Cost of Auto Insurance for Teens

Car insurance for teens costs an average of $3,751 — 258 percent higher than the national average annual auto insurance cost of $1,047.

Age

Car insurance for 16-year-olds costs the most, while prices generally decrease for the remainder of the teen years.

But don’t worry, parents: Car insurance costs start to decrease to normal rates after your child turns 25. At that point, you should be off the hook for their premiums anyway. This data from Progressive shows how car insurance costs change based on age.

Gender

Do you have teenage boys? If so, expect to pay more for their car insurance than you would for teenage girls. However, there are some states in which men don’t pay more for car insurance, as insurance companies in those states aren’t legally allowed to use gender as a factor when determining premiums:

• California
• Hawaii
• Massachusetts
• Michigan
• Montana
• North Carolina
• Pennsylvania

In every other state, young men pay more for car insurance than young women. Why? Because in general, men drive more miles than women, which leads to more accidents and, thus, more claims.¹

College Students

Even with the best car insurance for college students, you can still expect to pay high fees for your children ages 18 to 22.

While car insurance for teens costs more than it does for regular adults, there are ways to lower your rates as much as possible.

Cheapest Car Insurance Companies for Teens

First, find cheap car insurance companies for teens, such as these insurers:

• Allstate
• Erie
• GEICO
• Grange
• Liberty Mutual
• Mercury
• Progressive
• Safeco
• State Farm
• Travelers
• USAA

Ways to Save on Car Insurance

Aside from setting yourself up with a good provider, here’s how to lower auto insurance rates:

• Add your teen to your existing policy. It’s cheaper to add your teen to your existing car insurance policy than it is to get them a separate policy. We’ll explain in more detail below.
• Drop unnecessary coverages. Although you risk paying more later on if your teen has an accident, you can lower premiums automatically by dropping coverages your state doesn’t require, like rental car coverage or roadside assistance.
• Raise your deductibles. Again, a higher deductible leads to lower premiums.
• Install GPS. Some auto insurance companies offer discounts if you install teen driver monitoring in the form of GPS navigation.
• Make your teen take a class. By having your teen take an approved defensive driving or driver training class, you might qualify for discounts with your insurance provider.
• Encourage your child to get good grades. Some car insurance companies offer good-student discounts.
• Get pay-per-mile insurance. If your teen doesn’t drive a lot, consider usage-based insurance, otherwise known as pay-per-mile insurance. You’ll only pay for the miles your teen drives, so hope they don’t plan a cross-country road trip for the summer.

Check if your car insurance company offers any discounts that could apply to your teenager:

Are teens actually worse drivers than the average adult, or is this just a vicious stereotype?

More Traffic Fatalities

Statistics show teens have more traffic fatalities than any other age group, especially 16-year-olds. Compared to the rest of the population, 16-year-olds are 32 percent more likely to die in traffic accidents, with 51 deaths per 100,000 licensed drivers in 2020.

In fact, according to the Centers for Disease Control and Prevention, motor vehicle crashes are the second leading cause of death for teens in the U.S., killing seven teens a day.³

More Crashes

The increased likelihood of accidents among teen drivers goes for all crash types, both fatal and nonfatal. Again, 16-year-olds are the most likely drivers to get into crashes — 45 percent higher than the average crash rate across all age groups, according to data from the National Safety Council.

The more likely someone is to get into an accident, the more likely they are to file a claim. Since teens are much more likely to get into car accidents than any other age group, and therefore more likely to have claims, insurance companies protect themselves financially by issuing high premiums for these drivers from the start.

Technically, you don’t have to add your teenager to your existing car insurance policy. Instead, you could keep your car insurance rates as is by getting them a separate policy. Here are some benefits and drawbacks of adding your teen to your existing policy.

When choosing which vehicle to attach to your teen’s auto insurance policy, look for safety features and good crash-test ratings from the Insurance Institute for Highway Safety⁶ and the National Highway Traffic Safety Administration.⁷

These are some safety features to consider:

• Adaptive cruise control
• Airbags (at least six)
• Anti-lock brakes
• Automatic climate control
• Automatic high beams
• Auto on-off headlights
• Blind-spot monitoring
• Driving monitoring from manufacturers such as these:
  • Chevrolet
  • Ford
  • Hyundai
  • Kia
  • Lexus
  • Toyota
  • Volkswagen
• Forward-collision warning
• Hill-start assist
• Infotainment system with voice recognition
• LED headlights and taillights
• Outboard mirrors with turn-signal indicators
• Power-adjustable driver’s seat
• Tilt-and-telescopic steering wheel
• Traction and stability control⁸

Avoid attaching your teen to the following types of vehicles.

• Sports cars: Adding your teen to a car that’s already pricey is a recipe for disaster, as repairs will cost more than with less-expensive cars.
• SUVs and pickup trucks: Larger cars are harder to park and have poor mileage compared to compact cars or sedans.
• High-horsepower cars: While your teen may love a car with a lot of horsepower, these vehicles come with higher premiums, as they’re at a higher risk of hydroplaning.

Getting car insurance for teens is similar to getting car insurance for anyone, but you may need to do some research to get affordable prices.

• Research. Start with reviewing the best car insurance for teens. Of course, price shouldn’t be the only factor you consider. Look for great customer service ratings as well if you want your claims to be covered in as little time as possible.
• Choose your coverages. Before you compare quotes from different providers, decide which coverages and limits you want; that way, you’re comparing apples to apples. For your teen, we recommend full coverage car insurance.
• Get quotes. It’s easy to find quotes online, so you don’t need to go to an insurance agency in person. Get quotes from at least three agents before you make a decision.
• Speak to an agent or broker. Speak to an insurance agent, or to a broker if you want someone to shop the market for you. They can help you fine-tune your potential policy based on you and your teen’s needs.
• Send your application. Apply for the policy.
• Pay your premiums. To activate your policy, pay your premiums and wait for your effective date.

For a parent, few events are scarier than your teen taking the wheel, so brush up on teen driving laws before you hand them the keys. Although it’s likely your teen will experience at least a fender bender, you can keep accident and car insurance rates low with the right training and defensive driving.