Car insurance for teens & New Drivers: Best Companies 2022

key insights

  • Teen car insurance is one of the most expensive insurance policies in every state in our country.
  • adding a teen driver can increase your policy premium to a huge amount.
  • There are many different factors that affect the cost of car insurance for teen drivers and that is why the amount of car insurance can vary from person to person.
  • There are a few ways and discounts you can try to get an affordable teen auto insurance policy.
  • Teen drivers are not required to purchase full coverage, but are encouraged to get better coverage limits.
  • So, your teenage son or daughter just turned sixteen and is now asking for the car to go to school. and she is afraid of the high insurance charges she will get. well, don’t worry, we’ve got your back! our team of analysts and writers have worked together to create this well-researched blog to help you get cheap car insurance for new drivers in your city.

    This blog is your in-depth guide, be sure to read to the end and bookmark it for later reference. our goal with this blog is to give you all the details you need to know about shopping for auto insurance for a teen driver. you’ll get the details of the best companies, as well as ways you can try to save more money.

    Reading: Who has the cheapest car insurance for new drivers

    rateforce knows the blog is a bit longer but it’s worth it. after reading this blog you don’t have to consult any other resource to know more. We have tried to cover all your doubts and confusions about car insurance rates for teenagers. Happy reading!

    Why do teen drivers get higher insurance rates than any other drivers?

    The first question that comes to mind is; Why do teen drivers get higher insurance rates? according to insurance companies across the country; teen drivers are much riskier compared to other experienced drivers. Do you know that almost 6 teenage drivers die in fatal traffic accidents every day?

    With the increasing number of car accidents caused by teen drivers, insurance companies have to pay huge claims every year. And this is why they charge teen drivers more.

    read more >> How much does your car insurance go up after an accident?

    the cheapest car insurance company for parents with a teenage driver

    The number one concern of every parent looking for an insurance policy for their teen driver is finding cheap teen car insurance. The first thing we all do when it comes to car insurance is look for “cheapest car insurance for teen drivers.” and then we ask our family or friends about their policy and finally make our decision.

    But today, there are so many websites that offer rates from different auto insurance companies in one place. so instead of relying on other people’s information, check out different companies and compare rates yourself.

    according to our analysis; Geico has the cheapest auto insurance rates for teen drivers. The national average auto insurance rate for teen drivers is $3,180, while with Geico it is $2,493. We also have usaa as the cheapest auto insurance company, but that’s only for current and former military members.

    Let’s take a look at the top auto insurance companies for teen drivers across the country:


    • geico is leading the race for the cheapest auto insurance in the country. Although the company’s auto insurance rate is higher than the national average, it is still much cheaper than the other companies.
    • The company offers an incredible discount for students with good grades, as well as memberships in some organizations.
    • In addition, the company offers driver education and safety programs. drivers who have completed driver training programs get discounted rates.
    • The average rate for geico full coverage auto insurance is $4,211 for a 16 year old driver. while the average auto insurance for a 19-year-old at a full coverage rate is $2,487.
    • nationally

      • Nationwide is popular not because of its cheaper auto insurance for first-time drivers, but because of the features of the policies. the company has some specific features to help young and teenage drivers.
      • Students who have a B average or higher can get a nice student discount. Additionally, the company offers accident forgiveness for first-at-fault drivers. therefore, if a young driver is in an accident for the first time, the company will not increase insurance rates.
      • The best part of the nationwide policy features is the smartride insurance measure for usage-based insurance. this for drivers who have safe driving habits can save a lot of money.
      • The average auto insurance rate for full coverage nationwide is $5,421 for a 16-year-old driver. while for a 19-year-old driver, the average full coverage rate is $3,462.
      • united states

        • usaa offers the lowest auto insurance rates for every state in the country. but the only problem is that company services are limited to retired or active duty military drivers or their families.
        • as in the whole country; usaa also has a safe driver program that offers personalized rates for drivers with safe habits. the company uses telematics to record driving habits and then creates personalized prices for the driver’s policy. In addition, the company offers a discount for teen drivers who have completed the driver training program.
        • the average auto insurance rate for full coverage usa. uu. it is $2,356 for a 16-year-old driver. on the other hand, for a 19-year-old driver, the average full coverage rate is $1,839.
        • progressive

          • The progressive car insurance company is very popular with teen drivers because of its smartphone app. The app provides 24/7 roadside assistance, helps you instantly file claims, and even change your policy.
          • The company has special teen discounts for drivers ages 16-19. In addition, they offer an additional discount for good students for a higher B or average grade. By combining all of these types of discounts, teen drivers can get lower insurance rates compared to other companies.
          • The average auto insurance for 16-year-old drivers with full coverage nationwide is $5,725. while for a 19-year-old driver, the average rate for comprehensive coverage is $3,479.
          • average cost of car insurance for teens by level of coverage

