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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Cheap car insurance for teens can be hard to come by. After all, the average teen pays $203 per month for basic liability insurance and $369 for full coverage, according to Compare.com data. These rates reflect the increased risk insurance companies take with newer drivers — teens simply get into more accidents than older drivers.[1]
In this article, we’ll share some insider tips on comparing car insurance and finding the best fit for teens that won’t require taking out a second mortgage.
Teen drivers pay an average of $287 per month for car insurance — much higher than the $150 average for all drivers.
COUNTRY Financial offers the lowest average rates for teens, but several other factors influence how much teens pay.
Good student discounts and defensive driving courses can lower your teen’s insurance costs.
Coverage needs depend on your car — older cars might need just liability, while newer ones might benefit from full coverage.
The cost of car insurance for teen drivers can vary by insurer, as well as whether you’re on your parents’ car insurance or getting a separate policy on your own. Either way, you can expect to pay a lot more than older drivers.
Young drivers are more expensive to insure because they lack driving experience and make riskier driving decisions, like speeding and driving distracted, according to the CDC. And the riskier you are to insure, the more you pay for auto insurance.
Still, you can find rates well below what the average teen pays — you just have to know where to look. To get you started, we analyzed rates from dozens of top insurance companies and found that the insurers below offer the lowest average rates for teens.
Company  | Average Monthly Premium |
|---|---|
| COUNTRY Financial | $19 |
| NJM | $46 |
| Auto-Owners | $55 |
| USAA | $83 |
| Root | $96 |
| Erie | $100 |
| State Farm | $104 |
| Allstate | $125 |
| CSAA | $126 |
| Mile Auto | $127 |
| American Family | $129 |
| Dairyland | $145 |
| The General | $161 |
| Mercury | $164 |
| Nationwide | $169 |
| Commonwealth Casualty | $181 |
| Progressive | $187 |
| Travelers | $187 |
| Bristol West | $192 |
| Direct Auto | $200 |
| Farmers | $204 |
| Safeco | $204 |
| 21st Century | $205 |
| Shelter | $207 |
| National General | $223 |
| Elephant | $227 |
| GAINSCO | $227 |
| The Hartford | $229 |
| Foremost | $229 |
| Clearcover | $244 |
| Amica | $245 |
| Chubb | $268 |
| Liberty Mutual | $296 |
| AssuranceAmerica | $297 |
| State Auto | $313 |
| Infinity | $320 |
COUNTRY Financial offers the cheapest overall rates to teen drivers, with the average policy running just $19 per month. Auto-Owners and NJM also offer great rates for the average teen, but that doesn’t necessarily mean any of these three companies will be the cheapest for you or your teen.
At the end of the day, no single company is the cheapest for every teen driver. Several factors go into how much you pay for car insurance — including your driving record, where you live, how much you drive, and many unique characteristics — so it’s important to compare quotes from as many companies as possible to ensure you’re getting the best deal.
Basic policies start as low as $19 per month
Adding a teen driver to their parents’ car insurance is usually the most affordable option compared to teens having their own policy.
Your parents already have an established relationship with the insurance company and may have valuable discounts that make it less expensive to add a new driver. Plus, if you live in a multi-vehicle household, you can drive all the cars listed on the policy.
On the other hand, it might make sense to get your own insurance policy in these scenarios:
You (legally) own your car, and your insurance company will allow you to sign the insurance contract as a minor.
A separate policy would be cheaper because your parent has several traffic violations, accidents, or driving offenses on their driving record.
Your parents own an expensive luxury or sports car you won’t drive.
The best way to know whether getting your own policy or being added to your parents’ existing policy is the right choice is to speak with your insurance agent. They can discuss the options available to you and compare costs.
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Adding a teen driver to your insurance policy can skyrocket your monthly premiums. But finding affordable car insurance doesn’t have to feel like solving a Rubik’s cube blindfolded. Here are some of the best ways to crack the code on lower rates:
Compare car insurance quotes: Premiums vary dramatically between companies, and spending just 20 to 30 minutes shopping around and gathering quotes from different insurers can make a huge dent in how much you pay. Insurance-comparison sites make it easy to get several quotes in just a few minutes.
