Cheapest Car Insurance for Teens (and Their Parents)

Content of the material

  1. Good student discounts
  2. Video
  3. If I add a teen to my car insurance, how does coverage work?
  4. How to Add Your Teen Driver to Your Insurance Policy
  5. What Are the Different Types of Car Insurance for Teens?
  6. Average car insurance costs for teen drivers by state
  7. Teen driver insurance providers
  8. Expert Insights to Help You Make Smarter Financial Decisions
  9. Emily Barkley-Levenson, Ph.D.
  10. Do you feel that parents having their teen children take on the responsibility of a big purchase, such as a car, provides a teachable moment that is worth the monetary cost? Why or why not?
  11. Some states prohibit the use of gender to determine insurance rates, even though the motor vehicle death rate of male 16- to 19-year-olds is nearly double that of females of the same age. How do male and female teens pose different levels of risk to insurers?
  12. The North Carolina Department of Transportation has the right under law to suspend teens’ driving privileges if they drop out of school or do not pass at least 70% of their courses. Should academics play a strong role in a teen’s eligibility to drive? Why or why not?
  13. What is the psychological difference between learning in the classroom and learning “on the road” as a driver?
  14. Auto insurance for teens by gender
  15. Auto insurance rates for female teenage drivers
  16. FAQ About the Cheapest Car Insurance for First-Time Drivers
  17. 1. Can my teenager drive my car if he or she is not listed on the policy?
  18. 2. Do teens need to get full coverage car insurance?
  19. 3. Why is car insurance for 18 years old so expensive?
  20. 4. Which is the best company to buy car insurance for 17 years old?
  21. 5. Is it better to add the teen drivers to the parent’s policy?
  22. Saving on teen auto insurance

Good student discounts

Students with higher grade point averages are usually more responsible and better drivers. If your young driver earns a B average or better at school, you may qualify for a good student discount on Nationwide teen car insurance.

Video

If I add a teen to my car insurance, how does coverage work?

If you add your teen driver to your car insurance policy, they’ll benefit from the same protection that you do. All covered drivers have access to all cars listed on the policy, and the liability limits are the same for all drivers on the policy. Since teen drivers pose a greater risk of accidents, you may want to increase your liability limits on the policy, especially if your current limits aren’t covering your entire net worth. Learn more about liability coverage.

All extra coverages on the policy will also apply to your teen, including roadside assistance, , rental car reimbursement, and disappearing deductibles.

How to Add Your Teen Driver to Your Insurance Policy

If you’re in the process of switching insurance companies, you can add your teen to your policy when your purchase it. Whether you’re adding your teen to a new policy or a current policy, you should follow these steps, as outlined by Insurance.com:

  • Contact your insurance company. It’s very likely that your insurance company will contact you if your teen is old enough to drive, but if they haven’t, you should give them a call.
  • Have all of your relevant information on hand. You’ll need to have your teen driver’s license number and information about the vehicle they’ll be driving, especially if you’re adding another vehicle to the policy.
  • Make sure you go over every detail. You should know the maximum and minimum coverages for your teen driver before you agree to any policy changes. Ask your insurance agent if you qualify for any available discounts because these can add up to significant savings. If your teen has their own car, you can probably take advantage of a multi-car discount.
  • Don’t rush your decision. You might decide that purchasing a separate policy for your teen driver makes more sense, or it might be more affordable to change insurance companies. Whatever you choose to do, make sure your teen driver isn’t operating a vehicle before they have insurance coverage.

What Are the Different Types of Car Insurance for Teens?

Although there are some exceptions, most car insurance companies offer:

  • Bodily Injury and Property Damage Liability to cover the other party's medical care and damages when you are the at-fault driver
  • Collision Coverage to cover your own vehicle’s damage regardless of fault
  • Comprehensive Coverage to pay for non-accident related damages
  • Personal Injury Protection/Medical Payments to cover your medical expenses in case of an accident
  • Uninsured Motorist Coverage to cover your damages and medical expenses when the at-fault driver doesn’t have accurate coverage
  • Guaranteed Asset Protection (GAP) Coverage to cover the gap between your car's lease or loan and the determined value in the case of a total loss

Average car insurance costs for teen drivers by state

The state where you live also affects your teen driver auto insurance premium, as illustrated in the table below. Hawaii is the only state that prohibits age as a factor in determining car insurance rates, which makes it the cheapest state for young drivers. Florida has the most expensive rates for car insurance when adding a young driver to their parents’ policy. These rates are based on the top insurers in the country and are for full coverage car insurance for teens added to their parents’ policy and thus reflect added cost and not the total cost.

