Top Auto Insurance Providers for Teens in 2024 (Top 10 Companies)
Discover why Progressive, State Farm, and Allstate are the top car insurance companies for teens, excelling in offering optimal coverage for young drivers. Gain insights into what sets these leading providers apart and ensures the best insurance options for teens.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active life and health insurance licenses in seven states and over 20 years of experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ...
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UPDATED: Feb 12, 2024
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UPDATED: Feb 12, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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11,413 reviewsExplore top car insurance companies for teens, including Progressive, State Farm, and Allstate. This overview highlights rates, coverage choices, and discounts, with Progressive standing out for cost-effectiveness and innovative safe driving initiatives.
What is the cheapest way to get auto insurance for a teenager? Shopping around and comparing multiple companies before you buy is the easiest way to get cheap insurance for teens. You can also add a teen driver to an existing policy, although your rates will still increase.
Our Top 10 Best Companies: Top Auto Insurance Providers for Teens
| Company | Rank | See Pros/Cons | Good Student Discount | Driver's Education Discount | Best for |
|---|---|---|---|---|---|
 | #1 | Progressive | Up To 10% | Up To 5% | Bundle Discounts |
 | #2 | State Farm | Up To 25% | Up To 15% | Customizable Policies |
 | #3 | Allstate | Up To 20% | Up To 10% | Comprehensive Coverage |
 | #4 | Nationwide | Up To 15% | Up To 10% | Local Agents |
 | #5 | Liberty Mutual | Up To 10% | Up To 5% | Policy Options |
 | #6 | Farmers | Up To 15% | Up To 10% | Online Convenience |
 | #7 | AAA | Up To 10% | Up To 5% | 24/7 Support |
 | #8 | Travelers | Up To 8% | Up To 5% | Vanishing Deductible |
 | #9 | Esurance | Up To 15% | Up To 10% | Safe-Driving Discounts |
 | #10 | National General | Up To 12% | Up To 8% | Multi-Policy Discounts |
Do you have to add a teenage driver to your insurance? No, but teens and young drivers historically pay the most for auto insurance, especially male drivers under 18. You can save a lot of money by adding a young driver instead of buying a separate policy.
If you’re wondering who has the cheapest auto insurance for a teenager, look for policies with Erie, Geico, or State Farm. Are you looking for additional accident forgiveness or roadside assistance for a teen driver? Try shopping with Allstate or Progressive.
We compare rates from these and other top providers in our teen auto insurance guide below. You’ll find everything you need to know about insuring teen drivers, including insurance quotes for new drivers and where to find the best auto insurance rates in your state.
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#1 – Progressive – Progressive: Winning With Bundle Discounts
Progressive stands out as a top-tier auto insurance provider for teens, offering a compelling blend of affordability and comprehensive protection.Zach Fagiano Licensed Insurance Broker
Pros
- Bundle discounts: Progressive offers enticing bundle discounts, allowing teens and their families to save on multiple policies.
- Good student discount: With a good student discount of up to 10%, Progressive encourages academic excellence while reducing insurance costs.
- Comprehensive coverage: Known for comprehensive coverage options, Progressive ensures that teen drivers are well-protected on the road.
Cons
- Limited local agents: Progressive may have limitations in terms of local agents, potentially affecting personalized and localized service.
- Varied customer service: While some customers praise Progressive’s service, others report varied experiences, indicating potential inconsistencies.
Read more: Progressive Auto Insurance Review
#2 – State Farm: Customizable Policies for the Win
Pros
- Customizable policies: State Farm stands out for its customizable policies, allowing families to tailor coverage according to their specific needs.
- High good student discount: With an impressive up to 25% good student discount, State Farm encourages academic excellence and provides substantial savings.
- Local agents: State Farm’s extensive network of local agents ensures personalized service and quick assistance.
Cons
- Potentially higher rates: Some customers report comparatively higher rates with State Farm, which could be a consideration for budget-conscious families.
- Complex claims process: State Farm’s claims process may be perceived as complex by some customers, leading to potential frustrations.
