Best Car Insurance For Teen Drivers

Teen drivers are faced with some of the most expensive car insurance rates of any demographic. Because of these high auto insurance costs, finding the cheapest car insurance can save you hundreds and, in some cases, thousands of dollars a year. Overall, we found that Erie Insurance offered the cheapest insurance to teenage drivers, though the most affordable insurer varied by region and state. Below, you can find the best auto insurance companies for young drivers in your area or you can enter your ZIP code above to begin comparing insurance rates immediately.

Cheapest Car Insurance Company for Teen Drivers

We found that the overall cheapest auto insurance for teen drivers is offered by Erie Insurance. On average, Erie's car insurance costs were $2,411, which is 3.2 times less expensive than the national average of $7,689. The second cheapest insurer was The Cincinnati, which provided an average annual rate of $2,969 for teen drivers.

Graph showing the cheapest auto insurance companies for new and young drivers

Interestingly, none of the "Big Five" car insurance companies—State Farm, GEICO, Allstate, Progressive and Farmers—are in the top five in terms of lowest cost. Overall, we found these companies to not be the most economical option for a young adult to pick as their first car insurer and that smaller regional insurers provided cheaper rates.

Rank

CompanyYearly Rate
1Erie$2,411
2The Cincinnati$2,969
3Chubb$3,607
4Grange Insurance Association$3,673
5Nationwide$4,059
6Country$4,316
7State Farm$4,661
8Grange Insurance$5,207
9GEICO$5,208
10Allied$5,265
11Motorists Mutual$5,672
12Unitrin$5,991
13Progressive$7,017
1421st Century$7,520
15SafeAuto$7,529

Some Notable Companies by Region

Unfortunately, not every cheap company is available in every state. Some car insurance providers are more prominent in certain parts of the country, where they may be most affordable. Other companies may actually be more expensive in certain areas and should be avoided.

Cheapest Teenage Car Insurance in the Northeast and Near Midwest: Erie

In every state where Erie provided us a quote, its car insurance rates were cheaper than the state average for teens, and it was frequently the first or second most affordable company. In Ohio and New York, for example, the average price for Erie was nearly three times less than the statewide average.

Erie issues car insurance policies in 12 states:

  • Illinois
  • Indiana
  • Maryland
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • West Virginia
  • Wisconsin

If you are a teen living in any of those states, Erie should be your first choice for affordable car insurance.

Cheapest Auto Insurance for Teens in the West: Grange Insurance Association

In western states, Grange Insurance Association (not to be confused with Grange Insurance) typically offered some of the cheapest car insurance policies to young drivers. Grange operates in California, Idaho, Wyoming, Colorado, Washington and Oregon. In Oregon, young driver rates from Grange were about 75% less expensive than the state average. For those looking for car insurance in California, GEICO is also another cheap alternative.

Cheapest Insurers for Teens Nationally: Nationwide and State Farm

State Farm offered teen driver car insurance rates that were cheaper than average in many states. In the case of Utah, State Farm’s insurance costs were two times cheaper than the state average. State Farm offers auto insurance coverage in all 50 states as well as the District of Columbia and is likely to have a local agent near you.

Backed by one of the largest agent networks in the country, State Farm is regarded as the best for customer service among the large insurers. Forming a bond with an agent, especially at a young age, can actually end up saving you a good deal of money in the long run.

Nationwide is one of the most affordable large companies we found and is available in 46 states. In North Carolina and Pennsylvania, Nationwide turned out to be the most affordable insurer for teen drivers, even beating out Erie, the overall cheapest auto insurance company.

Best Auto Insurance for Teen Drivers by State

The cheapest insurance in your state may not actually reflect the cheapest overall insurers listed above, as car insurance rates for teens vary widely from state to state. Below, we have provided a full list of the cheapest auto insurers for young drivers in all of the states included in our study.

