Cheapest Car Insurance for Teens for August 2024

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Updated: November 8, 2024

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Key Takeaways

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Nationwide offers the cheapest car insurance for teens on a family full coverage policy and GEICO is the cheapest car insurance for teens who need a liability-only policy. For families with teen drivers, opting for a family policy will save you money and it streamlines coverage into one policy.

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Car choice and driving behavior influence teen insurance premiums, with safe, inexpensive and lower performing vehicles and defensive driving courses potentially reducing costs.

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Many discounts are available for teen drivers, including good student and telematics-based discounts. The cheapest car insurance policies with a teen offered by Nationwide and Geico offer good student discounts.

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2024

Cheapest Car Insurance For Teens

Cheapest for 16-Year-Olds - Nationwide
Cheapest for 17-Year-Olds - Nationwide
Cheapest for 18-Year-Olds - GEICO
Cheapest for 19-Year-Olds - Nationwide
Average Cost of Car Insurance for Teens
Car Insurance Discounts for Teens

Why Trust MoneyGeek? We collected and analyzed quote data from Quadrant Information Services and state departments of insurance to determine the cheapest and best car insurance providers for teen drivers. Our data is updated monthly and this page is updated frequently to ensure accuracy.

2,474,515Quotes Analyzed
 
607Companies Compared
 
3,523Zipcodes

Cheapest Car Insurance for Teens

Nationwide and GEICO offer the cheapest full coverage teen car insurance policies for teen drivers. GEICO offers the cheapest car insurance for teens who need liability-only. For an individual policy, teen drivers can find the most affordable average rates with State Farm. The cheapest options could change depending on the teen driver's age and state.

Opting for a family car insurance policy is generally more cost-effective. Insurance companies often offer multi-car and multi-driver discounts, which can substantially lower the overall premium by up to 20%. This bundled approach also simplifies management, as there's only one renewal date and one premium payment to remember. An individual teen policy costs $4,866 per year on average, while adding a teen to a family policy averages $3,048 annually.

The teen's gender and age influences the rate. Male teens are generally 13% more expensive to insure than females, largely because they are statistically more likely to engage in risky driving behavior and have a higher accident rate than female teens. 18-year-old drivers are appoximately 10-20% less expensive to insure compared to 16-year-old drivers.

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CHEAPEST CAR INSURANCE FOR TEENS - BY AGE

Cheapest for 16-year-olds: Nationwide for a family policy, State Farm for an individual policy Cheapest for 17-year-olds: Nationwide for a family policy, State Farm for an individual policy Cheapest for 18-year-olds: GEICO for a family policy, State Farm for an individual policy Cheapest for 19-year-olds: Nationwide for a family policy, State Farm for an individual policy

Cheapest Car Insurance for 16-Year-Old Teens

The cheapest car insurance companies for 16-year-old teen drivers are:

  • On a family policy: Nationwide ($2,718 annually)
  • On an individual policy: State Farm ($3,732 annually)

The average cost of car insurance for 16-year-olds is significantly more expensive due to their limited driving experience and higher risk profile. Families should add 16-year-olds to their existing policies for discounts or research the cheapest cars to insure for teenagers. Compare rates and coverage options to find the most cost-effective solution.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Nationwide$2,718$5,108$2,390
GEICO$2,936$5,463$2,527
State Farm$3,055$3,732$678
Allstate$3,292$6,583$3,291
Travelers$3,436$5,622$2,186
Progressive$3,454$7,481$4,027
Farmers$3,562$8,864$5,301

Cheapest Car Insurance for 16-Year-Olds by State

The cheapest insurance can vary widely based on your state. Nationwide offers the cheapest insurance for 16-year-olds in 17 states, while Allstate and GEICO are the cheapest options in eight and seven states, respectively.

See the table below to find which company is cheapest on average where you live. Parents should also note that teens with learners' permits may not be able to be formally added to an insurance policy. In this case, they would likely be covered by permissive use.

