July 2023's Best Car Insurance for Teens & Young Drivers
July 2023's Best Car Insurance for Teens & Young Drivers
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July 2023’s Best Car Insurance for Teens & Young Drivers

Teenagers are known to face exorbitant auto insurance rates due to the significant risk they pose to insurance providers. In our comprehensive analysis of 147 car insurance companies across the country, we discovered that adding a teen driver to a parent’s policy results in an average annual increase of $2,182, effectively doubling the parents’ car insurance expenses.

To assist parents in finding affordable car insurance for their teenage drivers, we evaluated prominent insurance companies based on several factors, including price, complaint levels, availability of new car replacement and accident forgiveness, as well as collision repair services.

Average car insurance cost after adding a teen driver

Situation Average cost per year
Average cost for married couple $2,948
Average cost for parents and a 16-year-old $5,367
Average $ increase for married couple with 16-year-old on policy $2,419
Average cost for married couple with 17-year-old on policy $5,011
Average $ increase for married couple with 17-year-old on policy $2,063
Average cost for parents and an 18-year-old $4,773
Average $ increase for married couple with 18-year-old on policy $1,825
Average cost for married couple with 19-year-old on policy $4,443
Average $ increase for married couple with 19-year-old on policy $1,495

Average cost of car insurance for teen drivers, by company

Company Average annual car insurance cost for parents plus a 16-year-old Average annual car insurance cost for parents plus a 17-year-old Average annual car insurance cost for parents plus an 18-year-old Average annual car insurance cost for parents plus a 19-year-old
Allstate $8,296 $7,922 $7,767 $7,540
American Family $5,663 $5,228 $5,110 $4,537
Auto-Owner $5,412 $4,963 $4,738 $4,514
Erie $4,059 $3,854 $3,753 $3,621
Farmers $7,349 $6,956 $6,634 $6,184
Geico $4,471 $4,129 $3,890 $3,567
Nationwide $4,502 $4,427 $4,352 $4,058
Progressive $5,088 $5,169 $4,766 $4,368
State Farm $5,034 $4,659 $4,378 $4,099
Travelers $5,065 $4,348 $4,010 $3,615
USAA $4,103 $3,462 $3,108 $2,766

How Much Does Car Insurance Cost for a Teen Driver with Their Own Policy?

Age and gender Average cost of car insurance per year for a teen on their own policy
16-year-old female $8,108
16-year-old male $9,422
17-year-old female $6,279
17-year-old male $7,379
18-year-old female $5,655
18-year-old male $6,638
19-year-old female $4,266
19-year-old male $5,033

How Much Does it Cost To Add a Teen Driver in Your State?

Below you’ll see the average yearly increase in car insurance when adding drivers age 16, 17, 18 and 19 to a parent policy, broken down by state.