Look for good student discounts: Many insurance companies offer discounts for teens maintaining a B average or better in school.
Take a defensive driving course: Your insurance company might give you a break on rates if your teen completes an approved defensive driving program.
Choose the right car: Vehicles with lower repair costs and good safety ratings typically have lower premiums.
Add your teen to your policy: Save money by adding your teen driver to your current auto policy rather than purchasing separate coverage.
Consider your deductible: Raising your deductible from $500 to $1,000 can lower your car insurance rates. Just make sure to set that money aside in case you need to file a claim.
Consider usage-based insurance: Teens who drive safely, avoid late-night trips, and don’t speed can benefit from usage-based coverage with rates based on their actual driving behavior.
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 for male drivers to pay more than females during their teen years, too. The higher prices are because men are riskier to insure — they tend to have more accidents, more serious injuries, and 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 | $411 | $380 |
| 17 | $370 | $325 |
| 18 | $336 | $291 |
| 19 | $292 | $249 |
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 around 29% less than a 16-year-old, while 19-year-old female drivers save 34% 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.
State | Average Monthly Premium |
|---|---|
| Alabama | $199 |
| Arizona | $278 |
| Arkansas | $322 |
| California | $320 |
| Colorado | $281 |
| Connecticut | $498 |
| Delaware | $370 |
| Florida | $316 |
| Georgia | $404 |
| Idaho | $189 |
| Illinois | $238 |
| Indiana | $207 |
| Iowa | $181 |
| Kansas | $239 |
| Kentucky | $337 |
| Louisiana | $359 |
| Maine | $240 |
| Maryland | $435 |
| Massachusetts | $293 |
| Michigan | $308 |
| Minnesota | $295 |
| Mississippi | $263 |
| Missouri | $277 |
| Montana | $214 |
| Nebraska | $256 |
| Nevada | $417 |
| New Hampshire | $153 |
| New Jersey | $266 |
| New Mexico | $224 |
| New York | $722 |
| North Carolina | $137 |
| North Dakota | $227 |
| Ohio | $198 |
| Oklahoma | $257 |
| Oregon | $257 |
| Pennsylvania | $234 |
| Rhode Island | $211 |
| South Carolina | $426 |
| South Dakota | $204 |
| Tennessee | $195 |
| Texas | $338 |
| Utah | $258 |
| Vermont | $181 |
| Virginia | $285 |
| Washington | $233 |
| District of Columbia | $437 |
| West Virginia | $243 |
| Wisconsin | $178 |
| Wyoming | $159 |
Whether you need full coverage or just basic liability, knowing which auto insurance companies are best for teens can help make shopping for car insurance easier. You’ll have cheaper options if you have a clean driving record, but you can still find affordable options even if you don’t.
We searched for coverage options, available discounts, and other programs to find the best insurers for different types of teen drivers.
Average teen premium: $204 per month
Compare.com Rating: 4.59 out of 5
Multiple ways to save
Innovative Rewind program
May not be the cheapest option
Rewind program not available in all states
If you’re a teen with a recent speeding ticket on your record, it might be worth considering Safeco. If you agree to install a plug-in device to track your driving behavior, Safeco’s Rewind program will forgive the ticket.
Not only can you save with the Rewind program, but Safeco also offers accident forgiveness, a diminishing deductible, and cash back for every policy period you go without filing a claim.
Safeco’s average monthly rates are $241 for adding a teen to an existing policy and $259 for a teen’s separate auto policy, according to Compare.com data.
Average teen premium: $104 per month
Compare.com Rating: 4.90 out of 5
Affordable rates for teen drivers
Multiple ways to save after an accident
Mixed customer reviews
Eligibility varies by state
State Farm has some of the cheapest average monthly rates for teens, based on our research. But — like with any company — your rates could skyrocket after an accident.
