You won’t be able to escape a considerable rate increase when you add a teen driver to your car insurance policy, but there are ways to minimize the hit to your wallet. Show
Keep your teen on your policyParents looking for the cheapest car insurance should be aware that it’s usually less expensive to add a teenager to a parent’s auto insurance policy rather than putting the teen on their own policy. If you’re in doubt, though, have your insurance agent run quotes for both scenarios or compare quotes online for the total cost of two separate policies. Quotes are free, so there’s no downside to checking which way is cheapest. Make sure you’re getting discountsCommon discounts relevant to teens include good student discounts (typically for a B average or above) and, for college students, a “student away at school” discount. If the student attends school 100 miles or more away from home, without a car, you can qualify for a price break on their rates. In addition, teen driver insurance programs can provide both a discount and valuable driving skills training. Keeping accidents off a teen’s record will safeguard your future rates. Shop aroundThis is the time to compare car insurance quotes, especially if you haven’t done so in a few years. For example, among the companies we analyzed in California, rates for two parents and one 16-year-old ranged from nearly $2,000 a year (USAA) to over $6,000 a year (Nationwide and Kemper), for a policy with typical coverage of $100,000 bodily injury liability coverage per person and $300,000 per accident. Wait it outCar insurance rates will generally start dropping around age 25. See Forbes Advisor’s analysis of auto insurance rates by age and gender. Related: The Best Car Insurance Companies
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info. Being a teenager can be expensive. Clothes, food, beauty products, school functions—they can all add up. Another big expense? Car insurance. Driver’s insurance is a necessary requirement if you plan to drive in the United States. However, drivers under 25 pay some of the highest rates for car insurance, which is why it’s so important to find the best coverage at the lowest possible price. Some companies may offer low rates, but not all will feature the multifaceted coverage that teen drivers need with the discounts to make it all affordable. If you’re a teen, this is what you need to know about car insurance providers for new drivers. Best Car Insurance for Teens of November 2022
Best Overall: State Farm State Farm
Why We Chose It With its signature Steer Clear program, State Farm can provide the best affordable, multifaceted coverage for young drivers. Pros and Cons Pros
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Overview State Farm provides nearly nationwide coverage, which includes most states and D.C.; residents of Massachusetts and Rhode Island aren’t eligible for coverage. Customers have a variety of options for car insurance:
Teens and young drivers can benefit by enrolling in the Steer Clear program, which offers a discount if you’re under 25 and don’t have moving violations or at-fault accidents on your record. Similarly, the Drive Safe & Save program allows you to save up to 30% on your premiums for being a safe driver. State Farm insures other types of vehicles in addition to car insurance, including motorcycles, ATVs, boats, and RVs. To get started, you can go online for a quick car insurance quote or work with one of the 19,000 nationwide agents available to help. If you’re a parent adding a teen to your insurance policy, you may need to speak with an agent to best customize your coverage. State Farm’s reviews are quite good across the board. It receives impressive ratings from AM Best for financial strength and J.D. Power for customer satisfaction, and the NAIC reports about two times the average number of complaints. Read our full State Farm auto insurance review. Best for Student Discounts: Allstate Allstate
Why We Chose It With Allstate, it’s easy for teens and young adults to save with the exclusive Drivewise program and other discounts. Pros and Cons Pros
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Overview Allstate has been around since 1931 and holds its headquarters in Illinois. It offers insurance in all 50 states and D.C., providing customers with excellent accessibility. Allstate provides quite a few types of car insurance:
Roadside assistance is also available with three different plans. One is designed for the occasional driver and another for drivers who spend a lot of time on the road. The last is a pay per use system. Policies are sold in six-month terms, a change from most other insurers, but discounts are plentiful with 14 in all. Allstate offers its signature Drivewise program, which can save up to 40% on your policy when you show safe driving through a telematics-based system. In addition to the standard car insurance discounts like anti-theft and anti-lock security savings, teens and young drivers can save money when they purchase a new car or earn good grades in school. However, Allstate does not necessarily excel in customer service with below-average scores by J.D. Power. On the other hand, AM Best awards Allstate an A+ (Superior) score, which signals strong financial stability and reliability. Read our full Allstate auto insurance review. Best Accident Forgiveness Policy: Amica Amica Mutual
