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Jamie Johnson is a Kansas City-based personal finance writer who’s been writing for Compare.com since 2023. Her work has also been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance.
For the past seven years, she’s dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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You may be surprised by how expensive auto insurance is for young adults, but there are ways to find cheap insurance. GEICO currently boasts the most affordable choices for young drivers, according to our research, but you’ll want to consider all your options to find the best rates.
We’ll cover everything you need to know — from the differences between getting your own policy and being on your parents’ to when you can expect rates to begin to drop — in our latest guide.
On average, teens pay nearly $100 more per month for car insurance than the average 25-year-old.
GEICO is the cheapest car insurance option for the average young driver.
It’s more affordable for parents to add new drivers to their auto insurance than purchasing a separate policy.
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Teenage drivers are more expensive to insure because they’re at higher risk of being involved in an accident. Drivers aged 15 to 19 have the highest rate of motor vehicle accidents of all age groups in the U.S., according to a study by the American Academy of Pediatrics.
They also contribute disproportionately to the number of traffic fatalities. This is largely due to their lack of experience, poorly developed driving skills, and, for some teens, risky behavior.
Fortunately, insurance costs will begin to drop as your teen gets older. But if you have a brand-new driver, there are still ways you can find cheap car insurance.
Let’s take a look at which companies offer the cheapest average car insurance rates for young drivers.
Insurance Company | Average Monthly Premium |
|---|---|
| GEICO | $137 |
| Erie | $150 |
| Auto-Owners | $151 |
| State Farm | $172 |
| American Family | $183 |
| Progressive | $285 |
| Allstate | $291 |
| Nationwide | $296 |
| SafeAuto | $312 |
| Travelers | $315 |
GEICO is the cheapest overall option for young drivers, with average rates coming in at just $137 per month.
That said, national average rates aren’t the best indicator of what you’ll actually pay. After all, car insurance rates are based on a wide variety of factors. Although age is among the most important, the state you live in also plays a big role. We’ll cover that in more detail further down.
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If you’re trying to add a teen driver to your insurance policy, it’s important to shop around and compare car insurance quotes for the best coverage. Auto insurance rates can vary substantially depending on your ZIP code, deductible, and what discounts your teen qualifies for.
And just because an insurance company is the cheapest doesn’t mean it’s the right option for you. You should also consider the company’s financial strength, consumer ratings, and any unique benefits it has to offer.
We’ve compiled a list of some of the best insurance companies for teens and young drivers in the table below, as well as a more detailed analysis of each company in the sections that follow.
Insurance Company | Average Monthly Premium | Compare.com Rating |
|---|---|---|
| GEICO | $137 | 4.65/5 |
| Erie | $150 | 4.75/5 |
| State Farm | $172 | 4.90/5 |
| American Family | $183 | 4.98/5 |
| Progressive | $285 | 4.73/5 |
Average teen premium: $137 per month
Compare.com Rating: 4.65 out of 5
GEICO has an average monthly rate of $137, according to Compare.com data. The company also received a financial strength rating of A++ (Superior) from AM Best, which means it’s consistently able to meet its financial obligations and pay its claims.
GEICO comes with many advantages for teen drivers, including a good student discount. And if teens remain accident-free for five years, they’ll qualify for a good driver discount as well.
Superior website and mobile app
Wide variety of available discounts
Gap insurance not available
Rideshare insurance not available
Average teen premium: $150 per month
Compare.com Rating: 4.75 out of 5
Erie costs an average of $150 per month for teen drivers, according to our analysis. Erie also received an AM Best financial strength rating of A++ (Superior) and an A+ rating from the Better Business Bureau (BBB).
Erie’s website states that unmarried drivers under the age of 21 who still live with their parents may be eligible for a discount. The company also offers accident forgiveness and vanishing deductibles.
Gap insurance available
Rate Lock program keeps your price the same unless you change your policy
Not available in all 50 states
Doesn’t offer usage-based insurance
Average teen premium: $172 per month
Compare.com Rating: 4.90 out of 5
State Farm has an average monthly rate of $172, according to our research. The insurer is known for providing excellent customer service — State Farm received an above-average customer satisfaction score in J.D. Power’s 2023 Auto Insurance Study.
Teen drivers with good grades can save up to 25% on car insurance with State Farm, and the savings could last until they turn 25. Young drivers can earn additional discounts for maintaining good grades, taking an approved driver education course, or if they go away to college and leave their vehicle at home.
Offers a program specifically for young drivers
Above-average J.D. Power Customer Service score
Gap insurance not available
Must purchase policy from insurance agent
Average teen premium: $183 per month
Compare.com Rating: 4.98 out of 5
Young drivers who purchase auto insurance from American Family pay an average of $183 per month, according to Compare.com data. American Family isn’t accredited by the BBB, but it still has an A+ rating.
But the company offers several discounts for young drivers and their families. Young drivers who’re enrolled full time in high school or college can receive a good student discount for earning a 3.0 GPA or better. Even if your student is homeschooled, they can still qualify for the discount if they’re ranked in the top 20% on a nationally recognized test.