State Age 16 Age 17 Age 18 Age 19
Alabama $2,714 $2,437 $2,136 $1,694
Alaska $2,245 $1,918 $1,630 $1,418
Arkansas $2,711 $2,421 $2,145 $1,701
Arizona $2,704 $2,458 $2,101 $1,813
California $3,744 $3,286 $3,010 $1,823
Colorado $2,936 $2,687 $2,339 $1,879
Connecticut $2,927 $2,578 $2,265 $1,611
Delaware $2,491 $2,135 $1,922 $1,644
Florida $4,343 $4,042 $3,675 $2,728
Georgia $3,007 $2,736 $2,428 $2,023
Hawaii $35 $35 $35 $35
Idaho $2,313 $2,023 $1,197 $974
Illinois $1,954 $1,711 $1,760 $1,561
Indiana $1,537 $1,404 $1,505 $1,180
Iowa $1,705 $1,406 $1,223 $976
Kansas $2,099 $1,878 $1,660 $1,366
Kentucky $3,593 $3,094 $2,673 $2,026
Louisiana $4,333 $3,859 $3,181 $2,448
Massachusetts $1,389 $1,262 $1,708 $1,100
Maryland $2,787 $2,509 $2,276 $1,781
Maine $2,002 $1,850 $1,124 $937
Michigan $3,403 $3,122 $2,735 $2,238
Minnesota $2,217 $1,920 $1,643 $1,383
Missouri $2,192 $1,971 $1,772 $1,443
Mississippi $2,387 $2,019 $1,687 $1,361
Montana $2,298 $2,067 $1,847 $1,476
North Carolina $1,627 $1,487 $869 $237
North Dakota $3,398 $2,930 $1,152 $883
Nebraska $1,735 $1,650 $1,322 $1,051
New Hampshire $2,353 $2,078 $1,429 $1,130
New Jersey $2,035 $1,737 $1,834 $1,568
New Mexico $3,573 $3,182 $1,458 $1,145
Nevada $1,765 $1,078 $2,646 $2,231
New York $1,507 $1,351 $2,819 $1,936
Ohio $1,647 $1,479 $1,314 $1,036
Oklahoma $2,455 $2,170 $1,893 $1,486
Oregon $2,133 $1,851 $1,581 $1,323
Pennsylvania $2,372 $2,206 $1,881 $1,525
Rhode Island $2,927 $2,715 $2,361 $1,742
South Carolina $2,140 $1,873 $1,622 $1,247
South Dakota $1,535 $1,416 $1,251 $1,033
Tennessee $2,116 $1,903 $1,640 $1,313
Texas $2,860 $2,562 $2,298 $1,959
Utah $2,462 $2,120 $1,861 $1,451
Virginia $2,401 $2,248 $1,627 $1,303
Vermont $2,084 $1,840 $1,956 $1,707
Washington $1,935 $1,729 $1,528 $1,103
Washington, D.C. $2,506 $2,235 $1,939 $1,568
Wisconsin $2,276 $2,074 $1,235 $981
West Virginia $1,701 $1,508 $1,775 $1,335
Wyoming $2,071 $1,969 $1,752 $1,341

*Hawaii does not use age as a rating factor

Teen driver insurance providers

Almost all insurance companies can underwrite a car insurance policy for teens even though many new drivers end up on their parent’s policy as soon as they get their driver’s license.

However, for young drivers who are shopping for their own car insurance, it’s a good idea to research the companies that are within your coverage area.

Once you’ve narrowed down your selections, it’s time to consider the factors that go into making a final decision on what constitutes the best young driver insurance for you.

