Teenagers are scary and unpredictable - but their insurance doesn't have to be
Getting yourself or your teen licensed up can be a big step towards adulthood. The shackles of dependency for rides have been released — and yet the burden of responsibility for owning a car and the corresponding insurance requirements loom. Namely, how expensive insuring a teen driver really is.
Outside of looking at discounts, we decided to look at specific companies in order to determine who really has the cheapest insurance for teenagers. We created a dummy profile with two adult parent drivers with either a 17-year-old son or daughter added to the policy. We then selected 5 zip codes across the US and chose 5 of the top companies in order to determine which company is actually the cheapest. So, who won?
|Location||State Farm||Allstate||Geico||Progressive||Liberty Mutual|
The first thought most parents have when their children come of driving age is typically not one of positive exclamation, but rather a nervous groan. Teen drivers have the most expensive car insurance rates for an obvious reason: they’re scary drivers. On average, adding a male teen will raise your premium by $987 (for a 6-month premium). This is using a base profile of two accident-free parents driving owned moderate vehicles with standard coverage on the 5 companies we previously mentioned.
It's also worthy to mention the monetary difference between adding a teenage son to your policy versus a teenage daughter. On average, adding a teenage male will double your insurance premium.
|Location||State Farm||All State||Geico||Progressive||Liberty Mutual|
To sum up, adding your teen son to your policy will increase your 6-month premium $987 - which is nearly twice as much as a daughter would.
While not as expensive as teenage male drivers, adding a young daughter on your policy can still increase your policy an average of $435. Again, this is due to the way in which insurance companies see young teenage drivers; claim payouts and at-fault accidents waiting to happen.
Still, there are some insurers you should preference when shopping for car insurance for your daughter. Geico and Progressive were the cheapest options for both sexes, all other metrics consistent. Here are the other results for the companies surveyed.
|Location||State Farm||All State||Geico||Progressive||Liberty Mutual|
While adding your daughter to your policy will not increase your premium as much as a son, you can still expect your premium to rise an average of $435.
Unfortunately, there isn’t some magic trick to not having a pay an arm and a leg for you or your teenager's auto insurance policy. Still, there are some ways to find a cheap premium.
Good Student Discount: If your driver has the 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 6 months in order to qualify. On average and combined with a good driver discount, you can expect an average savings of $283!
Average Savings for Good Student and Good Driver Discount
Defensive Driver 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. The exact requirements and specifications for this discount vary, so consult your insurance company for details to get a cheaper rate.
Equipment Discount: Telematics are small devices within the actual car that detect driving patterns and habits. Certain insurance companies use the data collected by the device to determine discounts and premiums. This is a growing relationship between insurance companies and technology, so not every insurance company will have this discount available.
|Safety/Anti-Theft Device||Avg Annual Premium||Discount|
|Passive Disabling Device||$1,312||$10|
|Electronic Stability Control||$1,318||$5|
Insurance companies not only use you as a rating factor for determining premium but also your vehicle. If you’re interested in keeping your premium down it makes financial sense to chose a cheaper vehicle for less experienced drivers. Save the new trucks or luxury vehicles for more experienced drivers.
You teen driver may feel that now that they’re driving and being independent, it’s time to get their own policy as well. But that’s a pretty expensive plan. If you’re looking to have some independence within your car insurance, your auto insurance agent or a customer-service representative can you help you break down your bill.
Depending on what you're worried about with your teen driver, you might want to consider some additional coverage to protect them and your vehicle. Adding comprehensive and collision coverage, will add physical protection your teen driver's vehicle in the event they're in an at-fault accident, hit a fixed object, or other accidents.
If you're not totally convinced by your teen's driving abilities, you may want to consider what's called accident forgiveness. While it varies by insurer and your state, this would allow the first accident on your policy. Meaning, your rate wouldn't be raised just becaus you had an auto accident.
We encourage drivers of all ages to shop for car insurance every 6 months. Only with The Zebra can you look at hundreds of car insurance companies at once to make sure you're getting the best possible rate.
Whether you’re a parent, or a teenager looking for your own policy, you should expect this to be a pricey time. Using the data we surveyed, you should begin your search for cheap car insurance for teens with Geico! Using our base profile, Geico is almost $1,400 cheaper than the other companies on average. Of course, you should consider that the profiles we used might not reflect your individual profile. The best way to ensure you're getting the absolute best rate is to do exactly what we did; look at multiple companies. Do that here with us.
We randomly selected 5 zip codes in 5 different areas across the US by using the 5 most popular companies in the US based on net premiums written. Here are the zip codes we selected:
With that created, we decided to get the male and female teen two parents with two vehicles in order to create a base to build the teenage driver profiles from. This is the information we chose to use:
Next, we needed to create the profile of the teen drivers; one that is female and male. Here is the information:
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