Written by:
Dash Lewis,
Written by: Dash Lewis Content Writer
Writer
02/10/2024 10:16 am
Key Points:
- We found Geico to be the best provider of car insurance for teens in the U.S.
- Car insurance rates remain expensive until after age 19.
- Young drivers are considered high-risk by insurance companies, so they tend to pay a lot more for coverage.
Adding a young driver to your car insurance policy can cause auto insurance rates to skyrocket by thousands of dollars per year. To save money, you should take your time to find the most affordable car insurance for teens.
In this article, we will look at the process of getting coverage for your teen and evaluating the best car insurance companies for teenage drivers. We’ve done the research and found top insurance providers that offer cheap coverage for young drivers. To determine which companies offer the best rates for teens, we’ve analyzed data from Quadrant Information Services. We also looked at what discounts insurance companies offer, especially those that pertain to teens and new drivers.
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. Many factors affect your premium, so what’s best for your neighbor might not be best for you.
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Best Car Insurance For Teens
In our industry review of the best car insurance providers, we named Geico as the greatest option for teens thanks to its many discounts aimed at younger drivers. Our runner-up choices include Liberty Mutual and State Farm.
To protect your teen drivers, you should evaluate each auto insurance company by several criteria. Aside from cost, we recommend looking at the provider’s rating, level of customer service, available discounts, and perks such as accident forgiveness insurance.
| Best Car Insurance for Teens | Our Overall Rating Out of 5.0 | Discounts For Teens |
|---|---|---|
| 1. Geico | 4.5 | Good Student, Driver’s Education Course |
| 2. Liberty Mutual | 4.6 | Good Student, Student Away at School, New Teen Driver, Teen Driving Program |
| 3. State Farm | 4.7 | Student Away at School, Good Student, Driver Training |
| 4. USAA | 4.5 | Driver Training, Safe Driving, Good Student |
| 5. Progressive | 4.5 | Teen Driver, Distant Student, Good Student Discount |
*You may notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking for this article looks specifically at what car insurance providers are best for teens.
#1 Geico Auto Insurance
Geico is known for more than its adorable gecko spokesperson–it’s also one of the top insurance providers in the country. There are a few Geico programs that could be useful for a teen driver:
| Program | Details |
|---|---|
| Roadside assistance | Emergency road service coverage from Geico includes battery jump-starts, spare tire installation, towing to a repair shop, and lockout services up to $100. |
| Mechanical breakdown insurance | This is similar to an extended warranty. Under an MBI plan, Geico will pay for repairs to any covered mechanical part on your car. |
Geico maintains an A+ BBB rating as well as an A++ financial strength rating from AM Best.
Geico Discounts
Here are just a few of the discounts you and your teen driver could receive:
| Discount | Details |
|---|---|
| Good Student Discount | Up to 15% off your premium if your teen maintains a B average or higher. |
| Air Bag Discount | Up to 23% off for having a vehicle with full-front seat airbags. |
| Seat Belt Use Discount | You can get a discount if you and your passengers always wear seat belts. |
| Driver’s Education Course | Discounts are available if your teen takes an approved driving course. |
#2 Liberty Mutual Auto Insurance
Liberty Mutual has some of the best car insurance for teen policyholders because of its comprehensive coverage and benefits. Some car insurance programs that could be useful for young drivers include:
| Program | Details |
|---|---|
| Liberty Mutual Deductible Fund® | Think of this like a savings fund that puts money toward the deductible you pay to the repair shop out-of-pocket. Liberty Mutual also contributes to the cost of your deductible savings with this plan. |
| Lifetime Repair Guarantee | If you purchase this plan with your teen car insurance policy, any covered repair will be guaranteed for the lifetime of your vehicle. |
| Accident Forgiveness | This plan will protect your premium against heightened rates after your first at-fault accident, which can be beneficial for young, less experienced drivers. |
| Roadside Assistance | This provides towing, flat-tire changes, dead battery service, lockout service, and fuel delivery service when your car is disabled. |
| Rental Car Reimbursem*nt | Get reimbursed for the cost of a rental car when your car is in the shop. |
| Auto Loan/Lease Gap | If you owe more than your vehicle is worth, this plan covers the difference in the event of a total loss. |
Liberty Mutual has a positive reputation among industry experts. It has an A- rating from the Better Business Bureau (BBB) with accreditation and a good financial strength rating from AM Best. If you’re interested, we recommend getting a quote and discussing your discount and savings options with the agent.