Why We Chose It Amica doesn’t skimp on the savings, offering a number of discounts that include a generous accident forgiveness policy for your teen or young driver. Pros and Cons Pros
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Overview Included in Amica’s Platinum Choice Auto package, accident forgiveness is a coveted perk that provides some leeway for new and training drivers. The package combines thoughtful extras like deductible-free glass repair and replacement, new car replacement, credit monitoring, and rental car reimbursement without any daily limits. For teens and young drivers looking for the full package, this is an easy way to combine multiple services into one convenient bundle while still benefiting from an accident forgiveness program. To help you cut the cost of car insurance, there are 18 total discounts you can apply to your policy, such as loyalty, safe driver, and bundling discounts for multiple vehicles or multiple insurance products, like renters and auto insurance. There are many types of car insurance coverage available:
Earning the top spot in J.D. Power’s 2021 New England rankings, Amica delivers excellent customer support, despite a limited network of local agents found in just 12 states and D.C. Additional features like live chat support and online purchasing make all the difference for its tech-savvy users, adding a level of convenience that is not always seen among insurers. Read our full Amica car insurance review. Best for Military Families: USAA USAA
Why We Chose It As a military-only insurer, USAA offers teens and young drivers several ways to save on their auto insurance while also providing some of the best customer service in the industry. Pros and Cons Pros
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Overview United States Automobile Association (USAA) was founded in 1922. Today it maintains its headquarters in San Antonio, Texas, although it services all 50 states. In order to purchase auto insurance or any other product from USAA you must become a member, which means you must be either active-duty military, a veteran, or an eligible family member. With USAA, teens and young drivers have a choice of several types of auto insurance:
USAA offers multiple ways to save with discounts for everything from safe driving to low mileage. You can also earn discounts when you receive good grades in school and successfully complete an approved defensive driving course. USAA has military-related savings, such as for storing your vehicle on-base, and legacy discounts if your parents are also policyholders. One of the best things about USAA is the customer service. J.D. Power consistently rates USAA the top provider for customer service, which isn’t surprising given the number of online tools and level of agent support that it offers customers (although it has a different customer base than other insurers). USAA also receives top scores from AM Best, showing that it is financially stable and can be relied upon to pay its claims. Read our full USAA car insurance review. Best on a Budget: Erie
Why We Chose It Although Erie has a relatively small service area, young drivers in those states can find some of the most affordable rates for car insurance on the market. Pros and Cons Pros
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Overview Erie has made a name for itself by offering affordable insurance to teens and young drivers, a group that can face much higher rates for car insurance. Founded in 1925, Erie is now a Fortune 500 company that services a very select market on the East Coast. Its insurance products are only available in Washington, D.C., and 12 states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin. Erie car insurance is available in several forms:
Erie also offers two exclusive programs: Rate Lock and Auto Plus. While Rate Lock helps guarantee your rate, the Auto Plus bundle includes several popular benefits, such as a waived or diminishing deductible, increased policy limits, and transportation expense reimbursement. Other ways to save include eight discounts, such as for storing your vehicle, bundling your home and auto insurance, enrolling in paperless statements, and making payments in full. Again, Erie steps up to the plate for young drivers, offering extra discounts for those policyholders that are unmarried and live with parents who are active policyholders. You can also save by successfully completing an approved driver’s course. With 24/7 customer service, Erie wins top honors in J.D. Power’s North Central rankings. It also receives high scores from AM Best, signifying strong financial stability and reliability. Read our full Erie car insurance review. Final VerdictWith multifaceted coverage, State Farm offers some of the most affordable rates for teens and young drivers who need auto insurance. It’s available in almost every state, and it provides comprehensive coverage with a number of easily accessible discounts. Compare the Best Car Insurance for Teens and Young Drivers
