Car Insurance for Teen Drivers

The best car insurance companies for teen drivers

The Zebra conducted a survey with the intention of understanding 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. Drivers in the youngest age group surveyed consistently ranked USAA and State Farm in the top two spots across the board. In the overall category, USAA and State Farm both received 4.5 stars from this age group.

How much does car insurance cost for teen drivers?

Car insurance is even more expensive for teen drivers on their own policy — on average, it costs $2,287 every six months. To save the most money, insuring a teen driver under their parents' policy is almost always the best way to go; compared to a standalone policy for a teenage driver, parents can save $955 every six months by adding them to their policy. Consult the table below to see auto insurance rates for teen drivers on their own policy — ordered from cheapest to most expensive.

AVERAGE PREMIUMS FOR TEEN DRIVERS BY INSURANCE COMPANY

The data above comes from 2020 rate filings and should be considered an estimate of your potential costs. If you want real quotes based on your driving profile, enter your ZIP code below to compare quotes.

Auto insurance for teens by gender

For teen drivers, gender makes an impact on what you pay for car insurance. However, this factor becomes less significant as drivers age into adulthood. On average, it costs an extra $300 a year to add a young male driver versus a female teen driver to their parents' policy. Young male drivers are typically more expensive to insure than young female drivers.

To see a breakdown of the cheapest insurance companies for teens by gender, continue reading.

Car insurance for male teenage drivers

Male teen drivers typically pay more in premium than female drivers because of the comparative risk they present. On average, adding a son to your policy will raise your car insurance rates by $725.

The cheapest insurance companies for adding a male teen driver (between the ages of 16 and 19) to their parents' policy are USAA and State Farm.

CHEAPEST INSURANCE COMPANIES FOR MALE TEEN DRIVERS

Car insurance for female teenage drivers

While not as expensive as teenage male drivers, adding a young daughter to your policy can still increase your insurance rate by an average of $575 every six months. The average monthly premium for a female teen driver on her parent’s policy is $209 — about $1,257 for a six-month policy.

CHEAPEST INSURANCE COMPANIES FOR FEMALE TEEN DRIVERS

USAA and State Farm are the most affordable insurance companies for female drivers between the ages of 16 and 19.

Average cost of car insurance for teens by coverage level

The amount of coverage your teen needs will depend on your vehicle and your personal preferences. We’ll group levels of coverage into three categories: best, good, and minimum:

• "Best" coverage includes comprehensive and collision coverage (deductibles at $500) as well as high liability limits (100/300/100).
• "Good" coverage has lower liability limits (50/100/50) and higher deductibles ($1,000 for comprehensive and collision).
• "Minimum" coverage meets state-mandated liability limits and does not include full-body coverage.

The data below shows average rates for teenage drivers on their own policy, as opposed to simply joining their parents' policy (see above for that information). 

"Best” car insurance coverage level for teen drivers

We recommend the “best” coverage level if your teen is driving a high-performance car, you have considerable assets* or you have a loaned or leased vehicle.

*Although we always encourage high levels of liability, if you have considerable financial assets your liability insurance can protect you from having these assets seized if you are sued after an accident. You can be sued if the damage you cause after an accident exceeds the value of your insurance.

“Good” insurance coverage level for teen drivers

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.

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

Minimum liability coverage will keep you in good graces with your state’s department of insurance. However, it’s not recommended for more than a few years — especially if you have teen drivers.

• Having a history of low insurance coverage can make it more expensive to get insurance in the future because of the risk insurance companies see with drivers who carry minimum coverage.
• You risk being underinsured in the event of an at-fault accident. This means you can be sued for any monetary damage that is not covered by your liability insurance.
• You have no physical coverage for your vehicle. Consider at-fault accidents, damage caused by uninsured drivers or comprehensive claims (like theft, weather and animal-related damage) before you drop this coverage.

However, minimum coverage is much cheaper than other coverages. If you’re worried about insurance costs, you can consider purchasing the state-mandated minimum liability for your coverage needs.

In our analysis of the cheapest insurance companies for teenage drivers, we found that USAA was the cheapest for all coverage levels.

Average car insurance premiums for teen drivers by state

Car insurance is pricier for teens than other age groups in every state.  But, the average cost of insurance for teens can vary from state to state.

AUTO INSURANCE PREMIUMS FOR TEEN DRIVERS (AGE 16-19) BY STATE

How to find cheap car insurance for teens

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 will lower. However, there are a few steps you can consider to lessen the financial blow. Let's get started.

Good student discount

If your driver has good grades, typically over a 3.0, you might want to consider the Good Student Discount. Your insurer would require proof, such as a transcript, every six months in order to qualify. On average and combined with a good driver discount, you can expect an average savings of $283! See more information on student discounts from top car insurance companies.

Defensive driver/safe driving discount

Another option is what’s called a defensive driver discount. Young drivers who have taken a professional driving course are less likely to receive a citation or get into an accident. These courses can also help teach teens good driving habits to help reduce the potential for citations and accidents which can raise your premium. The exact requirements and specifications for this discount vary, so consult your insurance company for details to get a cheaper rate.

State- and school-run programs offer teen driving safety courses. Make sure you check with your insurance company about the requirements before signing up.

Choose a moderately priced vehicle

Insurance companies not only use you as a rating factor for determining your car insurance rate but also your vehicle. If you’re interested in keeping your premium down it makes financial sense to choose a cheaper vehicle (like a used car) for less experienced drivers. Save the new trucks or luxury vehicles for more experienced drivers.

See our article for more information on moderately priced vehicles for teens.

Keep your teen on your car insurance policy

Although there are some reasons to exclude your teen drivers from your policy, the most cost-efficient solution is to keep them on your policy. Experienced drivers will help reduce the risk presented by a young driver and thus reduce your insurance premium from your car insurance company.

Consider additional coverage options

If you're not totally convinced by your teen's driving abilities, you may want to consider what's called accident forgiveness to your policy. While it varies by insurer and your state, this would "forgive" the first accident on your insurance policy — meaning, your rate wouldn't be raised just because you had an auto accident. Note that not every insurance company offers this protection, and there may also be some age and location restrictions.

Don't pay for coverage you don't need

If your new driver will be using an older vehicle, make sure you're not paying for coverage you do not need. Collision and comprehensive coverage are only designed for leased or financed cars, or vehicles worth more than $4,000. Compare the cost of paying for repairs out of pocket with the cost of comprehensive and collision insurance to see if dropping these coverages seems worthwhile. 

The logic behind this is simple; if your vehicle isn't worth much to begin with, paying for coverage you do not need is a waste of money. You can determine the value of your vehicle by using online resources such as Kelley Blue Book and NADA online.