Best Car Insurance for Teens and Young Drivers (2022)

While car insurance for teens is expensive, there are ways to save on monthly rates.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Aug 26, 2022

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Things to Remember

  • Insurance rates for teens are higher because teens are more likely to be involved in traffic incidents and drive recklessly
  • You can save on teen insurance by taking advantage of discounts, trying usage-based coverage, and shopping for quotes
  • A parent or guardian can help teens save up to 45% on insurance by adding them to an existing policy

A person’s teen years are usually a time of fun, exploration, and budding independence. One of the most anticipated events for teenagers is turning 16 and getting their first car. While having a car is exciting, it also comes with responsibilities that some teens might not be ready for.

An important aspect of car ownership that teens might not fully understand is how much vehicles cost. From the initial purchase and registration fees to gas and car insurance, vehicles take a lot of capital.

More: Auto Insurance for Drivers Under 25 (2022 Rates + Discounts)

Unfortunately, car insurance for teenage drivers is some of the most expensive. While there are several reasons for the high prices, it mainly comes down to their riskiness due to inexperience. However, there are ways to find cheap car insurance for teenagers, especially if a parent or guardian can help.

If you need car insurance for teenagers, comparing quotes with as many companies as possible will help you find the best rates. Read on to learn more about car insurance for teenagers and how to save the most money possible.

What are the best car insurance companies for teens?

Finding cheap insurance for teens can be incredibly difficult because the young driver demographic is one of the riskiest for insurance companies. However, while teen drivers will always pay more for insurance, some companies are more forgiving than others. The chart below shows the average annual U.S. full and minimum coverage auto insurance rates for teen drivers.

More: Auto Insurance for Teens After an Accident [Everything You Need to Know]

If you need car insurance for teen drivers, consider the following companies:

  • State Farm. Not only does State Farm have low auto insurance rates for teens, but it also offers the Steer Clear program. Steer Clear is a discount program that teaches young drivers how to handle difficult situations on the road.
  • Allstate. Allstate doesn’t have the lowest auto insurance rates for teens, but it does have one of the longest lists of discounts young drivers might qualify for.
  • USAA. USAA usually has the lowest rates for all demographics but does especially well with teens. However, only teens from military families are eligible for coverage with USAA.
  • Travelers. Depending on other factors like location, Travelers might offer you the lowest car insurance for teens.
  • Progressive. Although Progressive has higher rates for auto insurance for teenagers, it offers a long list of discounts.

While these companies tend to have the best auto insurance for teens, you should still compare rates. Insurance companies use a variety of factors to determine how much you’ll pay, so you might find a different company that charges you less.

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How much is car insurance for teens?

More: Car Insurance for Older New Drivers

If you have a new driver at home, you’re probably wondering how much insurance is for a 16-year-old. Or, maybe you’re 18, leaving home for the first time, and need to find reasonable rates for car insurance for 18-year-olds. In either case, people generally encounter higher insurance rates until they enter their 20s.

Age is one of the most important factors for car insurance — drivers under 25 will pay more for insurance the younger they are. Check the table below to see how much insurance costs for teens.

Average Annual Full Coverage Auto Insurance Rates by Age and Gender
Age and GenderAllstateAmerican FamilyFarmersGEICOLiberty MutualNationwideProgressiveState FarmTravelersNational Average
18 Y/O Male w/a Clean Record$6,223 $4,684 $7,238 $3,043 $7,593 $4,646 $7,941 $3,408 $8,750 $5,947
18 Y/O Female w/a Clean Record$5,381 $3,452 $6,879 $2,635 $6,335 $3,632 $7,090 $2,750 $6,271 $4,936
30 Y/O Male w/a Clean Record$2,118 $1,545 $1,925 $1,041 $2,373 $1,667 $1,633 $1,234 $1,274 $1,646
30 Y/O Female w/a Clean Record$2,021 $1,310 $1,843 $1,078 $2,072 $1,519 $1,569 $1,122 $1,173 $1,523
45 Y/O Male w/a Clean Record$1,919 $1,319 $1,595 $962$2,066 $1,376 $1,261 $1,032 $1,169 $1,411
45 Y/O Female w/a Clean Record$1,941 $1,304 $1,602 $958$2,034 $1,355 $1,340 $1,032 $1,154 $1,413
55 Y/O Male w/a Clean Record$1,820 $1,251 $1,513 $912$1,959 $1,305 $1,196 $978$1,109 $1,338
55 Y/O Female w/a Clean Record$1,841 $1,237 $1,519 $909$1,929 $1,285 $1,271 $978$1,095 $1,341
65 Y/O Male w/a Clean Record$1,878 $1,291 $1,561 $941$2,022 $1,347 $1,234 $1,010 $1,145 $1,381
65 Y/O Female w/a Clean Record$1,900 $1,276 $1,568 $938$1,991 $1,327 $1,312 $1,010 $1,130 $1,383
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You might notice that insurance for a 16-year-old is substantially higher than for even slightly older drivers. Although car insurance for 18-year-olds is cheaper, it’s incredibly high compared to older adults.

