How Much Is Car Insurance for 17-Year-Olds in 2024?

On a family policy, the cheapest car insurance available for a 17-year-old driver is approximately $2,685 from Nationwide. In contrast, a 40-year-old faces an annual rate of $1,004 to pay the cheapest full coverage car insurance policy, making the teen's insurance about $1,681 more expensive.

Factors like age and gender heavily influence car insurance costs for teens. Younger drivers, especially males, are charged higher rates due to their higher risk and lack of driving experience. Insurers use these factors to assess the likelihood of accidents and claims.

On average, the cost of a full coverage car insurance policy for 17-year-olds is:

• For a female: $2,884 per year; $240 per month
• For a male: $3,170 per year; $264 per month

For drivers under 25, gender is also a key factor. Insurers typically charge young male drivers more, considering them at higher risk on the road. Luckily, this gender-based difference in rates lessens after age 25.

Teen drivers, particularly drivers aged 16–19, face higher insurance costs due to their increased risk of motor vehicle crashes. The Centers for Disease Control and Prevention (CDC) found that the risk of motor vehicle crashes is highest among teens aged 16–19, almost three times that of drivers over age 20 per mile driven. This age group, especially male drivers, faces a significantly higher crash death rate. The risk increases with each additional teen or young adult passenger in the car.

Meanwhile, the statistics from the Insurance Institute for Highway Safety (IIHS) reveal that teen drivers are at a greater risk of being involved in fatal accidents, being nearly three times more likely to be in a fatal crash per mile driven compared to drivers over 20.

However, as teens gain driving experience and maintain safe driving records, their insurance rates tend to decrease yearly. In the meantime, there are several discounts and methods to help reduce their insurance costs immediately.

The cheapest car insurance companies for 17-year-olds are:

• Full Coverage Policy: Nationwide ($2,685 per year; $224 per month)
• Liability-Only Policy: GEICO ($667 per year; $56 per month)

Regularly collect car insurance quotes for your teen before your policy renews. Insurers rate different driver profiles uniquely, and as your teen accumulates driving experience, demonstrates reliability or uses an older car, their risk profile improves. As these factors evolve, you might find cheaper coverage for your teen with another insurer.

A 17-year-old teen will pay $5,817 more on a solo policy than if their parents add them to a family insurance plan:

• On an individual policy: $8,843 per year
• On a family policy: $3,027 per year

The cheapest car insurance for teens comes with a family policy. A "family policy" refers to a policy that covers all household members. Adding a teen will raise the overall rates, but it's still about three times cheaper than if the teen had a separate policy.

Some insurers require assigning each driver a specific car. To lower premiums in such cases, we recommend giving the cheapest and safest car to the youngest driver, which can help reduce insurance costs.

Since they are minors, 17-year-olds can only buy an individual car insurance with the written consent of a parent or guardian.

If a 17-year-old is legally emancipated, they have the same contractual rights as an adult and can purchase their own car insurance policy. If your teen driver borrows your car, consider adding your child to your car insurance — this is often more straightforward and cost-effective than the minor obtaining an independent policy.

In our table below, you can compare average costs for teen drivers between the states, demonstrating considerable differences in premiums. For example, teens in Florida pay $1,875 a year more for the same coverage as teens in California. The cheapest state for 17-year-olds is Hawaii, with a $998 average annual premium, while teens in Louisiana tend to pay the most with a $7,459 premium.

Car insurance rates for teens vary by state due to different factors. In Michigan, no-fault insurance laws and a high number of uninsured drivers hike up rates. New York's dense population increases risks, leading to higher costs. However, Hawaii rates are so low for teen drivers because insurers are prohibited from using age or driving experience as a rating factor.

For cheap car insurance for 17-year-olds, we recommend adding them to your family policy. We explore this option and more below to lower your teen driver's premiums:

Stack all available car insurance discounts to get cheap car insurance for teens. Enroll in telematics-based programs and secure safe driver discounts to encourage responsible driving, qualifying your teen for savings. Additional discounts can provide further financial relief for teens who drive less, such as students away at college or teens with low annual mileage.

Whether you're a parent looking to add a teen to your policy or a young driver seeking information, we cover a range of topics to guide you through the ins and outs of car insurance for 17-year-olds.