Data filtered by:Results filtered by:
Gender:
Gender:Male
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
AlabamaNationwide$1,871$4,019$2,149
AlaskaGEICO$2,109$3,869$1,760
ArizonaTravelers$1,988$3,792$1,804
ArkansasAllstate$1,753$6,682$4,929
CaliforniaState Farm$3,021$3,333$312
ColoradoKemper$1,386$7,734$6,348
ConnecticutGEICO$1,890$10,193$8,302
DelawareGEICO$3,096$7,593$4,497
District of ColumbiaGEICO$1,836$3,782$1,946
FloridaNationwide$4,306$8,646$4,340
GeorgiaAllstate$1,726$4,834$3,107
HawaiiState Farm$742$742$0
IdahoState Farm$1,325$1,807$482
IllinoisProgressive$2,022$4,801$2,780
IndianaNationwide$1,779$4,253$2,474
IowaAllstate$1,717$5,365$3,649
KansasNationwide$1,150$2,372$1,222
KentuckyNationwide$2,021$3,824$1,803
LouisianaState Farm$5,605$6,954$1,349
MaineConcord Group$1,062$1,755$693
MarylandKemper$1,918$4,783$2,865
MassachusettsState Farm$1,220$1,824$605
MichiganGEICO$2,469$2,912$443
MinnesotaNationwide$1,922$4,083$2,161
MississippiProgressive$733$4,693$3,960
MissouriGEICO$1,457$7,630$6,173
MontanaProgressive$1,601$3,505$1,904
NebraskaAllstate$2,005$6,152$4,147
NevadaNationwide$2,421$5,384$2,964
New HampshireConcord Group$1,151$1,827$676
New JerseyGEICO$2,554$2,597$43
New MexicoAllstate$1,882$4,097$2,215
New YorkKemper$1,231$4,366$3,135
North CarolinaState Farm$1,237$1,341$103
North DakotaNationwide$1,167$2,440$1,273
OhioNationwide$1,178$2,658$1,480
OklahomaAllstate$2,036$5,607$3,571
OregonNationwide$1,505$3,861$2,356
PennsylvaniaNationwide$1,330$3,383$2,053
Rhode IslandState Farm$2,143$2,978$836
South CarolinaAuto-Owners Insurance Co$2,742$3,841$1,099
South DakotaAllstate$1,220$7,137$5,917
TennesseeNationwide$1,572$4,098$2,525
TexasNationwide$1,964$5,112$3,148
UtahNationwide$1,568$4,092$2,525
VermontConcord Group$1,319$2,029$711
VirginiaNationwide$1,300$2,971$1,671
WashingtonKemper$1,809$2,601$792
West VirginiaNationwide$1,672$3,850$2,179
WisconsinNationwide$1,246$3,012$1,766
WyomingAllstate$1,609$5,616$4,007

Cheapest Car Insurance for 17-Year-Old Teens

The most affordable insurance providers for 17-year-old teen drivers are:

  • On a family policy: Nationwide ($2,685 annually)
  • On an individual policy: State Farm ($3,312 annually)

Car insurance for 17-year-olds remains expensive but costs may start to decrease slightly as they gain more driving experience. Being added to a family policy can still offer cost benefits, and good student discounts may also apply.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Nationwide$2,685$4,662$1,978
GEICO$2,863$4,260$1,396
State Farm$3,030$3,312$281
Allstate$3,218$5,292$2,074
Farmers$3,311$6,664$3,353
Travelers$3,316$4,287$970
Progressive$3,572$7,262$3,691

Cheapest Car Insurance for 17-Year-Olds by State

Nationwide offers the most affordable insurance for 17-year-old drivers in 17 states, making it the top option in this list overall, followed by GEICO and Allstate.

