Best Auto Insurance Companies for Teens (2024)

Nationwide, Progressive, and Geico are the three companies with the cheapest teen auto insurance rates.

However, these three companies have many other benefits that make them the best.

Consumer Reports has a top 10 list for tips on finding the proper car insurance policy. This advice can be applied to teen drivers who are seeking cheap rates.

They recommend things such as choosing an insurer that has top ratings, reducing mileage, and applying discounts.

Utilizing major auto insurance companies ensures that your rates will be stable for your young driver.

Discounts lower the annual premium for teens who qualify. When you combine all these benefits, you can see why Nationwide, Progressive, and Geico are best for teens.

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Nationwide Auto Insurance for Teen Drivers

Nationwide Auto Insurance has a few different ways teen drivers can save on their annual rates.:

• They provide a 25 percent discount for all drivers who receive a GPA or grade point average of B or higher. Unlike some auto insurance companies, this discount extends past the teen years. Any child under 21 is eligible, so they can participate in this program all through college.
• They also issue a credit in the amount of $48 to policyholders who utilize their easy pay method. This is perfect for teen drivers who use their cell phones, laptops, and notebooks for just about everything. Teenagers are glued to their mobile devices.
• Nationwide also offers the Nationwide Family Plan, which saves approximately 25 percent each year and differs from the typical multi-car discount because it applies the reductions each adult over 35 earns to the youngest driver.

How Progressive Helps Teen Drivers Save

Progressive Auto Insurance also has similar discounts that apply to teen drivers, like the good student discount.

However, Progressive offers loyalty rewards programs that begin immediately and, in addition to the teen-based discounts, can save you an unlimited amount each year.

From the moment you elect Progressive as your car insurance provider, you started earning rewards. Once you add your teen to your policy, you can use these rewards towards their annual rate.

If you have been with Progressive for a long period of time, this could mean a huge discount.

Progressive’s Snapshot discount program is also an excellent option. You can combine this with the student discount and receive almost 45 percent off your teen’s premium each year.

To get started, just advise the representative that you are interested when you are adding them to your policy. From there, you simply wait for the device to arrive.

If you place your teen on strict guidelines for the first 12 months of driving, they will succeed. After the first few months, Progressive will have enough data.

They will offer the discount based on how well your teen driver has performed. All you need to do is sit back and enjoy the savings.

The Benefits of Choosing Geico for Young Drivers

Geico Auto Insurance Company has a unique discount they provide for teens. Once again, they too participate in the good student discount and you can receive about 15 percent off each year. However, it gets better.

You may also qualify by associating yourself with one of their 275 affiliates. That is correct. Geico has more than 275 associations and groups with which they are aligned.

If your teen belongs to any of their groups or associations, you can save as much as 8 percent immediately, in addition to the other discounts you currently have.

They can offer an extremely low down payment and provide your teen with monthly payment options, without a surcharge.

They may even give you other privileges, like roadside assistance without any additional costs. That alone is a great deal since many car insurance providers consider this an extra, chargeable option.

Student affiliations include the National Honor Society, which should not be difficult if your teen already qualifies for the good student discount.

Other affiliates and groups are the Pi Sigma Alpha chapters and at least 60 other fraternities and sororities.

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The Role of the Graduated Driver’s License

A graduated driver’s license is a three-part program designed for young teen drivers that was developed by state legislators to help improve driving skills to avoid motor vehicle accidents.

The majority of major collisions in the United States occur with drivers between 16 and 20. A new driver between 16 and 17 cannot receive a standard driver’s license without completing specific steps.

These steps include an instructional permit and intermediate driver’s license. Upon completing each step successfully, a teen may apply for a standard driver’s license.

To apply for an instructional permit, the applicant must pass the vision and written test.

They can then pay the fee, after providing the required documentation. The instructional permit is similar to the learner’s permit.

Drivers must be chaperoned by an adult over 21 with a valid state-approved driver’s license. They must maintain the validity of the instructional permit for at least 12 months before moving onto the second step.

The next step, called the intermediate license, is the level between instructional permit and a standard driver’s license — the newest level of added protection for teen drivers.

Previously, a teen driver only needed to possess a learner’s permit until they reached the required age. They would then have the ability to apply for a standard driver’s license.

Today, they must complete the intermediate license phase. To obtain an intermediate license, the applicant must complete a series of requirements.

They must also complete and pass a driver’s education course as established by the Motor Vehicle Commission and the State Board of Education.

As you can see, the importance of keeping our youth safe while on the road is vital. Most auto insurance companies will require you to provide this information upon requesting auto insurance.

Choosing the Right Vehicle

Most teens will not have brand new cars. In fact, many experts recommend cars that are between five and seven years old for first-time drivers.

Cars that are dated between five and seven years are still equipped with a number of safety features, like automatic air bags and passenger restraints. They also have updated engine systems that are easier to maintain.

The car insurance industry knows the types of vehicles that have driven records of accomplishment, like the Honda Accord and the Toyota Camry. They tend to base their comparisons around these model types for younger drivers.

Insurance companies also have a good idea of how much these vehicles cost to repair. This is something you should keep in mind as the inevitable can occur.

If your teen is involved in a collision, the car will require a stay at the body shop. It is always best to find a durable vehicle, with manufacturer’s parts that are easy to locate.

Safety is Vital with Teen Drivers

Safety on the road is the number one priority of every parent today. It is equally as important to the auto insurance provider you select.

You must teach your teen to be smart if they ever require maintenance on their vehicles.

Replacement parts are part of owning a car. It is essential that you follow the advice of your car insurance company and only purchase original equipment provided by the manufacturer or OEM parts.

Many auto shops will try to convince you that non-OEM parts are just as safe, but less expensive; the reality is they may cause more damage.

Copycat car parts seldom meet federal standards for safety provided by the U.S. Department of Transportation.

They often have a poor fit or may rust fast and cause other major issues. It is never wise to teach your teens that cheaper is better, especially when it comes to their safety.

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