Liberty Mutual Discounts
Here are some discounts offered by Liberty Mutual that may benefit teens:
| Discount | Details |
|---|---|
| Good Student | Savings for any full-time student with a B average or better. |
| Student Away at School | Lower premiums if a child is away at school and only occasionally drives the vehicle. |
| New Teen Driver Discount | This discount applies if you added a teen driver to your policy within the last year. |
| Teen Driving Program Discount | Drivers under 21 can get a discount after completing an approved driving program. |
#3 State Farm Car Insurance
State Farm is a leading provider of auto insurance, as well as insurance for motorcycles, boats, ATVs, motorhomes, and more. State Farm has some of the best car insurance for teens thanks to its great programs for students and young drivers.
State Farm programs that could benefit teen drivers:
| Program | Details |
|---|---|
| Drive Safe & Save™ | This usage-based safe driver program works by collecting data about your teen's safe driving habits through a mobile app or OnStar® to qualify them for good driver savings. |
| Steer Clear® | Drivers younger than 25 can complete this driving training program and save on their policy, as long as they don’t have any at-fault accidents or moving violations from the past three years. |
Young drivers can get affordable insurance through discounts and usage-based programs. Plus, State Farm has a positive reputation in the auto insurance industry. This provider has an AM Best financial strength rating of A++, which bodes well for the company’s reliability.
State Farm Discounts
Here are some discounts offered by State Farm that may benefit teen drivers:
| Discount | Details |
|---|---|
| Student Away at School Discount | Students under the age of 25 who move away to school without bringing their car can get a discount on car insurance rates. |
| Good Student Discount | Students who maintain a B average or higher can save up to 25 percent for getting good grades. College students can keep the discount until they turn 25, even after graduation. |
| Driver Training Discount | Drivers under the age of 21 are eligible to complete an approved driver education course. |
#4 USAA Car Insurance
USAA earned high ratings in our industry reviews, and teens can get great rates too. If you’re currently enlisted or part of a military family, it makes sense to use this provider for your teen’s insurance needs.
USAA programs beneficial for younger drivers include:
| Program | Details |
|---|---|
| Roadside assistance | This optional coverage helps you get back on the road in the event of a breakdown. Services include towing, lockout services, jump-starts, flat tire changes, and gas delivery. |
| Accident forgiveness | With this program, your first at-fault accident is waived and won’t show up on your driving record. It requires an additional charge, but if you remain accident-free for five years, this plan is available at no cost. |
USAA has an excellent standing in the industry, holding an A++ financial rating from AM Best.
USAA Discounts
Among various discounts for teen car insurance, here are some that stand out:
| Discount | Details |
|---|---|
| Driver Training Discount | Additional savings for any driver under the age of 21 who takes a basic driver training course. |
| Safe Driving Discount | Additional savings for anyone that has been accident-free for five years. |
| Good Student Discount | Decrease in car insurance premiums if your teen gets good grades. |
Read more: USAA insurance reviews
#5 Progressive Car Insurance
Progressive is one of the largest insurance providers in the nation and has been in business since 1937. One of the best parts about shopping for Progressive insurance is the provider’s price comparison tool. Instead of shopping with multiple companies, you can simply use this tool to see the rates of competing companies.
It’s not unheard of to find a lower rate with another company as a result of this tool. That level of transparency is difficult to find in the insurance industry.
Not only does this provider have a strong reputation, but it’s also known for offering fair prices for high-risk drivers that have speeding tickets, DUIs, or at-fault accidents on their record. Teenagers who have any of these may find Progressive helpful.
Here are some of Progressive’s insurance programs that could be of use to your teen driver:
| Program | Details |
|---|---|
| Roadside Assistance | This includes towing, lockout services, flat-tire changes, and fuel delivery. |
| Deductible Savings Bank | This option decreases your deductible by $50 every six months you go without a claim. |
| Snapshot | With this usage-based mobile app you can get a discount for safe driving habits, like avoiding hard cornering and hard braking. |
Progressive has a strong standing in the industry. It holds a B rating from the BBB and an A+ financial strength rating from AM Best.
Progressive Discounts
When choosing car insurance for teen drivers, you may want to explore Progressive’s several discounts:
| Discount | Details |
|---|---|
| Teen Driver Discount | You can get a discount by adding a teen driver (18 or under) to your policy. |
| Distant Student Discount | Get a discount when your student lives more than 100 miles from home and leave the car at home. |
| Good Student Discount | Get lower premiums if your teen maintains a B average or higher. |
Read more: Progressive insurance reviews
Best Car Insurance Costs For Teens
While the above companies offer great discounts and programs, you may consider some providers just based on their average rates for teen drivers. Teenagers tend to file more claims than older drivers, so car insurance companies raise rates for this age group. You can expect the highest car insurance costs if you’re adding a 16-year-old to your policy, but with each passing year, the prices will drop significantly.