Filter the table below to help you find the most affordable insurer in your state and pinpoint the best options for your specific needs.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
Gender:
Gender:Male
AlabamaGEICO$1,863$3,643$1,780
AlaskaGEICO$2,038$3,078$1,040
ArizonaTravelers$1,909$2,919$1,010
ArkansasAllstate$1,778$5,552$3,774
CaliforniaState Farm$2,958$2,974$16
ColoradoKemper$1,321$5,827$4,506
ConnecticutGEICO$1,379$4,523$3,144
DelawareGEICO$2,603$4,419$1,816
District of ColumbiaGEICO$1,704$2,743$1,039
FloridaNationwide$4,306$8,646$4,340
GeorgiaAllstate$1,776$4,194$2,418
HawaiiState Farm$742$742$0
IdahoState Farm$1,319$1,587$267
IllinoisProgressive$1,965$3,936$1,971
IndianaGEICO$1,498$2,948$1,450
IowaAllstate$1,514$3,222$1,708
KansasNationwide$1,180$2,292$1,112
KentuckyNationwide$2,072$3,682$1,610
LouisianaState Farm$5,572$6,117$545
MaineConcord Group$1,053$1,555$502
MarylandProgressive$1,858$2,987$1,129
MassachusettsState Farm$1,220$1,824$605
MichiganGEICO$2,679$2,912$233
MinnesotaNationwide$1,975$3,922$1,947
MississippiProgressive$821$5,932$5,111
MissouriGEICO$1,417$6,323$4,906
MontanaProgressive$1,524$2,576$1,052
NebraskaAllstate$1,775$3,742$1,967
NevadaNationwide$2,410$4,865$2,454
New HampshireConcord Group$1,144$1,660$516
New JerseyGEICO$2,556$2,597$41
New MexicoAllstate$1,872$3,428$1,556
New YorkKemper$1,220$3,722$2,501
North CarolinaState Farm$1,235$1,300$66
North DakotaNationwide$1,188$2,412$1,224
OhioNationwide$1,204$2,658$1,454
OklahomaAllstate$2,032$4,823$2,790
OregonNationwide$1,516$3,707$2,191
PennsylvaniaNationwide$1,368$3,250$1,882
Rhode IslandState Farm$2,104$2,600$497
South CarolinaAuto-Owners Insurance Co$2,607$3,006$400
South DakotaAllstate$1,064$4,423$3,359
TennesseeNationwide$1,627$4,098$2,471
TexasNationwide$2,006$5,080$3,073
UtahNationwide$1,553$3,836$2,282
VermontConcord Group$1,312$1,854$541
VirginiaNationwide$1,323$2,913$1,590
WashingtonKemper$1,809$2,601$792
West VirginiaNationwide$1,601$3,401$1,800
WisconsinNationwide$1,280$2,897$1,617
WyomingAllstate$1,598$4,514$2,916

Cheapest Car Insurance for 18-Year-Old Teens

The cheapest car insurance companies for 18-year-old teen drivers are:

  • On a family policy: GEICO ($2,431 annually)
  • On an individual policy: State Farm ($2,966 annually)

At 18, drivers have more experience, which can lead to a modest reduction in insurance premiums. However, rates are still relatively high compared to older age groups. Many 18-year-olds are heading to college, and some insurers offer distant student discounts for those studying away from home without a car. In addition, college students can stay on their family's policy as long as their family home is considered their permanent residence.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
GEICO$2,431$3,594$1,163
Nationwide$2,476$4,332$1,856
Allstate$2,673$4,180$1,507
State Farm$2,716$2,966$250
Travelers$2,829$3,566$737
Farmers$3,062$6,124$3,062
Progressive$3,115$6,246$3,131

Cheapest Car Insurance for 18-Year-Olds by State

Allstate is the most affordable insurance provider for 18-year-olds in 14 states, followed by GEICO and Nationwide. In addition to age, your location can also significantly impact your teenager's car insurance costs.

The cost of car insurance for an 18-year-old driver can differ greatly between states. Insurance companies might also have state-specific discounts or varying eligibility criteria. Compare quotes from at least three providers in your state to find the best deal.

Data filtered by:Results filtered by:
Gender:
Gender:Male
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
AlabamaGEICO$1,177$2,303$1,125
AlaskaGEICO$1,727$2,609$882
ArizonaTravelers$1,576$2,411$834
ArkansasAllstate$1,342$4,191$2,849
CaliforniaState Farm$2,791$2,806$15
ColoradoKemper$1,082$4,774$3,692
ConnecticutGEICO$1,184$3,884$2,700
DelawareGEICO$2,212$3,756$1,544
District of ColumbiaGEICO$1,455$2,342$887
FloridaAllstate$4,014$12,560$8,546
GeorgiaAllstate$1,357$3,204$1,848
HawaiiState Farm$742$742$0
IdahoState Farm$1,152$1,386$234
IllinoisTravelers$1,618$3,135$1,517
IndianaGEICO$1,308$2,573$1,266
IowaAllstate$1,115$2,372$1,257
KansasNationwide$1,049$2,038$989
KentuckyAllstate$1,538$4,070$2,532
LouisianaState Farm$4,908$5,388$480
MaineConcord Group$944$1,394$450
MarylandProgressive$1,598$2,570$971
MassachusettsProgressive$1,165$4,860$3,695
MichiganGEICO$2,051$2,229$178
MinnesotaNationwide$1,735$3,445$1,710
MississippiProgressive$728$5,263$4,535
MissouriGEICO$1,244$5,552$4,308
MontanaProgressive$1,205$2,038$832
NebraskaAllstate$1,322$2,787$1,464
NevadaNationwide$2,183$4,406$2,223
New HampshireConcord Group$1,049$1,522$473
New JerseyGEICO$2,551$2,592$41
New MexicoAllstate$1,537$2,814$1,277
New YorkKemper$1,041$3,175$2,134
North CarolinaState Farm$1,205$1,269$64
North DakotaAllstate$1,109$3,673$2,565
OhioNationwide$1,127$2,490$1,362
OklahomaAllstate$1,713$4,064$2,351
OregonNationwide$1,421$3,475$2,054
PennsylvaniaNationwide$1,198$2,846$1,648
Rhode IslandState Farm$1,915$2,368$452
South CarolinaAuto-Owners Insurance Co$2,289$2,641$351
South DakotaAllstate$879$3,653$2,774
TennesseeAllstate$1,430$3,562$2,133
TexasNationwide$1,866$4,724$2,858
UtahNationwide$1,492$3,685$2,193
VermontConcord Group$1,207$1,705$498
VirginiaNationwide$1,229$2,706$1,478
WashingtonAllstate$1,652$4,581$2,929
West VirginiaAllstate$1,552$3,952$2,400
WisconsinGEICO$1,052$3,142$2,090
WyomingAllstate$1,240$3,501$2,261

