Cheap Car Insurance for Teenage Drivers
- Expertise: Auto insurance, home insurance and renters insurance
- Education: University of California-Berkeley (BA in History)
Rob Bhatt is a licensed insurance agent and joined the staff of Lending Tree in 2021. Previously, he spent more than 20 years writing for and editing regional publications in California, Nevada and Washington. Rob enjoys helping readers understand how different coverages work so they can make informed purchasing decisions, and he specializes in producing research-backed content for LendingTree about auto, home and renters insurance. His work has been cited by ABC, Business Insider, MSN and Yahoo.
State Farm has the cheapest car insurance quotes for teenage drivers, charging an average of $197 a month for liability insurance and $386 a month for full coverage.
Teens usually get cheaper car insurance when they are added to a parent’s policy than they do on their own.
How much is car insurance for teens?
The average cost of car insurance for teens is $217 a month for their own liability coverage. Full coverage costs an average of $457 a month for a teen with their own car insurance.
However, a family can save $129 a month by adding a teen to a parent’s policy, instead of having separate policies for the teen and parent.
Car insurance costs for a parent and teenage driver
| Drivers per policy | Monthly rate |
|---|---|
| Single policy for parent and teen | $483 a month |
| Separate policies for parent and teen | $612 a month |
Rates are for a 50-year-old parent and an 18-year-old child.
Who has the cheapest car insurance quotes for young drivers?
State Farm and Geico have the cheapest car insurance quotes for young drivers. These companies have the cheapest rates for teens on a parent’s policy and teens on their own.
Cheapest car insurance for parents with a teen driver
State Farm has the cheapest average full-coverage quote for a parent and teen driver on the same policy, $465 a month. Geico’s rate of $511 a month is next best.
| Company | Monthly rate |
|---|---|
| State Farm | $465 |
| Geico | $511 |
| Travelers | $529 |
| Progressive | $551 |
| Allstate | $807 |
| Nationwide | $892 |
Rates are for a 50-year-old parent and an 18-year-old child on the same policy.
Cheapest car insurance quotes for teens on their own
State Farm also has the cheapest quotes for teens who get their own car insurance. Its rates for 18-year-olds average $197 a month for minimum liability coverage and $386 a month for full coverage.
Geico has the next-cheapest quotes. It charges 18-year-olds an average of $202 a month for liability and $428 a month for full coverage.
| Company | Liability coverage | Full coverage |
|---|---|---|
| State Farm | $197 | $386 |
| Geico | $202 | $428 |
| Travelers | $245 | $430 |
| Allstate | $325 | $620 |
| Nationwide | $353 | $812 |
| Progressive | $393 | $978 |
Monthly rates are for an 18-year-old with a clean driving record.
Most states require liability insurance to cover injuries or damage you may cause in a car accident. Full coverage includes collision and comprehensive insurance, which cover damage to your own vehicle.
Why is car insurance so expensive for teens?
High crash rates are the main reason why car insurance is so expensive for young drivers.
Crashes cost insurance companies money, in the form of payments to treat injuries and repair cars. Insurance companies pass these costs along by charging higher rates to customers who seem more likely to crash.
Car insurance costs for parents with teens
For parents, the cost of adding a teenager to your car insurance policy varies by the child’s gender and age.
It costs 11% less to add a teenage girl to your policy than it does to add a teenage boy. Regardless of gender, 19-year-olds cost 19% less to insure than 16-year-olds.
Average car insurance costs for a parent with a teenage driver
| Age of teen | Male teen | Female teen |
|---|---|---|
| 16 | $584 | $518 |
| 17 | $550 | $488 |
| 18 | $512 | $454 |
| 19 | $475 | $422 |
Monthly rates are for a 50-year-old parent and teenage child with clean driving records.
Car insurance discounts for teen drivers
It’s important to take advantage of any discounts that may be available to you and your teen driver. Here are the more common ones to ask about.
Good student discounts
Most car insurance companies offer a good student discount to teens who maintain a B average or better in school. Make sure to mention your child’s grades when you request a quote. You usually need to provide school transcripts when you activate your policy.
Safe driving apps
Most large car insurance companies offer a discount to drivers of any age who enroll in their app-based safe driver programs.
The app monitors your driving and gives you a score based on how well you avoid unsafe activities such as speeding and distracted driving. A high enough score gets you future discounts when you renew.
These programs also allow parents to monitor their teens’ driving habits.
Driver’s education
Many insurance companies offer a discount to teens who complete an accredited driver’s education program. The programs that qualify vary by insurance company.
Away-at-school discounts
Several companies offer discounts to parents with teens who are away at school without a car. Parents save on car insurance while the teens remain insured when they borrow cars at school or back at home.
Other ways for teens to save on car insurance
If you’re a teen, you can also save by avoiding coverages you don’t need.
- A teen who drives an older car with a low resale value may not need collision and comprehensive coverage.
- If you’re the parent of a teen, list the teen as the driver of the least valuable vehicle in your home.
- A teen with their own car insurance usually does not need as much coverage as their parents.
The cost of adding a young driver to your policy varies by company. Getting quotes from multiple companies allows you to find the cheapest rate.
When should I get car insurance quotes for a teen driver?
You should get car insurance quotes for a teen driver before they get their license.
Start by letting your current insurance company know when your teen gets their learner’s permit. Most insurance companies cover a permitted teen driving under your supervision at no extra cost. However, you should check for any restrictions and get a quote.
Your teen’s car insurance should take effect on the day they get their license.
Advantages of adding a teen to a parent’s car insurance
For a family, the advantages of adding a teenager to a parent’s car insurance go beyond price.
- A single policy for parents and teens covers each driver in any household vehicle.
- Some insurance companies require all related drivers who live together to be on the same policy.
- Most states prohibit teens under 18 from entering into any legal contract, including car insurance. A 16- or 17-year-old usually needs a parent or guardian to cosign to get their own policy.
A teen can remain on a parent’s policy while they live at home or are away at school. A teen who moves out on their own typically needs their own car insurance, unless a parent owns or co-owns their vehicle.
Frequently asked questions
Parents can add a newly licensed driver to their car insurance at age 16. You usually have to be 18 to get your own car insurance. If you’re under 18, you need a parent or guardian to cosign.
Yes, but only when the teen is driving a parent’s vehicle under parental supervision.
A teen who lives with a parent does not need separate insurance for their own car. A teen who moves out on their own does need their own car insurance, unless a parent is on the vehicle’s title.