Expert Insights to Help You Make Smarter Financial Decisions

ValuePenguin has curated an exclusive panel of professionals, spanning various areas of expertise, to help dissect difficult subjects and empower you to make smarter financial decisions. Read on for auto insurance insights. Do you feel that parents having their teen children take on the responsibility of a big purchase, such as a car, provides a teachable moment that is worth the monetary cost? Why or why not? Some states prohibit the use of gender to determine insurance rates, even though the motor vehicle death rate of male 16- to 19-year-olds is nearly double that of females of the same age. How do male and female teens pose different levels of risk to insurers? The North Carolina Department of Transportation has the right under law to suspend teens’ driving privileges if they drop out of school or do not pass at least 70% of their courses. Should academics play a strong role in a teen’s eligibility to drive? Why or why not? What is the psychological difference between learning in the classroom and learning “on the road” as a driver? Emily Barkley-Levenson, Ph.D. Assistant Professor of Psychology Read Answer The commentary provided by these industry experts represent their viewpoints and opinions alone.

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Emily Barkley-Levenson, Ph.D Assistant Professor of Psychology, Hofstra University Do you feel that parents having their teen children take on the responsibility of a big purchase, such as a car, provides a teachable moment that is worth the monetary cost? Why or why not? A lot of the attributes that make up what it means to be responsible, like self-control and delayed gratification, are still developing during adolescence and into early adulthood. In fact, the part of the brain that is responsible for these processes, the prefrontal cortex, is still maturing until around age 25. These are also skills that can be trained and improved with practice, which means that the teen years are a great time to work out those self-control muscles, so to speak. Taking on increased responsibility and autonomy with a car can provide an adolescent with lots of chances to build up their self-control and delayed gratification skills. There’s also a phenomenon called the endowment effect, where we value things more if they belong to us or we have a sense of ownership over them. So having your teen pay for their car themselves (or at least contribute their own money toward it) should increase the value they place on it, leading to safer and more responsible behavior. Some states prohibit the use of gender to determine insurance rates, even though the motor vehicle death rate of male 16- to 19-year-olds is nearly double that of females of the same age. How do male and female teens pose different levels of risk to insurers? The research is quite clear that men engage in more risky behaviors than women, including wearing seat belts less frequently and running yellow lights more often. Women perceive a higher likelihood of negative consequences and less enjoyment from these actions than men do, which leads to less risk-taking behind the wheel. I expect these findings would play out similarly with adolescent boys and girls as well. That said, statistical averages can’t predict the actions of any particular individual; teens of all genders can be reckless and risk-taking, and there are many teen boys who are extremely safe drivers. The North Carolina Department of Transportation has the right under law to suspend teens’ driving privileges if they drop out of school or do not pass at least 70% of their courses. Should academics play a strong role in a teen’s eligibility to drive? Why or why not? The reasons why driving privileges are revoked typically have to do with safety (underage possession of alcohol, speeding or reckless driving, etc.). In this case, if there isn’t a strong connection between dangerous driving and poor academic performance, then linking the two in terms of policy doesn’t seem particularly effective. Academic performance does relate to other health-risk behaviors (like violence and drug use), but this is one of those cases of correlation not being the same thing as causation: Other factors such as family stress and poverty can make teens more likely both to underperform academically and to engage in health-risk behaviors, but skipping school doesn’t cause you to drive more poorly. What is the psychological difference between learning in the classroom and learning “on the road” as a driver? Something that shows up over and over again in research with adolescents is a big difference in behavior between “cold” settings (nonemotional, intellectual contexts like a lab or a classroom) and “hot” settings (emotional situations in the real world, especially when peers and social pressure are involved). A teen may make entirely rational and safe decisions in the classroom (or when a driving instructor is in the car) but take risks on the road when they are more “amped up” by the presence of their friends. Back to all experts {“backgroundColor”:”white”,”content”:”\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\”ShortcodeImage–root left\” \u003E\n \u003Cdiv class=\”ShortcodeImage–image-container \”\u003E\n \u003Cimg alt=\”headshot of expert\” class=\”ShortcodeImage–image lazyload\” style=\”width: 60px;\” data-src=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/emily-barkley-levenson_uajgkh\” src=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/emily-barkley-levenson_uajgkh\” data-srcset=\”https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/emily-barkley-levenson_uajgkh 1x, https:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/emily-barkley-levenson_uajgkh 2x\”\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\”expert-emily-barkley-levenson\”\u003EEmily Barkley-Levenson, Ph.D.