Cheapest Car Insurance for 19-Year-Old Teens

The providers that offer the cheapest full coverage car insurance for 19-year-old teen drivers are:

  • On a family policy: Nationwide ($2,066 annually)
  • On an individual policy: State Farm ($2,531 annually)

The cost of car insurance for 19-year-olds is often higher than for older age groups yet slightly cheaper than for 16- to 18-year-olds. Leveraging good student and distant student discounts, opting for sensible vehicles and maintaining a clean driving record can be key to navigating through these transitional insurance years effectively and affordably.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Nationwide$2,066$3,389$1,323
GEICO$2,168$2,631$462
Travelers$2,305$2,817$512
Allstate$2,326$2,899$573
State Farm$2,344$2,531$188
Progressive$2,845$3,473$627
Farmers$3,111$3,657$546

Cheapest Car Insurance for 19-Year-Olds by State

Nationwide offers the lowest premiums for 19-year-old drivers in 12 states, with GEICO and Allstate each offering the most competitive rates in eight states.

Auto insurance premiums can vary significantly from one state to another, so it's key to shop locally and compare. Use the table below to find the cheapest average insurer in your state.

Data filtered by:Results filtered by:
Gender:
Gender:Male
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
AlabamaGEICO$1,535$1,871$336
AlaskaGEICO$1,540$1,838$298
ArizonaTravelers$1,422$1,953$531
ArkansasAllstate$1,475$2,564$1,089
CaliforniaGEICO$2,170$2,536$366
ColoradoKemper$1,386$4,070$2,685
ConnecticutGEICO$1,626$2,578$952
DelawareTravelers$1,667$5,230$3,563
District of ColumbiaGEICO$1,344$1,723$379
FloridaNationwide$3,687$5,028$1,342
GeorgiaAllstate$1,433$1,943$510
HawaiiState Farm$742$742$0
IdahoAuto-Owners Insurance Co$947$1,239$292
IllinoisAuto-Owners Insurance Co$1,503$1,855$351
IndianaGEICO$1,194$1,768$574
IowaAllstate$1,261$1,727$466
KansasNationwide$1,040$1,786$746
KentuckyAllstate$1,706$2,484$779
LouisianaState Farm$4,316$4,736$419
MaineConcord Group$856$1,194$338
MarylandProgressive$1,642$1,979$337
MassachusettsState Farm$797$1,179$383
MichiganGEICO$1,897$2,015$118
MinnesotaNationwide$1,691$2,958$1,267
MississippiProgressive$733$2,495$1,762
MissouriGEICO$1,131$3,244$2,113
MontanaProgressive$1,205$1,356$151
NebraskaAuto-Owners Insurance Co$1,442$2,111$669
NevadaNationwide$2,143$3,716$1,573
New HampshireConcord Group$974$1,329$355
New JerseyTravelers$2,354$3,077$723
New MexicoAllstate$1,584$2,189$605
New YorkKemper$1,066$2,279$1,212
North CarolinaProgressive$1,049$1,104$56
North DakotaNationwide$1,075$1,950$875
OhioNationwide$1,087$2,127$1,039
OklahomaAllstate$1,790$2,576$786
OregonNationwide$1,318$2,991$1,672
PennsylvaniaNationwide$1,101$2,097$997
Rhode IslandTravelers$1,556$5,069$3,512
South CarolinaAuto-Owners Insurance Co$1,927$2,241$314
South DakotaAllstate$1,051$1,757$705
TennesseeAuto-Owners Insurance Co$1,423$1,828$405
TexasState Farm$1,786$2,303$518
UtahNationwide$1,420$3,037$1,617
VermontState Farm$1,103$1,345$242
VirginiaNationwide$1,176$2,336$1,159
WashingtonCapital Insurance Group$1,721$1,739$19
West VirginiaNationwide$1,564$2,943$1,379
WisconsinNationwide$1,092$2,213$1,121
WyomingAllstate$1,326$2,128$802
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Average Cost of Car Insurance for Teens

