Car insurance for 17-year-olds

How much is car insurance for a 17-year-old?

The average cost of a car insurance policy for two adults with a 17-year-old driver and one vehicle is $4,842 per year for a full coverage policy. Without the teen driver, the same policy could be purchased for an average price of $2,295 a year — 53 percent less than the family with a teen.

Car insurance companies generally consider teens a higher risk to insure because they have less experience behind the wheel and may be more likely to engage in risky behaviors such as speeding or texting while driving. Teen driving statistics show that unsafe driving may actually increase as teens gain experience, with fatal crash rates peaking at age 19 before decreasing as young adults enter their 20s. This can translate into an increased number of claims against the policy. To mitigate this increased risk, your insurer is likely to charge more for your teen driver.

Families in Hawaii won’t see the same premium impact as insurers on the island aren't allowed to consider age as a car insurance rating factor. A couple with a 17-year-old in Hawaii pays an average of just $1,617 per year for full coverage, 67 percent less than the national average. 

Average car insurance cost for 17-year-olds by state

As we noted above, your location is another factor, along with age, that impacts your insurance rate. Rates differ from state to state and even from ZIP code to ZIP code. Insurers look at accident rates for each region and are likely to increase their premiums for those who live in areas that have a higher incidence of accidents.

The table below shows the annual full and minimum coverage premium rate for a family with a 17-year-old driver in each state. Note that the average rates for Hawaii are considerably lower. That's because Hawaii law prohibits insurers from basing rates on drivers’ age. Massachusetts also prohibits the use of age as a rating factor for insurance underwriting, but insurers can still base rates on the number of years a driver has been licensed, which results in high rates for teens.

Best car insurance companies for 17-year-olds

Choosing a company with coverage and discount options tailored to the needs of 17-year-old drivers can be important. We chose these companies based on a review of their average rates, coverage offerings, discounts and third-party scores.

Based on our research, the following companies might be worth your consideration as you search for the best 17-year-old car insurance policy:

Cheapest car insurance for 17-year-olds

No one wants to pay more for their car insurance coverage than is necessary, and that includes the parents of teen drivers. Finding affordable insurance may be a high priority for many families. Using data from Quadrant Information Services, Bankrate's insurance editorial team reviewed average premium rates from a broad range of the insurance companies that are writing the most policies in the U.S. to find the best rates for teen drivers.

While price was our primary metric here, we also took a careful look at other aspects worth considering, such as wide geographic availability, the quality of each insurer's customer service, available discounts and range of coverage options. The insurers in the table below are rated highly across the board and may be good choices if you are looking for robust coverage for your family that includes a teen. However, it may also be worth conducting a local search to see if smaller carriers in your region offer competitive rates.

Although the average rates offered by these companies are generally lower than the average premium for a 17-year-old driver, remember that the premium you will pay for your teenage driver will depend on multiple individual rating factors. The car they drive as well as the coverage types, limits and deductibles you choose will impact your premium. Additionally, 17-year-old drivers who demonstrate good driving habits will generally pay lower premiums; if your child has had a ticket or accident in their first year of driving, you’ll likely pay a higher amount for car insurance.

How to save on car insurance when insuring a 17-year-old

Although the price of insuring a teenage driver can be unnerving, there are numerous ways to save money. Most insurance companies offer car insurance discounts for students to help offset the premium increase you will likely experience after adding your 17-year-old driver.

Shop around and compare quotes

Insurance pricing is based on risk, which is why 17-year-olds are so expensive to insure. But not every insurance company puts the same price tag on your teen’s driving risk. Shopping around and comparing quotes from multiple carriers can help you find the company in your area with the best fit for your family’s budget. Comparing more than a few companies can quickly become a heavy lift, so you may want to work with an independent agent or broker to widen the scope of your search. 

Talk to your teen about safe driving habits

The high cost of car insurance for teens is partly a result of the high incidence of unsafe driving habits — like distracted driving or texting and driving — among young drivers. Helping your teen avoid or reduce these behaviors might not directly bring your insurance costs down, but it’s an essential way to reduce your risk of a premium increase as a result of violations or accidents.

Reduce mileage on your vehicles

Reduced mileage means a lower chance of accidents, which some insurers may reward with discounts. If you’re able to significantly lower your annual mileage — such as if you work from home or can take public transportation — some insurance companies may offer unique low-mileage insurance programs with low rates. In some cases, you may be able to designate one family car as a low-mileage vehicle while using another car more heavily throughout the week. 

Look for discounts

Insurance companies understand the burden that auto insurance puts on families with teen drivers, which is why they offer a range of discount opportunities to teens who can demonstrate that they’re responsible on and off the road. Good student discounts are the most common, along with discounts for teens who complete a defensive driving course or driver education. Ask your insurance agent or do your own research to find discounts that could fit your family’s needs.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 17 and 40 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Teens: Rates were determined by adding a 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.