Teens are proud to have obtained their driver’s license. Bankrate’s insurance editorial team compared the current rates and policies from dozens of insurance providers to find affordable car insurance that is affordable for both parents and teens. Nationwide offers the lowest average rates for drivers 16-17 years old. Erie offers cheap auto insurance to older teens, 18-19.
Auto insurance for teens at a low price
Insurance carriers in most states consider a driver’s age when determining their insurance premium. Insurance for teenagers is particularly important because of the higher risk of accidents in certain age groups.
Inexperienced drivers and statistics crash data often result in higher premiums than experienced drivers. According to the Centers for Disease Control (CDC), teen drivers are almost three times more likely than drivers aged 20 or older to be involved in a fatal car crash. Even teens and their parents can get cheap car insurance.
Parents’ policy for 16- and 17 year-olds
Both 16-year olds and 17-yearolds are legally considered minors. They must be covered under a parent’s policy. Teen drivers are more inexperienced than any other age group so car insurance rates for them are usually higher than for others. Still, several of the nation’s best auto insurers offer cheap insurance for young teens. These companies are some of the most affordable car insurance for teens. They were compiled in partnership with Quadrant Information Services.
These rates represent the annual average cost of a teen driver who is added to a parent’s policy. This policy covers three drivers total and one vehicle. The premium difference before and after the addition of the teen was calculated in each rate calculation. This is the amount the insurance company charges for the teen.
Policy for 18- and 19 year-olds
18-year-old and 19-year-old drivers generally have more road experience than younger teens and, due to their age and status as legal adults, typically have the option to remain on a parent’s policy or purchase their own. The average insurance rate for teenagers aged 18-19 is higher than that of more experienced drivers. However, these companies offer affordable auto insurance to teens. Average car insurance costs for 18-year-olds and 19-year olds is $5,247 for full coverage and $4,146 respectively. Minimum coverage is $1,655 or $1,254.
Drivers will typically pay more than the average national annual premium to get full coverage at 19 years old, even though premiums are continuing to decline.
Although it is cheaper than insuring 16 and 17-year old drivers, 18 and 19-years-olds might still be able to benefit from their parents’ policies. If an 18-year-old or 19-year old driver leaves their parents’ home (except for going to college), insurance companies will usually require them to get their own policy.
What is the cost of car insurance for teenager drivers?
Insurance companies consider location, gender, and age when determining the cost of car insurance for teenager drivers. Male drivers are considered more risky than their age and tend to have higher insurance premiums. The average male driver aged 18 years old pays more for full coverage than a woman. This is not true in every state, like California and Michigan where gender is not taken into account as a rating factor. Below is a table that shows how gender can impact insurance rates for teens.
Why is car insurance more expensive for male drivers than for female drivers?
Insurance companies base their premium calculations partly on statistical data. This is why male drivers pay more than females. Statistically, male drivers are more likely to switching car insurance companies, young male drivers could make significant strides toward achieving cheap auto insurance.
How teens can save money on car insurance
It can be expensive to insure a teenage driver. In order to reduce their premiums, insurance companies offer a variety of discounts to policyholders. You may be able lower the cost of insurance for a teenage driver by understanding which savings programs your insurer offers.
Good student discounts
Students aged 16-24 who are full-time students and have a certain grade point standard can often receive a discount from insurance companies. There are different eligibility requirements for each carrier, so make sure to check with your provider to determine if you qualify for the discount. These programs are very cost-effective, as shown in the table below.
Distant student discounts
This discount may be available to students who are not accompanied by a car and attend school far from home. While this discount is most common with college students, younger teens who attend schools away from home might also qualify. These programs often specify the minimum distance and maximum age that students must travel to be eligible. A distant student program, for example, may require students to be less than 25 years old and live at least 100 miles from their home in order to be eligible. Below is a table that shows the average savings that you can expect from enrolling in such programs:
Teen drivers may be eligible for other discounts that can help reduce the cost of their insurance, in addition to those related to education. You may be eligible depending on which insurance company you have.
- Safe driving discount: Policyholders with a clean driving record (no accidents or traffic violations in the last three to five years) may be eligible for safe driving discounts from insurance companies.
- Multi-car and multipolicy discounts: These are the two biggest factors in teens getting cheap car insurance. Their parents may be eligible for a multicar discount if they have more than one vehicle. They may also be eligible for multi-policy discounts if they have homeowners, condo owners, or renters insurance policies with the same company.
- Driver’s education discount: Some companies may offer a discount to policyholders who have completed a qualified driver training course.
To understand your eligibility requirements, always refer to the list of discounts offered by your insurance company. You can check with your agent to see if your carrier offers any discounts or if you have questions about your eligibility.
Questions frequently asked
Which is the best car insurer for teens?
Your needs will determine which car insurance company is best. You should consider the coverage options available, average costs for coverage, and any discounts. It might be a good idea to keep your teen driver on your parents’ policy until you move out.
Why is car insurance more expensive for teens than it is for adults?
Teen drivers tend to have higher car insurance premiums because they are less experienced than their adult counterparts. Insurance companies base part of the premium price on statistical crash data. Teen drivers pay more for car insurance. The CDC states that teenage drivers are more likely to be involved in a car accident than any other age group.
Do I need to add my teenage son or daughter to my auto insurance policy?
Teenagers may be able to purchase their own insurance policies, but it depends on their age. However, it is usually more cost-effective to have them added to an existing parent’s policy. Your insurance company may be able to help you if you have any questions about how to insure your teen driver. You may get a quote from your carrier for adding your teen driver to your policy. They might also offer to insure them on their own policy. This will allow you to compare the premiums and coverages before you make a decision.