What is Family Car Insurance?
- A family car insurance policy covers all the drivers and vehicles in your household under one policy.
- It can be expensive, but is usually still cheaper than individual policies.
- It’s often a good value if you have a teen driver under your roof.
How does family car insurance work?
With family car insurance, everyone named in the policy shares the same coverage. This usually results in a cheaper annual rate.
It differs from a “multi-driver” policy, which covers several drivers who share one car.
A family car insurance policy covers the cars listed and:
- Named drivers: This includes the person buying the policy and anyone else listed on it.
- Household drivers: This includes anyone who drives the cars your policy covers.
How much does family car insurance cost?
A couple with a 16-year old-child pays an average of $6,406 a year for a full coverage Full coverage includes collision and comprehensive, which cover your own car for damage and theft. policy. The same couple with an 18-year-old pays an average of $5,090 a year.
One of the main benefits of a family car insurance policy is that it can make insuring a teen driver a lot cheaper. Teens pay the highest rates for car insurance because they are more likely to get into an accident than any other age group. For example, a 16-year-old driver pays nearly four times more for their own full coverage car insurance than if they’re on a family policy.
Cost of a family car insurance policy vs. separate policies
| Company | Couple | Couple + teen (16) | Couple + teen (18) | Teen only (16) | Teen only (18) |
|---|---|---|---|---|---|
| Allstate | $4,952 | $12,486 | $9,336 | $15,194 | $7,538 |
| Geico | $2,189 | $4,853 | $4,094 | $7,640 | $5,789 |
| Progressive | $2,558 | $4,670 | $4,209 | $7,983 | $6,386 |
| Standard Fire Insurance | $1,690 | $4,875 | $3,457 | $5,581 | $3,580 |
| State Farm | $2,332 | $6,708 | $5,406 | $5,732 | $4,430 |
| USAA* | $2,157 | $4,845 | $4,034 | $5,960 | $4,577 |
| Average | $2,646 | $6,406 | $5,090 | $8,015 | $5,383 |
The average cost of car insurance does go down once you leave your teens, if you keep a clean driving record. Car insurance rates tend to even out in your early 20s, with no serious increases until your 60s.
What are the best companies for family car insurance?
Progressive offers the cheapest rates for a family car insurance policy. State Farm has the best discount options for families. USAA is the best overall choice if you or a member of your family is in the military.
Best for cheap rates: Progressive
Progressive has the cheapest rate for family car insurance, at $4,670 a year for a full coverage policy. This is 27% cheaper than the average rate of $6,406 a year.
Progressive also offers some good car insurance discounts for families. These include:
- Multi-policy: Bundling your car and home insurance may save you 7% on your auto policy.
- Teen driver: Adding a child to your car insurance policy can earn you a discount after a year.
- Good student discount: Adding a full-time student with a 3.0 GPA or higher to your car could get you a 10% discount.
- Distant student discount: If you have a full-time student who is 22 years old or younger and attends school 100 miles or more from your home, you might receive a 10% discount if their car is garaged at home.
Pros
- Cheap family car insurance rates
- Good family-oriented discounts
- Accident forgiveness
- Not many NAIC The NAIC rates companies on confirmed complaints by size. A confirmed complaint is one that leads to a finding of fault. customer complaints
Cons
- Some discounts don’t apply right away
- Limited accident forgiveness benefits
Best for discounts: State Farm
State Farm offers more car insurance discounts than most other companies. These include:
- Good student: Save up to 25% if your student maintains a 3.0 GPA or better.
- Bundling: You can save up to $1,273 a year if you bundle your car and home insurance with State Farm.
- Defensive driving: You may save on your car insurance if you pass an approved driver training course.
- Good driver: Three years or more without a claim could get you a discount.
- Passive restraint: If you have airbags or another passive restraint system in your car, you might save up to 20%.
The average cost of State Farm family car insurance with a 16-year-old is $6,708 a year. This is 5% higher than the average family car insurance rate of $6,406.
Pros
- Great student discount
- Good range of discounts overall
- Rental car coverage
Cons
- High average rate for families
- Discounts not available in every state
- Little policy customization
Best for active and veteran military: USAA
USAA and its car insurance policies are tailored for military members and their families. The company offers low rates, good discounts and great customer service.
USAA also offers good add-on coverage options, including:
- Roadside assistance: This coverage helps out if you need a tow, a jump start or locked your keys in your car.
- Car replacement assistance: If your car is declared a total loss, USAA will pay you 20% more than the car’s actual cost value.
- Umbrella insurance: This helps pay for covered claims after you reach the limits of your other policies.
Pros
- Cheap rates
- Excellent customer satisfaction from J.D. Power
- Benefits tailored to military members
- Many discounts
Cons
- Only available to military members and their families
- Add-on coverages not available in all states
- No local agents
Family car insurance can help you save money. It can also get you more discounts and streamline your recordkeeping.
On the downside, if you file a claim on, it could affect the insurance history of everyone on the policy. You also might need to make changes to the policy if someone moves out.
What should I look for in a family car insurance policy?
While shopping for family car insurance, make sure the policy and its coverages suit your family’s needs. Choices to make include:
Liability or full coverage
Liability car insurance covers injuries and property damage you cause to others. Most states require you to buy at least a minimum amount of liability insurance.
You’ll need full coverage car insurance to cover damage to your own vehicle. Full coverage usually combines liability, collision Collision covers damage to your car from a collision with another vehicle or object. and comprehensive Comprehensive covers your car for theft and damage from non-collision causes, like fire, flood and vandalism. coverage types.
Roadside service
If you and your family don’t have a service like AAA, roadside service is a good option to consider. It can help if you run out of gas, get a flat or need a tow to an auto repair shop.
Rental car coverage
Most insurance companies offer rental car reimbursement coverage as an optional add-on. This ensures that your family has a car to use while your own is being repaired after an accident. This can be especially helpful if you are a single-car family.
GAP coverage
GAP insurance pays the difference between your car’s actual cash value and your loan amount on a financed car if it’s totaled. This can help you avoid paying out thousands of dollars after a crash.
How can I save on family car insurance?
Some of the best ways to save money on family car insurance are to compare quotes from several companies, look for discounts and raise your deductible.
Compare car insurance quotes
Different car insurance companies charge different prices for similar coverage. This is because they don’t all look at your risk factors in the same ways. These factors include your ZIP code, the make and model of the car and your insurance claim history.
When you compare car insurance quotes from several companies side by side, you can find the best cost and coverage for your needs.
Get discounts
Car insurance companies offer discounts to stay competitive. Bundling is a popular discount. If you get your car and home insurance through the same company, you may save on both policies.
Many insurers offer discounts for teens. These include good student, defensive driving and driver training discounts. If your teen qualifies for any of these discounts, it can reduce your annual premium.
Raise your deductible
If you raise your car insurance deductible, it will lower your rate. Make sure you can afford to pay the higher deductible when filing a claim.
Methodology
LendingTree uses insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Rates are based on an analysis of hundreds of thousands of car insurance quotes for a typical driver. Prices are shown for comparative purposes only. Your own rates may be different.
Unless noted otherwise, quotes are for a full-coverage policy for a 30-year-old man with good credit and a clean driving record who drives a 2015 Honda Civic EX. Teen rates are for an 18-year-old male.
Minimum-liability policies provide liability coverage with the state’s required minimum limits.
Full coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured / underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Personal injury protection: minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive: $500 deductible
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