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Best Cheap Car Insurance For Teens & Young Drivers



If you are in search of the lowest car insurance for teens the most cost-effective way for them to be covered is to include them in the family insurance policy. This could save families thousands of dollars annually as compared to purchasing individual policies.

Even if you already have a plan to add a teen to your insurance plan it is still possible to save money by obtaining estimates from several insurance firms. MoneyGeek has collected hundreds of quotes to determine the most affordable car insurance companies for teenagers on average.

We have also provided suggestions for the top car insurance companies for teenagers since certain companies can tailor policies for young drivers better than other companies.

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Cheap Car Insurance For Teens & Young Drivers

Table of Contents



Cheap Car Insurance for Teens and Young Drivers

Insurance companies for cars are taking on a greater risk by insuring teenagers because teens who are young and inexperienced drivers have a higher chance to be involved in accidents. Therefore, the insurance offered to teens can be more expensive, however, you can still save by looking for a variety.

MoneyGeek discovered that Allstate and GEICO are the most affordable choices for families that want to add a child to the insurance coverage of a car however, the price may change based on the driver’s age as well as the state of theirs.

CHEAP CAR INSURANCE FOR TEENS – BY AGE

  • Cheap car insurance for 16-year-olds: Allstate
  • Cheap car insurance for 17-year-olds: GEICO
  • Cheap car insurance for 18-year-olds: GEICO
  • Cheap car insurance for 19-year-olds: State Farm

Our data offer advice regarding the cost of car insurance for teenagers both across the country and within your state. Your quote may differ according to several aspects, such as your driving record. This is why it is important to compare quotes for teen auto insurance to find the lowest price and figure out ways to cut down on the cost of car insurance.




Cheap Car Insurance for 16-Year-Old Teens – Both Nationally and by State

If you are looking to add a 16-year-old teenager to a family policy the most affordable firm on a national scale would be Allstate and GEICO. The two companies we tested charged our sample family on average $3146 and $3,152 annually. They were able to set thousands of dollars higher.

Insurance can be priced differently according to your state. In the 50 states as well as Washington D.C. Allstate is the most affordable insurance across 15 states, for teenagers aged 16 and older and is more expensive than any other. GEICO along with Progressive is close behind with the lowest prices within 13 states. Explore your state to see which one is the most expensive for your location.

Cheap Car Insurance for 17-Year-Old Teens – Both Nationally and by State

If you are looking to cover a 17-year-old teenager under your family insurance, GEICO and Allstate are the most affordable national insurance companies on average. In contrast to the 16-year-old age range, GEICO is the cheapest overall, with an average price of $2,823 annually. State Farm, Progressive, and Nationwide all offered our sample family as high as $3,000 annually.

On a state-by-state basis, GEICO and Allstate are the best options to get affordable insurance for teenagers aged 17 and older. GEICO is the cheapest firm in all 20 states, and Allstate is the most affordable in 17. There is not a single state where Nationwide is the most affordable insurance company, therefore those with teens searching for a quote must look at other insurers.



Cheap Car Insurance for 18-Year-Old Teens – Both Nationally and by State

While 18-year-olds are not finishing their high school years, it is prudent to incorporate them into an insurance plan for families to help save the cost. In the United States, GEICO is the clear winner in terms of affordable rates. The average cost for families was $2,526 per year. This is less than $100 more than the second-placed insurer, Allstate.

On a state-by-state basis, the results for 18-year-old teens are more dispersed. GEICO and Allstate are the least expensive firms in each of the 17 states However, the states include nine where State Farm is the cheapest and eight states where Progressive offers the lowest cost choice.



The variety of quotes illustrates how important it is to compare insurance companies for teenagers on your insurance, since the lowest-cost company could vary based on various aspects, including the location of your home.

Cheap Car Insurance for 19-Year-Old Teens – Both Nationally and by State

When teenagers reach a certain age and leave their parents’ home They will have to buy their auto insurance policy. For teens aged 19 who purchase their insurance policy we discovered it to be State Farm and Allstate are the most affordable companies. State Farm quoted our sample teenager at 24622 dollars per annum.

However, it may be different for 19-year-old teens based on the state they live in. While State Farm is the cheapest insurer in the nation, it is the most expensive firm for our sample of teens across 13 states. GEICO offers the most reasonable choice for teenagers aged 19 and older across 26 states, which means you’re likely to find one of the most affordable options for you in the area you reside.

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Cheap Car Insurance

Four Best Cheap Car Insurance Companies for Young and Teenage Drivers

Car insurance for teens is dependent on a variety of aspects, and your objectives will be a factor in that calculation. For instance, you could be searching for the most affordable alternative for your average teenager, or you may be looking for military or student discounts. These will affect your options when it comes to car insurance however rates will differ from person to person.



