Find Your Perfect Policy: 866-843-5386

Icon CheckLast updated: May 6, 2024

The Best Auto Insurance for Teens in 2024

Insure your teen without breaking the bank.

Cheapest Insurance for Adding a Teen to a Family Policy
Auto-Owners Insurance logo

Full Coverage Averages
• Annual Premium: $1,841
• Monthly Premium: $153

Pros + Cons
Flat rate for adding a teen driver
Accident forgiveness
X Available in only 26 states

Best Insurance for Teens on Their Own Policy
State Farm Logo

Full Coverage Averages
• Annual Premium: $3,795
• Monthly Premium: $316

Read our State Farm review.
Safe-driving discount specifically for teens
Easy claims process
X No accident forgiveness

Best Teen Driver Coverage for Accident Forgiveness
Erie Insurance Logo

Full Coverage Averages
• Annual Premium: $1,942
• Monthly Premium: $162

Read our Erie review.
Accident forgiveness
Wide set of discounts
X Only available in 12 states

Find the Best Insurance for Your Teen.

Let our Perfect Policy Connectors shop the market for you!

Auto Insurancephone-icon(855) 953-0884Request a Callback
Twitter brand
Facebook brand
Linkedin brand
Reddit brand
Envelop icon
Our Commitment to You: At, our mission is to help you make smarter auto insurance decisions with confidence. We follow a strict editorial policy to ensure the accuracy of information presented is rooted in data and vetted by thousands of hours of research. While we may earn compensation from our partners, this does not influence our assessments and recommendations. Learn more about how we make money.

Are you having trouble finding affordable car insurance for your teen? Due to their lack of driving experience, teen drivers are among the most expensive groups to insure, especially since they have a fatal crash rate nearly three times as high as drivers 20 and older.1 Our team reviewed numerous providers to make it easier to find reliable insurance for teens. Ultimately, we chose the auto insurance companies offering great value, young driver discounts, and favorable coverage for drivers ages 16 to 19. In addition to pricing, we looked at other factors like accident protections, safe driving incentives, and flexible policy options.

At any age, drivers should have access to dependable policies they can afford. For that reason, we’ve conducted the research to help you find the best insurers. Keep reading on to discover the best auto insurance provider for young drivers.

Read up on more useful car insurance info and check out our guide on preparing your teen for driving and teen driving laws by state.

Editor’s note: We updated this page on April 23, 2024, to ensure that the prices and data points are correct.

Car and cell phoneBest Car Insurance for Teens and Young Drivers

  1. Auto-Owners Insurance – Best Auto Insurance for Teens on a Family Policy
    Available in 26 states, Auto-Owners offers affordable rates for teens who will be insured on their parents’ or guardians’ policy.
  2. State Farm – Best Insurance for Teens on Their Own Policy
    For teens who need to purchase their own separate policy, State Farm has the lowest rates. The company also offers its own teen safe driving program, which will earn drivers a discount.
  3. Erie – Best Teen Insurance for Accident Forgiveness
    Erie has two ways for customers to purchase accident forgiveness, which prevents premiums from rising even if a teen causes an accident.

What to Consider When Shopping for Auto Insurance for Teens

When comparing auto insurance policies for teens, the following factors are particularly important to consider:

  1. How much it will cost, in particular the difference between adding a teen to your existing family policy versus buying the teen their own policy (Adding a teen will typically cost less.)
  2. Available student discounts and whether the driver qualifies for them. for example, some providers offer auto insurance discounts for good grades or for taking a driver’s education course; find a provider whose discounts align with your teen’s circumstances
  3. Accident forgiveness, as teens are more likely to get into accidents than other age groups; some providers allow you to purchase accident forgiveness right off the bat, while others offer it after three to five years of safe driving


  1. 1.

    Best Auto Insurance for Teens on a Family Policy: Auto-Owners

  2. 2.

    Best Auto Insurance for Teens on Their Own Policy: State Farm

  3. 3.

    Best Auto Insurance for Teens for Accident Forgiveness: Erie

  4. 4.

    Best Auto Insurance for Teens With Low Grades: Allstate

  5. 5.

