Best Cheap Car Insurance For Teens And Young Drivers 2024

Car insurance for teenagers can be expensive because they are more likely to have accidents. When parents add their teen to their insurance, the cost can often double. In 2024, our study showed that Erie, USAA, American Family, and Nationwide are some of the best insurance companies for teens and young drivers. Best Car Insurance Companies 2024

Best Car Insurance Companies for Teens and Young Drivers

Cheapest Car Insurance Rates for Teens and Young Drivers

  1. USAA – $4,350 a year
  2. Auto-Owners – $4,621 a year
  3. Geico – $4,761 a year
  4. Erie – $5,277 a year
  5. American Family – $5,346 a year

Cheapest Car Insurance After Adding a Teen Driver : USAA

USAA stands out as the most affordable car insurance company overall when a teen driver is added, according to our analysis. On average, it costs $3,360 per year with USAA after adding a teen driver aged 16 to 19 to a parent’s policy.

However, it’s important to note that USAA is exclusively available to military members, veterans, and their families. For those who don’t qualify for USAA, Erie and Geico are recommended as good alternatives for obtaining reasonable rates when adding a teen driver to their policy. Cheap Car Insurance for Young Drivers: Tips and Top Picks

CompanyAverage annual cost
USAA$3,360
Erie$3,822
Geico$4,014
Travelers$4,259
Nationwide$4,335

Cheapest Car Insurance for a Teen Driver With Their Own Policy : USAA

USAA provides the most affordable car insurance rates for teens aged 16 to 19 with a military connection who are purchasing their own policy. For other teen drivers buying their own policy, Auto-Owners and Geico emerge as the most cost-effective insurance companies.

CompanyAverage annual cost
USAA$4,350
Auto-Owners$4,621
Geico$4,761
Erie$5,277
American Family$5,346

Cheapest Car Insurance for Teens by Age

Erie offers the most affordable car insurance for individuals aged 16, 17, or 18 when they are added to a parent’s policy. For teens in the same age group purchasing their own policies, Auto-Owners stands out as the cheapest option. Meanwhile, Geico takes the lead as the most economical choice for 19-year-old drivers, whether they are being added to a parent’s policy or buying their own.

While USAA is slightly more affordable for teens and young drivers aged 17, 18, and 19, it’s important to note that this option is exclusively available to those with a military connection.

AgeCheapest Company when adding teen to parents policyAverage annual cost for parents plus teenCheapest company for a teen with their own policyAverage annual cost for teen on own policy
16Erie$4,059Auto-Owners5,383
17Erie$3,854Auto-Owners4,844
18Erie$3,753Auto-Owners4,427
19Geico$3,567Geico3,702

Average car insurance cost after adding a teen driver

SituationAverage cost per year
Average cost for married couple$2,948
Average cost for parents and a 16-year-old$5,367
Average $ increase for married couple with 16-year-old on policy$2,419
Average cost for married couple with 17-year-old on policy$5,011
Average $ increase for married couple with 17-year-old on policy$2,063
Average cost for parents and an 18-year-old$4,773
Average $ increase for married couple with 18-year-old on policy$1,825
Average cost for married couple with 19-year-old on policy$4,443
Average $ increase for married couple with 19-year-old on policy$1,495

Average cost of car insurance per year for a teen on their own policy

Age and genderAverage cost of car insurance per year for a teen on their own policy
16-year-old female$8,108
16-year-old male$9,422
17-year-old female$6,279
17-year-old male$7,379
18-year-old female$5,655
18-year-old male$6,638
19-year-old female$4,266
19-year-old male$5,033

