Are you want to know how much is car insurance for teens? It can be hard for a teen driver to find the cheapest car insurance. Teenagers don’t have much driving experience, so insurance companies see them as a high risk. Policies for them can cost thousands of dollars a year.

Being a teenager can cost a lot of money. Things like clothes, food, beauty products, and school events can add up. Another large cost? Car insurance.

If you want to drive in the United States, you must have driver’s insurance. But drivers under 25 pay some of the highest rates for car insurance. This is why it’s so important to find the best coverage at the lowest price. Some companies may have low rates, but not all of them offer the many types of coverage that teen drivers need and the discounts that make it all affordable. Let’s find out how much is car insurance for teens.

Why Do Teens Need Car Insurance? 

It’s the law, plain and simple. Most states require you to have auto insurance. This makes sure that you’re covered if you get hit by someone else and that the person you hit is covered if you hit them. The minimum insurance requirements set by the laws in your state tell you how much is car insurance for teens and what kind of car insurance you need.

Insurance will pay for your (or the other driver’s) medical bills and other costs related to injuries, damage to vehicles and other property, and other financial losses caused by a crash. A full-coverage policy also protects you from losses caused by theft, vandalism, and other things like fires and floods.

If you add a car to your policy so your teen can drive it. That car needs to have at least all the protection your state requires. If your teen isn’t getting a car of his or her own but will be driving a car owned by someone else in your household and already insured. You’ll still need to add your teen to your policy. That’s because insurance covers both the driver and the car. And the cost of the premiums depends on how risky the driver is.

The auto Insurance Company Coverage

From the point of view of your insurance company, your car is at risk every time it’s on the road, and having a teen driver instead of an experienced adult behind the wheel makes the situation even riskier. If your newly licensed teen driver was driving your car during an accident and your insurance company didn’t know that your teen would be driving, the results will be bad. In that case, you wouldn’t be covered, so you would have to pay for any property damage or medical costs out of your own pocket or you could be sued. Your auto insurance company could also decide to drop your coverage, making it harder and more expensive for you to get insurance from another company.

In short, you should get your teen car insurance as soon as it’s required by law. Most of the time, that’s when your teen gets his or her driver’s license, but you should check with your insurance company to make sure you don’t need coverage for a young driver with a learner’s permit. If your teen driver won’t be allowed to drive any of your family’s cars, for whatever reason, you should talk to your insurance agent about it.

How Much is Car Insurance for Teens drivers?

How Much is Car Insurance for Teens drivers
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According to the Insurance Institute for Highway Safety, teen drivers have four times as many car accidents per mile as drivers 20 and older. The Centers for Disease Control and Prevention say that car accidents are the main cause of death for teenagers in the U.S.

All of these things mean that teens will pay more for insurance, but how much more depends on where the teen lives, his or her gender, age, and whether or not the teen is the main policyholder, among other things. Our research shows that a 16-year-old driver who just got his or her license will pay an average of 44% more for full coverage than a 19-year-old driver who has been driving for longer.

The cost of car insurance for teens varies widely by state, but here are the average annual prices we found for full coverage and minimum coverage, by age:

  • For a 16-year-old, full coverage costs $6,613 and minimum coverage costs $2,733.
  • For a 17-year-old, full coverage costs $5,373, and minimum coverage costs $2,206.
  • For a person age 18, full coverage costs $4,837 and minimum coverage costs $1,938.
  • For people who are 19 years old, full coverage is $3,716 and minimum coverage is $1,451.

In our analyses, full coverage insurance policies include collision and comprehensive coverage, as well as protection against drivers who aren’t insured or don’t have enough insurance, and higher liability limits. Minimum coverage policies only cover what the state requires.

How to Save on Car Insurance for Teens? 

How to Save on Car Insurance for Teens
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When you buy car insurance for your new driver, you may be eligible for a discount, but you’ll need to do your research and, if you need to, ask your insurance agent for help. Here are some ways you and your teen can save money on the car insurance policy your family has.

  • Keep your grades up. Depending on your insurer and where you live, you may be able to save up to 10 percent or more if you have a B average or better or are in the top 20 percent of your class.
  • Take a class on driving. You should also look into discounts for approved driver training or defensive driving courses, which may give you a discount of 5 percent or more.
  • Ask about discounts for the military. If your teen is in the military, your whole family should be able to join USAA. If you go with this insurance company, you’ll probably get some of the cheapest insurance rates in the business. There are a lot of other insurance companies that offer discounts to people in the military, and you should ask them if you qualify.
  • Have a safe trip. If your teen stays a safe driver over time, he or she may be able to get a discount for being a good driver. But, depending on the insurance company, it usually takes at least three years or more to qualify.
  • Put your teen in the car that costs the least. As part of a multi-car discount, if your insurance company gives each of your cars the main driver, make sure your teen is given the least expensive car to insure.
  • Make your deductible higher. Your premiums will be lower if your deductible is higher. The Insurance Information Institute suggests that you put any money you save toward increasing your teen’s liability coverage.
  • Limit your teen’s driving. You might save money if you list your child as a driver who only drives sometimes instead of as a principal.

