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Senior Director, Media Relations, with Triple-I
30+ years of industry experience
Leadership positions at several trade organizations
Updated
Car insurance for teenagers is expensive. Teen drivers cost more to insure because of their inexperience and immaturity, which makes risky driving more likely and leads to more car crashes.[1]
On average, insuring a teenage driver costs $262 per month, compared to the national average of $140 per month for all drivers.
That jump can be a shock for many families. The good news is that rates vary widely by insurer and policy setup. This guide breaks down the cheapest car insurance companies for teenagers and practical ways to keep costs down.
Teen drivers pay significantly more than the average driver, but rates start dropping with age and driving experience.
Auto insurance rates for teens vary widely by insurer and coverage level, so comparison shopping is the best way to find the cheapest policy.
Parents can lower rates by adding teens to their policy, choosing safe vehicles, and qualifying for discounts like good student and driver training programs.
The cost of car insurance for teen drivers can vary significantly from one company to another because insurers weigh risk factors differently, including the driver’s age, location, driving history, and available discounts.
Some companies offer better savings for good grades, driver training, or adding young drivers to a family policy. Others price teen risk much higher or offer fewer car insurance discounts. That’s why comparison shopping is especially important when insuring a teenager. You could save hundreds of dollars per year by choosing the right insurer.
The table below shows the cheapest insurers for new drivers, according to Compare.com data.
Company  | Average Monthly Premium |
|---|---|
| Country Financial | $62 |
| USAA | $97 |
| Auto-Owners | $105 |
| State Farm | $111 |
| Erie | $130 |
| Root | $132 |
| GEICO | $147 |
| The General | $152 |
| Allstate | $158 |
| Commonwealth Casualty | $159 |
| Dairyland | $160 |
| American Family | $161 |
| GAINSCO | $169 |
| Mercury | $171 |
| Mile Auto | $172 |
| Clearcover | $179 |
| Bristol West | $181 |
| Safeco | $189 |
| Elephant | $189 |
| Direct Auto | $190 |
| National General | $191 |
| Nationwide | $197 |
| Liberty Mutual | $219 |
| Anchor | $228 |
| Travelers | $230 |
| 21st Century | $236 |
| Farmers | $236 |
| Plymouth Rock | $243 |
| AssuranceAmerica | $260 |
| Chubb | $273 |
| Shelter | $290 |
| The Hartford | $379 |
| CSAA | $407 |
| State Auto | $464 |
| Amica | $470 |
Basic policies start as low as $62 per month.
Insurance companies view teen drivers as higher risk because they’re new to driving, which makes them more likely to be involved in accidents. That higher crash risk translates to higher car insurance premiums.
Here are some major reasons why new drivers’ car insurance rates are so high:
Lack of driving experience: Teenagers haven’t had enough time behind the wheel to develop safe driving habits or defensive driving skills.
Riskier driving behavior: Speeding, distracted driving, and nighttime driving are more common among teen drivers than other age groups.
Higher accident severity: When teens crash, accidents tend to be more serious due to inexperience, speed, and inattention, which can lead to slower reaction times.
Higher risk for young male drivers: Teen boys are more likely to engage in risky driving behaviors, especially at younger ages. Insurers often charge higher rates for teen boys than for girls.
Now that you understand why teenagers are so expensive to insure, let’s look at some ways to lower car insurance costs.
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Cheap car insurance for teens is possible with the right savings strategies. Here are a few to consider:
Shop and compare quotes regularly. Insurers price teen risk very differently, so comparing quotes every year (or at each policy renewal) can uncover major savings as your teen gains experience.
Add teens to a parent’s policy. It’s almost always cheaper than buying a separate policy.
Choose the right vehicle. Safe, reliable cars with strong crash-test ratings and lower repair costs are cheaper to insure than sports cars or high-performance models.
Look for teen-specific discounts. Many insurers offer good-student, driver education, or safe-driving discounts that can significantly lower premiums.