More: Can I get my own auto insurance at 17?

However, age isn’t the only factor that determines your rates. Insurance companies also look at gender, location, driving history, and the make and model of your car. So, when you’re trying to figure out how much car insurance is for an 18-year-old per month, remember that your age isn’t the only thing that defines you.

How much is car insurance for a 16-year-old?

The highest rates for car insurance are for 16-year-olds. These new drivers are not only more likely to get into an accident, but car insurance companies can’t look at their driving records to get an idea of how safe they are because they have no history.

Average Annual Full Coverage Auto Insurance Rates for Teen Drivers
Insurance Company16-Year-Old Male With a Clean Record16-Year-Old Female With a Clean Record18-Year-Old Male with a Clean Record18-Year-Old Female with a Clean Record
Allstate$7,654$7,299$6,223$5,381
American Family$5,761$4,682$4,684$3,452
Farmers$8,901$9,330$7,238$6,879
GEICO$3,743$3,573$3,043$2,635
Liberty Mutual$9,339$8,592$7,593$6,335
Nationwide$5,714$4,926$4,646$3,632
Progressive$9,766$9,617$7,941$7,090
State Farm$4,191$3,730$3,408$2,750
Travelers$10,762$8,506$8,750$6,271
National Average$7,315$6,695$5,947$4,936
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Because of how much car insurance is for a 16-year-old per month, it’s best to add young drivers to a parent or guardian’s plan whenever possible.

How much is car insurance for a 17-year-old?

More: Six Reasons Why Auto Insurance Costs More for Young Drivers (Rates + Discounts)

Many 17-year-olds have about a year of driving experience, which helps lower car insurance rates. However, finding out how much car insurance is for a 17-year-old per month can still come as a shock. Although insurance for a 17-year-old is high, your rates will drop with age as long as you keep your driving record clean.

How much is car insurance for an 18-year-old?

Most states consider teens legal adults when they turn 18, which means they can buy insurance without a parent or guardian’s signature.

Average Annual Full Coverage Auto Insurance Rates for Teen Drivers
Insurance Company16-Year-Old Male With a Clean Record16-Year-Old Female With a Clean Record18-Year-Old Male with a Clean Record18-Year-Old Female with a Clean Record
Allstate$7,654$7,299$6,223$5,381
American Family$5,761$4,682$4,684$3,452
Farmers$8,901$9,330$7,238$6,879
GEICO$3,743$3,573$3,043$2,635
Liberty Mutual$9,339$8,592$7,593$6,335
Nationwide$5,714$4,926$4,646$3,632
Progressive$9,766$9,617$7,941$7,090
State Farm$4,191$3,730$3,408$2,750
Travelers$10,762$8,506$8,750$6,271
National Average$7,315$6,695$5,947$4,936
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As you can see, an 18-year-old pays less than younger teens, but rates are still high. To get a better idea of how much insurance is for an 18-year-old, make sure to compare rates for individual plans.

How much is car insurance for a 19-year-old?

19-year-olds pay the least among teen drivers. However, young drivers won’t see significantly lower rates until around 25. If you’re looking for cheap car insurance for new drivers under 21, make sure to check for discounts. Since many 19-year-olds are either considering college or are already attending, many car insurance companies offer school discounts.

Why does auto insurance for teens cost so much?

Teenage car insurance rates are high for one simple reason — risk. Car insurance companies want to insure the least risky people possible, and teen drivers are more likely to be involved in incidents than nearly every other demographic.

To get an idea of why teen car insurance is so high, consider the following statistics:

  • According to the CDC, unintentional injuries, including car accidents, are the leading cause of death for young adults aged 15 to 20.
  • According to the CDC, male teen drivers are twice as likely to die in a car accident than females.
  • Having teen passengers increases the likelihood of a teen driver causing an accident.
  • According to the IIHS, 16-year-old drivers are three times more likely to get into an accident than a 19-year-old due to the difference in their driving experience.

Driving a car presents a risk to teens that insurance companies don’t ignore. Since you are statistically more likely to get into an accident when you’re younger, you’ll be charged more for your insurance.

The good news is, your rates won’t stay high forever. Your rates will drop as you age as long as you keep your driving record clear.

Should teens get their own car insurance?

While it’s more affordable for a teen to join a parent or guardian’s policy, there are times when buying their own insurance is necessary.

However, a minor usually can’t buy car insurance without a parent or guardian’s signature. Since minors can’t legally enter contracts, insurance companies won’t sell a policy to anyone under age. The only exception to this is teens who have been emancipated by the court and can make legal decisions for themselves.

In general, it’s cheaper for teens to join a parent or guardian’s policy. There are only a few occasions when teens should consider their own plans:

  • They are the only car owners in the household.
  • Other adults in the household have high-risk auto insurance, and joining their policy would cost more.
  • The teen is eager to take a step toward financial independence.

Unless any of these apply to you, joining a parent or guardian's policy is the best way to find the cheapest car insurance for teens.

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Can you add a teen to your car insurance?