StateCompanyAnnual Rate
AlabamaALFA$1,272
Nationwide$2,433
The Cincinnati$2,673
AlaskaUmialik$1,164
Allstate$1,284
State Farm$1,764
ArizonaAmeriprise$4,220
Progressive$4,394
Allied$4,490
ArkansasColumbia Insurance$2,980
Southern Farm Bureau$3,184
Shelter$4,092
CaliforniaGEICO$2,564
Unitrin$3,329
Grange$4,086
ColoradoColorado Farm Bureau$2,840
Grange Insurance Association$3,176
American Family$3,820
ConnecticutUnitrin$5,208
Middlesex$6,375
GEICO$8,325
DelawareGEICO$4,590
Grange$5,748
Nationwide$5,994
FloridaElectric$4,131
21st Century$5,345
Mercury$6,221
GeorgiaCountry$1,092
State Farm$1,495
Encompass$5,947
IdahoGrange Insurance Association$2,634
GEICO$2,790
Mutual of Enumclaw$2,952
IllinoisErie$3,158
The Cincinnati$3,210
Hastings$3,504
IndianaErie$2,400
The Cincinnati$2,745
GEICO$2,916
IowaPekin Insurance$927
Progressive$1,326
Farm Bureau$1,539
KansasGEICO$3,204
Farm Bureau$3,612
Allied$3,720
KentuckyThe Cincinnati$3,234
Kentucky Farm Bureau$3,744
Motorists Mutual$4,749
LouisianaSouthern Farm Bureau$2,778
State Farm$6,672
Allstate$10,106
MaineConcord$2,460
Countryway$2,856
GEICO$3,384
MarylandErie$3,039
Penn National$4,320
State Farm$5,079
MassachusettsPlymouth Rock$2,247
GEICO$2,811
Commerce Insurance$3,267
MichiganChubb$3,299
Hastings$3,345
Miller$3,668
MinnesotaFarm Bureau Mutual$3,225
Western National$4,158
Allied$4,308
MississippiALFA$1,553
Unitrin$2,472
Mississippi Farm Bureau$2,599
MontanaProgressive$2,680
State Farm$3,244
Farmers$3,980
NebraskaAmerican Family$3,282
GEICO$4,032
State Farm$4,110
NevadaAllied$2,352
Oregon Mutual$3,462
GEICO$3,630
New HampshireCommerce Insurance$1,056
Nationwide$2,124
Concord$2,664
New JerseyPenn National$5,390
State Farm$5,661
Allstate$10,479
New MexicoGEICO$3,144
Allied$4,536
State Farm$4,746
New YorkErie$1,967
GEICO$3,713
Central Insurance$4,885
North CarolinaNationwide$1,452
GEICO$1,884
Titan$2,424
North DakotaAllied$3,180
North Star$4,056
State Farm$4,488
OhioErie$812
Grange Insurance$1,320
Nationwide$1,488
OklahomaOklahoma Farm Bureau$3,396
Shelter$4,152
State Farm$4,752
OregonGrange Insurance Association$4,300
State Farm$4,728
GEICO$5,072
PennsylvaniaNationwide$1,944
Erie$3,304
Chubb$3,958
Rhode IslandState Farm$4,020
Grange Insurance$4,188
Quincy Mutual$5,784
South CarolinaSouthern Farm Bureau$2,666
Nationwide$5,686
GEICO$7,572
South DakotaUnitrin$2,760
Farmers$2,784
Western National$3,216
TennesseeErie$1,160
Utica National$2,456
The Cincinnati$2,907
TexasTexas Farm Bureau$2,873
State Farm$4,054
GEICO$6,893
UtahState Farm$2,414
GEICO$2,645
Farm Bureau$4,404
VermontGEICO$2,394
Concord$2,604
Grange$2,952
VirginiaChubb$1,332
Nationwide$1,752
ALFA$1,986
WashingtonCapital$2,882
Grange$3,110
PEMCO$3,823
West VirginiaPekin Insurance$1,076
Western National$3,026
GEICO$3,192
WisconsinErie$3,348
State Farm$4,732
GEICO$5,308
WyomingProgressive$2,160
State Farm$3,888
Grange Insurance Association$3,888

The Cost of Joining Your Parents' Car Insurance Policy

Typically, adding a teen driver to their parents' policy will be a cheaper alternative to getting a teen a car insurance policy on their own. The person most affected in this case is the parent, who is taking on a significant risk by adding a new, teen driver to their policy. As a result, insurance companies will increase their yearly payments. Nonetheless, the increase is still far less than the yearly price of getting a teen their own insurance.

Graph shows differences between a teenager getting car insurance through a parent or by themselves

Adding a 17-year-old male driver to an existing policy will add $2,593 more in auto insurance costs per year—increasing the average annual rate from $1,259 to $3,852. This saves $5,096 per year—a 66% reduction in auto insurance costs—compared to the cost of the same 17-year-old getting their own policy. Additionally, if parents happen to insure their car with GEICO, their teen will have access to GEICO family pricing. This is a program where a teen can—when they get their own policy—get a discounted rate due to the family being a part of GEICO.

More Ways for Teens to Save on Car Insurance

There are several ways that young drivers can save money on car insurance. The first is by qualifying for discounts, as most major insurers offer discounts targeted toward young drivers. These include discounts for being a good student and for taking a driver's education course. Additionally—if a teen is on their parent's policy—most large insurance companies will reduce car insurance premiums if the teen is away at school and has limited access to a vehicle.

Another significant way to reduce costs is by omitting coverages that may be unnecessary and expensive for teen drivers—such as collision insurance. Collision insurance is costly for teen drivers. This is because these demographics are statistically more likely to get into an accident and file an insurance claim than more experienced drivers. If your car is worth less than a few thousand dollars, getting collision coverage will not be worth the increase in premiums, and we recommend opting for basic coverage instead.

How Did We Get Our Info?

We acquired quotes from over 103 companies in 200 cities across the U.S. for a sample 17-year-old male driver who drives a 2011 Toyota Camry. We specified that he previously did not have insurance and was opting for full coverage (see limits below). We included the top 15 cheapest companies that were also available in at least 15 cities nationwide. For adding onto a parent's policy, we assumed the parent was a 45-year-old male, married, with no previous accidents or incidents in his driving record.

Coverage TypeStudy Limits
Bodily Liability$50,000 per person/ $100,000 per accident
Property Damage$50,000 per accident
Uninsured/Underinsured Motorist BI$50,000 per person/ $100,000 per accident
Uninsured/Underinsured Motorist Property$50,000 per accident
Comprehensive & Collision$500 deductible

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