The average cost of car insurance for a teen driver is:

  • On a family policy: $3,048
  • On an individual policy: $4,866

Adding an 18-year-old to your policy could save over a thousand dollars compared to getting them their own policy. However, there are scenarios where individual insurance may be more advantageous. For example, if the teenager drives a high-performance or luxury vehicle that's costly to insure, separating them into an individual policy could prevent a steep increase in the family's overall premium. This allows the rest of the family to maintain lower rates while tailoring the teen's coverage to their specific needs.

Cost of Insuring Teen Males vs. Females

Adding a male teen driver to your family policy typically costs over $350 more annually than adding a female teen. Six states do not allow gender as a rating factor: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

Average Insurance Costs for 18-Year-Old Males vs. Females

female
Female

18-Year-Old

$2,686
male
Male

18-Year-Old

$3,048
Premiums for males are on average:$362 more

This is 13% more expensive.

How to Get Cheap Insurance for Teenage Drivers

To reduce car insurance costs for teen drivers, consider limiting their driving hours and ensuring they drive fewer miles annually. Keeping the car title in a parent or guardian's name and having the teen complete a certified driving course can unlock additional discounts. Moreover, assigning the teen to an inexpensive car rather than a high-cost vehicle can further lower insurance premiums.

  1. 1
    Limit their driving distances

    Some companies will offer discounts to drivers who drive relatively little per year — typically under 7,500 miles. Limiting teens' driving to daylight hours can also help decrease their chances of getting in a car accident, which would increase insurance costs.

  2. 2
    Keep the car title in your name

    In some cases, putting your teen's name on the title will mean they need to get their own insurance, which tends to be more expensive.

    If your under-18 teen has their own car, most states require the title to include the parent or guardian, even if the teen actually paid for the vehicle. And as a reminder, teens under age 18 are not legally allowed to purchase car insurance; however, a parent or guardian can purchase or co-sign a separate policy for a minor teen.

  3. 3
    Have your teen take a driving course

    Some companies will offer discounts to teens who complete certified driver's education programs. Opting for usage-based telematics can also help you save if your teen drives safely.

  4. 4
    Have them driver an inexpensive car

    Having a teen driver operate a cheaper car model can lead to significant savings on insurance premiums. Cheaper cars often cost less to repair or replace, reducing the insurer's potential payout in case of an accident.

  5. 5
    Ask your insurance agent to assign your teen to the cheapest car

    Some companies may automatically assign the highest-cost driver (typically a teen) to the most expensive vehicle, which can further inflate costs. So it’s always worth specifying which car should be assigned to them.

Cars With Lowest Insurance Rates for Teenage Drivers

MoneyGeek found that for teen drivers aged 16–19, the following cars are the cheapest to insure based on the newest car models for a full coverage policy:

  • 16-year-old: Subaru Forester ($5,777)
  • 17-year-old: Subaru Forester ($4,698)
  • 18-year-old: Subaru Forester ($4,132)
  • 19-year-old: Subaru Forester ($2,865)

Premiums can skyrocket for teenagers, who are often categorized as high-risk drivers, so opting for a car that's cheaper to insure can significantly lower these costs. A vehicle that’s rated high for safety can help lower the costs, while an expensive, fast car might increase the costs. The type of vehicle is an important consideration when adding a teen and a second or third vehicle to your family policy.

The Insurance Institute for Highway Safety is a great place to start looking at safety ratings.

