Finding the Right Teenage Car Insurance
Learn about adding a teen driver to your policy and get a list of the best car insurance companies for teenage drivers.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
When your teen is about to get a driver’s license, you need to start thinking about teenage car insurance. Whether your teen will drive a family car or a car of their own, you still need car insurance.
And, like most parents, you probably have a lot of questions. We have tried to briefly answer some of parents' most common questions about car insurance for young or new drivers, including which car insurance company is best for my teenager. Though an independent insurance agent can help you get set up with all the coverage you need for drivers of any age, let's break down some of the best teenage car insurance companies first.
How Much Is Car Insurance for Teenage Drivers?
So, how much is car insurance for teens? Unfortunately for parents, teenage car insurance rates are expensive, whether you're buying them a separate policy or adding them to your own. In fact, the average cost to add a teen driver to a parent's car insurance policy is about $2,182 per year.
The insurance company compensates for the increased risk of insuring a teen driver by higher premium rates. Teen drivers are still learning traffic laws and patterns, and are statistically more likely to speed and get into accidents. Therefore, teen drivers have some of the highest car insurance rates.
Average cost of car insurance for teen drivers by age
| Teen Drivers by Age | Average Cost |
|---|---|
| 16 | $7,203 |
| 17 | $5,924 |
| 18 | $5,242 |
| 19 | $3,874 |
Average cost to add a teenage driver to a parent's car insurance policy
| Situation | Average Cost per Year |
|---|---|
| Increased premium rate for a married couple with a 16-year-old driver |
$2,419 |
| Increased premium rate for a married couple with a 17-year-old driver |
$2,063 |
| Increased premium rate for a married couple with an 18-year-old-driver |
$1,825 |
| Increased premium rate for a married couple with a 19-year-old driver |
$1,495 |
Average Cost of Car Insurance for Teen Drivers by Company
Teenage car insurance rates are much higher than those for adults in their 20s and older. However, the exact cost of teen car insurance rates varies depending on a number of factors, including the insurance company you get your coverage through. Here's a breakdown of some of the average costs of a car insurance policy with a teen driver on it by insurance company.
Teen car insurance rates by insurance company
|
|
||||
| Insurance Company | with a 16-year-old | with a 17-year-old | with an 18-year-old | with a 19-year-old |
|---|---|---|---|---|
| American Family | $5,663 | $5,228 | $5,110 | $4,537 |
| Erie | $4,059 | $3,854 | $3,753 | $3,621 |
| Nationwide | $4,502 | $4,427 | $4,352 | $4,058 |
| Progressive | $5,088 | $5,169 | $4,766 | $4,368 |
| Travelers | $5,065 | $4,348 | $4,010 | $3,615 |
| USAA | $4,103 | $3,462 | $3,108 | $2,766 |
Average Cost of Car Insurance for Teen Drivers with Their Own Policy
Some teen drivers get their own car insurance policy instead of being added to a parent's policy. Teenage car insurance rates are still expensive, regardless. Here's a closer look at how much teens pay for their own car insurance policies, on average.
Average cost of car insurance for teen drivers by age
| Teen Drivers by Age | Average Cost |
|---|---|
| 16 | $8,765 |
| 17 | $6,829 |
| 18 | $6,146.50 |
| 19 | $4,649.50 |
Average Cost of Car Insurance for Teen Drivers by State
Teenage car insurance rates also vary by exact location, or the state where you live and get your policy. So, how much is car insurance for teens in your state? Get a better idea by taking a look at this breakdown of average rates for car insurance policies for teen drivers by state.