Increase deductibles. Consider raising your deductibles for comprehensive and collision coverage to lower your monthly costs.
Encourage safe driving habits. A clean driving record leads to the best rates and helps teens qualify for future discounts.
One of the best ways to save on car insurance for teens is to take advantage of as many discounts as you can. Fortunately, many insurers offer a slew of discounts specifically for teens.
Here are five discounts young drivers may be eligible for and how to qualify:
Safe driver discount: If you haven’t had any tickets or at-fault accidents in the last three to five years, you could be eligible for savings of up to 40%.
Good student discount: Getting good grades in school is another way to get cheaper car insurance rates. Most insurers will apply a discount if you have a B average or better.
Telematics programs: By letting your insurance company track your driving habits, you could get rewarded for safe driving.
Student-away-at-school discount: Students who go to school at least 100 miles away from home and don’t take a car with them are eligible for this discount.
Multi-policy discount: Insuring your vehicle with the same company as your parents could qualify you for a multi-policy discount. Bundling your car, renters, or home insurance with the same company could also make you eligible.
Teen drivers face the steepest insurance rates of any age group, and the costs can strain even well-prepared family budgets. For example, a 16-year-old might pay nearly double for the exact same coverage.
It’s also likely that male drivers pay more than females during their teen years. The higher prices are because men are riskier to insure — they tend to have more accidents and more serious injuries, and cause more property damage compared to women.[2]
Here’s a quick snapshot of what parents across the country are shelling out each month for their teen drivers based on gender, according to our research:
Age | Male Driver | Female Driver |
|---|---|---|
| 16 | $398 | $368 |
| 17 | $359 | $315 |
| 18 | $326 | $282 |
| 19 | $283 | $241 |
The good news for all teen drivers is that rates drop significantly as you approach your 20s. For example, a 19-year-old male driver pays an average of 29% less than a 16-year-old, while 19-year-old female drivers save an average of 35% compared to their 16-year-old counterparts.
The state you live in is one factor that determines car insurance costs. Things like coverage requirements, local crime and accident rates, and state-specific automobile laws are just a few factors that affect insurance premiums in each state, according to the National Association of Insurance Commissioners.[3]
The map below shows the average monthly cost of car insurance for teens by state, according to Compare.com data.
State | Average Liability Premium | Average Full-Coverage Premium |
|---|---|---|
| Alabama | $133 | $272 |
| Alaska | $160 | $267 |
| Arizona | $204 | $356 |
| Arkansas | $138 | $277 |
| California | $171 | $347 |
| Colorado | $167 | $362 |
| Connecticut | $258 | $391 |
| Delaware | $251 | $386 |
| Florida | $232 | $372 |
| Georgia | $270 | $439 |
| Hawaii | $104 | $191 |
| Idaho | $135 | $230 |
| Illinois | $171 | $326 |
| Indiana | $137 | $267 |
| Iowa | $102 | $194 |
| Kansas | $140 | $277 |
| Kentucky | $205 | $340 |
| Louisiana | $182 | $345 |
| Maine | $180 | $330 |
| Maryland | $265 | $413 |
| Massachusetts | $192 | $246 |
| Michigan | $203 | $346 |
| Minnesota | $169 | $327 |
| Mississippi | $128 | $259 |
| Missouri | $157 | $315 |
| Montana | $98 | $214 |
| Nebraska | $133 | $265 |
| Nevada | $270 | $413 |
| New Hampshire | $95 | $148 |
| New Jersey | $301 | $415 |
| New Mexico | $126 | $255 |
| New York | $192 | $256 |
| North Carolina | $117 | $187 |
| North Dakota | $124 | $216 |
| Ohio | $144 | $259 |
| Oklahoma | $145 | $294 |
| Oregon | $173 | $302 |
| Pennsylvania | $154 | $269 |
| Rhode Island | $294 | $463 |
| South Carolina | $276 | $434 |
| South Dakota | $114 | $285 |
| Tennessee | $129 | $269 |
| Texas | $229 | $416 |
| Utah | $178 | $283 |
| Vermont | $135 | $346 |
| Virginia | $210 | $358 |
| Washington | $196 | $364 |
| District of Columbia | $273 | $457 |
| West Virginia | $156 | $284 |
| Wisconsin | $103 | $214 |
| Wyoming | $111 | $207 |
Adding a teen to a parent’s car insurance policy is usually the cheaper option. But in some cases, a separate policy for a young driver might make sense. For example, if the teen has a vehicle in their name, lives at a different address, or if their parents have a poor driving record a separate policy might be best.
