Auto Insurance for Teens (2024)

What You Should Know About Auto Insurance for Teens

A person’s teen years are usually a time of fun, exploration, and budding independence. One of the most anticipated events for teenagers is turning 16 and getting their first car. While having a car is exciting, it also comes with responsibilities that some teens might not be ready for.

An important aspect of car ownership that teens might not fully understand is how much vehicles cost. From the initial purchase and registration fees to gas and car insurance, vehicles take a lot of capital.

Unfortunately, car insurance for teenage drivers is some of the most expensive. While there are several reasons for the high prices, it mainly comes down to their riskiness due to inexperience. However, there are ways to find cheap car insurance for teenagers, especially if a parent or guardian can help.

If you need car insurance for teenagers, comparing quotes with as many companies as possible will help you find the best rates. Read on to learn more about car insurance for teenagers and how to save the most money possible.

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What are the best car insurance companies for teens?

Finding cheap insurance for teens can be incredibly difficult because the young driver demographic is one of the riskiest for insurance companies. However, while teen drivers will always pay more for insurance, some companies are more forgiving than others. The chart below shows the average annual U.S. full and minimum coverage auto insurance rates for teen drivers.

If you need car insurance for teen drivers, consider the following companies:

• State Farm: Not only does State Farm auto insurance have low auto insurance rates for teens, but it also offers the Steer Clear program. Steer Clear is a discount program that teaches young drivers how to handle difficult situations on the road. 
• Allstate: Allstate auto insurance doesn’t have the lowest auto insurance rates for teens, but it does have one of the longest lists of discounts young drivers might qualify for.
• USAA: USAA auto insurance usually has the lowest rates for all demographics but does especially well with teens. However, only teens from military families are eligible for coverage with USAA.
• Travelers: Depending on other factors like location, Travelers auto insurance might offer you the lowest car insurance for teens.
• Progressive: Although Progressive auto insurance has higher rates for auto insurance for teenagers, it offers a long list of discounts.

While these companies tend to have the best auto insurance for teens, you should still compare rates. Insurance companies use a variety of factors to determine how much you’ll pay, so you might find a different company that charges you less.

How much is car insurance for teens?

If you have a new driver at home, you’re probably wondering how much insurance is for a 16-year-old. Or, maybe you’re 18, leaving home for the first time, and need to find reasonable rates for car insurance for 18-year-olds. In either case, people generally encounter higher insurance rates until they enter their 20s.

Age is one of the most important factors for car insurance — drivers under 25 will pay more for insurance the younger they are. The average car insurance rates by age vary. Check the table below to see how much insurance costs for teens.

You might notice that insurance for a 16-year-old is substantially higher than for even slightly older drivers. Although car insurance for 18-year-olds is cheaper, it’s incredibly high compared to older adults.

However, age isn’t the only factor that determines your rates. Insurance companies also look at gender, location, driving history, and the make and model of your car. So, when you’re trying to figure out how much car insurance is for an 18-year-old per month, remember that your age isn’t the only thing that defines you.

How much is car insurance for a 16-year-old?

The highest rates for car insurance are for 16-year-olds. These new drivers are not only more likely to get into an accident, but car insurance companies can’t look at their driving records to get an idea of how safe they are because they have no history. You can compare rates to know how much is insurance for a 16-year-old.

Because of how much car insurance is for a 16-year-old per month, it’s best to add young drivers to a parent or guardian’s plan whenever possible.

How much is car insurance for a 17-year-old?

Many 17-year-olds have about a year of driving experience, which helps lower car insurance rates. However, finding out how much car insurance is for a 17-year-old per month can still come as a shock. Although insurance for a 17-year-old is high, your rates will drop with age as long as you keep your driving record clean.

How much is car insurance for an 18-year-old?

Most states consider teens legal adults when they turn 18, which means they can buy insurance without a parent or guardian’s signature.

As you can see, an 18-year-old pays less than younger teens, but rates are still high. To get a better idea of how much insurance is for an 18-year-old, make sure to compare rates for individual plans.

How much is car insurance for a 19-year-old?

19-year-olds pay the least among teen drivers. However, young drivers won’t see significantly lower rates until around 25. If you’re looking for cheap car insurance for new drivers under 21, make sure to check for discounts. Since many 19-year-olds are either considering college or are already attending, many car insurance companies offer school discounts.

Why does auto insurance for teens cost so much?

Teenage car insurance rates are high for one simple reason — risk. Car insurance companies want to insure the least risky people possible, and teen drivers are more likely to be involved in incidents than nearly every other demographic.