Think about a program for watching. Some insurance companies have monitoring programs that use a device in your car or a smartphone app to keep track of how you drive. You might be eligible for a discount that could save you a lot of money. It’s a risk, though, because you’re giving your insurer a lot of information about yourself. Plus, the company is not required to give you a discount for taking part. In fact, if the data shows that you do risky things, they can raise your rates.

Best Car insurance for Teens

USAA Car insurance

USAA Car insurance

If you qualify for USAA membership, your new driver may get a discount for being a good student, being in the military, or taking an approved defensive driving course or extra driver training. There is a discount for being a safe driver with a good driving record, and there is also a discount for driving a new car. There are also discounts for teens who drive a few miles each year or whose cars are stored while they are at college. You may also get a discount if you’ve been with USAA for a long time or if you have more than one insurance policy with the company.

Geico Car insurance

Geico Car insurance
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Teens who take driver education or defensive driving courses may be eligible for discounts that are not specified. A good student discount saves 15 percent. A good driver discount saves you 22% if you haven’t had an accident in five years. Geico gives a discount of up to 15% if your teen or college student is in the military. The discount for having more than one car will save the family up to 25%. Geico also gives a discount for having more than one policy, but the amount you save depends on how many policies you have.

Nationwide Car insurance

Nationwide gives a good student discount to drivers between the ages of 16 and 24 who keep a B average or higher. The company doesn’t say how much of a discount this is. There are also other discounts, such as separate discounts for not having an accident or major moving violation for five years or for being a safe driver. Nationwide says that if you bundle your home and car insurance, you can save an average of $646 per year. Talk to a Nationwide agent about discounts through the company’s SmartRide program, which is based on how you drive.

State Farm Car insurance

State Farm Car insurance

Drive Safe & Save is a tracking program from State Farm, but the company doesn’t say what discounts might be available. Drivers under 25 and new drivers can save up to 15% with the Steer Clear discount after three years of no moving violations or accidents where they were at fault. You can also get a discount if you’re new to State Farm or if it’s been three years since your last accident. Check out the driver training discount for drivers under 21 and the good student discount for students under 25 to save money right away.

American Family Car insurance

American Family offers several discounts that are only for younger customers. There is a discount for being a good student, a discount for teens who drive safely, and a discount for drivers under 25 who volunteer 40 hours a year at a non-profit organization. You’ll need to talk to an agent to find out more about how much you’ll save. American Family also has a tracking program called KnowYourDrive, which can save you up to 20% on your insurance. Other perks include a low mileage discount if you drive less than 7,500 miles a year, a good driver discount (talk to an agent for details), and discounts for having more than one car or getting insurance for more than one thing at the same time.

Farmers Car insurance

Farmers Car insurance

Farmers are a bit trickier because the discounts this company offers vary from state to state. But all Farmers customers will get discounts for driving safely and getting more than one policy from the company.

Progressive Car insurance

If your child is under 18, adding them to your policy will get you a teen driver discount from Progressive. There is also a good student discount for teens who keep a B average, which can lower your premium by an average of 10%. You can also sign your teen up for the Snapshot tracking program, which gives a discount of an average of $146 per year. Progressive’s discount for having more than one car can save you an average of 4%, and the discount for having more than one policy can save you an average of 5%.

Allstate Car insurance

Allstate Car insurance

Allstate gives a Smart Student discount to single drivers under 25 who keep good grades, finish Allstate’s smart driver education program, or go to school 100 miles or more from home. It also offers the usual discounts for having more than one car or buying a package, but they don’t say how much you could save.

Travelers Car insurance

Students who finish an approved driver’s education course and keep a B average can get discounts from Travelers, but the details aren’t clear. There is also a tracking program called IntelliDrive that could save you up to 30%. You can also save up to 13% if you buy several policies at once.

The average cost of car insurance for 17-year-olds

Car insurance for a 17-year-old driver will be a lot, but not as much as for a 16-year-old. A 17-year-old pays an average of just over $5,370 a year for full coverage and $2,206 a year for minimum coverage.

North Carolina has the second-lowest average annual rate for a full-coverage policy for a 17-year-old, after Hawaii. The average rate is just under $2,660. In Iowa, a 17-year-old pays just over $930 a year for the least expensive minimum coverage. On the other end of the spectrum, full-coverage rates for 17-year-olds in Louisiana average $9,255 for a 12-month policy. At just under $4,070 per year, Michigan has the most expensive minimum coverage rate.

