Best Car Insurance for Families

Protect what you treasure the most

What is car insurance for families?


Your insurance coverage is modeled after you and your assets. Having a family and the corresponding life changes that follow and accompany it, such as getting married, purchasing a house, and insuring your family, have huge insurance implications that require some navigation to ensure you're not spending too much money. Let's break down the best ways to save when looking for car insurance for families.


What is car insurance for families?

  1. At the start of your family
  2. When you have children
  3. Cheapest company for your teen
  4. How to save
  5. Car insurance for families: summed up




When you begin your family


Moving from boyfriend/girlfriend to husband/wife is a big milestone both personally and for your insurance. Married couples on the same policy are considered to be a more stable insurance customer and are thus rewarded with a lower premium. All other variables constant, married couples save nearly 6% on car insurance annually.

National Average Annual Insurance by Marital Status

Single Married Divorced Widowed
$1,323 $1,249 $1,320 $1,297

Moreover, if you and your spouse are homeowners, you can expect some additional savings as well. Just insurance companies view married couples as more stable, homeowners are seen as less likely to file a claim than renters and when they do file a claim, the claim payout is usually much less expensive. If you bundle your home and auto policy with the same company, you can expect nearly 10% in annual savings.



National Average Annual Insurance by Homeowner Status

Renter Homeowner Renter w/ Multi-Policy Homeowner w/ Multi-Policy
$1,323 $1,292 $1,250 $1,181

Together, being a married homeowner can offer you some pretty impressive insurance savings. This will really help as we get into the other aspect of car insurance for families — children.





Having children


Unless your child is driving (which we will get to) there isn’t an immediate impact. Still, if you’re a young family with a coupe convertible, you may consider upgrading your vehicle to something a little more family friendly, like a SUV or a minivan.


National Average Annual Insurance For Vans

Sedan: Chevrolet Cruze SUV: Honda CR-V Van: Honda Odyssey Luxury: Acura RDX
$1,376 $1,232 $1,260 $1,429

For the most popular vehicles in the US listed in our chart, you can see that moving from a sedan to a van can actually save you an average of $116 annually, or $144 if you choose a van.





Having teens


Let's get right to it: having a teen is very expensive. So, in order to be the most helpful for you, we decided to survery 5 top insurance companies across the US to determine which company is actually the cheapest for you and your family. Outlined methodology here, we found that Geico is the cheapest company to insure you and your teen driver, all other metrics constant. Here is our data.


Our Findings: Car Insurance for Families

Location State Farm All State Geico Progressive Liberty Mutual
Columbus, OH $3,122 $2,299 $1,120 $1,295 $1,614
McKinney, TX $6,660 $5,876 $1,736 $1,891 N/A
Fresno, CA $4,387 $1,571 $1,974 $1,981 $4,173
Scranton, PA $4,854 $2,517 $1,154 $1,913 $1,416
Aurora, CO $5,801 $4,899 $2,208 $2,809 $3,810
Average $4,965 $3,432 $1,638 $1,978 $2,753

As you can see, adding your teen can increase your premium by nearly $4,000 per year! This is only for adding one 17-year-old, if you have multiple children, you can expect the increase to be even higher. So, what comes next? Well, considering the data above you should begin your search for auto insurance with Geico and Progressive while still searching elsewhere. Let's explore some other options.



While the sticker shock may take a few seconds to digest, there are some things you can do in the meantime to help with your teen’s premiums:



How to save


Good Student Discount

This discount is pretty straightforward. Insurance companies see students who maintain above a 3.0 GPA as safer drivers and thus reward them with a lower premium. Most insurance companies will require proof (such as a transcript) every policy period as proof. The discount amount varies by company.


Average Savings for Good Student and Good Driver Discount

Average Teen Average Male Teen Average Female Teen
$283 $360 $207

Defensive Driver Discount

Taking a safe drive course approved by your insurance company can be rewarded with a discount. Regardless if your insurance company gives a discount for this, it’s probably a good idea for your young teen anyway. Discount amount will vary by company.


Good Driver Discount

This discount is automatically added onto your policy if you have a claims free history. Help your teen keep a clean driving record (no citations, tickets, or at-fault accidents) in order to receive this discount. The discount amount often varies by company.


Choose the right vehicle

Don’t let your 16-year-old drive the brand new truck. Teens are historically bad drivers so it’s in your best interest to have them drive a less expensive vehicle such as a used sedan or SUV than something that will require in a higher premium. For a more in-depth look at handling car insurance for teens, see here.





So, what's next?


Your car insurance, or any form of insurance, changes as you and your assets do. Consider any life-changing event as an opportunity to examine your insurance needs. Getting married, buying a home, having a family, and adding your children to your policy are all huge moments as a person and as an insured individual. Starting first with Geico and Progressive as well as shopping around for car insurance for 6 months is a surefire way to ensure you are getting the best rates.

 

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Methodology


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:


  • Columbus, OH - 43216
  • McKinney, TX - 75070
  • Fresno, CA - 75070
  • Scranton, PA - 93722
  • Aurora, CO - 80013

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:


  • Parent's DOB: 08/01/1960
  • Mother's Vehicle: 2015 Toyota Sienna LE, owned, 12,000/year
  • Father's Vehicle: 2015 Toyota Crewmax, owned, driving 12,000/year
  • Driving Record: no accidents or citation
  • Education: BA
  • Licensed at: 16
  • Occupation: Manager Level - Accounting
  • Insurance History: Max amount selectable of previous years with insurance company, limits at 100/300/100

Next, we needed to create the profile of the teen drivers; one that is female and male. Here is the information:


  • Teen's DOB: 08/01/2000
  • Teen's: 2015 Toyota Carmy, owned, 12,000/year
  • Driving Record: no accidents or citation
  • Education: Above B Above
  • Licensed at: 17
  • Occupation: None