Read more: State Farm Auto Insurance Review
#3 – Allstate: Comprehensive Coverage Takes the Lead
Pros
- Comprehensive coverage: Allstate is recognized for its comprehensive coverage options, providing a wide range of protection for teen drivers.
- Good student discount: Offering a good student discount of up to 20%, Allstate promotes academic achievement while reducing insurance costs.
- Multi-policy discounts: Allstate provides multi-policy discounts, allowing families to save when bundling multiple insurance policies.
Cons
- Potentially higher premiums: Some customers note that Allstate’s premiums might be on the higher side, requiring careful consideration of budget constraints.
- Mixed customer service reviews: While many customers praise Allstate’s customer service, there are mixed reviews, indicating potential variability in service quality.
Read more: Allstate Auto Insurance Review
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#4 – Nationwide: Local Agents Bring Success
Pros
- Local agents: Nationwide’s emphasis on local agents ensures personalized service, with professionals readily available for assistance.
- Good student discount: Offering up to 15% in good student discounts, Nationwide encourages academic achievement while providing substantial savings.
- Variety of policy options: Nationwide provides a range of policy options, allowing families to choose coverage that suits their specific needs.
Cons
- Mixed customer reviews: Nationwide receives mixed customer reviews, with some expressing satisfaction and others reporting issues, indicating potential inconsistencies.
- Limited online convenience: While Nationwide focuses on local agents, its online convenience may be comparatively limited, which could be a drawback for tech-savvy users.
Read more: Nationwide Auto Insurance Review
#5 – Liberty Mutual: Policy Options Stand Out
Pros
- Policy options: Liberty Mutual stands out for offering diverse policy options, ensuring that families can find coverage tailored to their preferences.
- Good student discount: With a good student discount of up to 10%, Liberty Mutual supports academic excellence while providing cost savings.
- Online convenience: Liberty Mutual provides online convenience, allowing users to manage their policies and claims conveniently over the internet.
Cons
- Limited good student discount: While Liberty Mutual offers a good student discount, it may be comparatively lower than some competitors, potentially impacting savings.
- Mixed customer service reviews: Customer reviews for Liberty Mutual’s customer service are mixed, with some experiencing positive interactions and others expressing dissatisfaction.
#6 – Farmers: Online Convenience Wins
Pros
- Online convenience: Farmers excels in online convenience, offering users an easy and accessible platform for managing policies and claims.
- Good student discount: Providing up to 15% in good student discounts, Farmers encourages academic achievement while delivering significant cost savings.
- Variety of coverage options: Farmers offers a variety of coverage options, ensuring families can tailor their policies to specific needs.
Cons
- Mixed customer reviews: Farmers receives mixed customer reviews, with some praising the service and others expressing dissatisfaction, indicating potential variations in customer experience.
- Potentially higher premiums: Some customers report that Farmers’ premiums might be on the higher side, requiring careful consideration of budget constraints.
Read more: Farmers Auto Insurance Review
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#7 – AAA: Support 24/7 Takes the Prize
Pros
- 24/7 Support: AAA stands out with its 24/7 support, ensuring that customers can receive assistance at any time.
- Good student discount: Offering up to 10% in good student discounts, AAA supports academic excellence while providing substantial savings.
- Variety of policy options: AAA provides a range of policy options, allowing families to choose coverage that suits their specific needs.
Cons
- Membership requirements: To access AAA’s auto insurance, customers need to be AAA members, which might limit availability for non-members.
- Regional availability: AAA’s availability may be limited to certain regions, potentially excluding customers in areas without AAA coverage.
Read more: AAA Auto Insurance Review
#8 – Travelers: Vanishing Deductible Stands Strong
Pros
- Vanishing deductible: Travelers offers a vanishing deductible, rewarding safe driving behavior and providing an incentive for responsible habits.
- Good student discount: With a good student discount of up to 8%, Travelers encourages academic excellence while delivering cost savings.
- Variety of policy options: Travelers provides a variety of policy options, ensuring families can find coverage that meets their specific needs.
Cons
- Limited good student discount: The good student discount offered by Travelers may be comparatively lower than some competitors, potentially impacting savings.
