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. Car insurance for teenagers costs an average of $1,995 per year for state-minimum coverage, compared to the average cost for an adult driver which is around $717 per year.
Best Car Insurance for Teens and Young Drivers
- Travelers - $1,249 per year
- USAA - $1,289 per year
- GEICO - $1,355 per year
- State Farm - $1,500 per year
- Mercury - $1,546 per year
- Progressive - $1,670 per year
- Liberty Mutual - $2,560 per year
- The Hartford - $2,007 per year
- AAA - $2,083 per year
- Esurance - $2,205 per year
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
Travelers Insurance
Travelers Insurance
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 Insurance
USAA Insurance
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.
GEICO
GEICO
GEICO’s premiums for teen drivers are among the most cheap 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.
State Farm
State Farm
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.
Mercury Insurance
Mercury Insurance
Mercury 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.
Progressive
Progressive
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.
Liberty Mutual
Liberty Mutual
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.
The Hartford
The Hartford
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.
AAA Insurance
AAA Insurance
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 any membership. Teens can take advantage of AAA’s new young driver, good student, and student away at school discounts.
Esurance
Esurance
Esurance stands out due to its high rating of 3.5/5 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.
Best Car Insurance for Teens and Young Drivers Comparison
| Insurer | Average Premium | WalletHub Editor Rating |
|---|---|---|
| Travelers | $1,249 per year | 4.2/5 |
| USAA | $1,289 per year | 3.5/5 |
| GEICO | $1,355 per year | 4.4/5 |
| State Farm | $1,500 per year | 4.1/5 |
| Mercury | $1,546 per year | 3.7/5 |
| Progressive | $1,670 per year | 3.9/5 |
| Liberty Mutual | $2,560 per year | 3.2/5 |
| The Hartford | $2,007 per year | 3.1/5 |
| AAA | $2,083 per year | 3.4/5 |
| Esurance | $2,205 per year | 3.0/5 |
Car Insurance Discounts for Teens and Young Drivers
Car insurance companies offer a variety of discounts that make the cost of teen car insurance more reasonable, including:
- Good-Student Discounts: Teens in high school, college, and vocational programs can generally qualify for good-student discounts if they have at least a B average.
- Student-Away-at-School Discounts: Young drivers in college at least 100 miles away from home might benefit from this discount.
- Driver’s Ed Discounts: Many insurance companies offer a driver’s ed discount or a similar driver training discount. Some insurers even provide their own training programs, which teens can complete in order to save.
Teenage Car Insurance Discounts by Company
| Company | Good Student | Student-Away-At-School | Driver Training |
|---|---|---|---|
| State Farm | Yes | Yes | Yes |
| GEICO | Yes | No | Yes |
| Progressive | Yes | Yes | No |
| Allstate | Yes | No | No |
| USAA | Yes | No | Yes |
| Liberty Mutual | Yes | Yes | No |
| Farmers | Yes | Yes | No |
| Nationwide | Yes | No | No |
| American Family | Yes | Yes | Yes |
| Travelers | Yes | Yes | Yes |
Other possible discounts include savings from usage-based insurance for particularly safe teen drivers and multi-car discounts for teens who drive a different vehicle than their parents.
Learn more about how to lower the cost of teenage car insurance.