Guide for Choosing the Best Car Insurance for TeensDoes Your Teen Driver Need Car Insurance?Teens can benefit from car insurance for a variety of reasons. Young drivers may spend quite a bit of time traveling to and from school, friends’ homes, and everywhere else. With less experience on the road, accidents are more likely, and so are other issues. Car insurance not only offers protection from financial and legal liability, but it can also provide extra features like roadside assistance. It comes at an extra initial expense, but it will be worth it in the long haul if you have an incident on the road. To help save money, many parents will add teens to their policies so they can benefit from their parents’ experience and driving records. Regardless of what you decide, it’s important to get car insurance for your teen so you can meet state requirements. Comparing Car Insurance for Teen DriversEvery car insurance company is different, which is why it’s so important to shop and compare to find the best option for you. Examine these factors when shopping around for car insurance:
How Teens and Young Drivers Can Get Car Insurance CoverageTo get started, collect and compare car insurance quotes from multiple providers. This will help you find not only the best price but also the right coverage for yourself or your teen driver. Once you have the right quote, determine what purchasing options are available. While some companies only allow you to buy insurance through an agent, others may allow you to receive a quote and purchase a policy online. Either way, be sure to ask what kinds of discounts are available. When your policy becomes active, there is typically an online dashboard or mobile app that allows you to manage your payments and view claims; in some cases, you can file claims or request roadside support online, but in others, you’ll need to call. Frequently Asked QuestionsHow Much Does Car Insurance for Young Drivers Cost?The cost of car insurance is different for everyone and depends on a set of specific factors, such as your age, gender, driving history, and credit score. Young drivers generally have less experience behind the wheel, so they are more susceptible to incidents of all kinds on the road. To compensate for this lack of experience, teens are generally charged more. Our research into a selection of the top auto insurance companies found the average annual price for 17-year-olds to be $5,095, compared to $1,810 for 42-year-olds and $1,497 for 67-year-olds. That means 17-year-olds are paying an average of 181% more than 42-year-olds. What Are the Different Types of Car Insurance for Teens?Although there are some exceptions, most car insurance companies offer:
How Much Coverage Does a Teen Driver Need?Most states require drivers to maintain a minimum amount of car insurance in order to legally operate a vehicle. Our guide to state insurance requirements can help you determine how much auto insurance a teen or young driver needs. Depending on your state, you’ll likely need personal injury or personal liability coverage, which helps pay for bodily injury and property damage you cause in the event of an accident. What Factors Affect the Cost of Car Insurance for Young Drivers?Teens have little to no experience behind the wheel, so rates can be much more expensive than for the average driver. Other factors that can impact the cost of auto insurance for teens are the amount of coverage you buy, the kind of car you drive, and how much you drive each year. Moving violations or accidents on your driving record can also increase rates. How We Chose the Best Auto Insurance for TeensOur team evaluated 25 insurance companies and collected thousands of data points before selecting our top choices. We weighed eight criteria and gave a higher weight to those with a more significant impact on potential customers. The top picks were selected based on factors like median annual premium (weighted 30%), fairness in pricing methodology (weighted 10%), and regional availability (weighted 15%). We also took into account other features that are important to buyers including complaint scores, consumer satisfaction reports from J.D. Power and Consumer Reports, and company loss ratios. For further information about our selection criteria and process, our complete methodology is available. Which insurance is cheapest for new drivers?MoneyGeek found that GEICO is the cheapest for new drivers in their early 20s; Allstate, GEICO and State Farm are cheapest for new teen drivers and State Farm is cheapest for adults who are new to driving.
Which level of car insurance is best?Fully comprehensive
This is the highest level of insurance you can have. It covers you, your car and any others involved in an accident. It includes all the cover of a third party fire and theft policy, but also protects you as a driver and might pay out for damage to your car.
How much do new drivers pay for insurance in Massachusetts?Car insurance for a new driver in Massachusetts costs roughly $1,500 to $5,400 per year, on average.
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Where can I get cheap car insurance for new drivers under 21?. Which drivers have the highest insurance rates?18-year-old drivers pay the highest car insurance premiums out of the age groups Bankrate analyzed. Males may expect to pay $5,694 per year for full coverage, and females, on average, pay $4,964 per year.
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Best car insurance rates for new drivers
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