    Best Teen Auto Insurance for Military Families: USAA

Comparison of the Best Auto Insurance for Teens in 2024

Company Average annual cost for teens on a family policy Average annual cost for teens on their own policy Grade requirement for good student discount Young driver discounts Accident forgiveness
Auto-Owners Insurance $1,841 $4,381 3.0 GPA / B average Good student, student away at school, GPS monitoring Available after 3 years of no at-fault crashes or major violations
State Farm $2,623 $3,795 3.0 GPA / B average Good student, Steer Clear (State Farm safety training program), student away at school, driver education Not offered
Erie $1,942 $4,175 Not offered Live at home, legacy, driver education, student away at school Available after being an Erie customer for 3 years (earlier in some states) or with Rate Lock
Allstate $3,809 $3,962 2.7 GPA / B- average Good student, TeenSMART (Allstate safety training program), student away at school Available with no waiting period
USAA $1,941 $3,597 3.0 GPA / B average Good student, driver education, legacy Automatically added, but only after 5 years accident-free

Detailed List of the Best Auto Insurance for Teens of 2024

1. Best Auto Insurance for Teens on a Family Policy - Auto-Owners
Auto-Owners Insurance logo

What We Like Most:

  • Low premiums for adding a teen to a policy
  • Good rates even after an accident
  • Discount for GPS monitoring

Adding a young driver to an existing policy is one of the best ways to lower insurance costs for teens. Auto-Owners Insurance is often the cheapest option for parents who want to add a teen to the family policy because the company charges a flat rate for young drivers 19 and under.

ProsWho It's Best For
  • pro
    Parents of teen drivers
  • pro
    Teens with at-fault crashes on their record
  • pro
    Families that plan to trade in a vehicle
  • pro
    Customers who want to work directly with an agent
ConsWho It's Not Best For
  • con
    Families who want to compare quotes or manage their policy online
  • con
    People who don’t live in the following states: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wisconsin

Save With Auto-Owners Insurance Teen Driver Discounts

In addition to low baseline rates, Auto-Owners helps families with teen drivers save with the following discounts specifically for young drivers:

  1. Good Student discount: Students get a discount of up to 20 percent if they maintain at least a 3.0 GPA (B average), rank in the top 20 percent of their class, or make the dean’s list or honor roll. The driver must be a full-time high school, college, university, or vocational-technical school student. They can earn this discount until the age of 25.
  2. Student away at school discount: Students who attend school more than 100 miles away from home without a vehicle and/or keep their car at home can earn a discount.
  3. Teen driver monitoring discount: Many families track their teens’ location by GPS, for safety and peace of mind. Auto-Owners offers a discount if a GPS device is attached to a teen’s car (or the car they use most), or if the teen has an eligible GPS-monitoring app on their smartphone.


Auto-Owners does not offer online quotes, so you’ll have to contact an agent to get a quote. You can view and pay your bills online, but if you want to make changes to your policy, you will need to contact your agent.

Protections Before (and After) an Accident

Due to their inexperience behind the wheel, teens are more likely to get into accidents than nearly any other group. At-fault accidents raise premiums, usually by around 50 percent.

Auto-Owners Insurance offers Accident Forgiveness as an add-on. When you purchase the benefit, Auto-Owners won’t raise your premium if your teen (or someone else on the policy) causes an accident. Drivers must have no at-fault claims or major violations for three years to qualify. It’s a good option for families with a 19-year-old driver with a clean driving record.

Of course, accidents happen — even to the safest of teen drivers. Cars involved in accidents may not be worth as much as they were prior to the crash, even after being fully repaired. Auto-Owners offers Diminished Value Coverage, which covers the difference in a vehicle’s value after an accident. It’s a good option for families who upgrade their vehicles every few years.

Finally, Auto-Owners offers better rates for drivers with existing at-fault accidents on their record than many other providers. On average, the provider’s rates go up approximately 14 percent after an accident, making it a good option for teens with an accident on their record.

2. Best Auto Insurance for Teens on Their Own Policy - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

When a teen owns a vehicle solely in their name, they often require their own auto insurance policy. Teens on individual policies face higher costs compared to family policies. State Farm offers competitive rates for independent teen policies.

