Get Cheapest Car Insurance for Teen Drivers

It can be challenging to find the cheapest car insurance for teen drivers. Due to the inexperience of teenagers, car insurance policies can be very expensive for them.

When you are an adult, it is almost always cheaper to add a teen to your auto insurance policy than it is to purchase a separate policy. Shopping around and getting quotes from several insurance companies is the best way to get the lowest rates.

Although a stand-alone policy may not always be practical for teens, you can see how much auto insurance costs for teen drivers and how much prices vary if you look at rates for those policies. NerdWallet compared quotes for male and female teenagers driving a 2017 Toyota Camry LE in every state, plus Washington, D.C., with no tickets or traffic violations.

In our analysis, we found that keeping a teen on the parents’ or guardians’ policy is more affordable, but these figures can provide a benchmark for what to expect with auto insurance for teens.

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What is the Cost of Car Insurance for Teens?

According to the Insurance Institute for Highway Safety, teen drivers are involved in car crashes four times more often than drivers 20 and older. According to the Centers for Disease Control and Prevention, car accidents are the leading cause of death for teenagers in the U.S.

Teens who become primary policyholders incur higher insurance rates, but the amount varies depending on factors such as their state of residence, gender, and age. An analysis of the cost of full coverage for newly licensed 16-year-olds demonstrated that the price is averaged to be 44% higher than that of more experienced 19-year-olds.

Our research determined the average premiums for full and minimum coverage, based on the age of teens, in the following states:

Minimum coverage for 16-year-olds is $2,733; full coverage is $6,613.
For 17-year-olds, full coverage is $5,373; minimum coverage is $2,206.
Minimum coverage amount for 18-year-olds is $1,938; full coverage amount is $4,837.
For those aged 19 and over, the minimum coverage cost is $1,451.

Comprehensive, collision, as well as uninsured/underinsured motorist coverage, constitute full coverage insurance in our analyses. Only state-mandated coverage is included in minimum coverage policies.

Teen Drivers Can Find Cheap Insurance With Large Companies

Our first step was to analyze large insurers that are available in almost every state, to determine which are the cheapest.

USAA, Allstate, Geico, Progressive, State Farm and USAA are the five largest auto insurers in the country. As an active military member/veteran, and/or parent of a veteran, USAA insures you, but only your family.

Based on average annual prices for both full and minimum coverage, we have ranked the largest companies, excluding USAA, from cheapest to most expensive.

Insurers Charge an Average of $347 per Year for 16-Year-Olds

The cost of insuring teens is the highest since they are the least experienced.

Hawaii offers the cheapest car insurance rates for teenage drivers because it doesn’t use age to determine premium prices. A driver of any age can expect to pay between $1,000 and $1,100 for full coverage in the state.

Moreover, Louisiana’s annual full coverage insurance policies are the most expensive in the country. In general, a full coverage policy for an individual typically costs over $11,500 per year. To be eligible for multi driver discounts and other discounts in Louisiana, 16-year-olds are strongly advised to apply for a policy with an adult company.

How Much Does Car Insurance Cost for a 17-Year-Old on Average

17 year old car insurance is considerably more expensive than that for a 16-year-old. Nationally, the average premium for full coverage is just over $5,370, whereas the standard coverage is just $2,206.

Unlike Hawaii, the average annual premium for a full-coverage policy in North Carolina is slightly less than $2,660 for a 17-year-old. Among Iowa’s 17-year-olds, $950.00 is the cheapest rate when comparing averages to bare-minimum coverage. Louisiana has the highest average full coverage rates of $9,255 for a 12-month, full-coverage insurance policy for 17-year-olds. Almost $4,070 is the average cost for minimum coverage in Michigan.

18-Year-Old’s Car Insurance Average Cost

According to the Insurance Information Institute, the national average premium for a driver who is 18 years old and has full coverage is around $4,830, while the average is $1,940 for a driver who has minimum coverage. The most affordable full coverage rate is offered by North Carolina, with $2,398 per year, and the lowest minimum coverage is offered by Iowa, with $812. The state with the highest rates for full coverage is Louisiana, while the state with the most affordable rates is Michigan.