Average cost of adding a teen driver by state

State Average cost per year for two parents Average annual $ increase for adding 16-year-old teen driver Average annual $ increase for adding 17-year-old teen driver Average annual $ increase for adding 18-year-old teen driver Average annual $ increase for adding 19-year-old teen driver
Alabama $2,954 $2,630 $2,364 $2,081 $1,730
Alaska $3,328 $2,755 $2,427 $2,083 $1,803
Arizona $2,968 $3,005 $2,635 $2,256 $1,982
Arkansas $3,349 $2,426 $2,179 $1,906 $1,618
California $3,683 $3,212 $2,809 $2,604 $1,608
Colorado $3,527 $2,793 $2,385 $2,217 $1,882
Connecticut $3,269 $2,971 $2,615 $2,325 $2,008
Delaware $3,250 $2,547 $2,342 $2,118 $1,747
Florida $4,804 $3,424 $3,118 $2,763 $2,481
Georgia $3,222 $2,644 $2,379 $2,031 $1,636
Idaho $1,827 $1,766 $1,371 $1,203 $979
Illinois $2,782 $2,314 $1,993 $1,722 $1,572
Indiana $2,396 $2,031 $1,759 $1,558 $1,173
Iowa $2,265 $1,506 $1,336 $1,158 $958
Kansas $3,067 $2,314 $1,940 $1,710 $1,470
Kentucky $3,735 $3,050 $2,753 $2,404 $2,041
Louisiana $5,518 $4,724 $4,179 $3,632 $3,019
Maine $1,931 $1,817 $1,618 $1,424 $1,141
Maryland $3,311 $2,612 $2,349 $2,056 $1,682
Massachusetts $2,644 $2,399 $2,138 $1,956 $1,118
Michigan $3,799 $2,624 $2,439 $2,154 $1,704
Minnesota $3,197 $2,365 $2,042 $1,714 $1,800
Mississippi $3,037 $2,312 $2,042 $1,769 $1,826
Missouri $3,252 $2,765 $2,141 $1,834 $1,572
Montana $2,788 $1,899 $1,611 $4,140 $3,933
Nebraska $2,793 $1,630 $1,388 $1,251 $1,068
Nevada $3,584 $3,655 $3,106 $2,712 $2,138
New Hampshire $2,063 $1,690 $1,498 $1,336 $1,194
New Jersey $3,473 $2,865 $2,622 $2,408 $1,741
New Mexico $2,889 $2,386 $2,092 $1,962 $1,530
New York $4,320 $3,231 $2,973 $2,582 $2,074
North Carolina $1,905 $1,735 $1,052 $866 $276
North Dakota $2,651 $1,676 $1,374 $1,175 $948
Ohio $2,015 $1,839 $1,627 $1,414 $1,127
Oklahoma $3,365 $2,176 $1,901 $1,674 $1,425
Oregon $2,455 $2,105 $1,785 $1,501 $1,391
Pennsylvania $3,378 $3,193 $2,834 $2,506 $2,090
Rhode Island $3,447 $2,760 $2,530 $2,067 $1,728
South Carolina $3,323 $2,777 $2,462 $2,192 $1,814
South Dakota $3,001 $1,574 $1,353 $1,160 $924
Tennessee $2,533 $2,391 $2,066 $1,735 $1,420
Texas $3,573 $3,075 $3,022 $2,665 $2,181
Utah $2,609 $2,537 $2,128 $1,861 $1,507
Vermont $1,723 $1,164 $1,047 $937 $825
Virginia $2,050 $1,715 $1,529 $1,333 $1,134
Washington $2,642 $2,528 $2,247 $1,993 $1,502
West Virginia $2,822 $2,114 $1,919 $1,722 $1,484
Wisconsin $2,335 $1,701 $1,508 $1,269 $1,026
Wyoming $2,419 $1,767 $1,429 $1,285 $1,085
Note: Hawaii doesn’t let insurers use age to set rates.

How to Find the Best Car Insurance for Teens and Young Drivers

You won’t be able to break out a good-sized price increase whilst you add a youngster motive force on your automobile insurance coverage, however, there are approaches to reduce the hit on your wallet.

Keep your teenager in your coverage

Parents searching out the most inexpensive car insurance must be conscious that it’s usually much less costly to add a youngster to a determine’s auto coverage policy instead of putting the youngster on their very own coverage. If you’re doubtful, have your coverage agent run prices for each scenario or evaluate charges online for the full price of separate regulations. Quotes are unfastened, so there’s no disadvantage to checking which way is the most inexpensive.

Make sure you’re getting reductions

Common reductions applicable to teens encompass excellent pupil discounts (commonly for a B common or above) and, for college students, a “scholar away at school” bargain. If the scholar attends faculty 100 miles or greater far away from home, without a vehicle, you can qualify for a charge break on their quotes.

In addition, teen driving force coverage applications can offer both a reduction and precious driving abilities training. Keeping injuries off a teenager’s report will shield your destiny rates.

Shop around

Having a youngster driver is a superb time to compare car insurance rates, especially in case you haven’t finished so in a few years. For example, we found that Erie and USAA rate barely over $4,000 12 months for two mothers and father and a 16-yr-antique. That’s compared to over $7,000 a year at Farmers and over $eight,000 at Allstate, on average.

Consider groups that offer a twist of fate forgiveness

Car insurance businesses boom quotes using a median of 40% if you have brought on an accident concerning harm and 38% after an accident with property harm.

Some businesses offer a twist of fate forgiveness coverage. With this selection, the insurer won’t increase costs based on one twist of fate. The crash remains on your driving record and the coincidence may want to nonetheless affect your quotes in case you alternate organizations later.