Fortunately, State Farm offers multiple ways to keep rates low, like its Steer Clear and Drive Safe & Save programs. Teens can also get a discount for completing an approved defensive driving course and getting good grades.
Average teen premium: $89 per month
Compare.com Rating: 4.65 out of 5
Great rates for teens
Customizable coverage options
Teen driving programs not available
Not cheapest for every type of teen
If budget is your primary focus, GEICO might offer the best auto insurance for your teen. GEICO’s average monthly rate is among the cheapest — just $89 per month.
GEICO also offers teens multiple ways to save on car insurance, like driver training, driving history, and student discounts. You might also be eligible for additional savings if you belong to a student organization.
Average teen premium: $169 per month
Compare.com Rating: 4.90 out of 5
Multiple coverage add-ons
Discounts and telematics programs available
Optional coverages not available to all teens
Limited features in some states
Some teens need only basic liability insurance, which includes coverage for injuries and property damage. But if you need the added protection of full coverage for your new car (or just want greater protection), Nationwide is worth considering. Teens who use Nationwide pay an average of $169 per month for liability insurance and $344 for full coverage, according to our data.
Besides the standard full-coverage options, Nationwide offers a few extra coverages, such as rental car reimbursement, gap coverage, and roadside assistance. You could also save with accident forgiveness, vanishing deductibles, and a total loss deductible waiver.
Average teen premium: $357 per month
Compare.com Rating: 3.22 out of 5
Liability coverage only when you need it
Best-in-class payment flexibility
Doesn’t offer full coverage
Available in only 13 states
Just because you don’t have your car at school doesn’t mean you don’t need insurance. In these situations, you might need temporary insurance to cover you only while you’re home.
Hugo offers on-demand auto insurance, meaning you can turn coverage on only when needed. This flexible coverage option may be ideal for young drivers who need coverage for shorter periods of time.
But if you need full coverage, Hugo has limited options.
Compare personalized quotes from some of the nation’s top companies.
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Figuring out how much car insurance your teen needs depends entirely on their situation — coverage is as unique as your teenager’s taste in music.
For example, you might skip collision and comprehensive coverage if your young driver cruises around in an older car that isn’t worth much since paying for full coverage doesn’t make much financial sense when repair costs might be more than the car’s value.
State minimum liability insurance is likely your best bet here, with COUNTRY Financial offering the lowest average rates. Still, consider bumping up the limits since even minor accidents can cause major damage.
But if your teen is driving a newer car or another vehicle you can ’t afford to repair or replace, full coverage is likely your best bet. And some companies offer average rates even lower than the typical liability policy for teens. For example, COUNTRY Financial offers policies for around $42 per month, on average.
Additionally, college students who leave their cars at home while away at school can qualify for discounts, too. Your insurance company might offer savings only if your teen is more than 100 miles from home, but it’s worth checking with your insurer to cut down on insurance costs.
And if your teen takes the wheel only on weekends or during summer breaks, you might consider an insurer that offers low-mileage discounts. This, along with choosing a slightly higher deductible (say, around $1,000 instead of $500), can help keep premiums affordable.
Although insuring teen drivers can be expensive, you can still find ways to make it more affordable. We answered the most commonly asked questions about teen car insurance to help.
COUNTRY Financial consistently offers the lowest rates for teen drivers, according to our data, with Auto-Owners and NJM 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 cheapest insurance company for 16-year-olds is usually COUNTRY Financial, with rates averaging around $19 per month.
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.
Teens pay an average of $203 per month for basic liability insurance and $369 for full coverage, according to Compare.com data. Rates are highest for 16-year-old drivers, and costs generally decrease slightly over time as they gain driving experience.
Teen insurance costs more because they have a higher chance of being in an accident than any other age group. Additionally, young drivers have little experience behind the wheel and tend to take more risks,[4] leading to more claims and higher costs.
If your teen is away at school and doesn’t drive very often, ask your insurance company about a “distant student” discount. Many insurers offer savings when students attend school more than 100 miles away without a car.
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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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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