Here are the pros and cons for each scenario.
Greater independence with their insurance and billing
Coverage can be tailored to the teen’s driving habits
May make sense for college students living away from home
Rates are typically much higher
Fewer discount opportunities
Teen is fully responsible for premiums and claims
Shared risk usually results in lower rates
Access to family discounts (multi-car, loyalty, and bundling)
Parents handle billing and claims
Parents’ rates increase after accidents or tickets
Greater liability exposure for the parents
Parents are responsible for the total car insurance bill
Check out the table below to see how average costs compare for adding a teen to a parent’s policy or buying a separate policy, according to Compare.com data.
Company | Cost of Adding Teen to Policy | Cost of Teen on Their Own Policy |
|---|---|---|
| USAA | $161 | $189 |
| State Farm | $187 | $220 |
| Erie | $193 | $227 |
| Root | $212 | $249 |
| GEICO | $214 | $252 |
| The General | $251 | $295 |
| American Family | $254 | $299 |
| Allstate | $260 | $306 |
| Mercury | $256 | $301 |
| Direct Auto | $261 | $307 |
| CSAA | $252 | $296 |
| Nationwide | $324 | $381 |
| Liberty Mutual | $298 | $351 |
| Travelers | $370 | $435 |
| Farmers | $387 | $455 |
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State-minimum coverage may meet legal requirements, but it often isn’t enough to fully protect teens and their families in an accident. Higher liability limits can protect your finances in a serious or multi-vehicle accident. Here’s how to decide between liability-only and full-coverage policies:
Older, low-value cars: Liability coverage may be enough if the vehicle isn’t worth much. But adding comprehensive and collision coverage can still help cover repairs after a crash or damage from fire, theft, animals, or weather events.
Newer or financed vehicles: Teens driving new or financed cars typically need full coverage to protect the vehicle and satisfy lender requirements.
Teens who drive infrequently: Though infrequent drivers have a lower crash risk, accidents can still happen. If you can’t afford to repair or replace your vehicle after an accident, full coverage may be worth the extra cost.
Compare personalized quotes from some of the nation’s top companies.
We answered common questions parents and teens ask about getting the most affordable car insurance for young drivers.
Country Financial consistently offers the lowest rates for teen drivers, according to our data, with Auto-Owners and USAA following close behind. But your personal rates will likely vary based on location and driving history, so make sure to compare quotes before buying a policy.
The overall average costs of car insurance for a 16-year-old are $184 per month for liability-only insurance and $341 per month for full coverage, according to Compare.com data. Keep in mind that rates may vary based on gender and location.
Teen car insurance premiums tend to drop around age 25, but tickets and accidents can keep prices high. Even so, each year of having a clean driving record can help lower costs gradually.
It depends. Liability insurance may be enough for teens who drive inexpensive cars that they or you can afford to replace. But since they’re much more likely to get into an accident, higher liability limits can protect your finances if they cause a serious crash.
Yes. Most insurers offer good student discounts for teens with a B or higher GPA, resulting in lower car insurance rates.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Learn more about us, our team, and what makes us tick.
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Senior Director, Media Relations, with Triple-I
30+ years of industry experience
Leadership positions at several trade organizations
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
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