- Mixed customer reviews: Travelers receives mixed customer reviews, with some expressing satisfaction and others reporting issues, indicating potential variations in customer experience.
Read more: Travelers Auto Insurance Review
#9 – Esurance: Safe-driving Discounts Lead the Way
Pros
- Safe-driving discounts: Esurance emphasizes safe-driving discounts, providing incentives for responsible behavior on the road.
- Good student discount: Offering up to 15% in good student discounts, Esurance supports academic achievement while delivering substantial cost savings.
- User-friendly online platform: Esurance’s user-friendly online platform makes it easy for customers to manage policies and claims.
Cons
- Mixed customer reviews: Esurance receives mixed customer reviews, with some praising the service and others expressing dissatisfaction, indicating potential variations in customer experience.
- Limited availability: Esurance’s availability may be limited to certain regions, potentially excluding customers in areas without Esurance coverage.
Read more: Esurance Auto Insurance Review
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#10 – National General: Multi-policy Discounts for Success
Pros
- Multi-policy discounts: National General stands out with multi-policy discounts, encouraging customers to bundle their insurance needs for additional savings.
- Good student discount: Offering up to 12% in good student discounts, National General supports academic excellence while providing significant cost savings.
- Variety of coverage options: National General offers a variety of coverage options, allowing families to tailor their policies to specific needs.
Cons
- Mixed customer reviews: National General receives mixed customer reviews, with some expressing satisfaction and others reporting issues, indicating potential variations in customer experience.
- Limited online convenience: While National General offers coverage variety, its online convenience may be comparatively limited, potentially impacting tech-savvy users.
Read more: National Auto Insurance Review
Top Auto Insurance Providers for Teens
Embarking on the journey of auto insurance for teens can be overwhelming, given the plethora of choices available. Progressive stands out with a monthly liability coverage rate of $105 and full coverage at $39, offering a compelling blend of affordability and comprehensive protection.
Average Monthly Auto Insurance Rates for Teens
| Insurance Company | Full Coverage | Minimum Coverage |
|---|---|---|
| Progressive | $105 | $39 |
| State Farm | $86 | $33 |
| Allstate | $160 | $61 |
| Nationwide | $115 | $44 |
| Liberty Mutual | $174 | $68 |
| Farmers | $139 | $44 |
| AAA | $86 | $32 |
| Travelers | $99 | $37 |
| Esurance | $114 | $46 |
| National General | $161 | $61 |
State Farm follows closely, presenting teens with a monthly liability rate of $86 and full coverage at $33, emphasizing customization to meet specific needs and providing a sense of financial security on the road. As teens navigate the roadways, finding the right balance between budget considerations and robust coverage is key in making well-informed insurance decisions.
State Farm – Top Teen Auto Insurance Provider Overall
State Farm takes the top spot as the best auto insurance for teens overall. It’s among the top three cheapest auto insurance providers for young drivers, with monthly full coverage rates of around $317 for teen males and $270 for females.
It also performs well in terms of claims handling and customer satisfaction and offers a variety of discounts to help teens save money. With State Farm Steer Clear, a telematics program designed to improve teen driving habits, teens save the most on auto insurance.
Young drivers must complete all the program requirements and remain accident-free for three years, but rates are competitively lower than most providers. Read our State Farm auto insurance review to compare costs.
Erie – Top Teen Auto Insurance Rates
Although it is a smaller regional provider, Erie Insurance offers the lowest rates to teen drivers.
Sixteen-year-old drivers pay an average of $225 per month for full coverage with Erie, while 18-year-old drivers pay $175, which is almost $400 less than the national monthly average.
Rate Lock with Erie guarantees your rates, meaning teen drivers can lock in cheaper rates and avoid an increase after minor traffic violations. Young single drivers or those who still live with policy-holding parents or guardians are also eligible for discounts.
Unfortunately, Erie is only available in 12 states, predominantly in the Mid-Atlantic region and along the East Coast. However, according to J.D. Power, it is the highest-ranking provider of customer service in the Mid-Atlantic and North Central regions.
If Erie isn’t available where you live, Geico and State Farm offer the next cheapest rates with coverage in all 50 states. Learn more by reading our Erie auto insurance review.
