Best car insurance for teens of 2024
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BLUEPRINT
Updated 6:08 p.m. UTC Dec. 21, 2023
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Nationwide has the best car insurance for teen drivers, according to our analysis of rates, policy coverages and features, customer complaints and collision repairs.
The best car insurance for teens of 2024
- Nationwide: Best car insurance for teens
- Erie: Best for car insurance for claims
- USAA: Best car insurance for military families
- Travelers: Great car insurance for young adults
- Westfield: Best for low customer complaints
Why trust our insurance experts
Our team of insurance experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 260 companies analyzed.
- 347 rates reviewed.
- 5 levels of fact-checking.
Best car insurance for teen drivers
Nationwide
Erie
USAA
Travelers
Westfield
Compare best car insurance companies for teens
Methodology
Our insurance experts evaluated top car insurance companies to determine which offer the best car insurance for teens based on average rates, coverage features and consumer complaints.
Each car insurance company was eligible for up to 100 points, based on its performance in the following key categories.
Cost: 60 points. Our insurance experts analyzed rates from Quadrant Information Services for good drivers from 16 to 19 added to a parent policy with 100/300/100 in liability coverage, uninsured motorist coverage and comprehensive and collision coverage.
Complaints: 20 points. We collected complaint data from the National Association of Insurance Commissioners (NAIC), which shows the volume of car insurance consumer complaints against each company. When a consumer lodges a complaint to their state’s department of insurance — often about an insurance company’s claims process, delays, denials or settlements — these complaints are logged and tracked.
Car insurance coverage options and features: 10 points. Car insurance policy features can help make coverage more affordable both before and after an accident or covered incident. We evaluated car insurance policies offered by each insurer and awarded points to insurers that offered these valuable options and features:
- Accident forgiveness (5 points).
- Diminishing deductible (5 points).
Collision repair score: 10 points. The Crash Network releases collision repair scores annually. Scores reflect feedback from more than 1,000 collision repair professionals, indicating how efficiently a company handles collision claim services. Insurers that got top grades received the most points.
Usage-based insurance (UBI) programs: 5 bonus points. UBI is a type of car insurance that bases car insurance rates on driving habits, such as speed, hard braking and miles driven. Good driving behaviors often result in lower rates, and depending on the insurer and program, risky habits can result in higher rates.
These types of programs can be beneficial for parents who want to track a teen’s driving habits, but they aren’t always ideal if new driver habits increase rates. Insurers that offer UBI but don’t increase rates due to driving behaviors were eligible for 5 bonus points.
Who has the best car insurance for teens?
Nationwide has the best car insurance for teenagers, based on our analysis. Erie is the next best car insurance company for teens.
They each offer competitive rates and a host of features that are a good fit for teen drivers, such as accident forgiveness, gap insurance and new car replacement coverage.
Nationwide offers usage-based car insurance (UBI), which can help you track your teen’s driving habits, but unlike many other insurers, rates won’t go up for risky behavior. That means you can use the program to help them learn safer habits without worrying about it negatively impacting your rates.
Erie doesn’t offer UBI, but it does have an app, YourTurn, that lets you track driving habits to ensure your teen is following the rules of the road. Safe driving can earn 16- to 23-year-old drivers up to $10 every two weeks.
Erie also has the highest grade from CRASH Network, an organization that surveys collision repair professionals to determine which insurers have the strongest claims process. Factors that affect an insurer’s score include quality of repairs, payment process and customer satisfaction.
If you’re shopping for the cheapest car insurance for teens, Nationwide and Erie can fit the bill, but you may also want to consider USAA. Available to members of the military community, USAA car insurance has the second lowest rates for teens on a parent policy and the third-lowest rates for teens on their own policy.
How much does car insurance for teens cost?
The average cost for a teen driver added to a parent policy is $4,457 per year, according to our analysis of car insurance rates.
The national average for a teen driver on his or her own policy is an eye-popping $5,232 per year. In other words, it’s far more affordable for a teen to go on a parent’s policy than to purchase their own.
How much you or your teen will actually pay for coverage depends on several factors, including:
Insurer
Insurance rates can vary significantly by insurer, with some companies offering far lower rates for teen drivers. We recommend you compare car insurance quotes before you purchase a policy.
USAA and Erie offer the cheapest car insurance for teenagers, based on our analysis, though each of the insurers in the table below offers coverage below the national average.
Average cost of car insurance for teens by company
Age
Teen drivers have notoriously high rates because of their age, which usually indicates a lack of experience behind the wheel. That lack of experience also leaves them more vulnerable to distracted driving, according to the National Highway Traffic Safety Association, which notes that teens who text while driving increase their risk of an accident by 23 times.
A teen who gets a license at age 16 and carries a blemish-free driving record will usually see significantly lower rates by the time they hit 19.
Average cost of car insurance for teens by age
Gender
According to data from the CDC, male teen drivers are more likely to be involved in risky behaviors behind the wheel, like drinking and driving or speeding. They’re also more likely to be involved in a deadly crash, with male drivers making up two out of three accident-related deaths among teens. As such, insurers often charge higher rates for male drivers.
Gender-based rates are common in the U.S., but there are some states that ban the practice: California, Hawaii, Maine, Massachusetts, Michigan, North Carolina and Pennsylvania.
Vehicle make and model
Regardless of how old you are, the type of car you or your teen drives will directly impact your car insurance rates. In general, the cost to repair or replace a vehicle, its safety rating and the likelihood of theft contribute to the overall rate.
