Cheap car insurance for teens in 2025

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 

Adding a teen driver to a parent’s insurance policy can be expensive, but choosing the right insurer can help keep costs in check. While big-name national providers tend to get the most attention, don’t overlook smaller, regional companies — they sometimes offer rates tailored to your area. If you’re not sure where to start, ask a neighbor or friend if they use a local agent or have an insurer they trust.

The table below lists some of the most affordable national car insurance companies on average for families adding a 16-year-old to their policy, using data from Quadrant Information Services. Since rates depend on factors like location, driving history and available discounts, it can be a good idea to compare multiple quotes to find the best deal for your situation.

The average total annual cost of a 16-year-old added to their married parents' car insurance policy is $5,757 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 

When teens hit age 18 or 19, they often have the choice to stay on their parents' policy or get their own. However, young drivers still pay higher insurance rates due to their limited experience behind the wheel. On average, an 18-year-old with their own policy can expect to pay $7,367 per year for full coverage or $2,291 for minimum coverage.

While staying on a parent’s plan is usually the more affordable option, some insurers may require them to switch to an individual policy once they move out or start supporting themselves financially. The table below highlights some of the most budget-friendly car insurance options for 18- and 19-year-olds with their own policy.

Ways to reduce insurance costs for teens

Consider excluding the teen from the parent’s policy

Some insurers allow parents to list their teen as an excluded driver, meaning the teen would need their own separate policy. This option may be possible if the teen has purchased their own vehicle and no longer drives the parents’ cars. This could help costs significantly for parents, but it also means their teen will not be covered if they borrow the family car.

Choosing the right car for lower insurance rates

The car your teen drives has a big impact on insurance costs. Vehicles that are cheaper to repair, have high safety ratings and are less likely to be in accidents usually come with lower premiums.

If you're aiming for a car that’s both budget-friendly and safe to insure, here are the types of vehicles you may want to steer clear of:

Other ways to save on teen car insurance

• Consider dropping full coverage on an older car: If the teen drives a low-value car, switching to liability-only coverage may help reduce costs. However, this means their vehicle won’t be covered for damage.
• Check rates from regional insurers: While major insurance companies are listed in our comparison tables, here’s another reminder to check with local or regional providers that may offer better rates for young drivers.
• Raise deductibles to lower premiums: Choosing a higher deductible can cut monthly premiums, but parents and teens should make sure they can afford the out-of-pocket costs if they need to file a claim.

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

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.

Age: Rates were calculated by evaluating our base profile with the ages 16-19 (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.