To get an idea of why teen car insurance is so high, consider the following statistics:

• According to the CDC, unintentional injuries, including car accidents, are the leading cause of death for young adults aged 15 to 20.
• According to the CDC, male teen drivers are twice as likely to die in a car accident than females.
• Having teen passengers increases the likelihood of a teen driver causing an accident.
• According to the IIHS, 16-year-old drivers are three times more likely to get into an accident than a 19-year-old due to the difference in their driving experience.

Driving a car presents a risk to teens that insurance companies don’t ignore. Since you are statistically more likely to get into an accident when you’re younger, you’ll be charged more for your insurance.

The good news is, your rates won’t stay high forever. Your rates will drop as you age as long as you keep your driving record clear.

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Should teens get their own car insurance?

Teens may wonder if they should get their own insurance or if they are covered by their parent’s insurance. While it’s more affordable for a teen to join a parent or guardian’s policy, there are times when buying their own insurance is necessary.

However, a minor usually can’t buy car insurance without a parent or guardian’s signature. Since minors can’t legally enter contracts, insurance companies won’t sell a policy to anyone under age. The only exception to this is teens who have been emancipated by the court and can make legal decisions for themselves.

In general, it’s cheaper for teens to join a parent or guardian’s policy. There are only a few occasions when teens should consider their own plans:

• They are the only car owners in the household.
• Other adults in the household have high-risk auto insurance, and joining their policy would cost more.
• The teen is eager to take a step toward financial independence.

Unless any of these apply to you, joining a parent or guardian’s policy is the best way to find the cheapest car insurance for teens.

Can you add a teen to your car insurance?

Not only can a parent or guardian add a teen to their policy, but it’s also the best way to find affordable insurance for teenage drivers. Adding a young person to an existing policy can help teen drivers save up to 45% on auto insurance.

You should add any teen with a new license to your policy if they’ll be driving a family car. Adding a teen driver to your insurance won’t raise your rates by too much and will ensure your vehicle is covered no matter who is driving.

Teen driver insurance will cost more if they own a car, but it’ll still be cheaper than buying an individual policy.

How do you add a teen driver to your policy?

Adding a teen driver to your car insurance policy is a simple process. If you already have a policy, adding a teen is as easy as calling an insurance representative.

Once a new driver is added to your policy, your representative will check for new discounts that might apply. The teen’s car will be added to the policy, and you’ll be informed of how much your new rate will be.

If you don’t have a policy — or you’re shopping around for a better price — you’ll need some basic information about the teen driver, such as their driver’s license number.

Whether you add a teen to an existing policy or start a new one, you should continue helping them learn how to drive safely. Keeping a clean driving record is the only way teen auto insurance quotes decrease.

How can teens save on their car insurance?

Although teen car insurance quotes are always higher, there are plenty of ways to save on your monthly rates. If you’re looking for cheap car insurance for teens, try the following:

• Take a driving class. Most major insurance companies offer a discount for teens who take approved driving courses, such as a defensive driving discount. As a bonus, teens can learn valuable driving skills.
• Maintain your grades. There are auto insurance discounts for good grades so one of the best ways to save money on insurance for teens is to maintain a GPA of at least 3.0. 
• Assign the cheapest car in your household. Many insurance companies require you to assign a primary driver. Assigning your teen to the least expensive vehicle in your household can save you money.
• Keep your record clean. How do auto insurance companies check driving records? A clean driving record will save you money. Traffic incidents like speeding tickets or car accidents on your driving record will dramatically increase your rates. Teens aren’t the only ones who should drive safely — all drivers on your policy should practice good habits on the road.
• Increase your deductible. You can lower your monthly payment by increasing your deductible if you can afford to pay more before your insurance kicks in.
• Try usage-based insurance. Usage-based auto insurance plans monitor your driving — as long as you practice safe habits, you’ll earn lower rates.

These are the easiest ways to keep your insurance down when teens already have a car they need insurance for. If the teen doesn’t have a vehicle yet, looking at cheap, good cars for teens can also help save you money.

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What are good, cheap cars for teens?

When it’s time to find a teen’s first car, there are several things to look for. Most importantly, it’s a safe vehicle, but you should also look for reliability and affordability. Of course, teens will also appreciate a little bit of style.

