Cheapest car insurance for teens in 2024

Teen car insurance is very expensive, but shopping around can make a big difference. Nationwide and Erie are among the cheapest car insurance companies for teens.

Leslie Kasperowicz is an insurance expert with four years of direct agency experience and over a decade of creating educational content to help insurance shoppers make confident, informed decisions.

Laura Longero is a content strategist and communications leader with more than 15 years of experience in content development in journalism, marketing and communications for start-ups to global companies. She started her career as a reporter and editor and honed her journalistic skills at the USA Today Network, working in several roles, as well as managing content and writing at MoneyGeek and XYZ Media.

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Teens pose a serious risk for auto insurance companies. That means they're never the cheapest to insure. The national average car insurance rate for teens aged 16 is $7,203 for full coverage. However, shopping around will help you to find the cheapest car insurance company for teens. Both Nationwide and Erie offer teen car insurance rates cheaper than average for 16-year-olds.

It’s good to remember that the cheapest insurance isn’t always the best car insurance for teens. Basic car insurance does not offer the same level of protection as full coverage would. It all may come down to whether your teen drives an old or newer car. 

Below, we’ll help you to find the cheapest car insurance for teens by age and location.

Key takeaways

How much is car insurance for teens?

Teenagers are the most expensive to insure of all age groups. 16-year-old males pay the most. 

"Motor vehicle crashes are the leading cause of death among teens," said Loretta Worters, vice president of media relations of the Insurance Information Institute.

"Immaturity and lack of driving experience are the two main factors leading to the high crash rate among young people ages 15-19. Teens' lack of experience affects their recognition of and response to hazardous situations, resulting in dangerous practices such as speeding and tailgating."

Average car insurance rates for teens are at their highest for 16-year-olds and dip with each year until the young driver is well into their mid-20s.

According to the most recent data, the average cost for full insurance for those very young drivers, by year:

Rates vary by company and state, so finding the cheapest auto insurance for teens takes a little research.

Cheapest car insurance for teens by company

Every company has different rates for teen drivers, and shopping around is the best way to get a good deal. Look at sample rates from multiple companies by gender below to get an idea of how much you could save.

Cheapest car insurance for male teenage drivers

Below are the cheapest car insurance rates for teen male drivers by company.

Cheapest car insurance for female teenage drivers

Below are the cheapest car insurance rates for teen females by company.

Cheapest car insurance for teen drivers by state

Teen car insurance rates vary by state. While you might not move just to get cheaper car insurance, knowing how rates look elsewhere is good.

Cheapest car insurance for 16-year-olds by state

The youngest group of drivers will pay more at 16 than any other age. The average policy for a 16-year-old costs $7,203 per year for full coverage auto insurance.

Cheapest car insurance for 17-year-olds by state

Although 17-year-olds have a whole year of driving under their belt, premiums aren’t considerably lower yet.

Cheapest car insurance for 18-year-olds by state

Now considered legal adults in most states, an 18-year-old driver may have two years of driving experience. However, an annual policy still costs over $4,000 in many states.

Cheapest car insurance for 19-year-olds by state

Drivers at 19 years old will pay rates a lot lower than just three years ago, although rates are still high in some states.

How to get the cheapest car insurance for teens

There are plenty of discounts and ways for teens to save on car insurance.

Just about every auto insurance company offers a good student discount. The discount is for teens going to high school (or college) and usually requires a "B" (3.0) average or better. The discount varies by company.

Most insurance companies will also offer a discount for students who are living away from home without a car.

Another option is a defensive driver discount. Teens can take this extra driver education or defensive driving course, which goes above and beyond the minimum state-mandated driver's education and training. In some states, discounts can run from 10% to 15% for taking these state-approved improvement classes.

Of course, you can also ask about other discounts ranging from paperless billing to auto and home bundling. Every bit of savings helps when it comes to teen car insurance rates.

Auto insurance FAQs

Can teen drivers join their parent’s insurance?

Yes, they can and, in most cases, should. Teens under the age of majority can’t legally sign a contract and, therefore, can’t get their own insurance policy.

Is it cheaper to add a teen driver to their parent’s policy?

Adding a new driver to a parent’s car insurance policy is typically cheaper because the parents’ discounts and history with the company will mean lower rates.

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