ProsWho It's Best For
  • pro
    Young drivers with a clean driving history
  • pro
    Older teens transitioning off their family’s policy
  • pro
    Students with good grades, including homeschoolers
  • pro
    Teen drivers who have completed driver education courses
ConsWho It's Not Best For
  • con
    Customers who want to purchase accident forgiveness
  • con
    Teens with at-fault accidents, speeding tickets, or DUIs

State Farm Savings for Good Teen Drivers

State Farm offers multiple discounts for good driving habits, including a specially designed discount for teen drivers.

Safe driving program Maximum discount Eligibility requirements
Steer Clear 15%
  • Under age 25
  • No at-fault accidents or moving violations in past 3 years
Drive Safe & Save Driving Behavior Monitoring App 30% None

Additionally, in many states, State Farm gives discounts to drivers under age 21 who complete an approved driver education class.

Discounts for Students

Teen drivers with a GPA of 3.0 or higher can save up to 25 percent on auto insurance, a discount that can last until they turn 25. Homeschooled students may also qualify if they have taken certain national standardized tests within the past 12 months and ranked in the top 20 percent.

Regardless of their grades, teens attending college away from home can also save. To qualify for a student-away-from-home discount, the driver must:

  • Be under the age of 25
  • Attend school at least 100 miles away from home
  • Use the vehicle only while at home during school vacations and holidays


If your teen takes their car to college, check out our roundup of the best auto insurance for college students.

3. Best Auto Insurance for Teens for Accident Forgiveness - Erie
Erie Insurance Logo

What We Like Most:

  • Low rates for teen drivers on a family policy
  • High claims and customer service satisfaction
  • Rate Lock options prevent premium increases, even after an accident

With an average annual premium of $1,942 for teen drivers on a family policy, Erie has some of the most competitive rates for teen drivers. Customers also report high satisfaction with the company’s claims process and overall customer service. According to a recent J.D. Power study, Erie is the highest-ranked insurer in the Mid-Atlantic and North Central regions, and the second-highest-ranked in the Southeast.1

ProsWho It's Best For
  • pro
    Families with teens who live at home
  • pro
    Customers looking for accident forgiveness
  • pro
    Teens with low grades
  • pro
    Teens with speeding tickets
ConsWho It's Not Best For
  • con
    People who don’t live in one of the following places: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington D.C.
  • con
    Teens with an at-fault accident on their record

Erie’s Young Driver Discounts

None of Erie’s young driver discounts is based on school performance, making it a good option for teens with lower grades. Erie’s young driver discounts help keep premiums low for teen drivers.

Teen driver discount Who qualifies Location restrictions
Youthful driver Unmarried drivers under 21 who live with their parents or guardians None
Youthful driver longevity Unmarried drivers who spent at least two years on another Erie policy, usually a parent or guardian’s Not available in North Carolina
Driver training Drivers under 21 who complete a driver education course Not available in Kentucky or North Carolina
College student Young drivers who live at school and don’t take a car Not available in Kentucky or North Carolina

Multiple Routes to Accident Forgiveness

Erie offers accident forgiveness to drivers who have been Erie customers for three years or more. In some states, such as North Carolina, you can add accident forgiveness to your policy without waiting three years.

In addition, Erie offers a unique Rate Lock feature. If you add this endorsement to your policy, Erie won’t raise your rates unless you add or remove a vehicle or driver from the policy or change your primary residence. In other words, with Rate Lock, at-fault accidents and violations like speeding tickets won’t raise rates for teen drivers or their families. Other factors, like inflation, won’t raise your premium either.

A few considerations to note:

  • Rate Lock doesn’t guarantee continued coverage, meaning Erie can refuse to renew your policy after a serious violation like a DUI.
  • Rate Lock is not available in all states.
  • Drivers in Virginia can purchase Rate Lock for three years only.

Good Rates for Speeding Tickets

For teen drivers with a speeding ticket on their record, Erie is a good option. On average, premiums increase by about 25 percent after a ticket, but Erie’s go up only 13 percent.

4. Best Auto Insurance for Teens With Low Grades - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

With several paths to earning a student discount, Allstate is a good option for teen drivers regardless of their report card. And the more drivers who sign up for Allstate’s Drivewise safe-driving app, the greater the discount will be. This makes a good option for families with multiple young drivers.