When you’re adding a teen to your auto insurance policy, it’s a good idea to compare your company against others. USAA, Erie, Auto-Owners, Geico, and State Farm are some of the cheapest car insurance companies for teen drivers, as their rates tend to be far below the national average.
We used data provided to us by Quadrant Information Services to find the cheapest car insurance for each age group. For each age profile, the driver is considered to have a clean driving record.
Cheapest Car Insurance For 16-Year-Olds
The average annual cost of car insurance for 16-year-olds is $8,261. However, this is an average cost for over 80 insurance companies across all 50 states, which means it’s definitely possible to find rates much lower than this. Also, this rate assumes the 16-year-old purchases their own policy. Rates are much cheaper when teens join a family insurance plan.
The Farm Bureau Group offers auto insurance in many states and it’s some of the cheapest coverage for teens around. Insurance is available by joining your state’s Farm Bureau, which requires a small fee.
Auto-Owners also provides some of the cheapest rates for 16-year-olds when compared to other car insurance companies. However, coverage from this provider is only available in 26 states. For a nationally available provider, Geico has the cheapest rates.
| Car Insurance Company | Average Annual Cost For 16-Year-Olds | Average Monthly Cost For 16-Year-Olds |
|---|---|---|
| Farm Bureau Group | $2,050 | $171 |
| Country Financial | $3,637 | $303 |
| Auto-Owners Insurance | $4,656 | $388 |
| Erie Insurance | $5,163 | $430 |
| Geico | $5,745 | $479 |
| American Family | $5,969 | $497 |
| State Farm | $6,289 | $524 |
| Nationwide | $6,541 | $545 |
| USAA | $6,611 | $551 |
What Affects The Price Of Car Insurance?
As you evaluate the best car insurance for teens, you’ll find that most companies use the same criteria when deciding premiums. These factors determine most of the cost:
- Age: Teen drivers have less experience behind the wheel and therefore pose a higher risk.
- Credit score: In most states, premiums rise the lower the credit score is. Unfortunately, most teens don’t have a credit history, which puts them at a disadvantage.
- Driving record: Your young driver doesn’t have a record to speak of. This lack of history makes it challenging for the car insurance company to determine how high of a risk each person poses. To protect itself, the provider charges more than average to compensate.
- Vehicle: Driving a car with a good safety rating and advanced safety technology helps to lower the price. Car insurance companies also evaluate the type of car to determine how much it would cost to repair or replace.
- Location: Where you live plays a huge role in your premium. If you live in a city that puts you at risk for car theft, you will see higher rates than those in a rural area. Required coverage also varies by state.
- Demographics: Female drivers tend to pay less than male drivers for car insurance during their teen years. In addition, you can expect to pay less if you have a college degree and are married, which isn’t usually the case for teenagers.
- Level of coverage: Finally, the insurance company factors in the level of protection you desire. If you choose the highest plan, you will pay more. In addition, your deductible will alter the price–the higher your deductible, the lower your premium.
While it’s tempting to opt for the minimum required car insurance, drivers receive many benefits from selecting affordable full coverage car insurance. Liability coverage takes care of property damage and bodily injury for other motorists, but collision coverage, comprehensive insurance, and medical payments coverage or personal injury protection better protect finances in the long run.
How Car Insurance Coverage Works
When you get a car insurance quote, the company will provide you with two different estimates. One will be for basic liability coverage and the other for a full-coverage insurance policy. The company may also provide you with options to customize your particular coverage. In the sections below, we’ll explain how it works.
Basic Coverage
In every state except for Virginia and New Hampshire, you’re required to carry at least basic car insurance coverage to legally drive. Depending on the state’s minimum requirements, you’ll need some of the following coverages:
- Bodily injury liability insurance (BI): This covers another party’s medical expenses if you’re at fault for a car accident.
- Property damage liability insurance (PD): This covers the repair bills for someone else’s car or other property if you’re at fault for an accident.
- Uninsured/underinsured motorist (UM/UIM): This covers damage to your car or medical bills if you’re hit by someone who doesn’t have enough insurance.
- Personal injury protection (PIP): This covers medical bills, lost wages, and funeral costs for you and your passengers after an accident.
