- January 17, 2024
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Car insurance rates for teenagers are notoriously high due to the considerable risk that new drivers pose to insurance companies. Hence, to help parents find the cheapest car insurance for teen, we compared major insurance companies and provide you with several important pieces of information.
So, you can do your research here to discover one based on the price and the best option based on the company offerings. Let’s move to the first section to start your journey and find the best insurance for your driver!
Average Cost of Car Insurance for Teenagers
The price of car insurance for teens may vary depending on case by case. For instance, the cost of an individual policy for a teenage driver who is 18 or older and can legally buy their own or at 16 or 17 have an individual policy with a co-signer may be unlikely. However, this tends to be a much more expensive option.
Alternatively, you can consider the cost of adding such drivers to a family policy. The average cost for an individual teen policy is $4.866. In contrast, the average cost of adding a teen to a family policy is cheaper at $3.048.
Note that the above rates are calculated based on 18-year-old drivers. On average, the cost of adding car insurance for teenagers aged 16 years or older to a parent’s policy only includes the cost of teenage driver coverage. So, it doesn’t represent the combined cost.
What is the Cheapest Car Insurance for Teen?
You already know that car insurance rates for teen drivers are much higher than for older drivers. But auto insurance rates specifically higher for those between the ages of 16 and 19 can vary by several hundred dollars. Additionally, gender also has an impact on the amount you pay for car insurance.
However, the age factor becomes less influential as drivers age into adulthood. Averagely, it costs an extra $300 per year to add a young male driver compared to a young female driver to their parent’s policy. Moreover, a young male driver is usually more expensive to insure than a young female driver.
Age and gender are not the only factors that can determine the price. Basically, each company also has different factors to determine the price range. So if you looking for the cheapest car insurance for teen, check our list below:
- USAA : $320 monthly/ $3,838 annually
- State Farm : $394 monthly/ $4,726 annually
- American Family : $404 monthly/ $4,843 annually
- GEICO : $442 monthly/ $5,303 annually
- Nationwide : $471 monthly/ $5,652 annually
What are the Best Auto Insurances for Young Drivers?
From the above section you already know the cheapest car insurance for teen, but is it the best option? Well, the lowest price does not guarantee the right option for you. You need to consider other options such as what the coverage is and whether it can fill your driver’s needs. Thus, below are the recommendation of the best teens auto insurance company:
1. State Farm
If you are a teen driver buying your car insurance policy, State Farm offers cheap rates and good customer service. Out of the many companies available, State Farm’s average rate of $394 per month is one of the best you’ll find. Moreover, you can save even more with a good student discount or the Steer Clear program.
This program from State Farm is a safety course for new drivers to improve their driving habits. Additionally, you can add roadside assistance to give you peace of mind. This coverage can help if you need to change a tire, lock your keys in the car, or break down.
The only downside that you need to note is this company doesn’t offer accident forgiveness insurance or gap insurance. In fact, it’s important to help you avoid out-of-pocket costs after an accident.
2. Auto-Owners
Teenage drivers are more likely to get into car accidents than older drivers. Auto-Owners offers an accident forgiveness program that’ll protect you from higher insurance rates if you cause a car accident. There’s an extra cost to enroll in this program, but the potential savings may be worth the time.
In addition, accident forgiveness is not available for new drivers. But if you’ve shown that you’re a good driver in the first three years behind the wheel you can enjoy this program. So, you can try to sign up and get protection in your early 20s or during college.
The Auto-Owners also offer cheap rates for teenagers driving on their own and the lowest rates for adding a young driver to a parent’s policy. However, one downside is the lack of digital tools. So you have to work through an agent and can’t manage your policy online.
3. Erie Insurance
Discounting is a fundamental way to lower insurance rates for teen drivers, and Erie offers a pleasing set of discounts for young drivers. Although this company doesn’t include in our list the cheapest insurance, it has extremely low rates due to the multiple perks.
For instance, it offers a young driver discount for drivers under 21 who still live with their parents. This company also has a longevity bargain for unmarried teen drivers who spend two years on someone else’s Erie policy. They’re usually a guardian or parent. The last is the driver training discount for teen drivers who take defensive driving classes.
So, by leveraging some discounts, Erie has some of the lowest rates at $256 per month for teen drivers on their own. Furthermore, the average cost of $174 for older drivers who add younger drivers to their policy. But, the company only offers coverage in 12 states.
Have you Discovered the Cheapest Car Insurance for Teen?
Pricing isn’t everything. Although with teen drivers, rates are a big part of the decision. Still, you don’t want to choose a policy with an obscure insurance company, especially if the rates seem too good to be true. Furthermore, ensure you do your research on the insurance company you are considering signing up with.
Do read reviews, check AM Best’s financial ratings, and compare each company. Actually, having a company that’ll always be there when you need to make a claim is just as important as saving money. So, we hope our article not only helps to find the cheapest car insurance for teen but also the best one for your needs!
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