Updated: February 13, 2025
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Adding young drivers to a family policy is the most affordable option for car insurance, with Nationwide charging $2,718 annually ($226 monthly) for a 16-year-old.
For young drivers on a family policy, rates range from $1,406 to $2,718 annually, depending on the rate and driver's age.
For individual policies, GEICO offers the cheapest option for young drivers: $1,336 annually ($111 per month) for a 25-year-old.
Nationwide and GEICO offer the most affordable insurance for young drivers added to family policy. For individual policies, State Farm and GEICO have the lowest rates for young drivers.
The sections below show the best car insurance rates for young drivers by age and policy type.
Nationwide and GEICO offer the lowest rates for young drivers added to a parent's policy. The cheapest company depends on your age. Use the table below to find the most affordable rates based on age.
*The quotes provided assume a policy covering two parents and a young driver. These average costs reflect full coverage, including comprehensive and collision insurance, with liability limits of $100,000 per person for bodily injury, $300,000 per accident for bodily injury, $100,000 per accident for property damage and a $1,000 deductible.
If a young driver isn’t eligible for a family policy, the next best option is an individual policy. State Farm and GEICO are the cheapest providers for young drivers on individual policies.
*The quotes above include comprehensive and collision coverages, along with liability limits of $100,000 per person for bodily injury, $300,000 per accident for bodily injury, $100,000 per accident for property damage and a $1,000 deductible.
Newly licensed 16-year-olds often face the highest premiums, especially with individual policies. Car insurance costs for young drivers vary by gender, with males typically paying more due to being considered higher risk. Most insurers lower rates at age 25 when drivers are considered less risky, but male drivers may still pay higher premiums.
Insurance rules and rates vary by state and region. The cheapest car insurance in your state may not match national averages. Use the filters below to find the best cheap car insurance for young drivers in your state.
| GEICO | $2,303 | $1,177 |
| Allstate | $3,080 | $1,533 |
| Travelers | $3,252 | $2,153 |
| State Farm | $3,460 | $3,483 |
| Auto-Owners | $3,581 | $3,382 |
| Nationwide | $3,632 | $1,770 |
| Farmers | $6,422 | $2,440 |
| Progressive | $9,451 | $3,500 |
*The premiums listed are for full coverage with a $1,000 deductible. Liability limits include $100,000 per person for bodily injury, $300,000 per accident for bodily injury and $100,000 per accident for property damage.
Age affects car insurance rates due to changes in coverage needs and risks. For young drivers, the right policy offers adequate protection at a reasonable cost. This guide covers key factors for insuring young drivers, including coverage options, discounts and tips to reduce premiums.
Finding the cheapest car insurance for young drivers involves choosing the right coverage and provider. Extra steps like completing a safe driving course or limiting driving time can help lower costs.
Take the steps below to find the most affordable policy:
A family policy is often more affordable than an individual policy if the young driver qualifies. Since each insurer has different criteria, comparing options can help you find the best fit.
Consider your coverage needs to determine how much car insurance you need before getting quotes.
A car's make and model affect insurance rates. Choosing an inexpensive car can lower costs and provide more coverage options.
Use online calculators to get instant quotes. These calculators often include the same discounts offered by captive agents. Many major insurers let you sign up for a policy right after receiving a quote.
In some states, taking a safe driving course can help you get cheap car insurance rates. Practicing safe driving habits can also make you eligible for safe driving discounts and other incentives.
Young drivers who spend more time on the road have a higher risk of accidents, which can raise rates. Some insurers also consider mileage, which may increase your costs.
Monthly premium payments can fit your budget but often include installment fees, increasing overall costs. Paying in full can help you save money.
Review your insurance annually or after major milestones. Premiums for young drivers are often high but typically decrease as you gain driving experience.
You don't have to wait for your current policy to expire to look for a better deal. Switching car insurance companies could help you save money and better meet your needs.
Adding a driver to a car insurance policy is often the most affordable option. However, if a young driver lives away from home or owns a car title in their name, they may need their own policy. For example, college students using their parents’ address as their primary residence can usually stay on the family plan. If they take a car to school and live far from home, especially in another state, they might need individual student car insurance.
Eligibility rules vary by state and insurer. Check with your provider to determine whether a family or individual policy works best for your needs.
Car insurance discounts can help reduce premiums. Check for available discounts as your needs change. Here are some common discounts for young drivers:
Many providers offer discounts for young drivers who meet and maintain a certain grade point average.
