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
- Erie
- USAA
- American Family
- Nationwide
- Auto-Owners
- Geico
Cheapest Car Insurance Rates for Teens and Young Drivers
- USAA – $4,350 a year
- Auto-Owners – $4,621 a year
- Geico – $4,761 a year
- Erie – $5,277 a year
- 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.
| Company | Average 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.
| Company | Average 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.
| Age | Cheapest Company when adding teen to parents policy | Average annual cost for parents plus teen | Cheapest company for a teen with their own policy | Average annual cost for teen on own policy |
|---|---|---|---|---|
| 16 | Erie | $4,059 | Auto-Owners | 5,383 |
| 17 | Erie | $3,854 | Auto-Owners | 4,844 |
| 18 | Erie | $3,753 | Auto-Owners | 4,427 |
| 19 | Geico | $3,567 | Geico | 3,702 |
Average car insurance cost after adding a teen driver
| Situation | Average 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 gender | Average 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
| State | Average cost per year for two parents | Average annual $ increase for adding 16-year-old teen driver | Average annual $ increase for adding 17-year-old teen driver | Average annual $ increase for adding 18-year-old teen driver | Average 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 discount | Average student away at school discount | |
|---|---|---|
| Allstate | 5% | 1% |
| American Family | 5% | 16% |
| Auto-Owners | 8% | 14% |
| Erie | 0% | 4% |
| Farmers | 5% | 4% |
| Geico | 5% | 20% |
| Nationwide | 4% | 5% |
| Progressive | 4% | 4% |
| State Farm | 7% | 16% |
| Travelers | 3% | 3% |
| USAA | 3% | 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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