\u003C\/h3\u003E\n\n\u003Cp\u003EAssistant Professor of Psychology, Hofstra University\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\”ShortcodeToggle–root ShortcodeToggle–article \” id=\u003E\n \u003Cbutton class=\”ShortcodeToggle–toggle\” onclick=\”this.parentNode.classList.toggle(‘ShortcodeToggle–open’);\”\u003E\u003Cp class=\”ShortcodeToggle–label\”\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\”ShortcodeToggle–contents-wrapper\”\u003E\n \u003Cdiv class=\”ShortcodeToggle–contents\”\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EDo you feel that parents having their teen children take on the responsibility of a big purchase, such as a car, provides a teachable moment that is worth the monetary cost? Why or why not?\u003C\/h4\u003E\n\n\u003Cp\u003EA lot of the attributes that make up what it means to be responsible, like self-control and delayed gratification, are still developing during adolescence and into early adulthood. In fact, the part of the brain that is responsible for these processes, the prefrontal cortex, is still maturing until around age 25. These are also skills that can be trained and improved with practice, which means that the teen years are a great time to work out those self-control muscles, so to speak. Taking on increased responsibility and autonomy with a car can provide an adolescent with lots of chances to build up their self-control and delayed gratification skills. \nThere\u2019s also a phenomenon called the endowment effect, where we value things more if they belong to us or we have a sense of ownership over them. So having your teen pay for their car themselves (or at least contribute their own money toward it) should increase the value they place on it, leading to safer and more responsible behavior.\u003C\/p\u003E\n\n\u003Ch4\u003ESome states prohibit the use of gender to determine insurance rates, even though the motor vehicle death rate of male 16- to 19-year-olds is nearly double that of females of the same age. How do male and female teens pose different levels of risk to insurers?\u003C\/h4\u003E\n\n\u003Cp\u003EThe research is quite clear that men engage in more risky behaviors than women, including wearing seat belts less frequently and running yellow lights more often. Women perceive a higher likelihood of negative consequences and less enjoyment from these actions than men do, which leads to less risk-taking behind the wheel. I expect these findings would play out similarly with adolescent boys and girls as well. That said, statistical averages can\u2019t predict the actions of any particular individual; teens of all genders can be reckless and risk-taking, and there are many teen boys who are extremely safe drivers.\u003C\/p\u003E\n\n\u003Ch4\u003EThe North Carolina Department of Transportation has the right under law to suspend teens\u2019 driving privileges if they drop out of school or do not pass at least 70% of their courses. Should academics play a strong role in a teen\u2019s eligibility to drive? Why or why not?\u003C\/h4\u003E\n\n\u003Cp\u003EThe reasons why driving privileges are revoked typically have to do with safety (underage possession of alcohol, speeding or reckless driving, etc.). In this case, if there isn\u2019t a strong connection between dangerous driving and poor academic performance, then linking the two in terms of policy doesn\u2019t seem particularly effective. Academic performance does relate to other health-risk behaviors (like violence and drug use), but this is one of those cases of correlation not being the same thing as causation: Other factors such as family stress and poverty can make teens more likely both to underperform academically and to engage in health-risk behaviors, but skipping school doesn\u2019t \u003Cem\u003Ecause\u003C\/em\u003E you to drive more poorly.\u003C\/p\u003E\n\n\u003Ch4\u003EWhat is the psychological difference between learning in the classroom and learning \”on the road\” as a driver?\u003C\/h4\u003E\n\n\u003Cp\u003ESomething that shows up over and over again in research with adolescents is a big difference in behavior between \”cold\” settings (nonemotional, intellectual contexts like a lab or a classroom) and \”hot\” settings (emotional situations in the real world, especially when peers and social pressure are involved). A teen may make entirely rational and safe decisions in the classroom (or when a driving instructor is in the car) but take risks on the road when they are more \”amped up\” by the presence of their friends.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\”ShortcodeAlign–root ShortcodeAlign–horizontal-center\”\u003E\n \u003Cdiv class=\”ShortcodeAlign–container\”\u003E \n \u003Cspan\u003E\u003Ca class=\”ShortcodeLink–root Button–root Button–primary Button–auto-width\” title=\”Back to all experts\” href=\”#expertadvice\”\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n”,”padding”:”double”}

Auto insurance for teens by gender

Car insurance companies do not believe in gender equality when it comes to providing insurance policy rates. The gender of the driver impacts a lot on the car insurance cost for any state, city, or area. On average, we can say that a male teen driver has to pay $380 extra as compared to a female teen driver.