ProsWho It's Best For
  • pro
    Students with any GPA, as there are multiple ways to earn the student discount
  • pro
    Teens who don’t drive much
  • pro
    Customers looking for accident forgiveness
  • pro
    Teens with safe driving habits
ConsWho It's Not Best For
  • con
    Teens and families looking for the absolute lowest rates
  • con
    Teens with at-fault accidents or other violations

Save With Allstate Student Discounts

Allstate offers three routes to earning its student discount, meaning teens may not need good grades to earn a lower rate. Drivers qualify if they are unmarried, a full-time high school or college student under 25 years old, and fulfill just one of the following requirements:

  • Hold a GPA of 2.7 or higher, or at least a B- average
  • Complete the TeenSMART driver education program
  • Attend school at least 100 miles away from where the car is garaged (and are younger than 21)

The TeenSMART driving program includes videos, simulations, and parent-teen activities that teach teens how to drive safely and avoid hazards on the road. Allstate customers receive a $50 discount on the program, resulting in a final cost of $69.95 per driver. Teens who qualify for the student discount can save around 20 percent on their premiums.


Allstate does not offer the TeenSMART discount in the following states: Hawaii, Louisiana, Massachusetts, Minnesota, New Jersey, New Mexico, North Carolina, and Vermont.

Accident Forgiveness and Accident-Free Discount

Allstate offers an accident forgiveness coverage add-on, which ensures premiums won’t increase even if a teen driver is at fault in an accident. Unlike other providers, Allstate doesn’t require a waiting period before you can add accident forgiveness to your policy.

Additionally, for every six months without an accident, Allstate customers receive a safe driving bonus of up to 5 percent on their auto insurance bill.

Pay-Per-Mile and Usage-Based Options

The U.S. Department of Transportation reports that teens drive an average of about 7,600 miles per year. That’s roughly half as many miles as the average American adult drives each year.2

Teens who drive less than 8,000 miles per year can explore a pay-per-mile insurance plan to save. Allstate is one of the few major insurers to offer such a plan, called Milewise.

With Allstate’s Milewise plan, drivers pay a daily rate for insurance plus a per-mile rate. For example, let’s say you drive 10 miles per day on average:

Daily rate $1.50
Per-mile rate $.08 x 10 miles = $.80
Total cost per day $2.30
Total cost per month About $70

Allstate uses a device installed in your vehicle to monitor your mileage, allowing you to keep track of your mileage and expenses through the Allstate app. If your family has multiple vehicles under the same policy, not all of them need to be enrolled in Milewise. You can individually decide whether each vehicle is classified as per mile or under a traditional unlimited mileage policy.

Milewise is available in Arizona, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin, and Washington D.C.


Read our Drivewise review to learn more about Allstate’s usage-based program and the generous teen discount offerings.

Allstate’s Drivewise option may make more sense for teens and families with higher mileage. Drivewise is an optional policy add-on, measuring behaviors like speeding, hard braking, and nighttime driving, and offers discounts for safe driving.

5. Best Teen Auto Insurance for Military Families - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

USAA is one of the best auto insurance options for military members and their families, especially families with teen drivers. It offers some of the cheapest rates for teens, whether they are insured on a family policy or their own policy.

ProsWho It's Best For
  • pro
    Active-duty military members, veterans, and their families — including children and stepchildren
  • pro
    Older teens transitioning off a family policy
  • pro
    Teens with good grades
  • pro
    Teens who have taken a driver education course
ConsWho It's Not Best For
  • con
    People not affiliated with the U.S. military

Low Rates for Teens

USAA offers some of the lowest rates overall for teen drivers from military families, especially for older teens. Teens and their families can find additional savings with the following young driver-specific discounts:

  • Good student discount: Drivers under age 25 who maintain a B average or higher or a minimum 3.0 GPA, rank in the upper 20 percent of their class, or make the honor roll or dean’s list qualify for a 20 percent discount.
  • Driver training discount: Teens who complete a basic driver education course save on their premium.

Families should note that USAA’s good student discount is not available in North Carolina or Hawaii.

Discount for Young Drivers’ First Policy

Most teen drivers start off on their family’s policy, which is cheaper than buying a separate policy. Eventually, the young driver might want to transition off a family’s policy — maybe because they’ve moved, started a new job, or experienced another life change.

