WalletHub, Financial Company
The average cost of car insurance for a teenager is $215 per month, for an individual policy. Younger teens typically pay the most for car insurance coverage, with 16-year-olds paying an average of 85% more than 19-year-olds.
Average Cost of Car Insurance for Teenagers by Age
Average Annual Premium
Teenagers are more expensive to insure than older, more mature drivers because they’re more likely to be involved in an accident, which makes them high-risk. In fact, teen drivers are nearly three times as likely to be involved in a fatal car accident as drivers over the age of 20, according to the CDC. Teenage boys are even more expensive to insure than teenage girls, paying an average of 10% more for coverage.
How to Lower the Cost of Teenage Car Insurance
Even though car insurance is typically expensive for teenagers, there are still ways to lower the cost of covering a young driver. One of the best ways to reduce the cost of teen car insurance is to add them to an existing policy rather than have them purchase their own policy. Adding a teen to a policy raises rates by an average of $1,461 per year, but it’s still cheaper than the cost of a separate policy. Also, look for discounts that are specifically for young drivers, like good-student and student-away-at-school discounts.
If your teen does need to purchase their own policy, they should compare quotes from at least three different insurers in order to find the best deal. The cheapest car insurance companies for teens are Travelers, USAA, and Progressive, according to WalletHub’s analysis.
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