Cheapest Family Car Insurance

Cheapest Family Car Insurance

Find Cheap Auto Insurance Quotes in Your Area

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Erie and Farm Bureau offer the cheapest car insurance for families with children who are driving.

When your child gets their license, the best way to save is to add them to your policy — and it's still going to be expensive. Adding a teen driver to your family's auto insurance policy could more than double your rates. If you have a second teen driver in the house, rates could go up another 31%.

Companies will sometimes limit a policy to only four people. If that's the case and you have more than four drivers in your household, speak to your agent, and they will usually issue a second policy to insure all drivers in your household. In almost every case, a family car insurance policy will save you money compared to separate policies.

Cheapest companies for family auto insurance

Erie and Farm Bureau offer the cheapest car insurance for a family, with average rates of $241 and $246 per month, respectively.

Allstate has the highest rate, nearly four times the price of Erie.

Couple, 1 child

Couple, 2 children

Cheapest car insurance companies in Oklahoma

Couple, 1 child

Cheapest car insurance companies in Oklahoma

Couple, 2 children

Cheapest car insurance companies in Oklahoma

Find Cheap Car Insurance for Your Family

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Company
Married couple
Couple, 1 child
Couple, 2 children
Erie logo
Erie$120$241$295
Farm Bureau logo
Farm Bureau$139$246$331
Travelers logo
Travelers$137$268$346
USAA logo
USAA$142$273$350
Grange logo
Grange$176$323$383
Geico logo
Geico$231$407$466
Nationwide logo
Nationwide$247$480$536
Progressive logo
Progressive$219$499$734
State Farm logo
State Farm$235$527$745
Allstate logo
Allstate$282$935$1,242

Monthly rates

How much adding a teen driver raises car insurance rates

Adding a 17-year-old driver to your family car insurance policy will raise your rates by 127%. Adding a second and third teen driver to your family's policy won't cost as much, with increases of only 31% and then 8%, respectively.

Adding one or more teen drivers can mean an increase of $264 or more per month, depending on how many young drivers you put on your policy.

Family size
Avg. monthly cost
Increase in rates
Married couple$207
1 child$471127%
2 children$615197%
3 children$664220%
3 children, 3 cars$1,027395%

Monthly rates for a family with two cars except where noted

Car insurance plans for large families with extra cars

Adding a third car to your policy with multiple teen drivers can result in considerably more expensive coverage. A family with three children under 18 will pay 55% more, an average of $4,353 extra per year, if they upgrade from two cars to three.

This extra cost may be worth it, as a third vehicle will allow you more flexibility, especially if one child is able to drive the others. The cost difference between companies can be more than $20,000 per year, so it's important to look at all available options.

Company
Monthly rates
Travelers$323
Erie$454
Farm Bureau$520
USAA$557
Geico$671
Grange$789
Nationwide$806
Progressive$931
State Farm$1,221
Allstate$2,091

Rates for a family with three teen drivers and three cars

Auto insurance rate by family status

If you are married or widowed, you could pay around 7% less than a single person for car insurance. Your individual family situation, such as being divorced, single or a widower, can impact the rates you pay, though not all companies factor this into the price you pay.

Marital status
Monthly rates
Married$140
Widowed$140
Divorced$150
Single$150

Rates for a 30-year-old individual

Discounts for family car insurance

Families with children and multiple cars have access to a range of discounts that single-driver, single-vehicle households do not. You should look into your options or ask your agent about ways to offset the higher rates you'll likely pay.

  • Multicar discount: If you have multiple vehicles on the same policy, you'll likely get a break on the price.
  • Good grades discount: Insurers often reduce rates if you can show a child on your policy is maintaining at least a 3.0 GPA.
  • Away at school discount: If one of your children is away at college or boarding school, you can often get a break on your rates because they won't be driving as frequently.
  • Safety course discount: Insurance companies often reduce rates for your teen driver if they take a safety course or defensive driving course.
  • Good driver discount: As long as you and your teen drivers avoid accidents and speeding tickets, you'll likely see a reduction in your rates.

FAQ

Is it cheaper to have a family car insurance policy?

Yes, in most cases, it's cheaper to have a family car insurance plan as compared to separate policies. Teens with their own policies tend to pay considerably more than if they're on a parent's policy.

What is a family car policy?

A family car policy isn't a specific type of policy but instead a single policy that includes multiple members of a family. A family auto insurance policy is almost always cheaper than having individuals purchase their own policies.

Is it better to be under parents' car insurance?

It is better for a child to be under their parents' car insurance in most situations. It will raise the rates of the parents' policy considerably, often more than doubling the cost, but it's still cheaper than separate policies.

Do you need family car insurance?

You do not necessarily need a family car insurance plan as long as all drivers in your household who use the family car are on some kind of auto insurance policy. It doesn't need to be the same one, but a family policy tends to be the cheapest option.

Do you have to live with your parents to be on the family's car insurance?

You have to live with your parents, or at least list their home as your permanent address, to be on your family's car insurance. This means you can stay on their policy when you are away at school, but if you have your own home or apartment, you will need your own policy.

Methodology

Average rates were collected from hundreds of ZIP codes across Texas, Pennsylvania and Ohio. All rates are for full coverage policies.

Coverage
Limit
Bodily injury liability$50,000 per person/$100,000 per accident
Property damage liability$25,000 per accident
Comprehensive and collision$500 deductible

Rates listed for couples and families are for families with two 50-year-old adults and two or three 2015 Honda Civics. Teen drivers on those policies are either 17 or 18 years old.

Rates listed for individual drivers are for 30-year-olds on their own policies.

Insurance rate data was collected using Quadrant Information Services. Rates are publicly sourced from insurer filings. These should be used for comparative purposes only, as your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.