            Wondering what level of coverage will be best suited for the teen driver? Confused if you should opt for full coverage insurance from the state minimum insurance coverage for your teen?

            we can understand your situation, each company has different advice for parents and this creates more confusion. the best way to understand this is by taking examples.

            when you need full coverage teen driver insurance

            let’s say you have a mercedes benz and want to add your teenage son to your policy. then the best coverage for you will be comprehensive coverage (collision and comprehensive coverage). the main reason behind this is; luxury or sports cars have expensive parts and repair costs for these vehicles can be a bit high.

            also; the actual cost value of these vehicles is also high. as a result; If the car is destroyed in an accident, replacing the car can dig a hole in your pocket. With full coverage insurance, you don’t have to worry about car repair or replacement. the cost of full coverage may be higher, but at least it will be worth it.

            when should you opt for minimum requirements insurance

            let’s say you have a basic second-owner hatchback; honda civic and want to add your teen driver to your policy. you can always choose a minimum required coverage or just liability coverage.

            the cost of repairing the vehicle will not be too much since the parts are not very expensive. plus, you can always replace the car yourself, the actual cost value of the car won’t be too much.

            in this case, buying full coverage insurance will not be a smart decision. This is because the cost of the premium will be greater than the value of the car.

            cost of adding a teen to your car insurance policy

            See also: Progressive CEO Tricia Griffith on Political Leadership, Flo | Time

            Confused if you should add your teen to your policy or buy a separate policy for him or her?

            We have a simple solution for you, you can simply ask your company for the three different types of quotes.

            Ask about auto insurance quotes for parents without teens, with teens, and then a separate policy for your teen. you will have a clear idea of ​​how much you will have to pay in each case.

            According to rateforce analysis, adding a teen driver to your policy is half as expensive as buying a separate policy for the same teen driver. therefore, adding your teen driver to your policy is a cheaper alternative for you.

            The average auto insurance rate for a teen driver with a separate policy is $3,865. On the other hand, the average cost of adding a teen driver to your current policy will be $1,690. this is almost half of the individual policy for a teenage driver.

            On average, the annual cost of auto insurance for a parent without teenage children is $2,980. while the average annual cost of auto insurance with a teen driver will be $5,740. and if the parent wants to purchase a separate policy, the average annual cost will be $7,530. this is the average difference between the different car insurance rates for different profiles.

            difference between car insurance for teens and car insurance for young drivers

            This is also a very important section for all parents and young and teenage drivers. Most parents get confused between car insurance for teens and car insurance for young drivers. they believe that both are the same. It’s important to understand that teen car insurance is different from car insurance for young drivers.

            Teen auto insurance is for teens who are legally eligible to drive; Drivers between 16 and 19 years old. while young drivers are those between 21 and 25 years old.

            With age, car insurance rates continue to decline, so teen drivers get higher insurance rates than young drivers. Some national insurance companies still consider teen drivers and young drivers the same. can be a bit pricey for young drivers and a bit affordable for teen drivers. so it is always better to make it clear with your operator. Before you buy your policy, ask the insurance company about teen drivers and young drivers.

            read more >> cheap car insurance for young drivers

            cheapest auto insurance for teens by state

            yes, you read that right. Auto insurance rates can vary widely in different states, cities, and even localities. The area where the driver lives plays a big role in the cost of car insurance. A driver living in Hawaii could get lower insurance rates compared to a driver in California. therefore, it is important to check auto insurance rates for different states before purchasing your home.

            Insurance companies check various factors from each state to decide the insurance premium for the driver. These factors include the condition of the road, the type of weather, and the state’s crime rate. The company then looks at all of these factors and then decides what the insurance rate will be for the driver. for example, if a state has high crime rates, the chances of auto theft are higher. therefore, the company will provide higher insurance quotes.

            here is the list of the main states of our country along with the list of average car insurance rates for full coverage, basic premium and minimum liability. this list will help you get a clear picture of how states can raise or lower insurance rates.

            car insurance for teens by gender

            Car insurance companies don’t believe in gender equality when it comes to offering insurance policy rates. The gender of the driver has a huge impact on the cost of auto insurance for any state, city, or area. On average, we can say that a male teen driver has to pay an extra $380 compared to a female teen driver.

