | $7,842 |
| Liberty Mutual | $712 | $8,543 |
Source: The Zebra
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! Just enter your zip code below to get started.
Get your teen insured today!
The Zebra's picks for best teen car insurance companies
The Zebra considers USAA ($320/mo), State Farm ($394/mo), and Erie ($211/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.
Best for Military Families: USAA ($320/mo)
Parents of teen drivers rated USAA the best overall insurer in The Zebra's Customer Satisfaction Survey, with the highest marks given for claims and customer service satisfaction, trust, ease, and willingness to recommend. The only downside: USAA limits eligibility to military members, veterans, and their families. At $320 per month, USAA is also the cheapest insurance option for teens.
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Highest-rated insurer by parents of teen drivers
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Highly rated by respected third parties
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Lowest average rates
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Good student and driving training course discounts
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SafePilot program reduces rates for safe drivers and allows parents to monitor habits
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Optional roadside assistance
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USAA eligibility is restricted to military personnel, veterans, and their kin.
Best For Claims Satisfaction: Erie Insurance ($211/mo)
Erie was rated highly in The Zebra's Customer Satisfaction Survey by parents of teens for claims satisfaction. However, it lost points for being only available in twelve states and having a history of mobile app issues. Parents will like Erie's YourTurn telematics app as it not only lowers rates of safe drivers but can decrease phone distractions by 35% and hard braking and speeding by 20%. At $211 per month, Erie is somewhat reasonably priced for teen drivers.
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Rated in the top 5 insurers by parents of teens
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Relatively low cost
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Youthful driver and driver training discounts
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YouTurn telematics app helps decrease dangerous driving behavior
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Cheap emergency roadside service coverage
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Only available in DC, IL, IN, KY, MD, NY, NC, PA, TN, VA, WV, and WI
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History of mobile app issues
Best Widely Available: State Farm ($394/mo)
State Farm consistently ranks toward the top of customer satisfaction lists (it tied for seventh according to teens and their parents in our Customer Satisfaction Survey) and is available nationwide. Some people also like the idea of being able to contact a local agent should they have any questions. Unless you are seeking highly custom coverage options, State Farm is a great choice for the whole family!
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Nationwide availability
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Highly rated by third parties, teens, and their parents
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Comparatively low cost
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Good student and "Steer Clear" young driver training program discounts
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Drive Safe & Save telematics program
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Optional roadside assistance
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Less custom coverage options
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.
Top-Rated Insurers by Teens and Parents
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.
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.
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. Annual Premium |
|---|---|---|
| USAA | $420 | $5,039 |
| American Family | $478 | $5,737 |
| Nationwide | $506 | $6,067 |
| GEICO | $510 | $6,118 |
| State Farm | $544 | $6,525 |
| Liberty Mutual | $699 | $8,389 |
| Allstate | $716 | $8,588 |
| Amica Mutual | $792 | $9,499 |
| Farmers | $851 | $10,209 |
| Progressive | $887 | $10,645 |
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. Annual Premium |
|---|---|---|
| USAA | $354 | $4,246 |
| American Family | $410 | $4,915 |
| GEICO | $424 | $5,083 |
| Nationwide | $442 | $5,299 |
| State Farm | $481 | $5,770 |
| Liberty Mutual | $530 | $6,366 |
| Allstate | $620 | $7,444 |
| Amica Mutual | $667 | $7,999 |
| Farmers | $726 | $8,714 |
| Progressive | $737 | $8,840 |
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. Annual Premium |
|---|---|---|
| USAA | $141 | $1,690 |
| GEICO | $161 | $1,931 |
| American Family | $182 | $2,190 |
| Nationwide | $192 | $2,309 |
| State Farm | $212 | $2,543 |
| Liberty Mutual | $243 | $2,919 |
| Allstate | $260 | $3,117 |
| Amica Mutual | $268 | $3,219 |
| Progressive | $314 | $3,770 |
| Farmers | $356 | $4,269 |
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.
Does my teen also need umbrella coverage?
If you can afford it, you should also have umbrella coverage. It usually costs under $200 per year and works in conjunction with your auto insurance policy to provide additional liability coverage if you happen to exceed the limit of the underlying policy.
For example, if you only had $250K in liability coverage, and your child is held liable for $500K in damages, you would have to cover the remaining $250K yourself, and likely some legal fees as well.
This is exactly what happened to family friends of one The Zebra's agency managers. Read the cautionary tale below:
Brittany's story:
"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 didn't see an oncoming vehicle while making a left turn, colliding 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."
Brittany Jinnette — Licensed agency sales manager at The Zebra
Brittany's story is a good example of how unexpected accidents can affect anyone, even families with good kids. Read more about the pros, cons, and nuances of umbrella coverage here.
Rating factors to keep in mind
When a car insurance company provides you with a rate, multiple factors have gone into this very specific number. Here are some of the common factors that companies will analyze when calculating your personalized rate for auto insurance:
- Age
- Driving, claims and insurance history
- Vehicle type
- Credit score
- Experience
- Location
- Gender
- Annual mileage
- Marital status
- Vehicle
Next, we'll explore how you can save money by understanding and leveraging these factors.
Q: Should teens be added to their parents' policy or get their own?
A: The Zebra typically advises adding teens to their parents' policy, unless the parents have a poor driving record, as it's substantially cheaper and even often required by insurers. However, if the car is solely in the teen's name, a separate policy might be needed.
Read more about when you should be on your parents' policy here.
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.
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.
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.
The Insurance Information Institute suggests increasing your liability limits if adding a teen driver to your policy, as this can help to protect against lawsuits or damages that may arise if your teen is involved in an accident.[3] Please note that teens won't qualify for "accident forgiveness" programs given eligibility often requires you first have 3-5 years of clean driving.
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.
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.
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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.