While there are plenty of choices for cool cheap cars for teenagers, here are some of the best used vehicles:

• Ford Taurus: The Taurus was discontinued in 2019 but remains a popular choice for teen drivers. To find the perfect mix of safety and affordability, try to find a 2013 or 2014 model.
• Honda Accord: When it comes to cool, cheap cars for teens, the Honda Accord is a classic. With great safety ratings and an affordable price tag, the Accord will probably be a popular choice for years to come.
• Honda Civic: Another popular Honda for teens, the Civic also has stellar safety ratings. As a bonus, the Civic has excellent gas mileage.
• Mazda 3: When it comes to cars for 16-year-olds, the Mazda 3 has solid safety ratings, gas mileage, and affordability. Teens also appreciate Mazda’s sporty drive.
• Subaru Outback: Subaru is well known for its safety and reliability. All of Subaru’s hatchbacks are solid choices, but the Outback is probably the most popular.
• Toyota Camry: When it comes to nice, cheap cars for teens, one of the best choices is the Toyota Camry. The Camry has fantastic safety ratings and a reputation for reliability.
• Subaru Impreza: When you’re looking for good cars for 16-year-olds, the Subaru Impreza matches safety with style.
• Ford F-150: If you’re looking for good trucks for 16-year-olds, the Ford F-150 is an excellent option because it has one of the highest safety ratings.

Finding a cheap car for teens doesn’t have to be a challenge — there are plenty of options for buying used cars that won’t break the bank. You can find auto insurance rates for a Honda Accord or Subaru Impreza auto insurance rates online.

Find the Best Car Insurance for Teens

Whether you find cheap cars for teens or take advantage of good student discounts, there are plenty of ways to find teenage drivers insurance at affordable prices. Insurance for teenage drivers is always more expensive, but you can keep your rates low with a little work.

One of the best ways to find the cheapest insurance for teens is to compare quotes. The more quotes you look at, the better your chances are of finding affordable rates. There are things to know about teen driver auto insurance and adding a teen is as easy as calling an insurance representative. 

Why is car insurance more expensive for teen boys?

Just like insurance for teens is overall more expensive than for other age groups, men are statistically more likely to engage in reckless driving behavior and get in accidents. Young males pay the most expensive auto insurance premiums. Teenage driving insurance for young men combines several risk groups into one, which is why their insurance is so expensive.

Should you put a teen on your insurance when they get a learner’s permit?

The general rule of thumb is that you should add a child to your policy as a driver when they get their license. Most companies will cover your teen while they learn to drive without being listed on the policy, but you may need learner’s permit insurance. You should always check with an insurance representative to make sure.

Is it cheaper for teens to have their own car insurance?

No, an individual policy for a teen can cost up to 45% more than it would if you add them to your policy. However, you should check with your insurance representative. They can help you make the best decision for insurance for your teen driver.

Things to Know About Teen Driver Auto Insurance

Teenagers behind wheels are the cause of ightmares for many parents and teen driver safety is high on the priority list. High insurance rates for teenage drivers adds additional stress to parents.

Not only is it financially taxing to insure teenagers but factors such as the type of car you buy for your teenager can send your insurance bill skyrocketing.

According to Forbes, insurance rates have been rising precipitately for the past few years, and are expected to continue on this upward trend in the future.

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Insurance for Certain Car Types

If you are planning to buy your daughter or son a sleek, sporty convertible, a hulking SUV, or another high-performing vehicle, get ready for insurance price shock.

This type of vehicle is seen by insurance companies as being magnets for speeding and other risky driving behavior.

SUVs or pickup trucks are also outrageously expensive to insure because insurance companies find that many are too bulky for teens to handle and have higher chances of rollover as compared to cars.

In fact, a study quoted in U.S. News and World Report finds that SUVs are more likely to roll over when driven by teens.

Crash tests conducted by the Insurance Institute for Highway Safety are released every year and list certain cars as poor performers.

If you purchase one the cars on this list, you are likely to be hit with higher than usual insurance rates.

If you list your child as a primary driver for your luxury car, your insurance bill is likely to hit the ceiling. After all, expensive cars are expensive to repair and replace after auto accidents!

Hidden Surcharges for Teen Drivers

A surcharge is an amount that is tacked onto your insurance premium in case of certain incidents such as getting a traffic ticket or a citation for a moving violation, for causing an accident, or, in some states, for being hit by an uninsured or underinsured driver.

If you get a ticket or a citation, it indicates rash or reckless driving. To an insurance provider, such action portends accidents that can cause a wide range of bodily and property damage.

If your teenage driver causes an accident or gets a ticket, the surcharge is likely to be much higher. Additionally, the surcharge is likely to remain on your bill for as long as five years.

The surcharge is intended to protect the insurance company from any major losses caused by your teenager.

However, these tacked-on charges can be outrageous and largely discretionary for the insurance company.