Cost of Car Insurance for Teens by State
| State | 16-year-old | 17-year-old | 18-year-old | 19-year-old |
|---|---|---|---|---|
| Alabama | $3,012 per year | $2,756 per year | $2,480 per year | $1,638 per year |
| Alaska | $2,363 per year | $1,966 per year | $1,629 per year | $1,155 per year |
| Arizona | $4,152 per year | $3,463 per year | $2,578 per year | $1,988 per year |
| Arkansas | $2,980 per year | $2,541 per year | $2,246 per year | $1,685 per year |
| California | $2,534 per year | $2,339 per year | $2,205 per year | $1,504 per year |
| Colorado | $3,601 per year | $2,870 per year | $2,522 per year | $1,827 per year |
| Connecticut | $5,837 per year | $4,504 per year | $3,919 per year | $2,990 per year |
| Delaware | $4,949 per year | $3,883 per year | $3,279 per year | $2,507 per year |
| Florida | $5,301 per year | $4,459 per year | $3,930 per year | $2,728 per year |
| Georgia | $4,508 per year | $4,025 per year | $3,571 per year | $2,785 per year |
| Hawaii | $493 per year | $484 per year | $484 per year | $437 per year |
| Idaho | $2,071 per year | $1,702 per year | $1,496 per year | $1,101 per year |
| Illinois | $3,145 per year | $2,616 per year | $2,292 per year | $1,861 per year |
| Indiana | $2,056 per year | $1,657 per year | $1,447 per year | $1,157 per year |
| Iowa | $1,416 per year | $1,150 per year | $1,005 per year | $826 per year |
| Kansas | $2,405 per year | $2,099 per year | $1,840 per year | $1,424 per year |
| Kentucky | $3,736 per year | $3,188 per year | $2,782 per year | $2,210 per year |
| Louisiana | $6,488 per year | $4,878 per year | $4,453 per year | $3,404 per year |
| Maine | $1,906 per year | $1,688 per year | $1,481 per year | $1,204 per year |
| Maryland | $4,319 per year | $4,006 per year | $3,576 per year | $2,987 per year |
| Massachusetts | $2,808 per year | $2,514 per year | $2,409 per year | $1,609 per year |
| Michigan | $4,704 per year | $3,896 per year | $3,557 per year | $2,602 per year |
| Minnesota | $2,333 per year | $2,019 per year | $1,753 per year | $1,532 per year |
| Mississippi | $2,501 per year | $2,218 per year | $1,889 per year | $1,389 per year |
| Missouri | $3,247 per year | $2,603 per year | $2,243 per year | $1,852 per year |
| Montana | $2,468 per year | $1,923 per year | $1,642 per year | $1,177 per year |
| Nebraska | $2,209 per year | $1,809 per year | $1,617 per year | $1,247 per year |
| Nevada | $4,894 per year | $3,950 per year | $3,277 per year | $2,368 per year |
| New Hampshire | $2,412 per year | $2,063 per year | $1,805 per year | $1,456 per year |
| New Jersey | $5,286 per year | $4,240 per year | $3,831 per year | $2,759 per year |
| New Mexico | $2,439 per year | $2,047 per year | $1,746 per year | $1,268 per year |
| New York | $5,701 per year | $5,486 per year | $5,039 per year | $3,954 per year |
| North Carolina | $1,738 per year | $1,325 per year | $1,119 per year | $625 per year |
| North Dakota | $2,075 per year | $1,565 per year | $1,361 per year | $935 per year |
| Ohio | $1,976 per year | $1,633 per year | $1,420 per year | $1,146 per year |
| Oklahoma | $3,343 per year | $2,673 per year | $2,352 per year | $1,435 per year |
| Oregon | $3,608 per year | $2,767 per year | $2,430 per year | $1,897 per year |
| Pennsylvania | $2,642 per year | $2,240 per year | $1,996 per year | $1,529 per year |
| Rhode Island | $6,068 per year | $4,368 per year | $3,698 per year | $2,708 per year |
| South Carolina | $3,871 per year | $3,242 per year | $2,884 per year | $2,339 per year |
| South Dakota | $1,530 per year | $1,229 per year | $1,069 per year | $781 per year |
| Tennessee | $2,455 per year | $2,079 per year | $1,814 per year | $1,377 per year |
| Texas | $3,930 per year | $3,231 per year | $2,932 per year | $2,271 per year |
| Utah | $4,192 per year | $3,357 per year | $2,918 per year | $2,226 per year |
| Vermont | $1,384 per year | $1,243 per year | $1,131 per year | $991 per year |
| Virginia | $2,748 per year | $2,332 per year | $2,061 per year | $1,694 per year |
| Washington | $3,640 per year | $3,011 per year | $2,641 per year | $2,030 per year |
| West Virginia | $2,364 per year | $1,921 per year | $1,689 per year | $1,356 per year |
| Wisconsin | $2,265 per year | $1,783 per year | $1,640 per year | $1,212 per year |
| Wyoming | $1,404 per year | $1,120 per year | $963 per year | $708 per year |
*Rates reflect average annual premiums
Learn more about the cost of car insurance for teens.
Tips for Finding Car Insurance for Young Drivers
1. 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.
2. 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.
3. 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.
4. 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.
Video: What Is The Best Car Insurance for Teens?
Methodology
WalletHub editors compared 17 car insurance companies to determine the best car insurance for teens. The companies were evaluated based on:
- Premium
- 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
WalletHub experts are widely quoted. Contact our media team to schedule an interview.