| State | Age 16 | Age 17 | Age 18 | Age 19 |
|---|---|---|---|---|
| Alabama | $2,630 | $2,364 | $2,081 | $1,730 |
| Alaska | $2,755 | $2,427 | $2,083 | $1,803 |
| Arizona | $3,005 | $2,635 | $2,256 | $1,982 |
| Arkansas | $2,426 | $2,179 | $1,906 | $1,618 |
| California | $3,212 | $2,809 | $2,604 | $1,608 |
| Colorado | $2,793 | $2,385 | $2,217 | $1,882 |
| Connecticut | $2,971 | $2,615 | $2,325 | $2,008 |
| Delaware | $2,547 | $2,342 | $2,118 | $1,747 |
| Florida | $3,424 | $3,118 | $2,763 | $2,481 |
| Georgia | $2,644 | $2,379 | $2,031 | $1,636 |
| Idaho | $1,766 | $1,371 | $1,203 | $979 |
| Illinois | $2,314 | $1,993 | $1,722 | $1,572 |
| Indiana | $2,031 | $1,759 | $1,558 | $1,173 |
| Iowa | $1,506 | $1,336 | $1,158 | $958 |
| Kansas | $2,314 | $1,940 | $1,710 | $1,470 |
| Kentucky | $3,050 | $2,753 | $2,404 | $2,041 |
| Louisiana | $4,724 | $4,179 | $3,632 | $3,019 |
| Maine | $1,817 | $1,618 | $1,424 | $1,141 |
| Maryland | $2,612 | $2,349 | $2,056 | $1,682 |
| Massachusetts | $2,399 | $2,138 | $1,956 | $1,118 |
| Michigan | $2,624 | $2,439 | $2,154 | $1,704 |
| Minnesota | $2,365 | $2,042 | $1,714 | $1,800 |
| Mississippi | $2,312 | $2,042 | $1,769 | $1,449 |
| Missouri | $2,765 | $2,141 | $1,834 | $1,572 |
| Montana | $1,899 | $1,611 | $4,140 | $3,933 |
| Nebraska | $1,630 | $1,388 | $1,251 | $1,068 |
| Nevada | $3,655 | $3,106 | $2,712 | $2,138 |
| New Hampshire | $1,690 | $1,498 | $1,336 | $1,194 |
| New Jersey | $2,865 | $2,622 | $2,408 | $1,741 |
| New Mexico | $2,386 | $2,092 | $1,962 | $1,530 |
| New York | $3,231 | $2,973 | $2,582 | $2,074 |
| North Carolina | $1,735 | $1,052 | $866 | $276 |
| North Dakota | $1,676 | $1,374 | $1,175 | $948 |
| Ohio | $1,839 | $1,627 | $1,414 | $1,127 |
| Oklahoma | $2,176 | $1,901 | $1,674 | $1,425 |
| Oregon | $2,105 | $1,785 | $1,501 | $1,391 |
| Pennsylvania | $3,193 | $2,834 | $2,506 | $2,090 |
| Rhode Island | $2,760 | $2,530 | $2,067 | $1,728 |
| South Carolina | $2,777 | $2,462 | $2,192 | $1,814 |
| South Dakota | $1,574 | $1,353 | $1,160 | $924 |
| Tennessee | $2,391 | $2,066 | $1,735 | $1,420 |
| Texas | $3,075 | $3,022 | $2,665 | $2,181 |
| Utah | $2,537 | $2,128 | $1,861 | $1,507 |
| Vermont | $1,164 | $1,047 | $937 | $825 |
| Virginia | $1,715 | $1,529 | $1,333 | $1,134 |
| Washington | $2,528 | $2,247 | $1,993 | $1,502 |
| West Virginia | $2,114 | $1,919 | $1,722 | $1,484 |
| Wisconsin | $1,701 | $1,508 | $1,269 | $1,026 |
| Wyoming | $1,767 | $1,429 | $1,285 | $1,085 |
| *Insurers in Hawaii cannot use a driver’s age to set rates. | ||||
Save on Car Insurance
Our independent agents shop around to find you the best coverage.
Five Best Car Insurance Companies for Teen Drivers in 2023
The best car insurance for teens depends on your family's needs and budget. Depending on your priorities, you might determine that the best insurance for teen drivers comes from a local carrier with outstanding customer feedback, or from a carrier that offers the highest discounts. We've broken down the best car insurance for teen drivers by category from just a handful of our top-rated carriers for you to start with.
- Best Teenage Car Insurance Overall: Erie
- Best Teenage Car Insurance for Roadside Assistance: Progressive
- Best Teenage Car Insurance for Military Families: USAA
- Best Teenage Car Insurance for Good Student Discounts: Travelers
- Best Teenage Car Insurance for Low-Mileage Drivers: Nationwide
Best Teenage Car Insurance Overall: Erie
Some of the best car insurance for teens overall comes from Erie. We selected Erie as one of our choices for the best insurance for teen drivers, thanks to their excellent premium rates when adding a teen to a policy compared to many other insurance companies. But Erie also offers many extra perks for teen drivers, such as new car replacement coverage and gap insurance. The carrier even continues to offer outstanding rates for teen drivers with an accident history or other traffic violations like speeding tickets.
Erie Insurance was founded in 1925 and is a Fortune 500 company. The carrier has outstanding ratings from AM Best and the Better Business Bureau (BBB). The vast majority of Erie's customer feedback is positive. In addition to car insurance, Erie also offers boat, RV, and umbrella insurance, and many other types of personal coverage.