Insurance Rates for Male Teens

The gender wars are alive and kicking in the insurance world!

If you are going to add your teenage son to your insurance policy, get ready for higher rates.

According to some studies, adding a teenage girl driver to an auto insurance policy is likely to double your cost, but a teenage boy might triple your insurance bill!

Research has shown that teenage boys are likely to start driving earlier and are riskier drivers.

However, as the number of girls driving has been going up, there has been a steady increase in their insurance rates too.

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Lowering Your Insurance Bill

Now that your child is driving, it is time to do some research to find the best ways to lower your insurance bill.

Some of the important steps to insure inexperienced drivers are as follows:

• Comparison-shopping – Explore the insurance market and the various companies that can offer you and your teenager coverage. Get quotes from your own company, online or through an insurance agent. You should also talk to your family and friends, and ask them for recommendations.
• Discounts – Car insurance companies offer discounts for teenagers. If your teen is a good student, many companies will offer discounts of up to 25 percent.
• Driver’s education – Registering your student in driver’s education and defensive driving courses will also save you money.
• Buying a new car – If you want to buy your teen a new car, make sure you get the right car. Buying an SUV or sports convertible will be frowned upon in insurance circles. You might want to get your teen a late model, four-door, four-engine sedan. Such sedans are filled with safety features like electronic stability control, automatic emergency braking, an anti-lock braking system, and pedestrian detection, among other advanced safety features, and are cheap to insure.

Talking To Your Teenage Driver

If you can convince your teenager to remain a passenger for another year, more power to you! If not, it is time to sit him or her down for a serious conversation about safe driving.

The following tenets should be non-negotiable and if there are any slip-ups, they should come with severe consequences.

After all, not following these rules can result in grievous injury, damaged property, and even, death.

• Always wear your seatbelts – Seatbelts should always be worn by the driver as well as the passengers in your car.
• Never exceed the speed limit – Speeding is dangerous, especially in inclement weather or in new areas.
• Do not drink and drive – If you drink and drive, you are putting your life and those of others in jeopardy.
• Follow traffic rules – A defensive driving course can prepare your teen to drive carefully, especially if they will drive in high-traffic urban areas.
• Clean driving record – Talk to them about keeping a clean driving record and how it influences your insurance bill.
• Good grades – Remind them that good grades will not only help their future university and career goals but will also lower their insurance rates.

As parents, you need to be vigilant about how and when they drive, as well as with whom and how often.

Additionally, you need to set a good example by driving carefully, wearing your seat belt, and following all traffic regulations.

Cheap Rates for Teens Buying Auto Insurance

As the parent of any newly licensed driver knows, buying auto insurance for a teenager is expensive. Even if he’s taken a driver’s education course, it’s common for car insurance premiums to go up anywhere from 50% to over 150% when you add a teenage driver to the policy.

Fortunately, there are ways to save, even when one of the drivers is very young. If you have a teenager who’s ready to get behind the wheel, keep reading for ways to find cheap, or cheaper, auto insurance.

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Adding Teens to Parents’ Policy

The cheapest insurance for a teenage driver is an add-on to his parents’ insurance policy.

While a teen can get car insurance on his own on a separate policy, it will almost always be far less expensive for him to be added on to his parents’ policy.

The reason it’s usually cheaper is that the teen can indirectly benefit from discounts and such the parents receive. More mature drivers are also more likely to have vehicles with advanced safety equipment, which also brings down premiums.

The only time this isn’t the cheapest option is if the parents have cars that are very expensive to insure anyway and they have a certain kind of car insurance, which does not allow the family to designate the primary driver for each vehicle.

If all the parents have is expensive vehicles and the teen would be assigned to all of them, it’s probably better to buy him a less expensive car and get him his own policy.

Get a Car with Insurance Cost in Mind

Most insurance companies and policies assign a primary driver to each vehicle in the household. If there are two cars, dad is the primary driver of his commuter car, and mom is the primary on the family vehicle.

Usually, they are considered secondary drivers on the other vehicle, meaning they are covered when they drive it, it’s just not the vehicle they drive most of the time.

If you have this kind of policy, it’s probably cheapest to add your teenager as a secondary driver to these two cars. Since someone else drives them most of the time, the risk is a bit lower for the new driver.

If you are going to get your teen his own car, or if he is buying one himself, get a car with the insurance in mind, not just the cost of the car.

For instance, while many teens love driving a sports car, it’s absolutely the worst kind of car for him to have if you want to keep insurance costs down.