The average cost of car insurance for 18-year-olds

Full coverage costs an average of just over $4,830 per year for an 18-year-old driver. While minimum coverage costs an average of $1,940 per year. North Carolina has the cheapest average full coverage rate after Hawaii, at $2,398 per year. And Iowa has the cheapest minimum coverage rate, at $812. The rate for full coverage is the most expensive in Louisiana. While the rate for minimum coverage is the most expensive in Michigan.

The average cost of car insurance for 19-year-olds

The least expensive teenagers to insure are those who are 19 years old. This is because they have been driving for longer and have more experience. A full-coverage policy for a 19-year-old costs about $3,717 per year on average across the country. On average, a 12-month policy with minimum coverage costs about $1,451.

Other than Hawaii, North Carolina is the cheapest state for a 19-year-old driver. Full coverage costs an average of $1,490 per year, while minimum coverage costs just under $550 per year. The average cost of full coverage is over $6,240 per year in Louisiana, which is the most expensive state. A minimum coverage policy for an 18-year-old in Michigan costs about $2,890 a year. Which is the most of any state.

Things to consider before choosing a car insurance company for your teen

  • Know when to act. Most likely, your car insurance company will get in touch with you. How does the business find out? When you first signed up for your policy. It probably asked you for the names and birthdays of all the children in your home. So, if your teen is 16 or 17, they know everything about it. If you don’t get the call, let your car insurance company know as soon as your teen gets a learner’s permit. So you can talk about your options and have time to compare companies. Most of the time, permitted drivers are automatically covered by the parent or guardian’s policy. You don’t have to do anything to make this happen. But when they get a real driver’s license, even a temporary one. They’ll have to be on your policy or get their own.
  • Get ready to compare quotes. Our research shows that insurance companies use age. And experience as a rating factor everywhere in the U.S. except for Hawaii. From what we’ve learned, adding a teen to your car insurance can raise your rates by anywhere from 100% to more than 200%. But insurance companies charge different rates for adding a teen. As California adding a teen to your policy shows.
  • Find out what discounts are available. Car insurance companies don’t tell you what discounts are available. When you add a teenager to your policy or when they get their own. Use the information below to find out about discounts.

Frequently asked questions(FAQs) about How Much is Car Insurance for Teens

Do you have to add a teenage driver to your insurance?

Yes, if your teen lives with you and drives your car. You will need to add them to your car insurance policy. When your teen gets their learner’s permit, some states will require you to add them as an additional insured person.

How Much Coverage Does a Teen Driver Need?

Most states have minimum insurance requirements that drivers must meet in order to legally drive a car. Our guide to state insurance requirements can help you figure out how much car insurance a teen or young driver needs. Depending on where you live, you may need personal liability coverage. Which helps pay for injuries and property damage you cause in an accident.

What is the cheapest way to get car insurance for a teenager?

The cheapest way for a teenager to get car insurance is to be added to their own policy. Getting a teen their own insurance is not recommended because it can be very expensive. Insurance companies charge teens more than adults for car coverage. Because they think that drivers under 25 are more likely to cause accidents.

Should I add my 16-year-old to car insurance?

Most states require you to add your 16-year-old to your car insurance as soon as they get their license. Some states require it, and so do a lot of insurance companies. Even if it is not required, you should always make sure you have car insurance.

How to get car insurance for a teenager?

A teen can get car insurance with a permit. But most insurance companies will just add the teen to the policy of the parent who gave them the permit. After getting their license, teens should get car insurance to protect themselves in case of an accident.

What Factors Affect the Cost of Car Insurance for Young Drivers?

Since teens don’t have much or any driving experience, their rates can be much higher than the average driver’s. Teens’ auto insurance costs can also be affected by how much coverage they buy. What kind of car do they drive, and how much do they drive each year. Rates can also go up if you have accidents or moving violations on your record.

How much does it cost to add a 17-year-old to car insurance?

The average cost of full coverage car insurance for a 17-year-old is $5,836 per year. Your auto insurance rate will depend on a number of things. Including where you live, how much coverage you choose, and the make and model of your car.

How Much Does Car Insurance for Young Drivers Cost?

Car insurance costs are different for everyone because they depend on things like age, gender, driving history, and credit score. Most young drivers have less experience behind the wheel. Which makes them more likely to get into any kind of accident on the road. Most of the time, teens are charged more because they don’t have as much experience.

When we looked at some of the best auto insurance companies. We found that the average annual price for a 17-year-old was $5,095. While the average annual price for a 42-year-old was $1,810 and the average annual price for a 67-year-old was $1,497. That means that people aged 17 pay an average of 181% more than people aged 42.

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