The cheapest car insurance for teens is from Travelers, Grange, and USAA. On average, teenage drivers pay between $1,812 and $3,343 per year for an individual car insurance policy, with the exact cost depending on their age, state, and gender. By comparison, a family policy with a teen added costs about $2,151 per year.
The Cheapest Car Insurance for Teens
- Travelers: $1,313 per year
- Grange: $1,584 per year
- USAA: $1,600 per year
- Mercury: $1,684 per year
- Progressive: $1,835 per year
- State Farm: $1,896 per year
- Safeco: $2,034 per year
- Liberty Mutual: $2,065 per year
Teenage drivers typically pay significantly more for coverage than older, more mature drivers due to their lack of experience and higher risk of getting into an accident. As a result, it’s important to comparison-shop when looking for a policy in order to find the best deal available.
5 Cheapest Car Insurance Companies for Teens
The cheapest auto insurance company for teen drivers is Travelers, according to WalletHub’s analysis. In addition to low rates for teens, Travelers offers a variety of discounts that young drivers can qualify for, including good student, driver training, and student-away-at-school discounts.
USAA is only available to military servicemembers, veterans, and their families, but it’s an affordable option for drivers who qualify. Not only does USAA offer several discounts that teens are eligible for, but it also offers various coverage add-ons to better protect policyholders long-term, including roadside assistance and accident forgiveness.
In the 11 states where it operates, Mercury is a great choice for teens looking for affordable coverage. The company does not offer as many discounts as some other insurers, but its base premiums are still competitive. Additionally, the company’s coverage options are standard, making it a good choice for teens who are looking for basic coverage.
Progressive offers a combination of low prices, attractive discounts and varied coverage options, making it a great choice for teen drivers and their families. For example, parents can get a teen driver discount if they add a driver under the age of 18 to their policy.
State Farm is the largest auto insurance company in the United Sates, which makes it a widely available option for teens. The company also offers a variety of specialty coverage types and allows teens to qualify for several discounts that can lower their already affordable premiums.
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Cheapest Car Insurance for Teens by Age
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Car insurance is the most expensive for 16-year-olds, since they have the least amount of experience on the road. After that, the cost of coverage starts to go down each year. This trend typically continues until a driver reaches their mid-20s.
Another factor that affects the cost of an individual teen car insurance policy is gender. On average, male teen drivers pay over 10% more for coverage than females, since they’re more likely to be in an accident.
Cheapest Car Insurance for Teens Being Added to a Policy
Adding a teen to a family policy is far more cost-effective than having them purchase an individual policy. For example, car insurance for a 16-year-old alone costs an average of $3,343 each year. But if you add a teenager to your existing insurance policy, it will only raise your premium by an average of $1,431.
Cheapest Car Insurance for Teens by State
How to Find Cheap Car Insurance for Teens
1. Consider adding your teen to an existing policy
If you can afford it, you should add your teen to a family policy rather than have them purchase their own. Although your premium will go up, it’s still a much more cost-effective option.
2. Look for discounts
Most car insurance companies offer a variety of discounts that can make coverage for teens more affordable. For example, every major insurer offers a good student discount for teens in high school or college who maintain at least a “B” average. And if your teen goes to college at least 100 miles away from the insured vehicle, they can qualify for a student-away-at-school discount.
3. Balance cost and caution when choosing coverage
Since teenage car insurance can get expensive, it might be tempting to purchase a liability-only policy in order to save on premiums. But keep in mind that teens are more likely than adults to get into a car accident, so be cautious about buying a policy with limited coverage.
4. Shop around for a policy
The most effective way to get cheap car insurance for teens is to shop around for coverage. In general, it’s recommended that you get quotes from at least three different insurance companies before purchasing a policy. Even after you’re covered, it’s usually a good idea to comparison-shop every 6-12 months to make sure that you’re still getting the best deal.
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