How to find cheap auto insurance for a teen driver

Finding the cheapest insurance for teens can be a daunting task. Because teenagers are inexperienced drivers, their insurance is hazardous, and policies cost thousands of dollars a year. It is much profitable to add a teen driver to an adult insurance policy than to purchase a separate policy in most situations. And the best option to find the most affordable coverage is to look at prices and get offers from different organizations.

How much does car insurance for teen drivers cost?

According to the Insurance Institute for Highway Safety, teen drivers are four times more likely to be involved in an accident than people over 20; this adds to higher insurance costs for teens. Still, the specific amount depends on the teen's state, gender, age, and whether the teen is the primary insured.

Our research shows that a newly-licensed 16-year-old driver can pay an average of 44% more for full insurance than a more experienced 19-year-old driver.

 Age Full coverage Minimum coverage
16 years $6,613 $2,733
17 years $5,373 $2,206
18 years $4,837 $1,938
19 years $3,716 $1,451

Full car insurance for teenage drivers includes comprehensive coverage and collision insurance and protection for uninsured/underinsured motorists, and increased liability limits. Minimum coverage policies have only coverage established by the state.

The cheapest deals for teen drivers from major organizations

To define the cheapest teenage car insurance, we first looked at the big companies available in almost every state. 

The top five auto insurance agencies in the country include Allstate, Geico, Progressive, State Farm, and USAA. However, USAA only insures active military personnel, veterans, and their families.

Below, we will consider the average full coverage rate these large organizations offer.

 Age Full coverage rate, Geico Full coverage rate, State Farm Full coverage rate, Allstate Full coverage rate, Progressive
16 years $4,148 $6,329 $7,779 $9,139
17 years $3,566 $4,922 $6,356 $7,684
18 years $3,158 $4,414 $5,545 $6,514
19 years $2,533 $3,455 $4,299 $3,911

Going to a big company doesn't make a better insurance policy - local and regional insurers often have the lowest rates in these areas. Before choosing an auto insurance company, look through offers to find the cheapest car insurance for teens in your state.

Cheap car insurance for teen drivers in different states

Let's speak about how to get cheap car insurance for young drivers. Affordable teen insurance company varies by state. For instance, the most reasonable average total insurance rate for a teen driver in Hawaii is about $950 per year, while Alabama's most affordable average rate is over $3,000.

Use the dedicated map to see the cheapest car insurance company for teen drivers based on average annual full coverage rates.

Cheap car insurance for teen drivers in different states

Auto insurance cost for 16-year-olds

Sixteen-year-old drivers are the most expensive to get insurance because they have little experience.

Hawaii offers the best insurance rates for teenage drivers, because the state does not use age to determine the cost of auto insurance. The average full coverage rate in the state is about $1,100 for a driver of any age.

Meantime, Louisiana is the most expensive state for full yearly coverage for teens. Average full coverage rates for an individual policy are over $11,500 per year.

Auto insurance cost for 17-year-olds

While not as expensive as a 16-year-old, car insurance for a 17-year-old driver would be a considerable amount. The national average annual rate for a 17-year-old is just over $5,370 for full coverage and $2,206 for minimum coverage.

Outside of Hawaii, North Carolina has the lowest average annual rate for a full coverage policy for a 17-year-old at just under $2,660.

Michigan has the most expensive minimum annual insurance rate, averaging $4,070.

Auto insurance cost for 18-year-olds

The national average annual rate for an 18-year-old driver with full insurance is just over $4,830, while the average rate for minimum insurance is $1,940 per year. Besides Hawaii, North Carolina can offer the cheapest average full coverage rate of $2,398 per year. Louisiana has the highest rates for full coverage, while Michigan has the highest rates for minimal coverage.

Why car insurance for young men is so expensive

Car insurance for teenage girls is expensive, but some of the highest auto insurance rates among people with net driving experience are for young boys. Such costs are because they are inexperienced and do not have a driving experience that insurers could use to set rates.

When insurance companies can't analyze driving history to determine the likelihood that you'll file a claim, they rely on statistics to assess risk and set prices. A freshly licensed teen gets high insurance rates because their peers file many more expensive claims, or both.

Additionally, to the risk of getting into an accident, teens tend to have no credit history, are unmarried, and have not received enough education, which can increase car insurance rates.

How teenagers can save on car insurance

If you're a teen driver, the best method to save money on car insurance is to take out a parent or guardian insurance policy. If that's not possible, start searching for a few teen car insurance quotes to find the cheapest rate.

  • When buying car insurance for teen boys, look for possible discounts, including:
  • Discount on an excellent class. Some auto insurers offer discounts for maintaining a high GPA or achieving outstanding results.
  • Discount on safe driving. If you are taking a safe driving course, some insurance companies may offer you a discount on your rate.
  • Discount for students outside of school. If you are in college or attend a school away from home, you may qualify for a student discount.

These are the cheapest way to insure teenage drivers.

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