Car insurance businesses that provide twist of fate forgiveness don’t allow every driver to take part in the application. Drivers listed on the coverage have to have a smooth use file for a sure variety of years.

Accident forgiveness applications will possibly grow your vehicle coverage charges. Our analysis found that the price varies from about $15 to $60 a year.

Consider corporations that provide new vehicle replacement insurance

New vehicle substitute coverage presents repayment for a logo-new car of the same make and version (minus your deductible) if your vehicle receives totaled. With this insurance, you gained’t need to pay the difference between the price of a logo-new vehicle and the depreciated value of your totaled vehicle.

New car alternative insurance can be beneficial for households with youngster drivers, who are more likely to crash automobiles.

Not everyone is eligible for brand-spanking new car substitute coverage. You’ll normally have collision and complete insurance, which can pay for damage on your very own vehicle. Insurers additionally generally require that your vehicle is beneath a positive model age and under a selected mileage, including 24,000 miles. Older automobiles and motors with a variety of miles received be eligible for brand new automobile alternative insurance.

Wait it out

Car coverage fees will commonly begin losing around age 25. See Forbes Advisor’s evaluation of automobile insurance fees with the aid of age and gender.

Insurance Programs That Help Teen Drivers

Getting a driver’s license offers young adults a feeling of freedom, however it can also supply mother and fathers pressure and anxiety. Without parental supervision, green teenager drivers are confronted with a collection of distractions that frequently result in negative riding and car accidents.

While the most effective way for a younger driver to benefit revel in on the road is to hold riding, a few automobile coverage businesses have programs to help young adults cut down bad using behaviors and enhance driving abilities. As an brought bonus, a few insurers offer a discount when a youngster efficiently completes its program.

Some teen driving force applications encompass:

  • SmartPath: A Hanover Insurance cellular app tracks a youngster’s driving behavior and offers a score based on factors, which include distracted driving, hard braking, dashing, and the time of day they’re using. As teenagers enhance their rankings, they can receive Amazon rewards and you can get a reduction on your car insurance.
  • Steer Clear: This State Farm car insurance software gives 5 hours of education modules, which include riding eventualities, puzzles, and motion pictures. To get a certificate finishing touch, young adults should entire five hours of exercise using with at least 10 journeys. Upon finishing touch, you can ahead the certificate to your coverage agent for a reduction.
  • TeenSmart: TeenSmart turned into in the beginning evolved in partnership with Allstate. The application makes use of interactive mastering movies, riding simulations, and discern and teen activities to assist address some of the top behavioral and social factors that result in car injuries.
  • Teen Safe Driver: A unfastened American Family Insurance app that video displays units a teen’s risky using behaviors. Once a teen drives three,000 miles or completes one year of the program, you’ll get a discount for your top rate from American Family. The discount is robotically implemented till renewal after your teen turns 21.

Methodology

Forbes Advisor’s scores of the first-rate automobile insurance agencies for teenage drivers are based on the following measurements.

Auto insurance quotes: 50% score. Because having a teenager driving force on an insurance policy is frequently wildly expensive, we gave weight to this category. We used information from Quadrant Information Services.

Average quotes are primarily based on coverage with a brand new Toyota RAV4 and insurance of:

  • $ hundred,000 for accidents to 1 individual, $300,000 for accidents per twist of fate, $ hundred,000 for assets damage (referred to as one hundred/300/100).
  • Uninsured motorist insurance of a hundred/300.
  • Collision and complete insurance with a $500 deductible.

Complaints (20% of score): We used grievance facts from the National Association of Insurance Commissioners (NAIC). Most automobile coverage lawsuits center on claims, including unsatisfactory settlements, delays, and denials.

Accident forgiveness (10% of score): Car coverage corporations earned points for imparting an accident forgiveness application, which may be precious when you have a teenager driving force.

New automobile replacement (10% of score): Car coverage groups earned factors for supplying new automobile replacement insurance.

Collision restore rating (10% of rating): We used grades furnished by means of CRASH Network, a weekly newsletter protecting the collision repair and car coverage marketplace segments. CRASH Network’s Insurer Report Card has grades from greater than 1,000 collision repair experts that gauge the exceptional of auto insurance organizations’ collision claims providers.

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