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
|||||
|
Best Teenage Car Insurance for Roadside Assistance: Progressive
Our pick for the best car insurance for teens when it comes to roadside assistance is Progressive. We selected Progressive as one of our choices for the best insurance for teen drivers, thanks to its extensive roadside assistance coverage that goes above and beyond that provided by other carriers. In fact, Progressive's roadside assistance coverage offers a winching service to retrieve vehicles trapped in snow, mud, sand, or water if it's within 100 feet of the road, as well as a tow to the closest qualifying repair shop.
Progressive was founded in 1937 and offers coverage in 40 states. The carrier holds an outstanding rating for financial strength from AM Best and offers 24/7/365 customer service. Progressive makes customer service highly accessible thanks to its mobile app and live chat options, as well. In addition to car insurance, Progressive offers a lot of other products, too, including boat insurance, classic car insurance, motorcycle insurance, condo insurance, and many more.
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
|
||||
|
Best Teenage Car Insurance for Military Families: USAA
When it comes to offering the best car insurance for teens in military families, the winner is clearly USAA. We selected USAA as one of our top choices for the best insurance for teen drivers thanks to its super affordable rates to add teen drivers to existing car insurance policies, and its great prices for folks with an active or retired military member in the family. USAA also offers accident forgiveness and new car replacement coverage.
USAA was founded in 1922 and holds outstanding ratings from both AM Best and the BBB. The carrier also has high ratings by Moody's and Standard & Poor's. USAA offers a mobile app and online claims reporting to help make customer service highly accessible. In addition to car insurance, USAA also offers home insurance, health insurance, flood insurance, and many other products.
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
Best Teenage Car Insurance for Good Student Discounts: Travelers
The winner for the best car insurance for teens for good student discounts is Travelers. We chose Travelers as one of our picks for the best insurance for teen drivers thanks to their great rates when compared to other carriers and their inclusion of many different types of discounts on top of those savings. In fact, Travelers offers not only good student discounts, but also discounts for students away at school. If you have a teen driver listed on your policy who's away at school at least 100 miles from home, and won't be driving your vehicles while they're away, you can qualify for an additional discount on your policy.
Travelers was founded in 1853 and has outstanding ratings for customer service. Auto insurance is currently available in 42 states. Travelers works primarily with a large network of independent insurance agents, helping to make the insurance journey much more personalized and streamlined for existing and prospective customers. In addition to car insurance, Travelers offers many other coverage options, including classic car insurance, RV insurance, snowmobile insurance, and many other products.
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
|||||
|
Best Teenage Car Insurance for Low-Mileage Drivers: Nationwide
Our final pick for one of the carriers offering the best car insurance for teens who are low-mileage drivers is Nationwide. We selected Nationwide as one of our top choices for the best insurance for teen drivers thanks to its offering of SmartMiles, which is a pay-per-mile program that provides flexible rates depending on your teen driver's overall mileage driven. Through this program, families with teen drivers on their policies can also receive an additional discount of up to 10% when renewing their policy if their teen maintains a safe driving record.
Nationwide was founded in 1925 and holds outstanding ratings from both AM Best and the BBB. The carrier offers 24/7 claims reporting and makes customer service easy. In addition to insurance, Nationwide also offers retirement and investment options. Along with car insurance, Nationwide offers golf cart insurance, scooter insurance, personal watercraft insurance, and many other products.
| Pros: | Cons: | ||||
|---|---|---|---|---|---|
|
|
||||
|
|
||||
|
|||||
|
How to Add a Teen to Your Car Insurance
The requirements for when you must add a teenage driver to your car insurance policy vary depending on location. In some states, you are required to add your teen to your car insurance policy as soon as a learner's permit is issued, but in others, it’s not required until the driver passes their exam and has a formal license. But just like the steps of how to get a car loan or how to finance a car, there are typically just a few things you need to do to ensure that your teen is listed as an insured driver on your policy, like:
- Call your insurance company: First up, you'll want to call your independent insurance agent or your carrier directly to let them know about the change.
- Talk through the changes: If you're unhappy with the rate your current car insurance carrier is offering once you add a teen to your policy, you might choose to shop around for a better rate instead. Your independent insurance agent can help you with this.
- Ask about discounts: Inquire with your car insurance company if they offer any type of teen driver discounts, including for safe drivers, good students, etc.