In fact, everyone pays higher deductibles on sports cars, no matter what their ages, but young adults, especially men under the age of 25 pay a lot more.

There are two different things you can do when buying a teen a car. Car insurance companies love vehicles with lots of safety features.

So look for a car with air bags, anti-theft devices, crumple zones, etc. These can be found in older, used cars as well as new. Just do some research on the best models of the past several years, and you’ll find many good options in the used market.

The other thing you can do is to buy a car that is inexpensive enough that you can do without the comp and collision coverage.

This requires paying cash with no car loan, as all lenders require this coverage. Comp and collision is a major expense for anyone, but especially a teenager, who is four times more likely to crash than any other age group, according to the CDC . So doing without it can save quite a bit.

This means that the total cost of repairing or replacing that vehicle is the teen or their parents’ responsibility. This is why many parents buy their teens older cars worth less than $3,000.

If they wreck it, it’s not devastating financially. The cost of the vehicle is usually made up for in just a few months by not carrying comp and collision.

Raise the Deductible

One of the easiest ways to lower premiums when adding a teen to your policy is to raise the deductible on your comprehensive and collision on every car on the policy.

The deductible is your out-of-pocket responsibility when you or anyone on your policy is at-fault in an accident.The typical deductible levels are $250, $500, and $1,000.

However, the higher the amount you agree to pay out of pocket, the lower your premiums will be.

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Take a Teen Safety Course

Just as adults receive a discount when they take a defensive driving course, teens can receive a discount, anywhere from 5 percent to 15 percent depending on your insurance company, if they take a teen safety course.

This is not the same as the driver’s education course they take in order to get a license, but a special course designed to help teens avoid accidents, injuries, and fatalities.

Unfortunately, teen drivers are more likely to participate in risky behavior that increases their likelihood of getting a ticket, being in an accident, and dying in that accident.

Drivers aged 16 to 19 lead all other groups in the number of traffic violations and fatal car wrecks, according to the California Department of Motor Vehicles.

The other problem with young drivers is they just don’t have the experience to handle many of the situations they find themselves in. Of course, the only way to gain this experience is to drive, but they can take measures to reduce their risk so that they can get the experience they need.

That’s where teen safety courses come in. These classes help students to recognize and reduce things like not wearing a seatbelt, speeding, having too many distractions in the car, and using alcohol or drugs.

They can also further educate them on how to deal with everyday driving hazards.

While some insurance companies have their own programs for teens to complete, there are some national ones available.

The National Highway Traffic Safety Administration has set up a teen driving program to help reduce the number of accidents and deaths caused by teen drivers.

Check with your insurance company to see if this will help lower your premium.

Another safety measure is a graduated license. While some states have instituted a graduate licensing procedure for their teen residents, the National Safety Council says you can institute one in your home even if you don’t live in one of these states.

A graduated license is one in which a new driver does not have full driving privileges for the first year or two.

Depending on the state, teen drivers are restricted to only having one non-family member passenger. They are also allowed to drive only during certain hours without a waiver. There are other procedures as well, designed to help teens drive safer while gradually allowing them more autonomy.

Concentrate on Grades

One of the best things teens can do to save themselves or their parents’ money on their insurance is to concentrate on keeping their grades high. Not only will this help teens get into college, but many insurance companies give discounts off those high teen premiums if the teen makes Bs and above.

The reasoning behind this is that teens that are responsible enough to make good grades are going to be responsible behind the wheel as well. This usually means they will take fewer risks behind the wheel that will result in fewer accidents.

If you or your student makes As and Bs, be sure to ask your insurance company for a good student discount.

Also, be sure to let your insurance company know if the teen doesn’t drive to school every day. The premium you’re quoted usually assumes the teen drives himself to school.

Shop Around for the Most Affordable Auto Insurance

The only way you’re going to know if you’re getting the cheapest car insurance for your teen driver is to get several quotes from different companies. Try a variety of companies, from large nationwide corporations to local providers and see what your best deal is.

Make sure you are getting fair comparisons. To do this you need to make sure that you are being quoted for the same level of coverage. While it’s a good idea to get quotes for different amounts, like one for a $500 and a $1,000 deductible, be sure to do this from each company.

For example, you may think that one company has the best deal until you see that instead of quoting you the recommended 100/300/50 amount of liability, they are quoting the state minimum amounts, which are usually far lower. Since your teen is more likely to cause an accident, this is not the time to be lowering this coverage.

The Internet makes shopping around for auto insurance much easier. You enter your information once, and we bring the quotes to you. They’re from well-respected, reliable companies. We save you time as well as money!

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