Not only can a parent or guardian add a teen to their policy, but it’s also the best way to find affordable insurance for teenage drivers. Adding a young person to an existing policy can help teen drivers save up to 45% on auto insurance.

You should add any teen with a new license to your policy if they’ll be driving a family car. Adding a teen driver to your insurance won’t raise your rates by too much and will ensure your vehicle is covered no matter who is driving.

Teen driver insurance will cost more if they own a car, but it’ll still be cheaper than buying an individual policy.

How do you add a teen driver to your policy?

Adding a teen driver to your car insurance policy is a simple process. If you already have a policy, adding a teen is as easy as calling an insurance representative.

Once a new driver is added to your policy, your representative will check for new discounts that might apply. The teen’s car will be added to the policy, and you’ll be informed of how much your new rate will be.

If you don’t have a policy — or you’re shopping around for a better price — you’ll need some basic information about the teen driver, such as their driver’s license number.

Whether you add a teen to an existing policy or start a new one, you should continue helping them learn how to drive safely. Keeping a clean driving record is the only way teen auto insurance quotes decrease.

How can teens save on their car insurance?

Although teen car insurance quotes are always higher, there are plenty of ways to save on your monthly rates. If you’re looking for cheap car insurance for teens, try the following:

  • Take a driving class. Most major insurance companies offer a discount for teens who take approved driving courses. As a bonus, teens can learn valuable driving skills.
  • Maintain your grades. One of the best ways to save money on insurance for teens is to maintain a GPA of at least 3.0.
  • Assign the cheapest car in your household. Many insurance companies require you to assign a primary driver. Assigning your teen to the least expensive vehicle in your household can save you money.
  • Keep your record clean. Traffic incidents like speeding tickets or car accidents will dramatically increase your rates. Teens aren’t the only ones who should drive safely — all drivers on your policy should practice good habits on the road.
  • Increase your deductible. You can lower your monthly payment by increasing your deductible if you can afford to pay more before your insurance kicks in.
  • Try usage-based insurance. Usage-based insurance plans monitor your driving — as long as you practice safe habits, you’ll earn lower rates.

These are the easiest ways to keep your insurance down when teens already have a car they need insurance for. If the teen doesn’t have a vehicle yet, looking at cheap, good cars for teens can also help save you money.

What are good, cheap cars for teens?

When it’s time to find a teen’s first car, there are several things to look for. Most importantly, it’s a safe vehicle, but you should also look for reliability and affordability. Of course, teens will also appreciate a little bit of style.

While there are plenty of choices for cool cheap cars for teenagers, here are some of the best used vehicles:

  • Ford Taurus. The Taurus was discontinued in 2019 but remains a popular choice for teen drivers. To find the perfect mix of safety and affordability, try to find a 2013 or 2014 model.
  • Honda Accord. When it comes to cool, cheap cars for teens, the Honda Accord is a classic. With great safety ratings and an affordable price tag, the Accord will probably be a popular choice for years to come.
  • Honda Civic. Another popular Honda for teens, the Civic also has stellar safety ratings. As a bonus, the Civic has excellent gas mileage.
  • Mazda 3. When it comes to cars for 16-year-olds, the Mazda 3 has solid safety ratings, gas mileage, and affordability. Teens also appreciate Mazda’s sporty drive.
  • Subaru Outback. Subaru is well known for its safety and reliability. All of Subaru’s hatchbacks are solid choices, but the Outback is probably the most popular.
  • Toyota Camry. When it comes to nice, cheap cars for teens, one of the best choices is the Toyota Camry. The Camry has fantastic safety ratings and a reputation for reliability.
  • Subaru Impreza. When you’re looking for good cars for 16-year-olds, the Subaru Impreza matches safety with style.
  • Ford F-150. If you’re looking for good trucks for 16-year-olds, the Ford F-150 is an excellent option because it has one of the highest safety ratings.

Finding a cheap car for teens doesn’t have to be a challenge — there are plenty of options for buying used cars that won’t break the bank.

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Find the Best Car Insurance for Teens

Whether you find cheap cars for teens or take advantage of student discounts, there are plenty of ways to find teenage drivers insurance at affordable prices. Insurance for teenage drivers is always more expensive, but you can keep your rates low with a little work.

One of the best ways to find the cheapest insurance for teens is to compare quotes. The more quotes you look at, the better your chances are of finding affordable rates.

FAQs

Why is car insurance more expensive for teen boys?

Just like insurance for teens is overall more expensive than other age groups, men are statistically more likely to engage in reckless driving behavior and get in accidents. Teenage driving insurance for young men combines several risk groups into one, which is why their insurance is so expensive.

Should you put a teen on your insurance when they get a learner’s permit?

The general rule of thumb is that you should add a child to your policy as a driver when they get their license. Most companies will cover your teen while they learn to drive without being listed on the policy, but you should always check with an insurance representative to make sure.

Is it cheaper for teens to have their own car insurance?

No, an individual policy for a teen can cost up to 45% more than it would if you add them to your policy. However, you should check with your insurance representative. They can help you make the best decision for insurance for your teen driver.

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