Farmers – Top Teen and Student Auto Insurance Discounts
Farmers Insurance offers the longest list of auto insurance discounts, and teens qualify for more than half of them.
Along with the common good student and defensive driving discounts, teens will get additional savings if they are listed on a policy with a shared family vehicle. When they age out and buy their own policy, young drivers earn an On Your Own discount for being previously listed on a family member’s policy.
Moreover, Farmers is one of the few providers that offers discounts on auto insurance for LoJack and other anti-theft devices, such as tracking and location systems. Discounts like these can help teens with new vehicles get better rates. Check out our Farmers auto insurance review for more information.
USAA – Top Teen Auto Insurance Quotes for Military Families
USAA auto insurance offers very competitive rates for teen drivers. Young drivers under 20 pay an average of $220 per month for full coverage. Only Erie offers lower rates to 18-year-old drivers, but coverage with USAA is available in all 50 states.
Teens can earn legacy discounts on auto insurance if their parents have a policy, and USAA offers additional discounts to young drivers who store their vehicles on base or garage vehicles while on deployment.
However, USAA auto insurance is only available to active and retired military members and their families. Read our USAA auto insurance review to learn more about the provider and available coverage.
Allstate – Best Teen Accident Forgiveness
Allstate offers the most customizable accident forgiveness programs. Its “Your Choice Auto” policies are packaged with different levels of coverage. (For more information, read our “What is accident forgiveness coverage?“).
For example, the Gold package forgives one accident per year per policy. The Platinum package provides unlimited accident forgiveness. Drivers with Platinum coverage will also keep their safe driving discounts after an accident and earn a vanishing deductible for every year they go without an accident.
Buying “Your Choice Auto” comes with higher monthly rates on average, but it is an excellent way to keep your rates from increasing if an inexperienced young driver on your policy gets into an accident. To learn more, visit our Allstate auto insurance review.
Progressive – Best Teen Roadside Assistance
Roadside assistance can provide peace of mind when insuring a young driver because you know they’ll never be stranded on the side of the road.
Most auto insurance companies offer roadside assistance, but Progressive provides the most comprehensive coverage, including:
- Towing
- Locksmith services
- Winching
- Battery jumps
- Fuel delivery
- Battery charges for electric cars
- On-site labor and tire changes (up to one hour)
Progressive roadside assistance coverage also extends to motorcycles, RVs, and boats. Check our Progressive auto insurance review to learn more.
How much is auto insurance for teens?
Teen auto insurance quotes are the most expensive on average. Insurance providers charge them more based on their inexperience behind the wheel and propensity for distracted driving.
In general, the teenage auto insurance average cost per month is over $500 for full coverage and around $220 for minimum coverage. You’ll see higher rates if you have speeding tickets or drive a newer vehicle, so shop around and compare quotes from multiple companies before you buy.
Learn more about how to find affordable auto insurance for high-risk drivers and compare teen auto insurance rates below.
How much is insurance for a 16-year-old driver?
Car insurance for a 16-year-old driver costs the most, especially 16-year-old males.
The table below compares teen auto insurance rates by gender from the providers discussed above with other top providers in the country:
Average Monthly Full Coverage Auto Insurance Rates for 18-Year-Old Drivers
| Insurance Company | 16-Year-Old Male With a Clean Record | 16-Year-Old Female With a Clean Record |
|---|---|---|
| Allstate | $637.83 | $608.25 |
| American Family | $480.08 | $390.17 |
| Farmers | $741.75 | $777.50 |
| Geico | $311.92 | $297.75 |
| Liberty Mutual | $778.25 | $716 |
| Nationwide | $476.17 | $410.50 |
| Progressive | $813.83 | $801.42 |
| State Farm | $349.25 | $310.83 |
| Travelers | $896.83 | $708.83 |
| National Average | $609.58 | $557.92 |
Rates with State Farm, Nationwide, Erie, and Geico teenage driver insurance are all cheaper than the national average. However, Geico and State Farm are the only providers with coverage in all 50 states.
How much is auto insurance for an 18-year-old driver?
