Find Cheap Auto Insurance Quotes in Your Area
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.
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.
|4||Grange Insurance Association||$3,673|
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:
- New York
- North Carolina
- West Virginia
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.
|Southern Farm Bureau||$3,184|
|Colorado||Colorado Farm Bureau||$2,840|
|Grange Insurance Association||$3,176|
|Idaho||Grange Insurance Association||$2,634|
|Mutual of Enumclaw||$2,952|
|Kentucky Farm Bureau||$3,744|
|Louisiana||Southern Farm Bureau||$2,778|
|Minnesota||Farm Bureau Mutual||$3,225|
|Mississippi Farm Bureau||$2,599|
|New Hampshire||Commerce Insurance||$1,056|
|New Jersey||Penn National||$5,390|
|Oklahoma||Oklahoma Farm Bureau||$3,396|
|Oregon||Grange Insurance Association||$4,300|
|Rhode Island||State Farm||$4,020|
|South Carolina||Southern Farm Bureau||$2,666|
|Texas||Texas Farm Bureau||$2,873|
|West Virginia||Pekin Insurance||$1,076|
|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.
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 Type||Study 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|