Highly ranked for customer service
Wide range of available discounts
Not available in all 50 states
Higher rates than some competitors
Average teen premium: $285 per month
Compare.com Rating: 4.73 out of 5
Progressive costs an average of $285 per month for young drivers, based on our data. The company has an A rating from the Better Business Bureau but was rated below average by J.D. Power for overall customer satisfaction in its latest study.
Progressive offers multiple discounts to teen drivers who are 18 or younger. The average savings will vary, but teens can earn a good student discount and receive additional savings if they’ve been consistently insured for 12 months or more. And, if your teen driver has their own car, Progressive will add a multi-vehicle discount to your policy.
Numerous available discounts for teen drivers
Rideshare coverage available
More expensive than the other four companies listed
Below-average J.D. Power Customer Satisfaction score
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Adding a young driver to your current insurance policy is almost always easier and more affordable than purchasing a separate policy. And some states restrict teens from buying their own insurance policy if they’re under the age of 18.
Let’s take a look at how different companies charge young drivers, depending on if they stay on their parents’ policy or get their own.
Insurance Company | Cost of Adding Teen to Policy | Cost of Teen on Their Own Policy |
|---|---|---|
| GEICO | $153 | $164 |
| State Farm | $174 | $186 |
| Nationwide | $202 | $217 |
| Allstate | $225 | $241 |
| Safeco | $241 | $259 |
| American Family | $283 | $303 |
| Progressive | $286 | $307 |
| State Auto | $320 | $343 |
| Liberty Mutual | $329 | $353 |
| Travelers | $352 | $377 |
It’s less expensive to add a teen driver to your current policy with every company listed above. The average parent saves around 7% by adding a young driver to their policy, according to our analysis. The only time you may need to purchase a separate policy is when the car is listed in the young driver’s name and not yours.
Car insurance for teen drivers tends to be more expensive because young drivers are more likely to be involved in an accident than any other age group. But that doesn’t mean you have to just accept sky-high rates.
Here are a few ways teen drivers can save money on car insurance:
Maintain a good driving record: Your driving record is one of the biggest factors affecting your car insurance premiums. The best way teens can save money on car insurance is by maintaining a good driving record. They can do this by engaging in safe driving practices and avoiding speeding tickets and other moving violations.
Maintain good grades: Most insurance companies give young drivers a discount for getting good grades. This is likely because young drivers with good grades are shown to be less of an insurance liability.
Buy a safe vehicle: Finally, teen drivers will usually pay less for insurance if they drive a safer vehicle. Look for cars with safety features like anti-lock brakes and anti-theft systems.
Increase your deductible: The deductible is the amount you pay out of pocket before your insurance coverage kicks in. The higher your deductible, the less you’ll pay in insurance premiums.
Compare quotes from multiple companies: No single insurance company is the cheapest for everyone, so the best way to save on car insurance is to get quotes from as many companies as possible. We recommend getting quotes every time your policy renews to ensure you’re still getting the best rates.
Discounts are a great way to save money on your monthly auto insurance premiums. Here are the most common car insurance discounts young drivers can take advantage of:
Good student discount: A good student discount is usually available to young drivers who earn a B average or better in school. These discounts are available for high school and college students. You can save up to 25% with some insurers.
Defensive driving discount: Many insurance companies offer a discount to teens who take a nationally recognized defensive driving course. You can save up to 20% with some insurers.
Multi-vehicle discount: If your teen driver has their own car but is listed on your insurance plan, you could receive a multi-vehicle discount from your insurance company. Insurers offer multi-vehicle discounts of up to 25%.
Student-away-from-home discount: A student-away-from-home discount is available to students who are away at school without a vehicle and drive their car only when they’re home during breaks. Your savings will vary depending on your insurer.
Usage-based insurance: Many insurers offer telematics programs that track your driving habits. If you practice safe driving, you can lower your car insurance premiums by up to 40%, depending on your insurer.
Vehicle safety discount: Your insurer may lower your rates if your car has safety features such as airbags, anti-lock brakes, and anti-theft devices. You can potentially save up to 23% off your insurance costs.
Safe driver discount: Insurers may reward you with a discount of up to 30% if you practice safe driving and maintain a clean driving record for a certain period of time.
Age is one of the most important factors affecting car insurance rates, and young drivers tend to pay a lot more than older ones. We’ve broken down the average rates for different ages of young drivers in the table below.
Age | Average Monthly Premium |
|---|---|
| 18 | $258 |
| 19 | $247 |
| 20 | $227 |
| 21 | $209 |
| 22 | $195 |
| 23 | $185 |
| 24 | $178 |
| 25 | $164 |
Auto insurance rates are the highest for 16-year-old drivers, according to our analysis, but these rates steadily decline as drivers near age 25.
In particular, once you reach age 22, the average rates drop below $200 per month. That could be because most young drivers are finishing college at this age and have gained significant driving experience.
Car insurance companies look at many different factors when determining your insurance premium, which is why rates vary from company to company. Generally, younger drivers have higher car insurance premiums because insurers view them as more risky to insure.