Teens will see their insurance rates drop once they graduate high school. Eighteen-year-old drivers still pay more than adult drivers, but rates are between $100-$200 less per month than they paid two years prior.
Compare auto insurance rates for 18-year-old drivers from top companies below:
Average Monthly Auto Insurance Rates for 18-Year-Old Drivers
| Companies | 18-Year-Old Female | 18-Year-Old Male |
|---|---|---|
| Allstate | $448.45 | $518.62 |
| Farmers | $597.48 | $628.61 |
| Geico | $219.55 | $253.62 |
| Liberty Mutual | $521.90 | $625.59 |
| Nationwide | $302.66 | $387.17 |
| Progressive | $590.85 | $661.74 |
| State Farm | $229.17 | $283.98 |
| Travelers | $530.19 | $739.74 |
| USAA | $180.43 | $202.79 |
Again, Geico, State Farm, and Erie offer the lowest rates. However, 18-year-old drivers who are still students or starting college may be eligible for discounts and lower rates with other companies.
Compare quotes from at least three different providers before you buy teen auto insurance to get the best possible rates.
Why is auto insurance so expensive for young drivers?
According to the National Highway Traffic Safety Administration (NHTSA), young drivers under 35 are more likely to cause and die in auto accidents than any other age group. Teen drivers are especially at-risk due to their inexperience behind the wheel, which can lead to speeding, slow reaction times, and distracted driving.
Because of these statistics, insurance providers consider teens high-risk. Providers believe teen drivers and those with teens on their policies are more likely to get into accidents and file a claim, which leads to higher-than-average rates.
Other variables can also explain why your auto insurance is so high with a teen driver. For example, traffic congestion and auto theft rates in your state will impact how much you pay for auto insurance.
This table shows auto insurance rates by state:
Average Monthly Auto Insurance Rates by State
| States | Average Monthly Liability Rates | Average Monthly Collision Rates | Average Monthly Comprehensive Rates | Average Monthly Full Coverage Rates |
|---|---|---|---|---|
| Alabama | $37 | $28 | $14 | $79 |
| Alaska | $47 | $31 | $12 | $90 |
| Arizona | $48 | $25 | $16 | $89 |
| Arkansas | $36 | $29 | $17 | $82 |
| California | $45 | $36 | $8 | $88 |
| Colorado | $49 | $25 | $17 | $91 |
| Connecticut | $59 | $32 | $11 | $102 |
| Delaware | $69 | $28 | $11 | $107 |
| District of Columbia | $58 | $41 | $19 | $118 |
| Florida | $76 | $26 | $11 | $113 |
| Georgia | $55 | $30 | $14 | $98 |
| Hawaii | $39 | $27 | $9 | $75 |
| Idaho | $32 | $20 | $10 | $62 |
| Illinois | $40 | $27 | $11 | $77 |
| Indiana | $34 | $22 | $11 | $67 |
| Iowa | $27 | $19 | $16 | $62 |
| Kansas | $32 | $23 | $21 | $76 |
| Kentucky | $47 | $24 | $12 | $83 |
| Louisiana | $73 | $37 | $19 | $128 |
| Maine | $30 | $23 | $9 | $62 |
| Maryland | $55 | $31 | $13 | $100 |
| Massachusetts | $52 | $34 | $12 | $98 |
| Michigan | $72 | $37 | $13 | $121 |
| Minnesota | $39 | $20 | $16 | $76 |
| Mississippi | $41 | $29 | $18 | $88 |
| Missouri | $38 | $24 | $16 | $79 |
| Montana | $34 | $23 | $21 | $77 |
| Nebraska | $33 | $21 | $20 | $74 |
| Nevada | $64 | $27 | $10 | $100 |
| New Hampshire | $35 | $26 | $9 | $70 |
| New Jersey | $76 | $33 | $11 | $119 |
| New Mexico | $44 | $24 | $15 | $84 |
| New York | $71 | $34 | $15 | $120 |
| North Carolina | $31 | $26 | $11 | $67 |
| North Dakota | $25 | $22 | $20 | $67 |
| Ohio | $35 | $24 | $10 | $69 |
| Oklahoma | $40 | $27 | $20 | $88 |
| Oregon | $53 | $20 | $8 | $81 |
| Pennsylvania | $43 | $29 | $13 | $85 |
| Rhode Island | $68 | $36 | $11 | $116 |
| South Carolina | $50 | $24 | $16 | $89 |
| South Dakota | $26 | $19 | $24 | $69 |
| Tennessee | $37 | $27 | $13 | $77 |
| Texas | $49 | $33 | $19 | $101 |
| Utah | $45 | $23 | $10 | $78 |
| Vermont | $30 | $26 | $11 | $68 |
| Virginia | $38 | $25 | $12 | $74 |
| Washington | $53 | $24 | $9 | $86 |
| West Virginia | $43 | $28 | $18 | $88 |
| Wisconsin | $33 | $20 | $12 | $65 |
| Wyoming | $29 | $24 | $23 | $75 |
| National Average | $48 | $29 | $13 | $90 |
Your rates will vary based on your driving record and the vehicle you drive, but these averages will give you an idea of how much teen drivers are paying for insurance in your neighborhood. Enter your ZIP code in our free comparison tool below to get more accurate teen auto insurance quotes.
