The best car insurance companies for teens and young drivers are Travelers, USAA, and Progressive, according to WalletHub’s analysis of 17 major car insurance companies. Travelers, USAA and Progressive offer the best car insurance for teens and young drivers because of their low premiums, variety of available discounts, and high ratings from WalletHub editors.
Best Car Insurance for Teens and Young Drivers
- Travelers - $1,314
- USAA - $1,595
- Progressive - $1,835
- State Farm - $1,896
- The Hartford - $2,116
- Mercury - $1,684
- AAA - $1,906
- Liberty Mutual - $2,065
- Esurance - $2,430
- Geico - $2,822
To help teen drivers and their families lower the cost of car insurance, WalletHub compared quotes from all the major car insurance companies for teen drivers with their own policies. These premiums, combined with ratings from users and WalletHub editors, were used to determine the best car insurance for teen drivers.
Best Car Insurance Companies for Teens and Young Drivers
The best auto insurance company for teen drivers is Travelers because it has the cheapest quotes for teen drivers in WalletHub’s analysis, and the company has earned high marks from WalletHub editors for its variety of coverage options and easy-to-navigate website. Travelers also offers multiple discounts for teen drivers, including good student, driver training, and away at school discounts.
USAA provides inexpensive coverage to teen drivers and their families. USAA also offers driver training and good student discounts, and drivers can choose from a variety of coverage options, such as specialty rideshare insurance. However, USAA has received more customer complaints than the average car insurance company its size. Policyholders must be USAA-eligible, too.
Progressive received a high WalletHub editor’s rating of 4.3/5, given its low prices, many discounts, and variety of coverage options. Teenagers can qualify for its teen driver, good student, and distant student discounts.
As the largest car insurance company in the United States, State Farm is available across the country and offers a variety of specialty coverage types, such as rideshare car insurance. Full-time high school, homeschool, or college students can save up to 25% with State Farm’s good student discount. Teens might also qualify for State Farm’s driver training and student away at school discounts.
The Hartford offers cheap car insurance for teen drivers, and teens can qualify for the company’s driver training and good student discounts. The Hartford is also known for its discounted AARP auto insurance program, meaning that teens who share a policy with an AARP member have more options to save. However, the company’s customer service ratings are lower than average.
Mercury Insurance provides low rates for teenage drivers in the 11 states where it is available, including California, Florida, New York, and Texas. WalletHub editors note that Mercury offers average coverage options and customer service, so it’s best for teens looking for basic, affordable car insurance. Teens can qualify for a good student discount with Mercury.
AAA offers competitive rates for teen drivers looking for car insurance, though drivers must first purchase a AAA membership in order to qualify. AAA is known for its flagship roadside assistance program, which is included with membership. Teens can take advantage of AAA’s new young driver, good student, and student away at school discounts.
Liberty Mutual provides affordable coverage for teen drivers, though it does not offer a driver training or driver’s ed discount. But Liberty Mutual customers can still benefit from its straightforward claims processing and variety of coverage types, as well as its good student discount.
Esurance stands out due to its high rating of 4.3/5 from users on WalletHub. Teen drivers can also see if they qualify for Esurance’s good student discount or driver training discount, though availability varies by state.
Geico’s premiums for teen drivers are among the most expensive out of the 17 companies surveyed by WalletHub. However, Geico earned the highest WalletHub editor rating of any company on the list, given its many discounts and coverage options.
Full-time students with a B average or better can save up to 15% with Geico’s good student discount. Geico also offers a driver’s education discount.
2021's Best Car Insurance for Teens and Young Drivers Compared
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Car Insurance Discounts for Teens and Young Drivers
Car insurance companies offer a variety of discounts that can help make the cost of teen car insurance a bit more reasonable. Savings are especially important to consider when looking to insure a teenage boy, as male teenagers tend to pay more for auto insurance than girls of the same age.
Every major car insurance company offers a good student discount. Teens in high school, college, and vocational programs can generally qualify if they have at least a B average. Similarly, teenagers in college whose cars are at home might be able to benefit from a student away at school discount. Many insurance companies also offer a driver’s ed or similar driver training discount. Some insurers even provide their own training programs, which teens can complete in order to save.
Tips for Finding Cheap Car Insurance for Teens and Young Drivers
Compare costs for an individual versus a family policy.
Adding a teen driver to a family policy might result in increased premiums, but it usually costs less than obtaining a separate policy for a teenager.
Balance cost and caution when choosing your coverage options and limits.
Buying a liability-only policy can be tempting because of the lower premium, but if you’re thinking about reducing your coverage options, bear in mind that teens are especially likely to be in a car crash.
Choose your car carefully.
Sports cars, luxury vehicles, and cars with high theft rates are especially expensive to insure, so teen drivers should select their cars with insurance rates in mind. Most insurers also provide safety feature discounts.
Get multiple quotes.
Shopping around for quotes from multiple insurance companies is always a good way to save, but it’s especially important for teenagers, considering their costly premiums.
WalletHub editors compared 17 car insurance companies to determine the best car insurance for teens. The companies were evaluated based on:
- WalletHub editor rating
- User rating on WalletHub
- Number of teen discounts
Companies earned a maximum of 5 points for each category. WalletHub editors then ranked companies by total points to determine the best car insurance for teens. Price was used as a tiebreaker where needed.
The premiums used for this comparison are an average of a series of quotes sourced from Quadrant Information Services for California ZIP codes, based on 16-19-year-old drivers with clean driving records. The following coverage limits were applied:
- $15,000 in bodily injury liability coverage per person
- $30,000 in bodily injury liability coverage per accident
- $5,000 in property damage liability coverage per accident