Average Cost of Adding a Teen Driver by State

StateAverage cost per year for two parentsAverage annual $ increase for adding 16-year-old teen driverAverage annual $ increase for adding 17-year-old teen driverAverage annual $ increase for adding 18-year-old teen driverAverage annual $ increase for adding 19-year-old teen driver
Alabama$2,954$2,630$2,364$2,081$1,730
Alaska$3,328$2,755$2,427$2,083$1,803
Arizona$2,968$3,005$2,635$2,256$1,982
Arkansas$3,349$2,426$2,179$1,906$1,618
California$3,683$3,212$2,809$2,604$1,608
Colorado$3,527$2,793$2,385$2,217$1,882
Connecticut$3,269$2,971$2,615$2,325$2,008
Delaware$3,250$2,547$2,342$2,118$1,747
Florida$4,804$3,424$3,118$2,763$2,481
Georgia$3,222$2,644$2,379$2,031$1,636
Idaho$1,827$1,766$1,371$1,203$979
Illinois$2,782$2,314$1,993$1,722$1,572
Indiana$2,396$2,031$1,759$1,558$1,173
Iowa$2,265$1,506$1,336$1,158$958
Kansas$3,067$2,314$1,940$1,710$1,470
Kentucky$3,735$3,050$2,753$2,404$2,041
Louisiana$5,518$4,724$4,179$3,632$3,019
Maine$1,931$1,817$1,618$1,424$1,141
Maryland$3,311$2,612$2,349$2,056$1,682
Massachusetts$2,644$2,399$2,138$1,956$1,118
Michigan$3,799$2,624$2,439$2,154$1,704
Minnesota$3,197$2,365$2,042$1,714$1,800
Mississippi$3,037$2,312$2,042$1,769$1,449
Missouri$3,252$2,765$2,141$1,834$1,572
Montana$2,788$1,899$1,611$4,140$3,933
Nebraska$2,793$1,630$1,388$1,251$1,068
Nevada$3,584$3,655$3,106$2,712$2,138
New Hampshire$2,063$1,690$1,498$1,336$1,194
New Jersey$3,473$2,865$2,622$2,408$1,741
New Mexico$2,889$2,386$2,092$1,962$1,530
New York$4,320$3,231$2,973$2,582$2,074
North Carolina$1,905$1,735$1,052$866$276
North Dakota$2,651$1,676$1,374$1,175$948
Ohio$2,015$1,839$1,627$1,414$1,127
Oklahoma$3,365$2,176$1,901$1,674$1,425
Oregon$2,455$2,105$1,785$1,501$1,391
Pennsylvania$3,378$3,193$2,834$2,506$2,090
Rhode Island$3,447$2,760$2,530$2,067$1,728
South Carolina$3,323$2,777$2,462$2,192$1,814
South Dakota$3,001$1,574$1,353$1,160$924
Tennessee$2,533$2,391$2,066$1,735$1,420
Texas$3,573$3,075$3,022$2,665$2,181
Utah$2,609$2,537$2,128$1,861$1,507
Vermont$1,723$1,164$1,047$937$825
Virginia$2,050$1,715$1,529$1,333$1,134
Washington$2,642$2,528$2,247$1,993$1,502
West Virginia$2,822$2,114$1,919$1,722$1,484
Wisconsin$2,335$1,701$1,508$1,269$1,026
Wyoming$2,419$1,767$1,429$1,285$1,085

Discounts Offers by Insurance Companies

Car insurance companies provide various discounts, and several of them are designed for teens and young drivers. Two common discounts related to teens are student car insurance discounts and “student away at school” discounts. The potential savings vary depending on the insurance company.

Average good student discountAverage student away at school discount
Allstate5%1%
American Family5%16%
Auto-Owners8%14%
Erie0%4%
Farmers5%4%
Geico5%20%
Nationwide4%5%
Progressive4%4%
State Farm7%16%
Travelers3%3%
USAA3%10%

How to Find the Best Car Insurance When You are Teens & Young Drivers

Adding a teen driver to your car insurance will likely increase your rates, but there are ways to minimize the impact on your wallet.

Keep Your Teen on Your Policy:

  • It’s usually cheaper to add a teenager to a parent’s car insurance rather than getting a separate policy.
  • Compare quotes for both scenarios to find the most affordable option.

Check for Discounts:

  • Look for discounts such as good student discounts (for a B average or above) and “student away at school” discounts.
  • If the student is over 100 miles away from home without a car, you may qualify for a rate reduction.
  • Consider teen driver insurance programs for discounts and driving skills training.

Shop Around:

  • Compare car insurance quotes, especially if you haven’t done so recently.
  • Some companies, like Erie and USAA, offer more affordable rates for families with a 16-year-old compared to others like Farmers and Allstate.

Consider Accident Forgiveness:

  • Accident forgiveness prevents rate increases for one accident but doesn’t erase it from your record.
  • Eligibility may require a clean driving record for a certain number of years.
  • Costs for accident forgiveness programs range from $15 to $60 per year.

Explore New Car Replacement Coverage:

  • This coverage reimburses for a brand-new car of the same make and model (minus your deductible) if your car is totaled.
  • Ideal for families with teen drivers who may be more prone to accidents.
  • Eligibility criteria may include having collision and comprehensive coverage, a certain model age, and mileage restrictions.

Remember, not all drivers may qualify for certain programs, so it’s essential to understand the eligibility criteria and explore the options that best suit your situation.

FAQs : Best cheap car insurance for teens and young drivers in 2024

Why is car insurance more expensive for teens and young drivers?

Young drivers are statistically more likely to be involved in accidents, leading to higher insurance premiums due to the increased risk for insurance providers.

Is it better to add my teen to my existing car insurance policy or get them a separate one?

In most cases, it’s more cost-effective to add your teen to your existing policy. Compare quotes for both scenarios to determine the most affordable option.

Are there any discounts available for teen drivers?

Yes, there are discounts such as good student discounts (for a B average or above) and “student away at school” discounts. Additionally, some companies offer specific programs for teen drivers that include discounts and driving skills training.

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