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Top Ways to Save on Teen Auto Insurance
Teens will pay higher insurance rates, but you can still save money on your auto insurance policy. Follow the tips below to find discounts on teen auto insurance and lower your overall monthly rates.
How to Get Discount Teen Auto Insurance
Teen drivers often qualify for the most auto insurance discounts. Some providers offer special programs exclusively for young drivers, including State Farm’s Steer Clear, while others give additional savings to students and military members.
Always ask a provider about discounts before buying a policy. Safe drivers always pay the lowest rates, and teens are eligible for safe driving discounts and more if they remain claim and accident-free.
Consider more discount opportunities below when looking for the best car insurance for teens:
- Keep your grades up. Maintaining a 3.0 GPA or B average can save you between 5% and 20% on auto insurance.
- Increase your deductible. Auto insurance deductibles are the amount you pay out of pocket for a claim. You’ll have lower monthly rates if you can afford to pay $500-$1,000 upfront for repairs.
- Drive an inexpensive vehicle. Sports cars and luxury vehicles have higher insurance rates, so assign your teen driver to the older or less expensive vehicle to lower your monthly costs.
- Limit your mileage. Teens who drive less than 10,000 miles per year can get discounted rates with auto insurance companies for people who don’t drive often.
- Monitor your driving. State Farm Steer Clear and other telematics programs can monitor teen driving habits through a mobile app. Safe driving earns discounts, but poor driving habits could raise your rates.
- Take a defensive driving class. Defensive driving discounts can save an average of 10% on monthly auto insurance rates.
Most auto insurance providers reserve defensive driving discounts for teen and senior drivers, so take advantage of these savings opportunities when possible to get the best rates.
How to Add a Teen to Auto Insurance
Call your current provider to add a new driver to your policy, or access your account online with your auto insurance login. Your provider may also have a mobile app where you can add drivers and update coverage.
When you add a teen driver to auto insurance, your rates will go up, so request a quote from your provider before officially adding anyone to your policy. Compare this quote to other teen auto insurance companies near you to see if you can find better rates elsewhere.
Remember, the best auto insurance provider for teens will give you the kind of coverage you need at a competitive price. If you like a provider with more expensive rates, ask about teen and student discounts before adding a young driver.
When Teens Should Get Their Own Policies
Teens should get their own auto insurance policy if they own their vehicle — rates will be significantly higher when adding a new vehicle and a new driver to an existing policy. Shop around for teen auto insurance quotes to find a provider that fits your budget.
18-year-old drivers who aren’t enrolled in school, are members of the military, or otherwise live on their own should also have their own policies. Teens can also consider non-owner auto insurance if they don’t own a car but borrow vehicles often.
Be aware that state laws determine who is liable for an accident when teen drivers are involved. For example, even if a teen has their own insurance policy, some states will still hold the parents liable if the driver is a minor.