- Have your teen driver’s license and vehicle information ready: Make sure you've already got your teen's license and vehicle information at hand before making the call to your insurance company.
- Confirm policy and new ID cards: Once your new policy and ID cards are issued, double-check them to ensure there are no errors.
Save on Car Insurance
Our independent agents shop around to find you the best coverage.
How to Find the Best Car Insurance for Teenage Drivers
When you're ready to find the best teen auto insurance, start by comparing quotes from top-rated carriers in your area. You can also call your independent insurance agent, and they can do this step for you and then just provide you with the best results. But there are a few things to keep in mind when shopping around for teenage car insurance, including:
Leave Your Teen on Your Existing Policy
It often ends up being cheaper to just add a teen driver to an existing policy rather than getting them a policy of their own. You can ask to compare quotes from your existing car insurance provider for both of these options.
Ask about Discounts
If you're not already signed up for various car insurance discounts, make sure to check with your insurance company to get any added to your policy that you qualify for. Students in your household who are away at school might earn you a discount, as well as teens or other household members who are safe drivers, or even students who earn good grades.
Shop Around
Don't settle for the first teen car insurance quote you receive. Ask your independent insurance agent to shop and compare quotes from multiple car insurance companies that insure teens. They'll help you find the best possible rate.
Look into Companies That Offer Accident Forgiveness
When you've got a teen driver on your policy, having accident forgiveness becomes a much more attractive option. Certain carriers offer accident forgiveness for teen drivers to help keep premium rates as low as possible after they're involved in an accident.
Look into Companies That Offer New Car Replacement Coverage
Another attractive option for teen driver parents is new car replacement coverage. If your existing vehicle ends up getting totaled, new car replacement coverage can pay to replace it with a new car of the same make and model.
How to Save on Car Insurance for Teens
Be sure to shop around for car insurance quotes for your teen. Rates vary among insurance companies, which offer a variety of discounts that apply to teen drivers. These include:
- Good student discount
- Defensive driving discount
- Low-mileage discount
- Safety features discount
- Multi-policy discount
- Driver monitoring discount
Your Trusted Choice independent insurance agent can help you find an insurance company that offers a variety of teen driver discounts.
Should I Put My Teen Driver on Their Own Car Insurance Policy?
Adding a teen driver to your car insurance policy can potentially raise your rates significantly (i.e., anywhere from 20% to 180%, depending on your state), but it's always best to add your teen to your family policy rather than purchase a separate policy.
In one example cited by Consumer Reports, adding a 16-year-old driver to a married couple’s family policy resulted in a 250% increase in premiums. If that teen is insured separately, the rates could be even higher.
If you purchase a separate policy for your teen driver, you might be tempted to purchase insufficient coverage limits or exclude them from your other policies. This is never a good idea in a family where any driver could operate any of your vehicles at any time.
Why Is Teen Car Insurance So Expensive?
Teen drivers are statistically more likely to cause accidents than more experienced drivers, leading to higher premium rates for teenage car insurance. Most experts agree that immaturity and lack of driving experience are the two main factors that cause teen drivers to have such a high crash rate. Because they are inexperienced drivers, teens often fail to recognize hazardous situations and don’t respond appropriately. In addition, teens are more likely to engage in risky activities such as speeding and tailgating.
Car insurance for teenage drivers is notoriously expensive, but the numbers don't lie regarding crash statistics. In 2021 alone, there were 2,116 fatalities reported from accidents involving young drivers, age 15-20. That same year, more than 11.7 million young drivers, age 16-20, were involved in fatal motor vehicle crashes. With these alarming stats in mind, it might be easier to understand why teen auto insurance rates are sky-high.
What Makes Teenagers More Prone to Accidents?
Teens as a group are risky drivers. In addition to immaturity and an inability to appropriately recognize risky situations, they face numerous risk factors that impact their likelihood of getting into accidents.
- Low-risk perception: Unfortunately, many teens mistakenly believe they're invincible, even when behind the wheel of a car. Young drivers underestimate the risks they face and overestimate their ability to respond.
- Risk-taking: Invincibility, again. Teen drivers are more likely to engage in risky driving behaviors like speeding, tailgating, running red lights, violating traffic rules, making illegal turns, passing dangerously, and failing to yield.
- Skill deficiencies: Young drivers are new drivers. They haven’t yet mastered the skills they need to stay safe.
- Alcohol and drug use: Unfortunately, substance abuse is a leading cause of serious crashes among teen drivers. Teens with alcohol or drugs in their system are even more prone to crashes than older drivers who may have consumed similar substances.