When children of USAA policyholders purchase their own auto policy, they can qualify for a 10 percent discount. To be eligible, the driver needs to have been on their parents’ or guardians’ policy for at least three years, be under 25 years old, and have a clean driving record.

Frequently Asked Questions for Auto Insurance for Teen Drivers

What is the average cost of auto insurance for teenagers per month?

The average annual cost of auto insurance for drivers aged 16 to 19 is $379 per month, or $4,548 annually. The cost of car insurance for teens tends to decrease as they get older.

Age< Average monthly cost of auto insurance Average annual cost of auto insurance
16 $459 $5,511
17 $396 $4,756
18 $392 $4,708
19 $268 $3,217

Should I add my teen to my car insurance policy?

Adding a teen to your car insurance policy will be cheaper than buying them their own policy, sometimes by up to 60 percent. They’ll also qualify for discounts they wouldn’t get on their own, like if you bundle home and auto insurance. However, keep in mind that adding a teen to your policy may result in losing discounts for safe driving and being claims-free if the teen gets into an accident.

What is the cheapest car insurance for a 17-year-old?

For a 17-year-old on a family car insurance policy, Auto-Owners Insurance ($1,841), Erie ($2,041), and USAA ($2,221) have the cheapest annual rates.

If a 17-year-old needs to purchase their own car insurance policy, USAA ($3,640), State Farm ($3,890), and Allstate ($4,962) offer some of the most affordable annual rates.

How do you save money on car insurance for teens?

You can save money on car insurance for teens by:

  1. Shopping around: Get at least three quotes from different providers. Look for companies whose discounts align with your teen’s circumstances (e.g., good grades, away at college, etc.). Each company has its own formula for determining premiums, so some will be cheaper than others given your demographics and chosen coverages.
  2. Choosing the right car: The cheapest cars to insure for teen drivers are smaller vehicles, which cause less damage in an accident, and vehicles with modern safety features that keep passengers safe and lower potential medical bills. The Volkswagen Jetta and Subaru Impreza are two of the cheaper vehicles to insure for teens, as they combine the safety features of a larger car with the benefits of a compact vehicle. Flashy sports cars are the most expensive to insure for anyone, but for teen drivers in particular.
  3. Encouraging safe driving behavior: Emphasize the importance of responsible driving habits with your teen, as maintaining a clean driving record can lead to lower premiums over time. You might enroll your teen in a driver education program or establish ground rules and expectations with a parent/teen driving contract.


Our method for determining the best auto insurance companies is based on three main factors.

  • Company data: We comb the auto insurance market for information on each company’s coverages, premiums, and available discounts. We also compile third-party data from sources like the Better Business Bureau, Moody’s, AM Best, the National Association of Insurance Commissioners, S&P Global Ratings, and J.D. Power. These institutions rate auto insurance providers for customer satisfaction and financial strength.When we analyze the data, we weigh each of these factors and prioritize companies that offer low premiums and discounts for teens, young drivers, and their families. Our final rankings reflect the companies that offer the best combination of low cost, quality coverage, financial solidity, and high customer satisfaction.
  • Proprietary information: Over the past two decades, has helped customers find affordable the auto insurance policy that is the best fit for them. In that time, we’ve collected millions of data points on these transactions. We examine the data to understand the demographic qualities that predict the greatest success with specific companies. We crunched the numbers and determined the providers that offer the best and most affordable coverage for teens and their families.
  • Institutional experience: We have 20 years of experience in the auto insurance industry, which translates into a wealth of institutional knowledge. We’re deeply familiar with each auto insurance provider and its specific strengths and weaknesses. Our team of experts includes Paul Ford, a professional with nearly 30 years of experience in the industry. Paul is president of insurance at Centerfield (’s parent company) and was formerly at Canadian Access, InsLogic, Capital One Insurance Services, NetQuote, Bankrate, and Datalot.


  1. Teen Drivers and Passengers: Get the Facts. CDC. (2024).

  2. Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds. J.D. Power. (2023, Jun 13).

  3. Average Annual Miles per Driver by Age Group. U.S. Department of Transportation, Federal Highway Administration. (2022, May 31).