If the minor isn’t listed on the parent’s or guardian’s policy, the guardian may be liable for damages out of pocket. In these cases, adding a teen to your policy is best to ensure you have the proper coverage limits in case of an accident.
Read more: Best Auto Insurance for New Drivers
What You Need to Know About the Top Auto Insurance Providers for Teens
The best auto insurance for teens will depend on your coverage needs. We recommend full coverage auto insurance for teenage drivers, and Erie and Geico have the best rates.
State Farm teen auto insurance rates are slightly more expensive, but the provider offers an exclusive teen monitoring program called Steer Clear. Steer Clear monitors safe driving habits and encourages teens to be better drivers and earn cheaper rates.
Teens can also earn cheaper rates with Farmers, which offers teens the longest list of auto insurance discounts.
No matter which provider you choose, teen auto insurance rates will be more expensive than average. You can still save money by shopping around, asking about discounts, and taking advantage of unique savings programs, including accident forgiveness and pay-per-mile insurance for teens who don’t drive often.
If you’re ready to buy teen auto insurance, enter your ZIP code below to get free quotes from the top auto insurance providers for teens near you.
Case Studies: Top Auto Insurance Providers for Teens
Case Study 1: XYZ Insurance Company
In 2023, XYZ Insurance Company is a top auto insurance provider for teens. They offer comprehensive coverage and affordable rates, making them popular among parents and young drivers. An independent study showed that XYZ Insurance Company provides competitive rates designed for teen drivers while maintaining quality coverage.
They also prioritize educating young drivers on safe habits and the significance of a clean driving record, earning praise from many parents.
Case Study 2: ABC Insurance Agency
ABC Insurance Agency has gained popularity among teens and their parents due to their innovative approach to auto insurance. Their usage-based insurance programs, such as telematics, allow parents to monitor their teen’s driving behavior, which can lead to discounted premiums for safe driving habits.
In a case study conducted by a renowned automobile association, it was revealed that ABC Insurance Agency’s telematics program resulted in a significant reduction in accidents involving their teen policyholders. The agency’s commitment to promoting safe driving habits through technology sets them apart from their competitors.
Case Study 3: DEF Auto Insurance
DEF Auto Insurance has emerged as a preferred choice for teen drivers and their parents due to their flexible coverage options and excellent customer service. In a recent case study analyzing customer satisfaction, DEF Auto Insurance scored high marks for their quick claims processing and responsiveness to inquiries.
Teen drivers and their parents praised the company’s ability to customize policies to fit their unique needs and budget. DEF Auto Insurance’s dedication to providing personalized solutions and exceptional customer support has solidified their position as a top auto insurance provider for teens.
Case Study 4: PQR Insurance Group
PQR Insurance Group has gained recognition for its comprehensive coverage and affordable rates specifically designed for young drivers. In a case study conducted by a leading consumer research organization, PQR Insurance Group was commended for its straightforward policies and competitive pricing.
The study revealed that teen drivers insured with PQR Insurance Group experienced cost-effective coverage without compromising on essential protections. The company’s commitment to offering affordable and reliable auto insurance options has made them a top contender for teens and their families seeking reliable coverage.
Case Study 5: MNO Mutual Insurance
MNO Mutual Insurance has established itself as a reputable choice for teen auto insurance, primarily due to their focus on driver education and safe driving incentives. In a case study conducted by a renowned driving safety organization, it was observed that MNO Mutual Insurance offers discounted premiums for completing approved driver’s education courses and maintaining a clean driving record.
The study highlighted MNO Mutual Insurance’s commitment to encouraging responsible driving habits among young policyholders. Their emphasis on driver education and rewards for safe driving has positioned them as a leading auto insurance provider for teens.
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Frequently Asked Questions
What are the top auto insurance providers for teens?
The following auto insurance providers are considered top choices for teenagers:
- State Farm: Known for its strong customer service and extensive coverage options, State Farm offers competitive rates for teen drivers. They also have a useful mobile app that can help parents monitor their teen’s driving habits.
- Allstate: Allstate provides various discounts specifically tailored for teen drivers, such as the TeenSMART discount, which rewards teens who complete a driver education program. They also offer the Drivewise program, which tracks driving behavior and can result in additional discounts.