- Distraction: Teens are easily distracted by many things, including having their friends in the car while they drive. In fact, the fatality risk of 16- and 17-year-old drivers is three times higher when they are driving with passengers than when they are driving alone.
- Night driving: Night driving takes practice, and teen drivers are less experienced night drivers than their adult counterparts. In addition, teens are more likely to be tired and even under the influence of drugs or alcohol at night.
FAQs about Teenage Car Insurance
Your teen driver must be insured, but you don't necessarily have to add them to your existing car insurance policy. You can choose to buy your teen their own separate policy, but this tends to be much more expensive.
Teen car insurance is much more expensive than car insurance for more experienced drivers. On average, a 17-year-old female driver pays nearly $5,064 per year for car insurance, while a male 17-year-old driver pays just over $5,750 per year.
Asking about discounts from your car insurance carrier can help you save money on teen car insurance. Many carriers offer discounts for good students, safe drivers, and even students who get good grades.
Though adding a teen driver to your auto insurance policy will cause your premium rates to increase quite a bit (sometimes more than 100%), it's still a more cost-effective option than the alternative. Parents who choose to let their teen get their own separate car insurance policy end up paying much more for coverage than if they'd added their teen to an existing policy.
This option can certainly help you save money on your premiums. Some carriers offer special programs for low-mileage teen drivers that provide the benefit of significant discount savings on each bill.
Yes, because insurance companies have no way of knowing whether your teen is actually driving. If you're trying to keep premiums down while your teen is licensed and you're certain they never drive, you could have them surrender their license to the DMV. The DMV will likely provide written documentation of that surrender, which can be given to your insurance company as proof. Some companies may lower your rates in this case, but they are not obligated to do so.
There might be coverage if an uninsured teen driver is involved in an accident. The majority of policies cover all members of the household without you having to report them as drivers. However, some policies may restrict coverage for family members to those who were reported to the company when the policy was put in place. If your teen was specifically excluded from your auto insurance policy, you wouldn't have coverage for the accident.
Typically, teen driver insurance rates tend to drop after the driver experiences three years with a clean driving record. Rates also tend to start dropping dramatically when you insure a 20-year-old driver vs. a teen. Depending on your state, rates may drop by 50% after three accident and ticket-free years, with another drop after six years with a clean driving record. And after the age of 25, car insurance rates should go down again (if the driving record remains clean).
If your teen driver cannot keep a clean driving record and gets involved in a crash or gets a speeding ticket, expect your rates to increase significantly—perhaps as much as 20% to 40%. However, you can try to minimize these increases by choosing to get a policy from a carrier that offers accident forgiveness.
While teen rates will always be high, the car you choose can help you save some money on your premiums. From an insurance perspective, small cars are considered less safe, while sports cars encourage speeding. Large trucks and SUVs are more prone to rollover crashes. Try to provide your teen with a somewhat older vehicle that will cost less if it gets involved in an accident, and that doesn’t come with any of the inherent safety concerns of other types of vehicles.
https://www.forbes.com/advisor/car-insurance/best-cheap-car-insurance-for-teens/#:~:text=EverQuote%27s%20secure%20site.-,How%20Much%20Does%20Car%20Insurance%20Cost%20For%20Teen%20Drivers%3F,-It%20costs%20an
https://www.insurance.com/auto-insurance/life-events/car-insurance-for-young-adults.aspx#:~:text=Methodology-,How%20much%20is%20car%20insurance%20for%20teens,-%3F
https://www.forbes.com/advisor/car-insurance/best-cheap-car-insurance-for-teens/#:~:text=%242%2C766-,How%20Much%20Does%20Car%20Insurance%20Cost%20for%20a%20Teen%20Driver%20with%20Their%20Own%20Policy%3F,-Age%20and%20gender
https://www.forbes.com/advisor/car-insurance/best-cheap-car-insurance-for-teens/#:~:text=Average%20cost%20of%20car%20insurance%20for%20teen%20drivers%2C%20by%20company
https://www.usatoday.com/money/blueprint/auto-insurance/car-insurance-for-teens/
https://www.iii.org/fact-statistic/facts-statistics-teen-drivers
https://www.usnews.com/insurance/auto/best-cheap-car-insurance-teens-students-new-drivers#:~:text=your%20state%E2%80%99s%20laws.-,How%20to%20Add%20a%20Teen%20to%20Your%20Car%20Insurance,-The%20first%20step