As per the insurance carriers around the country, female drivers have much clean record and zero to one at-fault accident on record. On the other hand, male drivers have a high number of DUIs and at-fault accidents on their records. Plus they tend to cross the speed limit more as compared to female drivers.

As a result, insurance companies find female drivers much safer customers than male drivers. On average, the female teen driver pays $3180 for minimum coverage, while a male driver pays $3975 for minimum coverage. Let’s see the breakdown of this to have a clear picture.

Auto insurance rates for female teenage drivers

Adding a daughter to your existing policy will also increase your insurance premium to a huge extent. But it might not be that much expensive for the drivers of the USA. Adding a teen daughter can increase your insurance rates by $1098 annually. And this is much lower than the average insurance cost for a male teen driver.

The reason behind this is; as per insurance carriers around the country, female drivers are much safer as compared to male drivers. But these rates vary for different car insurance companies. Let’s have a look at the top car insurance companies in our country and their rates for female teen drivers.

Auto Insurance CompanyAnnual Car Insurance Premium
Farmers$2,144
GEICO$1,952
Allstate$2,343
Nationwide$1,727
Progressive$2,103
State Farm$1,905
Liberty Mutual$1,904
Amica$2,099
USAA$1,463

FAQ About the Cheapest Car Insurance for First-Time Drivers

1. Can my teenager drive my car if he or she is not listed on the policy? No, you can not allow your kids to drive the car until their names have been added to the policy. Letting anyone drive your car regularly without informing the insurance company is fraudulent and the result of this can be bad. If the person gets into an accident then the company can deny the claim. 2. Do teens need to get full coverage car insurance? No, teen drivers can drive legally with the state’s minimum required coverage. But full coverage insurance is recommended for teens to avoid huge repair bills. 3. Why is car insurance for 18 years old so expensive? Teen drivers are the riskiest drivers for every insurance company. The reason behind this is; as per the insurance companies around the country, teen drivers have the highest involvement in huge road accidents. Plus they get involved in careless driving and DUIs. 4. Which is the best company to buy car insurance for 17 years old? Giving the credit to one company will be unfair to other companies. Because each company has its method to calculate the insurance cost. And each company has a different coverage in their policy. Some might cover collisions at $1400 while some might cover only the minimum requirement is $1500. But the top five car insurance companies for teen drivers are; Allstate, Progressive, Erie, Nationwide, and USAA. 5. Is it better to add the teen drivers to the parent’s policy? Adding a teen driver to a parent’s policy can be a smart decision. Buying a separate policy for teen drivers can be way too much expensive and somewhat unnecessary. If your insurance company allows adding your kid to your policy then avoid buying for double rates.

Saving on teen auto insurance

As with any young driver insurance policy, there are ways for teens to reduce their rates. Let’s look at a few different ways to lower that bill.

  • Student discounts for good grades – insurance companies like to reward teens who show responsibility and keep up their grades. These discounts are typically offered to young drivers between the ages of 16 and 24, though some insurance agencies may have other ranges. While the grade requirement may vary between providers, a common qualification for a good student discount is to maintain a B average in high school or college, with proof of grades. The amount or percentage discounted on car insurance for young drivers varies per agency, but it’s worth making an inquiry.
  • Loyalty discounts – loyalty discounts come as teens and young drivers maintain their policies with a specific agency or agent. The longer they keep a policy with the company and keep their account in good standing, typically the better the discount.
  • Safe driver discounts – driving safely is a must and insurance companies measure this by looking at the number of traffic violation tickets and accidents a driver has. Even teens can qualify for safe driver discounts on their insurance policy if they maintain an impeccable record. Some agencies even offer a tracker to reduce rates. You simply install it in the car and the tracker monitors the driver’s habits. Discounts can be offered to those who follow the speed limits and traffic laws.

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