The best deal depends on whether your teen joins your family policy or gets their own coverage. Family policies almost always cost less because you're buying coverage in bulk.
Auto Insurance
Cheap Car Insurance for Teen Drivers
Updated: July 14, 2025
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Key Takeaways
Opting for a family car insurance policy is generally more cost-effective. On average, an individual teen policy costs $4,866 per year, while adding a teen to a family policy averages $3,048.
Nationwide offers the cheapest full coverage car insurance for teens at $2,066 annually. GEICO has the lowest minimum coverage rate at $492.
Gender and age affect insurance rates. Car insurance costs 13% more for male teens than females due to higher risks. Drivers aged 18 are about 10% to 20% cheaper to insure than 16-year-olds.
Cheapest Car Insurance Companies for Teens
Company | Average Cost of a Family Policy | Average Cost of an Individual Policy |
|---|---|---|
GEICO | $601 | $935 |
Nationwide | $645 | $1,170 |
Travelers | $657 | $947 |
State Farm | $699 | $781 |
Progressive | $743 | $1,385 |
Allstate | $759 | $1,266 |
Farmers | $820 | $1,634 |
*Note: The above rates are based on the average costs of minimum coverage policies for teens aged 16 to 19.
Cheapest Car Insurance for Teens by Age and State
Nationwide and GEICO offer the most affordable full coverage car insurance for teen drivers, with GEICO also providing the cheapest minimum coverage. For teens seeking individual policies, State Farm has the lowest average rates. Costs may vary based on the teen driver’s age and location.
Cheapest Car Insurance for 16-Year-Old Teens
Sixteen-year-olds face the highest insurance costs due to their inexperience and elevated accident risk. GEICO offers the best family policy rates at $689 annually, while State Farm leads individual policies at $940.
Data filtered by:Results filtered by:
Select
Coverage:State Minimum Liability Only
| GEICO | $689 | $1,306 | $617 |
| Nationwide | $705 | $1,364 | $659 |
| State Farm | $775 | $940 | $166 |
| Travelers | $777 | $1,361 | $583 |
| Progressive | $795 | $1,710 | $915 |
| Allstate | $902 | $1,828 | $926 |
| Farmers | $906 | $2,332 | $1,426 |
*Note: The above quotes are for minimum coverage policies. You can filter for different coverage levels.
MONEYGEEK EXPERT TIP
Teens with learner's permits are often covered under permissive use rather than being added to an insurance policy. This means they're insured while driving a family car with the owner’s permission, as long as the policy includes this provision.
Cheapest Car Insurance for 17-Year-Old Teens
Seventeen-year-olds see modest rate decreases but still face high costs. GEICO maintains its lead for family policies at $667 annually, while State Farm offers the best individual rates at $828.
Data filtered by:Results filtered by:
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Coverage:State Minimum Liability Only
| GEICO | $667 | $1,001 | $334 |
| Nationwide | $692 | $1,245 | $552 |
| Travelers | $739 | $999 | $259 |
| State Farm | $763 | $828 | $65 |
| Progressive | $826 | $1,659 | $832 |
| Farmers | $835 | $1,722 | $888 |
| Allstate | $856 | $1,421 | $565 |
*Note: The above quotes are for minimum coverage policies. You can filter for different coverage levels.
Cheapest Car Insurance for 18-Year-Old Teens
Eighteen-year-olds enjoy slightly better rates as they gain experience. GEICO offers family policies at $557 annually, while State Farm provides individual coverage at $735.
Data filtered by:Results filtered by:
Select
Coverage:State Minimum Liability Only
| GEICO | $557 | $835 | $279 |
| Travelers | $613 | $803 | $190 |
| Nationwide | $645 | $1,164 | $518 |
| State Farm | $678 | $735 | $57 |
| Allstate | $689 | $1,083 | $395 |
| Progressive | $704 | $1,390 | $687 |
| Farmers | $764 | $1,565 | $801 |
*Note: The above quotes are for minimum coverage policies. You can filter for different coverage levels.
Cheapest Car Insurance for 19-Year-Old Teens
Nineteen-year-olds see continued rate improvements but still pay more than older drivers. GEICO maintains its advantage with family policies at $492 annually, while State Farm offers individual coverage at $622.