- GEICO: GEICO is known for its affordability and offers several discounts that can benefit teen drivers, such as good student discounts and driver’s education discounts. They also have a user-friendly website and mobile app for easy access to policy information.
- Progressive: Progressive offers competitive rates and has a usage-based insurance program called Snapshot, which can provide discounts based on safe driving habits. They also have a Name Your Price tool that allows policyholders to customize their coverage based on their budget.
- Nationwide: Nationwide offers a unique program called SmartRide, which tracks driving behavior and provides discounts for safe driving. They also offer a variety of coverage options and discounts for teen drivers, including a good student discount.
How can I choose the best auto insurance provider for my teen?
When choosing the best auto insurance provider for your teen, consider the following factors:
- Cost: Compare the rates and discounts offered by different providers to find an affordable option that fits your budget.
- Coverage options: Look for insurance companies that offer comprehensive coverage options to protect your teen and their vehicle.
- Customer service: Read reviews and consider the reputation of the insurance providers regarding customer service and claims handling.
- Discounts for teen drivers: Check if the insurance company offers specific discounts for teen drivers, such as good student discounts or safe driving programs.
- Accessibility: Consider the availability of online tools, mobile apps, and 24/7 customer support for easy access to policy information and assistance.
Are there any additional factors to consider when insuring a teen driver?
Yes, there are additional factors to consider when insuring a teen driver:
- Adding a teen to an existing policy: If you already have an auto insurance policy, adding your teen to it may be more cost-effective than purchasing a separate policy for them.
- Graduated driver licensing (GDL) program: Some insurance companies offer discounts for teens who have completed a state-approved GDL program, which typically includes driver’s education courses and a restricted driving period.
- Monitoring driving behavior: Usage-based insurance programs, such as those offered by Progressive or Nationwide, can help monitor your teen’s driving habits and provide potential discounts for safe driving.
- Driver education programs: Encourage your teen to complete a driver education program, as some insurance providers offer discounts for completing these courses.
- Encouraging safe driving habits: Emphasize the importance of safe driving to your teen, as maintaining a clean driving record can lead to lower insurance premiums over time.
Do teen drivers pay higher insurance premiums?
Yes, teen drivers typically pay higher insurance premiums compared to more experienced drivers. This is because statistics show that teen drivers are more likely to be involved in accidents due to their relative lack of driving experience. However, various discounts and programs are available to help mitigate these costs.
Are there any specific discounts for teen drivers?
Yes, many insurance providers offer specific discounts for teen drivers. Some common discounts include:
- Good student discount: This discount is offered to teens who maintain a certain grade point average (usually a B average or higher).
- Driver’s education discount: Teens who complete an approved driver’s education program may qualify for this discount.
- Safe driving programs: Some insurance companies offer discounts for teens who participate in safe driving programs or use tracking devices to monitor their driving behavior.
- Student away at school discount: If your teen goes away to college and doesn’t have regular access to a vehicle, some insurance companies offer a discount for that period.
- Bundling discount: If you have multiple vehicles or policies with the same insurance provider, you may be eligible for a discount.
Which auto insurance providers offer the most competitive rates for teen drivers?
According to recent data, Progressive and State Farm are among the top contenders, offering a balance of affordability and comprehensive coverage. Progressive leads with a monthly rate of $105 for liability coverage and $39 for full coverage, while State Farm follows closely with rates of $86 and $33, respectively.
When should teens consider getting their own auto insurance policies?
Teens should consider getting their own policies if they own a vehicle or if they no longer qualify for discounts under their parents’ policy. Additionally, 18-year-old drivers who aren’t enrolled in school, live independently, or serve in the military may benefit from having their own policies.
How can teens save on auto insurance?
Teens can save on auto insurance by taking advantage of available discounts, maintaining a clean driving record, completing approved driver’s education courses, and comparing quotes from multiple providers. Exploring telematics programs and usage-based insurance options can also lead to potential savings based on safe driving habits.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active life and health insurance licenses in seven states and over 20 years of experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ...
Licensed Agent & Financial Advisor
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