Here are some of the most critical factors affecting young drivers’ rates.
Driving record: Young drivers are more easily distracted while driving, which increases their likelihood of an accident or other traffic violations and filing claims. In fact, drivers between the ages of 16 and 19 have higher crash rates than any other age group, according to the Centers for Disease Control and Prevention (CDC). Insurers make up for this risk by charging higher premiums.
Where you live: Car insurance rates are more expensive in some areas than in others. Factors such as state laws, ZIP code, population density, crime rates, weather, and a high percentage of uninsured motorists in your area can influence your rates.
Your age: Young drivers have less experience behind the wheel and pose an increased risk to other drivers and insurance companies. So insurers charge younger drivers higher rates than older drivers.
Your gender: Generally, insurers consider men to be higher-risk and more likely to get into a crash compared to women, due to behaviors such as driving under the influence and speeding. Because of this, men will often pay higher insurance rates.
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The state you live in also has a big effect on the rates you receive, and these prices can differ drastically depending on your ZIP code. For example, if you live in an urban area with high crime rates, you can expect to pay more for car insurance.
Let’s take a look at how rates for young drivers vary from state to state.
State | Average Monthly Premium |
|---|---|
| Alabama | $218 |
| Alaska | $146 |
| Arizona | $238 |
| Arkansas | $211 |
| California | $190 |
| Colorado | $272 |
| Connecticut | $306 |
| Delaware | $298 |
| Florida | $404 |
| Georgia | $295 |
| Hawaii | $84 |
| Idaho | $153 |
| Illinois | $218 |
| Indiana | $150 |
| Iowa | $126 |
| Kansas | $201 |
| Kentucky | $287 |
| Louisiana | $504 |
| Maine | $117 |
| Maryland | $302 |
| Massachusetts | $219 |
| Michigan | $312 |
| Minnesota | $166 |
| Mississippi | $283 |
| Missouri | $197 |
| Montana | $188 |
| Nebraska | $162 |
| Nevada | $305 |
| New Hampshire | $142 |
| New Jersey | $374 |
| New Mexico | $201 |
| New York | $436 |
| North Carolina | $113 |
| North Dakota | $170 |
| Ohio | $151 |
| Oklahoma | $196 |
| Oregon | $256 |
| Pennsylvania | $244 |
| Rhode Island | $312 |
| South Carolina | $202 |
| South Dakota | $126 |
| Tennessee | $184 |
| Texas | $244 |
| Utah | $235 |
| Vermont | $117 |
| Virginia | $203 |
| Washington | $199 |
| Washington, D.C. | $196 |
| West Virginia | $187 |
| Wisconsin | $186 |
| Wyoming | $150 |
The most expensive states for auto insurance are Louisiana and New York. Louisiana is known for having higher rates of theft and insurance fraud, and the premiums may also cost more due to highway density.
New York is a riskier area for driving — especially in New York City — which may contribute to the high insurance costs. And New York, like Louisiana, tends to have higher rates of auto theft than other states.
For young drivers, it’s important to find auto insurance that provides the necessary coverage without being a financial burden. Here’s some additional information about how teen drivers can find affordable car insurance.
You’ll almost always receive the cheapest rates if you add a teen driver to your current insurance policy. The only time teen drivers may need their own policy is when the vehicle is titled in their name instead of their parents’.
On average, GEICO, Erie, and Auto-Owners are the cheapest options for 18-year-old drivers, with average rates as low as $137 per month. But the exact costs will vary, so it’s important to shop around and compare your options.
Many insurance companies allow you to add your teen to your car insurance at no charge once they receive their learner’s permit. It’s a good idea to talk to your insurer first and start shopping around for policies before they become a licensed driver.
GEICO, Erie, State Farm, American Family, and Progressive are the best auto insurance companies for young adults, according to our analysis. These companies are not only the most affordable, but each one is highly rated for customer service and financial stability.
No. Newer cars tend to be more expensive to insure because they’re more expensive to repair or replace. Young drivers should look for a used vehicle that’s highly rated for safety.
Rating Methodology:
Compare.com’s mission is to help our readers make more informed decisions when it comes to their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:
Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.
Sources
Insurance Information Institute, “Auto insurance for teen drivers,” accessed July 2, 2024.
American Academy of Pediatrics, “The Teen Driver,” accessed July 2, 2024.
Better Business Bureau, “Erie Insurance Group,” accessed July 2, 2024.
J.D. Power, “2023 U.S. Insurance Shopping Study,” accessed July 2, 2024.
Better Business Bureau, “American Family Insurance,” accessed July 2, 2024.
Better Business Bureau, “Progressive Insurance,” accessed July 2, 2024.
Insurance Information Institute, “How to save money on car insurance,” accessed July 2, 2024.
Insurance Information Institute, “What determines the price of an auto insurance policy?” accessed July 2, 2024.
CDC, “Teen Factors,” accessed July 2, 2024.
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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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Jamie Johnson is a Kansas City-based personal finance writer who’s been writing for Compare.com since 2023. Her work has also been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance.
For the past seven years, she’s dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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