Data filtered by:Results filtered by:
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Coverage:State Minimum Liability Only
| GEICO | $492 | $598 | $107 |
| Travelers | $497 | $624 | $127 |
| Nationwide | $537 | $905 | $367 |
| State Farm | $579 | $622 | $43 |
| Allstate | $587 | $731 | $144 |
| Progressive | $645 | $780 | $135 |
| Farmers | $774 | $915 | $141 |
MONEYGEEK EXPERT TIP
Location can significantly impact a teenager's car insurance costs. Insurance companies may also offer state-specific discounts or have different eligibility criteria. Compare quotes from at least three providers in your state to find the best deal.
Cheap Car Insurance for Teens: Buying Guide
To find the best insurance coverage for your needs, explore the following sections for guidance on choosing the right policy. This will help you determine the most affordable options based on your situation.
How to Get Cheap Car Insurance for Teens
Smart strategies can significantly reduce your teen's insurance costs without sacrificing coverage quality.
- 1
Limit their driving distances
Some companies offer discounts for drivers who travel fewer than 7,500 miles annually. Restricting teens to daylight driving also reduces accident risk and keeps costs down.
- 2
Keep the car title in your name
Putting your teen's name on the title may force them to get individual insurance, which costs more. Teens under 18 can't legally purchase car insurance without a parent or guardian co-signing the policy.
- 3
Enroll in driver's education
Many companies offer discounts for teens who complete certified driver's education programs. Usage-based telematics can also provide savings if your teen drives safely.
- 4
Choose an inexpensive car
Some companies automatically assign the highest-cost driver (usually the teen) to the most expensive vehicle. Specify which car should be assigned to your teen to avoid unnecessary costs.
- 5
Opt for a family car insurance policy
Family policies offer multi-car and multi-driver discounts that can reduce overall premiums by up to 20%. You'll also simplify management with one renewal date and payment.
Car Insurance Discounts for Teens
Teens can reduce insurance costs with various discounts. Whether your teen has their own policy or is added to the family’s, these discounts can help manage the costs of insuring young drivers while encouraging safe and responsible driving.
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 | Reduces rates for drivers with no at-fault accidents or traffic violations for a certain 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 (such as Allstate's teenSMART and State Farm's Steer Clear), rewarding safe driving habits |
Multi-car discount | Savings for households insuring multiple vehicles on the same policy |
Annual mileage discount | Reduces rates for drivers who drive below a certain number of miles (usually 7,500) annually |
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 |
In addition to discounts, opting for no-down-payment car insurance can provide affordable coverage with a low upfront cost. To activate the policy, you must pay at least the first month’s premium.
How Much Is Car Insurance for Teens?
The cost of car insurance for teen drivers depends on several factors, including age, location, driving history, vehicle type, policy details, insurer and claims history. On average, the cost of an individual policy for a teen driver is $4,866 per year.
Average Car Insurance Cost for Teens
Adding a teen driver to your family policy can save over a thousand dollars compared to getting them their own policy. The average cost for a teen driver on a family policy is $3,048.
Average Insurance Costs for a Teenager
Individual Policy
18-Year-Old
$4,866
Family Policy
18-Year-Old
$3,048Premiums for family policies can expect:$1,818 saved
This is 37% less expensive.
*The rates above are based on average costs. In some cases, an individual policy may make more sense. For example, if the teen drives a high-performance or luxury vehicle with high insurance costs, an individual policy prevents a huge increase in the family’s overall premium.
Cost of Car Insurance for Teens: Males vs. Females
Adding a male teen driver to your family policy costs 13% more annually, or $362, than adding a female teen. Male teens are more expensive to insure because they're more likely to engage in risky driving and have higher accident rates than female teens.
Average Insurance Costs for 18-Year-Old Males vs. Females
Female
18-Year-Old
$2,686Male
18-Year-Old
$3,048Premiums for males are on average:$362 more
This is 13% more expensive.
*Seven states don't use gender as a rating factor: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.
Car Insurance Quotes for Teens
Insurance providers consider various factors when calculating car insurance rates. The cheapest car insurance for you may differ because of your profile. Use our quote calculator to compare quotes from multiple providers and find the best rates for teens.
Cheapest Cars to Insure for Teen Drivers: How Your Car Affects Rates
Based on the latest models and full coverage policies, the Subaru Forester is the cheapest car to insure for drivers aged 16 to 19. Use the table below to find the cheapest car models to insure based on the teen driver’s age and coverage level.
Data filtered by:Results filtered by:
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Coverage:Full Coverage
Select
Age:16
| Subaru Forester | $5,777 |
| Subaru Outback | $5,853 |
| MINI Cooper | $5,958 |
| Honda CR-V | $5,996 |
| Mazda CX-5 | $6,099 |
MONEYGEEK EXPERT TIP
Teenagers are often considered high-risk drivers, so choosing a car that's cheaper to insure can significantly lower premiums. Vehicles rated high for safety can reduce costs, while expensive, fast cars may increase them.