- Medical payments (MedPay): This covers medical bills and funeral costs for you and your passengers after an accident.
Almost all states require bodily injury and property damage liability insurance. Some may also require uninsured motorist coverage or some form of medical coverage. If your state doesn’t require a certain coverage, you’re still free to add it to your policy.
Full Coverage
A full-coverage insurance policy includes the minimum coverage required by state law as well as collision and comprehensive coverage.
- Collision coverage: This covers repairs to your vehicle regardless of who caused the accident.
- Comprehensive coverage: This covers damage to your car caused by non-collision incidents like theft, vandalism, fire, or natural disaster.
Both collision and comprehensive coverage will pay a claim up to the value of your vehicle. If your car is considered a total loss, the company will cut you a check for the actual cash value of the vehicle. Both of these types of coverage have a deductible, which is the amount you have to pay out of pocket before insurance takes over.
Add-On Coverage
Many companies give you the option to add extra kinds of coverage to your policy. These may include:
- New car replacement
- Mechanical breakdown insurance
- Trip interruption coverage
- Rental car coverage
- Usage-based insurance
- Diminishing deductible
- Roadside assistance
- Original replacement parts
- Pay-per-mile insurance
- Classic car insurance
- Accident forgiveness
- Gap insurance
- Rideshare insurance
How Can I Add A Teen To My Car Insurance Policy?
Once your teen receives a driver’s license, you have to begin preparing for the additional expense, even if you use one of our recommendations for the best car insurance for teens.
The reason for this increase is the additional risk that teenage drivers bring. Inexperienced teenagers are more likely to get into accidents, and according to the Centers for Disease Control and Prevention, the leading cause of death for teens is motor vehicle accidents. Every day, eight teenagers between the ages of 13 and 19 will die due to a motor vehicle crash.
With higher rates, you need to take your time when shopping for car insurance for teens. Once you find the provider you want to work with, though, adding your teenager isn’t difficult:
- Ask the insurance company when it requires coverage. Some expect you to add your teen while they’re driving with a permit, while others wait until your child has a license.
- Get car insurance quotes on your existing policy, but also consider changing your plan to one with higher liability protection.
- Remember to ask for discounts.
- Shop various providers every time you are up for renewal.
Should I Add A Teen Driver To My Car Insurance Policy?
It’s often more cost-effective to add a teen driver to your policy instead of having them purchase their own plan. Of course, this does increase your yearly premiums, but it saves you and your child money overall. Most auto insurance companies provide a family discount or lower rate when insuring multiple vehicles.
Another reason to add your teen to your policy is to receive coverage no matter what car they drive. If your teenager is involved in an at-fault accident, it won’t matter which one of the covered vehicles was damaged.
How To Get The Cheapest Car Insurance For Teens
Thankfully, there are steps you can take to ensure you receive cheap car insurance for young drivers. As you evaluate the best car insurance for young adults, you will find that many of them provide car insurance discounts to help you keep more money in your pocket.
These driver discounts vary based on the company, but you want to look for options such as:
| Discount | Details |
|---|---|
| Good Student Discount | If your teen driver gets good grades, your provider might offer a discount. As one example, Geico provides a discount for anyone with a B average or higher. |
| Low Mileage Discount | While this discount is available to anyone, it’s especially useful for teens that simply drive back and forth to school. Make sure your provider knows how many miles your child will be driving. |
| Student Away Discount | If your teen won’t be driving for a portion of the year while away at school, make sure you inform the provider to receive a lower rate. Some full-time students can earn a discount for the months when there isn’t any active driving. |
| Safe Driving Discount | Some providers now have apps and unique devices that allow for the monitoring of your teen’s driving habits. Not only will this technology help your child become more aware of what’s happening on the road, but it also allows you to receive a discount for their good behavior. |
Best Car Insurance For Teens: Our Take
When it comes to saving money on a teen auto insurance policy, it might be tempting to lower the level of coverage. While this is a way to save money upfront, consider the implications if your teenager gets into an accident.
It’s far better to go with medium to high-level coverage. Compare multiple quotes from several different insurance providers to find the cheapest insurance coverage. Once you have coverage options in place, shop around before every renewal to see if any new discounts have become available.
Once you find the right car insurance for teens, you can ensure that both your loved ones and your automobiles are protected.
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FAQ: Best Car Insurance For Teens
Here are some of the most frequently asked questions about car insurance for teens:
How We Rate Auto Insurers
Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:
- Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
- Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
- Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
- Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
- Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
- Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.
Dash Lewis Content Writer
