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. 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 and texting while driving.

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 well below average auto insurance rates for teen drivers — both on and off their parents' policies.

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 couples 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.

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 the parents' 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

To some extent, the high cost of auto insurance for teens is an unavoidable expense. But while families should expect to take on high premiums with a teen on their policy, there are ways to reduce the cost of driving for teens and keep insurance rates manageable until your child moves out of your household or ages out of the high-risk category. 

Consider excluding the teen from the parents' 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 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. 

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. If your teen leaves 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.

Safe driving discounts

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. Some insurers also offer discounts to teens who complete a qualifying driver training or defensive driving course, and some have proprietary training programs that grant a discount to families with teens.

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, especially if parents want to buy an additional car for their new teen driver. If  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.

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. For families with teen drivers, telematics offers two advantages — potential insurance discounts as well as reinforcement of safe driving habits for new drivers. 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. While none of these tend to be large discounts, opting in can help you to shave a small amount off of the overall cost of your coverage.

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.