In this way, think about the best choices in four different scenarios.

Cheap Car Insurance for Affordability: Allstate

Allstate is unique when it comes to teen drivers as it is regularly one of the lowest-cost insurers for all ages. It offers a broad range of options to save money for policyholders who have a teenage driver who is covered under family insurance.




Allstate

  • Allstate offers an application known as Drivewise that gives teenage drivers feedback and could be used to save money on safe driving.
  • There are additional options to save by offering “smart student” discounts for excellent grades, which could aid in reducing costs.

Student Discounts For The Cheap Car Insurance: State Farm

State Farm offers four primary discounts specifically for students. These discounts can aid in reducing costs. There are also driving programs that can help you save money.

State Farm

State Farm’s primary discounts include:

  • Excellent student
  • Students absent from school
  • Training for drivers
  • Be safe while driving

The insurer also has Steer Clear and Drive Safe and Save programs that are in the discount category. The latter could reduce 30 % the cost of car insurance. These programs can be executed using an app while Drive Safe and Save can be completed using OnStar. This makes it the most affordable alternative for student drivers.

Policy For The Cheap Car Insurance for Students away from Home: Allstate

If you are a student in your teen years who lives away from home parents often receive a discount on their bills. Allstate provides one of the top instances of this.

Allstate

Allstate offers discounts for teens who are younger than 21 and are enrolled in a school that is within 100 miles of the location where their car is kept. These are just 3 ways you can avail the discount for smart students offered by Allstate.


If your kid’s car fits the criteria, it could lower the cost of insuring your child while they are in college. It is typically the most affordable choice for policyholders in this scenario.

Best Cheap Car Insurance Policy for Military Students: USAA

USAA has a specialization in the insurance of people in the military and it is affordable for teenagers as well as their parents who wish to cut costs on their cheap car insurance.

USAA

MoneyGeek’s research has shown it to be the case that USAA is the least expensive choice for teens who attend a military school or whose parents are from an army background. The firm offers a broad range of discounts for young drivers, which include safety-conscious driving and great student discounts, as well as discounts for driver training.



In addition, it helps prepare the teenage driver for success by offering drivers who qualify the chance to receive a 10% discount for their family legacy after they have obtained their cheap car insurance.

What is the Cost Average for Cheap Car Insurance for Teenagers?

It is all about the way you view it. For instance, you could take into consideration the costs of an individual policy for a teenage driver and this is likely to be the more costly choice. Also, you can look into the costs of adding the driver to a family’s policy. Here are the averages of these two segments:

  • Cost of an individual policy for a teen The average cost for a single teen policy is $4,866.
  • The cost to add a teen to a family policy is $3,048

Remember that the above figures were determined based on an 18-year-old driver. The cost of adding the insurance of a 16-year-old or a teen older than 16 to a parent’s policy comprises only the coverage for the driver who is a teen cost. It doesn’t include the total costs.

Cost of Insuring Teenage Males in Comparison to. Females

It is, on average, higher to include a male teenage driver in your family’s insurance than a female teenage driver. In reality, there is more than $300 annually, according to MoneyGeek’s research. In these crucial teen times, insurance companies need to base their calculations on the average of statistics rather than the record of a driver’s license to calculate the price.

According to data provided by the National Highway Traffic Safety Administration, male drivers have a higher chance of having fatal crashes than female motorists. This means they are at greater risk, and thus more costly to insure.

Cost of Insuring a Teenager with the Camry in Comparison to. the Cost of Insuring a Mustang

The kind of car that your teenager drives can affect the cost of premiums. For instance, a car with a high safety rating can lower costs however a costly, fast vehicle may increase the cost. The type of vehicle you choose to use is an important factor to consider when adding a teen and an additional vehicle to the family’s insurance.

Here’s the scenario that could occur with two cars:

The Insurance Institute for Highway Safety is a great resource to begin looking at safety ratings for certain automobiles.

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Cheap Car Insurance

Auto Insurance Discounts for Teens

Many insurance companies provide discounts that are tailored specifically for teenage drivers. This can include things such as discount student discounts, and discounts for distant college students. Here are some examples to consider:

  • Safeco
  • GEICO
  • American Family
  • Progressive
  • Erie

Safeco

If you have a policy that is been with the company for at least one year, there is a new discount for teens which could save you up to 27 % when a teen is added to the policy.

GEICO

Students who have a minimum A average, or those who are on the dean’s list or earned similar awards can enjoy discounts of up to 15% off.

American Family

This organization offers young volunteers the opportunity to receive a discount on their car insurance. You must be younger than 25 years old and do a minimum of 40 hours of volunteering each year to be eligible.

