Who Has The Cheapest Auto Insurance For Teenagers – Getting car insurance for a young driver can be expensive due to their lack of driving experience, so a separate policy may not be the best option. In most cases, it is more affordable to add your licensed or permitted teenage driver to your existing car insurance policy. The coverage and limits of your policy will extend to your young driver, and some insurers, including , offer discounts to offset the cost of new driver insurance.
A teenage driver is required to have auto insurance in almost every state, so they are either added to your policy or insured on a separate policy. Buying a solo policy for a young person can be expensive due to their lack of driving experience and higher likelihood of accidents, so it is usually more affordable to add a young driver to your existing policy. By adding them to your policy, they take advantage of the savings and rate you’ve earned as a long-time driver with (in most states) an established credit history. Here are a few more reasons why it is usually better to add a young adult driver to your car insurance policy:
Who Has The Cheapest Auto Insurance For Teenagers
A separate policy is rarely the cheapest option for a young driver, but there may be some exceptions. For example, if you drive an expensive luxury car or sports car and your teenager won’t be driving it, it may be cheaper for them to have a separate policy. Talk to your insurer to fully weigh your options. You should still add your teenager to your policy because he lives in your home. However, if the young person has a separate policy and does not drive any of the vehicles on your policy, he or she may be eligible to be excluded from your policy’s cover.
Steps I Took To Keep My Car Insurance Costs Down With Teen Drivers
When you add your teenage driver to your car insurance policy, they benefit from the same protection that you do. All covered drivers have access to all cars listed on the policy, and the liability limits are the same for all drivers on the policy. Because teenage drivers face a greater risk of accidents, you may want to increase the liability limits on your policy, especially if your current limits do not cover your entire net worth. Learn more about liability coverage.
All of the extra coverages on the policy also apply to your teen, including roadside assistance, loan/rental payments, rental car reimbursement, and deductibles that disappear.
A separate auto insurance policy for teenage drivers can be expensive because they have a greater tendency to drive distracted, speed, tailgate, and not wear a seat belt. However, the average cost of teenage car insurance varies depending on the exact age of the driver, their zip code, driving history and vehicle type. You can find cheap car insurance that covers the essentials and fits your budget. Find out the factors that affect car insurance rates.
Example: A car insurance policy for a 16-year-old driver who just got his license is likely to be more expensive than a policy for an 18-year-old driver with more driving experience. As teenagers get older, their rates may decrease due to increased driving experience, especially if they have a clean driving record over time. At age 25, rates tend to drop more dramatically.
Cheap Car Insurance For Teens And Young Drivers
In , rates drop by an average of 8% when a driver turns 19 and another 7% at 21. As your teenager becomes more experienced and avoids tickets and accidents, the price for teenage car insurance should continue to decrease.
Note: The table represents auto insurance rates by age based on personal auto policies sold nationwide from September 2020 to August 2021.
It is usually cheaper to add a young driver to an existing insurance policy rather than buying a separate policy for them. This is because putting a young driver on their policy means they will not benefit from the relatively lower rate you would have earned as a more experienced driver. In addition, teenage drivers have a higher risk of getting into an accident, which means that a separate policy will be higher for the higher risk of making a claim.
You can reduce the cost of car insurance with discounts for students and teenage drivers.* At, we offer a variety of discounts for teenagers including:
Best Car Insurance For Teens And Young Drivers Of October 2023
The best teen car insurance means tailored protection. Get an auto insurance quote online or call 1-866-749-7436 and we’ll ask the right questions to get your teenager properly covered. the newsroom. The links in this article may result in us earning a commission. Learn more
The cheapest car insurance for 17 year olds Can be found with Erie Insurance for $261 monthly or $3,137 annually for a full coverage auto insurance policy
Written by: Daniel Robinson, Written by: Daniel Robinson Writer Daniel is a writer for the Guides team and has written for many automotive news and marketing companies across the US, UK and Australia, specializing in car finance and car care topics. Daniel is an authority on the Guides team on car insurance, loans, warranty options, car services and more.
Edited by: Rashawn Mitchner, Edited by: Rashawn Mitchner Managing Editor Rashawn Mitchner is a Guides team editor with over 10 years of experience covering personal finance and insurance topics.
How To Find Cheap Car Insurance For Teens
Car insurance is expensive for teenagers, but some companies offer better prices on average than others. We at the Guides team have compared the cheapest car insurance companies for different drivers across the country. Learn how to get affordable coverage for a 17-year-old here.
Cheapest car insurance for young adults Best car insurance for new drivers Car insurance for teenagers Cheapest car insurance with children
The Guides team is committed to providing reliable information to help you make the best possible decision about your vehicle insurance. Because consumers rely on us to provide objective and accurate information, we have created a comprehensive rating system to formulate our ranking of the best car insurance companies. We collected data on dozens of car insurance providers to rank the companies on a wide range of rating factors. After 800 hours of research, the end result was an overall ranking for each provider, with the insurers that received the most points at the top of the list.
According to our rate estimates, 17-year-olds pay an average of $5,612 per year or $468 per month for individual auto insurance policies with full coverage. This is about three times the national average for middle-aged drivers, which is $1,730 per year. Car insurance for 17 year olds is expensive because young drivers have less experience and are more likely to get into an accident.
Cheapest Car To Insure For Teenager: Everything You Need To Know
Even the best car insurance for 17 year olds will be more expensive than car insurance for other age groups. This is because teenage drivers are statistically more likely to get into car accidents than older drivers.
Seventeen-year-olds have less driving experience than older drivers, so auto insurance companies see them as high-risk drivers. And this is not without reason. According to the AAA Foundation for Traffic Safety, 16- and 17-year-old drivers were about 4.5 times as likely to be involved in a crash as drivers in their 30s, 40s and 50s in 2015.
Not all car insurance companies pay the same amount for 17-year-old drivers. This is because no two insurance providers are the same, and they all have different methods of calculating insurance premium costs.
Several factors affect car insurance rates for 17-year-olds, including their age, location, driving history and credit score. The sections below show the cheapest car insurance companies for 17 year old drivers.
The Cheapest Car Insurance For 16 Year Olds
Our estimates show that Erie Insurance is the cheapest regional provider with average rates of $3,137 per year or $261 per month. USAA is the cheapest domestic carrier with average rates of $3,398 per year or $283 per month.
Below are 11 popular car insurance companies ranked by the cost of full coverage insurance for 17-year-olds with their own policies.
*Auto insurance estimates are based on full coverage policies with $50,000 personal injury, $100,000 personal injury per accident and $50,000 property damage per accident plus a $500 deductible for collision coverage and comprehensive coverage.
The cheapest supplier in one state is not necessarily the cheapest in another state. State laws vary and companies may assess risk differently between states. Below you will find the provider with the lowest average cut-off price for 17-year-old drivers in each state.
Auto Insurance Guide
While 17-year-olds pay an average of $5,612 a year for car insurance policies nationally, some pay double that in some states. The average cost of car insurance is highest in Connecticut, Michigan and Florida.
Our top picks for car insurance for 17-year-olds all offer lower rates than the national average as well as various discounts that apply to young drivers.
When you consider availability and average cost, State Farm is the best car insurance for 17-year-olds. State Farm’s average rates are about 34% below national rates for this age group. In addition, State Farm offers discounts and programs that can help teen drivers save money, including:
Erie insurance is another cheap option for 17-year-old drivers. In fact, the average rates for this age group are about 44% lower than the national average. That is a significant difference in the