Also known as the student away at school discount, it applies to students on their parents' policy who live more than 100 miles from home and rarely use the family car.
Some insurance providers offer discounts negotiated by businesses, colleges, associates or organizations.
Completing an approved driver's education or defensive driving course can qualify you for discounts with some insurers.
Maintaining a clean driving record can help you qualify for discounts and lower premiums.
Using a telematics program that keeps track of your safe driving habits may lower your car insurance rates. Some companies also offer low-mileage discounts to drivers who don't drive a lot.
The table below shows discounts from the cheapest car insurance companies for young drivers. Comparing offers and perks can help you save more on your policy.
Discount | Nationwide | GEICO | State Farm |
|---|---|---|---|
Good student discount | Yes | Up to 15% | Up to 25% |
Student away at school discount | No info | Yes | Yes |
Safe driver discount | Yes | Up to 26% | Up to 30% |
Defensive driving discount | Yes | Up to 10% | 5–15% |
Low-mileage discount | Yes | Yes | Yes |
Multiple vehicle discount | Yes | Up to 25% | Up to 20% |
Home and auto bundle | Up to 15% | Up to 25% | Up to 17% |
Drive Safe Telematics | SmartRide® - tracks driving habits | DriveEasy – tracks driving habits | Drive Safe & Save™ – tracks driving habits |
Accident-free discount | Up to 10% | Up to 26% | Yes |
Choosing the cheapest car to insure can lower premiums. The Honda CR-V is the most affordable SUV, new car and used car to insure for young drivers. For insuring sports cars, the Subaru WRX has the lowest rates. The table below shows rates by age and coverage.
MoneyGeek reviewed the best cheap insurance for certain age groups to help you compare policies and companies:
Nationwide and GEICO are the cheapest auto insurance providers for family policies, while State Farm and GEICO have the lowest rates for individual policies. Choosing the right car, like a Honda CR-V, and taking advantage of discounts, such as safe driving courses, can help lower premiums.
MoneyGeek answers common questions about cheap car insurance for young drivers to help you find a policy with the best rate.
State Farm, GEICO and Nationwide offer the cheapest car insurance for teen and young drivers.
State Farm and GEICO offer the best cheap car insurance after an accident.
Car insurance usually gets cheaper at 25, but rates still depend on your driving record and other factors.
Newer cars aren’t always cheaper to insure for young drivers, especially expensive ones with higher premiums. However, newer models with advanced safety features may qualify for more discounts.
Due to their lower value, older cars are typically cheaper to insure for young drivers. Skipping comprehensive and collision coverage can further reduce costs.
Multi-car policies are usually cheaper for young drivers than individual ones. Bundling auto and home insurance with the same insurer can lead to additional savings.
Besides the student/young driver incentive programs offered by the insurance companies, adding a student/young driver to an existing policy of a more experienced driver could lower the policy cost for student/young drivers. Contacting a local agent is another way to secure a more affordable rate than purchasing a policy online for most insurers.
Some of the discounts available for young drivers are as follows:
However, it is important to remember that car insurance is one of the necessities you need to budget for. Plan for this expense and car maintenance and car payments to ensure that you can enjoy the freedom of owning and operating a car.
Even with discounts, young drivers will likely pay a higher premium than older drivers. However, as they develop a good driving record, their premiums may go down. Until that happens, young drivers may obtain a lower premium by taking a safe driving course. Not only may that result in lower premiums, but it will also make them safer drivers, which should help them avoid accidents and injuries and develop a good driving record, which may result in lower premiums in the future.
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Ask an expertWhy Trust MoneyGeek?
We analyzed data from state insurance departments and Quadrant Information Services to compare car insurance costs for drivers aged 16 to 21. Examining family and individual policies highlighted how quotes vary by provider and location.
Study Overview
Car insurance rates depend on age, driving record, claims history, ZIP code, coverage and insurer. MoneyGeek reviewed thousands of quotes to help young drivers and their parents find affordable options by comparing rates on family and individual policies for various ages.
Data Sources
We analyzed data from Quadrant Information Services and state insurance departments by company, state and driver age.
Driver Profile
Our sample driver profile ensured accurate quotes. Key details included:
Coverage Levels and Deductibles Explained
Average rates are based on 100/300/100 coverage with a $1,000 deductible for comprehensive and collision coverage.
A 100/300/100 coverage level provides per-claim limits of:
A $1,000 deductible means the policyholder pays the first $1,000 of a claim before the insurer covers the rest.
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