Progressive

Anyone who turns 18 and is covered under an existing policy could benefit from an average of 10% reduction in rates. There is a further 16% decrease at 21. The Snapshot program is also able to help young drivers save money.

Erie

If you have been employed by this company for a minimum of three years (in certain cases this can be waived) The company will reimburse the first accident at fault. Erie Insurance offers a rate lock that will allow you to keep your rates in place each year unless you modify the policies by adding a second vehicle or driver.

How to Save Money on Cheap Car Insurance for Teens and Other Tips for Parents

There are other methods to find cheap car insurance for teens and lower your costs. Examples:

  • Be sure to limit their driving distances
  • Some businesses give discounts to drivers who travel a small number of miles annually. Limiting their driving hours to daylight hours may also help to reduce their risk of being in a car crash, which can increase the price.
  • Make sure the title of your car is in your name.
  • In some instances, placing children’s names on the titles could require them to purchase their insurance. This can be costly.
  • Contact your insurance company to assign your teenager to the most affordable car.
  • Some companies can choose to assign the most expensive driver (typically teenagers) for the highest-priced vehicle which could further increase costs. Therefore, it is important to know the car that is given to the driver.
  • Take your child to a driving test
  • Some businesses will offer discounts to people who take these courses, such as driver’s education.

The costs of insurance for a teenage driver can differ greatly based on the type of cars their driving habits, how they drive, and where they reside. There are a variety of discounts that reward teenagers for being safe drivers and citizens as well as achieving high grades. It is essential to obtain multiple quotes to examine policies to keep your expenses low.

Methodology

The average teen car insurance premiums are calculated based on the cost of 100/300/100 comprehensive collision insurance with a deductible of $1,000 for those who are between the ages of 16-19. Unless stated otherwise The average driver profiled is not a victim of tickets or accidents and is driving a car in the year 2010: a Toyota Camry LE.

Find Out More about Car Insurance

Expert Guidance: Navigating the World of the World of Cheap Car Insurance for Teens and Young Drivers

  • What are the most important factors teens or their parents consider when looking for cheap car insurance?
  • What are the features teens and parents consider when buying a car and how will the cheap car insurance rates be affected?
  • How can parents and teenagers budget for the cost of insurance for cars?
  • What can teens do to improve their driving skills and remain safe on the roads?

FAQs – Best Cheap Car Insurance For Teens & Young Drivers

Why is car insurance more expensive for teens and young drivers?

Insurance companies often consider young drivers as higher risk due to their limited driving experience. Statistically, young drivers are more likely to be involved in accidents, leading to higher premiums.

What factors affect the cost of car insurance for teens?

Several factors influence insurance costs, including driving record, type of car, location, and coverage levels. For teens, factors like grades, completion of driver’s education, and whether they live with their parents can also impact rates.

How can teens lower their car insurance premiums?

Teens can lower premiums by maintaining good grades, completing driver’s education courses, choosing a safe and affordable car, and being added to their parent’s policy. Additionally, safe driving practices over time can lead to lower premiums.

Is it cheaper to add a teen to their parent’s policy or get separate coverage?

In many cases, adding a teen to their parent’s policy is more cost-effective than getting separate coverage. Family policies often offer discounts, and parents’ established driving records can help offset the higher risk associated with teens.

Are there discounts specifically for young drivers?

Yes, insurance companies may offer discounts for young drivers. Common discounts include good student discounts, completion of driver’s education, and safe driving discounts. Shopping around for insurance providers is also crucial to finding the best rates.

How can teens find the best cheap car insurance?

Teens should compare quotes from multiple insurance providers, considering both cost and coverage. Utilizing online comparison tools, seeking discounts, and exploring insurance options with parents or guardians can help in finding the most affordable and suitable coverage.

What types of coverage are essential for young drivers?

Essential coverages for young drivers include liability coverage, which is typically required by law, and comprehensive and collision coverage for protection against damage to the teen’s car. Discussing coverage needs with an insurance agent can help determine the best options.

How does a teen’s driving record impact insurance rates?

A clean driving record is crucial for affordable insurance rates. Accidents and traffic violations can significantly increase premiums. Safe driving habits and maintaining a clean record over time can lead to lower insurance costs.

Can young drivers with a sports car get affordable insurance?

Insurance for sports cars is generally higher, but young drivers can still find affordable coverage. Choosing a less expensive and safer car, maintaining a good driving record, and exploring discounts can help mitigate the higher insurance costs associated with sports cars.

What should teens do if they can not afford insurance?

Teens facing financial challenges can explore options like increasing deductibles, seeking additional discounts, or enrolling in usage-based insurance programs. It’s essential to communicate with insurance providers and explore available assistance programs if necessary.

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