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Best Car Insurance for Teens 2024

The risk associated with teen drivers is one of the biggest factors impacting the cost of car insurance for teens. Here’s a guide to help you understand the prices.
car insurance for teens
Best Car Insurance for Teens 2024
You're probably wondering about the cost of car insurance for teens if you are approaching driving age. Adolescent auto insurance can be costly thanks to a number of risks involving the age group.
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Car insurance for teens can be more expensive compared to other age groups. The reason being teens usually lack experience behind the wheel, which can increase the risk of an accident. In order to protect your finances and your budget, you may be concerned about finding the best coverage at the best price as a teen driver. Parents often worry about the newly-developed driver at their home and get to research the best deals for car insurance for teens.

The first time a teenager gets behind the wheel of a car can be both thrilling and nerve-wracking. A teenage driver’s insurance policy is significantly costlier than one might expect. How come car insurance for teens is so high?

Costly Car Insurance For Teens

Parents’ apprehension over their teens’ driving can be exacerbated by how expensive it can be to add them to their car insurance policy.

The large risk new drivers pose to insurance companies makes teen auto insurance rates notoriously high. The average increase for adding a teen driver to a parent’s policy is $2,182, or more than double their bill. We analyzed rates from 147 car insurance companies nationwide.

In order to help parents find affordable car insurance for teens, we scored large insurance companies according to their price, the number of complaints, and the availability of new car replacements, accident forgiveness, and collision repair.

Factors Determining Car Insurance For Teens

Several factors are taken into account by car insurance companies when determining teen car insurance rates. Some of the main factors to consider include:

Car Model And Make

It is important to keep in mind that the make and model of your vehicle affect your car insurance rates in several ways. Some cars cost more to repair and have more expensive parts, which makes insurance costs higher. Vehicles that come with advanced safety features may lower an insurance company’s risk and, as a result, decrease your premium

Certain sophisticated safety features can increase your costs if damaged in a covered accident because they are costly to repair. There are also different crash statistics for different vehicles. You might be charged a higher rate for your car insurance if the model and make of your vehicle have a high collision rate.

Age

Car accidents and risky driving behaviors such as speeding are more likely to occur among drivers with less experience. Typically, young drivers who maintain a clean driving record have lower premiums as they gain experience and become less of a risk. Massachusetts and Hawaii, however, do not permit insurance ratings based on age.

Driving History

Teenagers with a record of car accidents and moving violations may be considered riskier to insure by their car insurance company.

Types Of Car Insurance Coverage

The cost of minimum coverage car insurance is lower than the cost of full coverage car insurance. The majority of insurance experts recommend purchasing more than the minimum coverage required to better protect your finances. You may not need some of the additional coverage options, however. When driving an older vehicle, you own it outright. You are not required to purchase comprehensive or collision insurance.

Discounts For Teen Drivers

The best car insurance discounts for students among other rewards can help young drivers lower their car insurance premiums:

Good Student Discounts: Students who are unmarried and full-time studying may qualify for a student discount if they maintain a certain letter grade or grade point average. Savings amounts and eligibility criteria vary from company to company.

Distant Student Discounts: College-age drivers may be able to save with a distant student discount, also called a student away at school discount. In most cases, students who do not take a car to college and live at least 100 miles away from their homes are eligible for this discount.

Driver Training Discounts: Teenage drivers can benefit from driver training programs by developing safer and more responsible driving habits. It can help them in saving money on their car insurance. Depending on the carrier, the requirements and savings vary.

Usage-Based Program Discounts: Families can save on car insurance by taking advantage of usage-based programs or telematics programs, offered by many insurance companies. Driving habits and miles driven can be monitored by means of telematics programs using a smartphone or plug-in device installed in the car. It is possible to get cheap auto insurance rates if you maintain safe driving habits.

State Average Of Car Insurance For Teens

Your auto insurance premium is affected by the state where you live. Car insurance rates are not determined by age in Hawaii and Massachusetts, so they will be lower than the national average. There are no rating factors based on age in Massachusetts and Hawaii, so teen drivers of all ages can get the best rates. 

When adding a young driver to their parent’s policy, New York, Louisiana, Florida, Michigan and Nevada have the highest average rates.

Listed below are rates from the country’s top insurers for full coverage car insurance for teens aged between 16-19 years added to their parents’ policies:

StateAge 16Age 17Age 18Age 19
Maine$2,140$1,983$1,828$1,638
Maryland$4,273$4,076$3,910$3,431
Massachusetts**$1,262$1,262$1,262$1,262
Michigan$6,200$5,937$5,504$4,953
Minnesota$3,507$3,236$2,980$2,746
Mississippi$3,488$3,268$3,011$2,715
Missouri$4,186$3,832$3,572$3,221
Montana$3,714$3,491$3,347$3,008
Nebraska$2,920$2,779$2,639$2,417
Nevada$6,296$5,753$5,437$4,902
New Hampshire$2,682$2,528$2,329$2,086
New Jersey$3,722$3,461$3,271$2,940
New Mexico$3,172$2,971$2,740$2,454
New York$6,808$6,336$5,882$4,902
North Carolina$3,270$2,543$2,337$1,694
North Dakota$2,495$2,310$2,125$1,903
Ohio$2,630$2,483$2,340$2,084
Oklahoma$4,167$3,845$3,591$3,227
Oregon$2,993$2,758$2,537$2,417
Pennsylvania$4,684$4,444$4,044$3,610
Rhode Island$4,186$3,922$3,644$3,107
South Carolina$3,184$2,945$2,725$2,425
South Dakota$2,688$2,591$2,435$2,247
Tennessee$3,234$3,048$2,804$2,500
Texas$4,355$4,098$3,844$3,563
Utah$3,722$3,361$3,104$2,752
Vermont$2,773$2,602$2,350$2,135
Virginia$3,219$2,991$2,781$2,487
Washington$3,317$3,088$2,886$2,416
Washington, D.C.$4,287$3,920$3,692$3,403
West Virginia$3,312$3,114$2,880$2,510
Wisconsin$2,814$2,658$2,392$2,089
Wyoming$3,248$3,070$2,868$2,477
Source: Bankrate

Cost Of Car Insurance For Teens

Male and female young drivers pay different amounts for car insurance, with females generally paying less. The use of gender as a rating factor is prohibited in California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania.

People Also Read – Best Car Insurance for Young Drivers

The cost of insurance for female drivers is typically lower than for male drivers since male drivers are considered to be riskier. Studies suggest male drivers speed more and generally behave riskier behind the wheel as compared to female drivers. Additionally, teens and young adults are the most likely to use cell phones while driving, which may increase their risk of an accident or a ticket.

In addition to their parent’s policy, teen males and females typically pay the following annual premium:

AgeMale*Female*Difference*
16$4,584$4,201$383
17$4,285$3,919$366
18$4,013$3,661$352
19$3,503$3,186$317
Source: Bankrate

Conclusion

It is possible to find affordable car insurance for teens by considering these factors. The cost of car insurance for a teen is likely to be significantly higher than the cost for an adult driver regardless of whether you take advantage of every discount you qualify for. It won’t be until the driver reaches 25 that serious deductions begin. Around the age of 65, it will again increase, but still won’t reach the level it is for drivers aged between 16-19 years. Whenever you are looking for teen car insurance, ensure to compare quotes and shop around. Beem, America’s first Al-powered Smart Wallet App, can help you understand the process to get car insurance for teens and the best deals in the country.

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Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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