Cheap car insurance for teens in 2024

Cheap auto insurance for teens

Insurance companies consider a driver’s age when determining their auto insurance premium in every state except Hawaii and Massachusetts. And even in Massachusetts, carriers can still consider the number of years a driver has been licensed for. On average, teenage drivers pay higher insurance premiums due to their inexperience behind the wheel and high crash rate.

According to the Centers for Disease Control (CDC), drivers between the ages of 16 and 19 are almost three times more likely than drivers aged 20 or older to be involved in a fatal car crash. They are also more likely to engage in risky driving behaviors like speeding. 

Since car insurance for teenagers tends to be expensive, young drivers and their parents may want to research several options to find the cheapest carrier for their circumstances. Luckily, several car insurance companies offer premiums for teen drivers well below average auto insurance rates.

Cheapest car insurance for teens on their parents' policy 

Both 16-year-olds and 17-year-olds typically need to be insured under their parents' policy since they are legally considered minors. Because these drivers are the most inexperienced of any age group, average rates are generally higher for teens than for other ages. Still, several of the nation’s best auto insurers offer cheap insurance for young teens. The companies showcased below offer some of the cheapest average car insurance rates for 16-year-olds added to their parents’ policy, based on average rates collected and analyzed from Quadrant Information Services. These rates are averages, and your rates will likely vary based on your personal rating factors.

The average total annual cost of a 16-year-old added to their married parents' car insurance policy is $4,975 for full coverage. That is 131 percent more compared to an average married couple without a 16-year-old on their policy.

Cheapest car insurance for teens on their own policy 

Adult teen drivers, such as 18-year-old and 19-year-old drivers, generally have more road experience than younger teens and, due to their age and status as legal adults, typically have the option to remain on their parents' policy or purchase their own. Because their average car insurance rates still tend to be higher than for more experienced adult drivers, 18-year-old drivers may still need to shop around to find affordable coverage. 

The average annual cost of car insurance for 18-year olds on their own policy is $6,406 for full coverage and $1,921 for minimum coverage. The rates below represent 18-year-old renters on their own policy. While 18- and 19-year-old drivers typically save money by staying on their parents' policies, most insurance companies will require adults to purchase their own policy once they no longer live with their parents. 

How much does car insurance cost for teen drivers?

In most states, males tend to pay higher car insurance rates than females because they are more likely to engage in risky driving behaviors. Statistically, male drivers are involved in more fatal accidents than female drivers. The average 18-year-old male driver pays 9 percent more for full coverage insurance than female drivers of the same age.

*Rates reflect the total cost for two adult drivers, one teen and one vehicle
**Rates for 18- and 19-year-olds are for drivers on their own policies

How teens can save on car insurance

Although average teen car insurance premiums are on the high side, discounts can have an impact on what you pay for coverage, and almost all insurers offer at least a few of them. When asking for quotes, make sure that you review the available discounts so that these are included in your cost. Many discounts are easy to earn. For example, some insurers will discount your rate if you agree to paperless policy documents or pay your premium in full rather than monthly. 

Good student discounts

If your teen driver is a good student, they may be able to save you money. Many carriers offer discounts for young drivers who maintain a certain grade point average (often a "B" or better), and who fit in a certain age group—usually 16 to 24. If your teen fits these criteria, ask your provider if this qualifies for savings.

Distant student discounts

Many teens attend college or university away from home. If they leave their car with you when they are at school, they may be eligible for a distant student discount. Although geared toward college students, this might also apply to younger teens attending a boarding school. This discount often requires students to be attending a school that is at least 100 miles from home. Ask your insurer if your family qualifies.

Additional discounts

In addition to education-related discounts, teen drivers may be able to take advantage of other discounts to help lower the cost of insurance. Depending on your insurance carrier, you may be eligible for the following:

• Safe driving discount: Insurance carriers may offer safe driving discounts for policyholders with clean driving records, meaning no accidents or traffic violations in the past three to five years. If you’re a good driver, you may qualify for this discount.
• Multi-car and multi-policy discounts: These two discounts are some of the biggest contributors to teens earning cheap car insurance while on their parents’ policy. If their parents have more than one car, their auto policy likely qualifies for a multi-car discount. Similarly, if they have homeowners, condo owners or renters insurance policy with the same company, they may qualify for a bundling discount.
• Driver’s education discount: Policyholders who complete a qualifying driver training course may be eligible for some companies’ driver’s education discount.
• Telematics discounts: Whether or not you have a clean driving record, you may qualify for a telematics program. These programs use a device to track your driving in real-time and award discounts for safe driving. Some insurers, however, reserve the right to increase rates if the app indicates that the driver takes risks behind the wheel, so it's a good idea to find out if that could happen with your policy.
• Payment discounts: Many carriers offer discounts for customers who pay their premium in full, enroll in automatic payments and choose paperless billing. 

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze July 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 16-60 (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.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

Teens: Rates were determined by adding a 16- or 17-year-old teen to a 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy. Rates for 18- and 19-year-olds are for teen drivers on their own auto insurance policy.