Cheapest Car Insurance for Teens: Bottom Line
You can save on your teen's car insurance by comparing top providers like State Farm, GEICO and Nationwide. They offer excellent policies at competitive prices, along with discounts for good grades, safe driving and family policies. Choosing cars with high safety ratings and maintaining a clean driving record can reduce premiums and help you secure enough coverage without overspending.
Teen Car Insurance: FAQ
MoneyGeek answers the most common questions about finding the cheapest car insurance for teens.
Which insurance companies offer the most affordable rates for teen drivers?
Nationwide and GEICO offer the lowest rates for teen drivers on family policies. State Farm is often the top choice for affordable individual policies across age groups.
Why are car insurance premiums higher for teen drivers?
Insurers consider teen drivers high-risk due to inexperience and higher accident likelihood, leading to higher premiums than seasoned drivers. Hawaii and Massachusetts are the only states that don't use age as a rating factor, resulting in lower rates for teen drivers. However, Massachusetts bases rates on years of driving experience.
How can teen drivers earn discounts on car insurance?
Several discounts are available for teen drivers, including good student, distant student, defensive driving and telematics-based discounts. Check with your insurer about all the options.
Can a teen driver get an insurance policy?
Teenagers under 18 can't legally sign insurance contracts on their own, but a parent or guardian can co-sign a policy. While this provides an individual policy, adding them to a family plan usually offers significant savings, even for older teens in college.
Are there benefits to choosing a specific type of car for a teen driver?
A car's make and model impact insurance costs. Vehicles with good safety ratings can lower premiums, while luxury or high-speed cars might increase them. Research and choose safe and reliable vehicles.
Should you consider telematics for your teen driver?
Telematics monitors driving behavior through devices or apps, offering feedback and potential discounts based on safe driving habits. Teen drivers can benefit from telematics, as it helps them develop safer habits and may lower their premiums through programs that reward responsible driving.
What happens if my teen gets into an accident?
Your insurance rates will likely increase after an at-fault accident, but the impact varies by company and state. Some insurers offer accident forgiveness for first-time incidents, while others may raise rates by 20% to 40%. The teen's driving record affects the entire family policy, so discuss safe driving expectations early.
When should I remove my teen from my car insurance policy?
Remove your teen when they move out permanently, get married, or purchase their own vehicle and policy. College students living away from home can often stay on family policies with distant student discounts. If your teen joins the military, they may qualify for specialized coverage through providers like USAA.
Do I need to add my teen immediately when they get their learner's permit?
Most insurers don't require adding teens with learner's permits since they're covered under permissive use provisions while driving with licensed adults. However, you should add them once they get their full license. Some companies offer better rates if you add them earlier, so check with your insurer.
Can my teen's grades affect our insurance rates?
Yes, most insurers offer good student discounts for teens maintaining a B average or 3.0 GPA. Some companies require verification through report cards or transcripts. These discounts can reduce premiums by 10% to 25%, making academic performance literally pay off for your family's insurance costs.
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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Best Car Insurance Rates for Teens: Methodology
Study Overview
MoneyGeek gathered quote data to determine the cheapest car insurance for teens by age.
Data Acquisition, Depth and Analysis
We collected data from Quadrant Information Services and state insurance departments. MoneyGeek analyzed 83,056 quotes from 46 companies across 473 ZIP codes.
Driver Profiles
The sample profile used for rate collection includes:
- 100/300/100 liability limits
- Comprehensive and collision coverages
- $1,000 deductible
- No history of tickets or accidents
- 2010 Toyota Camry LE
We adjusted this profile by age to compare rates for 16, 17, 18 and 19-year-olds. We also modified it by gender to analyze rate differences and by vehicle (Ford Mustang) to compare insurance prices for teens by car.
Coverages and Deductibles Explained
A deductible is paid out of pocket before certain coverages, like collision and comprehensive, apply.
A 100/300/100 policy includes:
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
Learn more about MoneyGeek's Methodology.
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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.
sources
- Insurance Information Institute. "Facts + Statistics: Teen drivers." Accessed March 5, 2025.
- Insurance Institute for Highway Safety. "Vehicle Ratings." Accessed March 5, 2025.
- National Highway Traffic Safety Administration. "Young Drivers." Accessed March 5, 2025.