Shopping for a new car? See the least expensive cars to insure.
Driving record
Young drivers often have higher car insurance rates because they lack experience — i.e., they don’t have a driving record. However, once they get behind the wheel, an accident or moving violation can increase rates when it comes time to renew a policy.
Location
The cost of car insurance can vary significantly by state and even by ZIP code. For instance, drivers in Hawaii and Vermont typically pay much less for coverage than those in Florida and Connecticut. Similarly, even when drivers call the same state home, those in the suburbs often enjoy lower rates than drivers who live in cities.
Car insurance discounts for teens
Most companies offer car insurance discounts that cater to teen drivers. Keep an eye out for the following teen and young-driver discounts to see if you can secure a lower rate.
- Good student discount. Many insurance companies reward solid study habits and good grades with lower rates. Typically drivers must be considered full-time students and maintain a B or 3.0 GPA, though rules vary by insurer.
- Away-at-school discount. If a young driver is living on campus but leaving their car behind, they may be able to take advantage of this discount. Eligibility is usually based on the distance between the policyholder’s home address and the student’s campus location, with 100 miles or more being a common benchmark.
- Driving education program discount. Many insurance companies offer discounts to teen drivers for completing an approved driver safety course. Developing those good driving habits will also pay off over the long run, as most companies offer discounts for having a consistently clean driving record for a certain period.
- Multi-vehicle discount. You may get a discount for adding another vehicle to your policy.
How to get the cheapest car insurance for teens
Shop around
We recommend you get at least three car insurance quotes before you settle on a car insurance policy — that goes for teens as well as adults. As you collect quotes, make sure each is for the same type and amount of coverage, and don’t forget to get a quote from your current insurer as well, if applicable.
Check for discounts
Discounts are a great way to reduce rates, and each insurer in our analysis offers some type of teen or young driver savings. Discount opportunities aren’t limited to teens, however. Most insurers offer at least a handful of more general discounts.
If you haven’t already, consider bundling your auto and homeowners insurance with the same company, putting all household vehicles on the same policy and asking about any other discounts the drivers in your household may qualify for.
Only buy what you need
Always buy enough car insurance to meet any state requirements, and if your teen is driving a financed or leased vehicle, you’ll also need to meet any insurance requirements outlined in your lease or loan agreement. After that, you can determine what other types of coverage you may want to include.
For instance, if your teen is driving a newer car, collision and comprehensive car insurance can help protect you against the financial implications if they back into a pole or the car is stolen. However, if their vehicle is relatively old and inexpensive to fix, collision or comprehensive coverage may not be worth the added cost.
Choose the right vehicle
Some cars are cheaper to insure than others, so if you’re shopping for a new vehicle, take the time to get some quotes for each make and model you’re considering.
On a related note, if there is a particularly expensive or dangerous vehicle on the household policy, like a luxury vehicle or sports car you don’t plan to let your teen drive, ask your insurance company if you can save money by not listing your teen as a driver for that car.
It’s usually much cheaper to add a teen driver to a parent’s policy than to buy a separate policy. The average cost to add a teen to a parent policy is $1,951 per year, while a teen on their own policy can expect to pay an average of $6,598 per year — or $4,647 more per year.
A good way to determine if adding your teen to your policy is the best financial option is to check car insurance quotes from your insurance company and any potential new insurers. You can also get quotes for how much it will cost to add your teen as a driver for a specific vehicle.
Our analysis shows that USAA, which also earned a spot in our best car insurance companies, has the cheapest car insurance for teenagers, whether they’re added to a parent’s policy or they get their own. However, USAA is only available for the military community and eligible family members. If you are not eligible, Erie and Geico are also good choices for most consumers.
Teen drivers are inexperienced, can be easily distracted and are statistically more likely to be involved in a crash when compared to other age groups. Since insurance companies set rates based on the level of risk, teens usually pay significantly more for coverage.
As they age, teen rates will typically decrease as long as the driver keeps a clean driving record and avoids other issues, like poor credit scores or a gap in coverage.
You can save on car insurance, including coverage for teen drivers, by shopping around for coverage, taking advantage of car insurance discounts, only buying the coverage you need, adjusting your deductible and limits and bundling home and auto insurance.
The cheapest car insurance companies for a teenager on a parent’s policy are:
- Nationwide: An average of $2,819 per year.
- USAA: An average of $3,025 per year.
- Erie: An average of $3,215 per year.
Teen drivers purchasing a policy on their own may find the cheapest coverage with:
- Erie: An average of $2,921 per year.
- USAA: An average of $3,418 per year.
- Geico: An average of $3,746 per year.
The average cost to add a teen to a parent policy is $4,362 per year, based on our expert analysis of the top car insurance companies in the nation. Teens who have their own policy pay an average of $5,232 per year.
How much your teen will pay for coverage will depend on several factors, including their age, gender, location and the vehicle they drive.
You can lower your teen’s car insurance rates by shopping around for coverage, looking for young driver or teen-specific car insurance discounts and choosing a car that is inexpensive to insure.
You can also consider making policy adjustments, such as increasing your teen’s deductible or decreasing their policy limits, though each can leave you vulnerable to more out-of-pocket expenses if your teen driver is in an accident.
Car insurance rates for teens and young drivers can be affected by several factors, including their age, gender, location, the type and amount of coverage purchased, chosen insurer and vehicle driven.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