            According to insurance companies across the country, female drivers have a very clean record and zero to one at-fault accident on record. on the other hand, male drivers have a high number of DUIs and at-fault accidents on their records. In addition, they tend to cross the speed limit more compared to female drivers.

            As a result, insurance companies consider female drivers to be much safer customers than men. On average, a teenage female driver pays $3,180 for minimum coverage, while a male driver pays $3,975 for minimum coverage. Let’s see the breakdown of this to get a clear idea.

            auto insurance for teen male drivers

            Adding your son to your policy will cost you more than adding a daughter to the same policy. the reason we have discussed above; Male teen drivers are at greater risk compared to female teen drivers.

            See also: How Much Is GAP Insurance: Everything You Need to Know

            The average cost of auto insurance for a teen driver with a child is $1,875. again it varies for different companies. therefore, we have the following list of all the major national insurance companies that can provide teen car insurance to male drivers:

            car insurance rates for teen drivers

            Adding a daughter to your existing policy will also increase your insurance premium greatly. but it may not be that expensive for us drivers. uu. adding a teenage daughter can increase your insurance rates by $1,098 a year. And this is much lower than the average cost of insurance for a male teen driver.

            the reason behind this is; According to insurance companies across the country, women drivers are much safer compared to men. But these rates vary for different car insurance companies. Let’s take a look at the top auto insurance companies in our country and their rates for teen drivers.

            how to save on car insurance for teen drivers?

            High car insurance rates can be too expensive for some drivers. especially when you have to add a teen driver to your policy. therefore, we can understand that you must be looking for some ways to save some money. Here are some ways you can try to get the cheapest auto insurance rates for teen drivers:

            1. get as many discounts as possible

            The best part about getting teen car insurance is that you can apply for a student discount. each company has its terms and conditions for student discounts. But on average, the driver must have at least a B-grade average or higher to qualify.

            In addition to student discounts, there are other types of insurance a driver can combine. discount types such as multi-vehicle discount, homeowners discount, or good driver discount. By combining two or more auto insurance discounts, you can lower your policy premium to a great level.

            2. browse and compare rates

            Another way to get lower car insurance rates for teen drivers is to check the rates of different insurance companies. You can compare prices in your city and request quotes from different companies.

            and then you just have to compare the rates of all these companies to see which one has the cheapest rates. By combining rates, you’ll have a better idea of ​​how different companies charge for the same policy. yes, each company can have a different rate for the same driver. The reason behind this is simple, each auto insurance company follows a different method and algorithm to calculate rates.

            3. use the latest technologies

            Technology and the latest gadgets are playing a big role in deciding auto insurance rates for different drivers. Today, auto insurance companies use telematics to obtain data on drivers’ driving habits. These data play an important role in deciding whether the driver belongs to the risk or safety category.

            Insurance companies connect the car to a beacon-like device or app. this helps them store those related to driving habits. Based on this data, the insurance company can provide you with a personalized insurance rate. But it is important to note that if the company finds your driving habits to be dangerous, the rates may also increase. so make sure you have that confidence in your driving skills before opting for this model.

            4. add a teen driver to the parent’s policy

            The best way to get the cheapest car insurance for new drivers is to add it to your parent’s policy. There are some surprising benefits to staying on your parent’s policy. most of the time; parents have established credit scores. therefore, they already have lower car insurance rates. In addition, you will also get other discounts, such as multi-car discounts and even discounts for good and experienced drivers. therefore, by combining all of these discounts, your insurance rates can be reduced to nearly 60 percent of your existing rates.

            In addition, if the parents have paid for the car, it is mandatory to take out an insurance policy in the name of the parents. in most cases for teenage drivers; the parents bought the car for them. therefore, they have no choice but to add their policy to their parents’ existing policy.

            5. avoid high value cars for teen drivers

            Yes, we know your teenage son or daughter is asking for that great value luxury car. But the insurance rate on that car can be nearly double that of any low value car. Or maybe you want to add your child to your existing high-value auto policy. again, this may affect your insurance rates.

            The best strategy here is to provide a lower value vehicle to your child. the actual cost value of that vehicle will be low, therefore your insurance company will provide lower auto insurance rates.

            frequently asked questions about car insurance for first-time drivers


            We hope our blog has helped you understand everything you need to know about car insurance for new drivers.

            rateforce understands that auto insurance rates for drivers ages 16-19 may be too high for the average person. That’s why we’ve tried to cover all the important details that can help you save some money.

            still have doubts about buying car insurance for teen drivers? we have a team of experts for you. contact us today and discuss all your queries.

            See also: Average Cost of Car Insurance for 24-Year-Olds – ValuePenguin

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