The table below shows the cheapest car models to insure based on the teen driver's age and desired coverage level.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age:
Age:16
Subaru Forester$5,777
Subaru Outback$5,853
MINI Cooper$5,958
Honda CR-V$5,996
Mazda CX-5$6,099

Average 16-year-old Insurance Cost By Vehicle Type

car
Subaru Forester

Annual Premium

$5,777
car2
Mazda CX-5

Annual Premium

$6,099
Owning a Mazda CX-5 is::$322 more

This is 6% more expensive.

Car Insurance Discounts for Teens

Teen drivers can benefit from a variety of discounts to reduce insurance costs. Good student discounts reward academic achievements, while defensive driving discounts are granted to those who complete approved driving courses. Additionally, telematics-based programs offer savings based on safe driving habits monitored via devices or apps.

Discount
How it Works

Good Student Discount

Offers savings to students who maintain a certain GPA or rank in the top percentage of their class.

Defensive Driving Discount

Rewards drivers who complete a certified defensive driving course.

Safe Driver Discount

Reduced rates for drivers with no at-fault accidents or traffic violations for a specific period.

Distant Driver Discount

Discounts for students who attend school far from home — usually at least 100 miles away — and don't drive the insured vehicle often.

Telematics-Based Programs

Rates based on driving behavior monitored by a device or app, rewarding safe driving habits. Allstate's teenSMART and State Farm's Steer Clear are two examples.

Multi-Car Discount

Savings for households insuring multiple vehicles on the same policy.

Annual Mileage Discount

Reduced rates for drivers who drive below a certain number of miles annually, usually 7,500 miles.

Family Policy Discount

Significant savings when adding a teen driver to a parent or guardian's existing policy instead of a separate one.

Driver's Education Discount

Rewards teen drivers who complete a certified driver's education program.

Many insurance providers, including Erie, State Farm, Allstate and GEICO, have special car insurance discounts tailored for teen drivers. If your teen is gearing up to hit the road, whether on their own policy or as an addition to the family's, these discounts can be a helpful way to manage the expenses associated with insuring young drivers.

The costs of insuring a teen driver vary greatly depending on what type of car they drive, how well they drive and where they live. Thankfully, many discounts are available that reward teens for being good drivers and getting good grades. Always get several quotes to compare policies and keep your costs down.

In addition to discounts, opting for a no-down payment car insurance allows you to get affordable car insurance with a low upfront cost. At a minimum, you must make the first month's premium payment to activate a car insurance policy.

Ask the experts:

How can parents and teens budget for the extra expense of car insurance?

Graduate Program Chair in the Department of Finance and Economics at Pace University

Car insurance is an expensive purchase, but it may be reduced by keeping teens on their parent's policy rather than having their own policy. Part of the reason is you are effectively purchasing in bulk. Most insurance firms also offer a good student discount, providing another reason for teens to do well in school.

Graduate Program Chair in the Department of Finance and Economics at Pace University

Teens can often take defensive driving courses to lower their car insurance rates. Other ways to budget and save money include bundling insurance policies (e.g., getting a teen’s car insurance from the parents’ homeowners’ insurance provider), getting good grades, setting higher deductibles in order to lower premiums, and getting quotes from multiple providers.

Graduate Program Chair in the Department of Finance and Economics at Pace University

Buying a car for a teenager can be an expensive proposition because they do not have any credit or driving history. In such a situation, parents and teens need to keep a few important things in mind. First, certain insurance providers offer discounts for taking driver education programs/public safe-driving courses, which can offset the cost of higher insurance, second, if a teen has good grades in school then that can enable them to qualify for a discount from the insurance company, third, in certain cases, used cars do not mandate additional insurance coverage, which is required for new cars, and therefore insurance for used cars might be likely lower, and fourth, many insurance companies will rate drivers based on their driving tendencies by installing a device into their car that tracks daily mileage, hard braking, rapid acceleration, and what time the teen is driving the car (whether at day or night). There are other ways to budget and save for car insurance- such as increasing your deductible which can result in a lower monthly payment, and special discounts for serving in the military. Lastly, it is important to also be on the lookout for cheaper car insurance policies at all times by being a smart and discerning shopper.

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Teen Car Insurance FAQ

MoneyGeek answered the most common questions about securing the cheapest car insurance options specifically for teens. Equip yourself with the knowledge you need to make a smart financial decision for your family.

Which insurance companies offer the most affordable rates for teen drivers?
Why are car insurance premiums higher for teen drivers?
How can teen drivers earn discounts on car insurance?
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About Mark Fitzpatrick

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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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