If you’re looking for the best car insurance for teens, you might find yourself staring down the barrel of some incredibly high rates.
Since teens incur higher insurance risks due to their inexperience on the road, insurance companies usually charge them higher premiums.
Although rates for teens’ insurance vary widely between insurance companies, you should know that driver age almost always influences what insurance providers ultimately charge for a policy.
Take the time to research several insurance providers when you’re shopping for a policy for your teen.
While securing a low rate is ideal, it’s more important that teen drivers have adequate coverage, since it prevents financial hardships in the event of an accident.
Exploring your options with some of the country’s top insurance companies and asking the right questions can help you find the best insurance policy for your teen at a rate that suits your budget.
The information below can help you understand how adding a teen driver to your policy affects your premiums, and will also tell you which providers offer discounted rates to make purchasing insurance a little easier on your wallet.
What’s the Cost of Car Insurance for a Teen?
Auto insurance rates are never simple to calculate.
They require a complex mathematical calculation that quantifies the risk associated with your age and other different factors specific to you and your vehicle.
Some of these include:
- Tickets or driving infractions
- Vehicle make, model, condition, and year
- Safety features and safety ratings of the teen’s vehicle
- The credit history of the main policyholder (usually the teen’s parent or guardian)
- Average annual mileage
- Certain conditions relative to your geographic region
- Details that pertain to any other drivers on your policy
Depending on the insurance provider, the above factors may be given different levels of consideration.
Additionally, your provider may weigh in circumstances not included on this list.
Though a lack of driving experience contributes greatly to the high price of insurance for teens, it’s not the only risk factor.
Teen drivers are also known to make poor decisions behind the wheel.
According to the National Highway Safety Traffic Association, teen drivers frequently take risks that include driving under the influence, texting, and speeding.
Speed was a factor in 31 percent of fatal crashes involving teen drivers in 2016.
While doing your research and comparison shopping is a great way to get accurate quotes and find the best car insurance for teens, we’ve collected some background information to help you in your task.
Below, you’ll find the average car insurance rates for teen drivers in California, which is the most highly populated state in the nation.
- A single male who lives in San Diego County and has between one and two years of driving experience and no violations, and drives between 7,600 and 10,000 miles per year, might expect to pay between $830 and $3,839 for basic liability insurance on a Toyota Camry.
- A single female who lives in San Diego County, has between one and two years of driving experience and no violations, and drives between 7,600 and 10,000 miles per year, might expect to pay between $786 and $3,808 for basic liability insurance on the same vehicle.
Drivers with less than a year of driving experience may pay even higher rates for teens’ insurance.
Also, speeding tickets and at-fault accidents cause rates to increase almost twofold, since adding just two traffic infractions to the above female scenario results in an increase of $1,438 to $6,365.
Companies with the Best Car Insurance for Teens
Plenty of options are available for teens’ insurance throughout the country.
While it’s important to find an insurance provider that has a reliable claims process and friendly customer service, a good first step in your search for insurance is to determine which top providers give the best discounts for adding a teen driver to your policy.
Progressive encourages teens to perform well in school by offering discounted rates to those who maintain a “B” grade point average or higher.
Students must submit proof of their grades every six months to qualify for this discount.
Progressive’s multi-vehicle discount helps families with teen drivers to further save on their insurance, as it reduces rates for those who have more than one car on their policy.
Allstate’s teenSMART driver education program encourages teens to become better drivers, and the company offers discount rates to those who complete it.
Teens who maintain a “B” grade point average in school are also eligible for a reduced rate, making Allstate a provider that offers some of the best car insurance for teens.
Liberty Mutual makes it easy for parents to add a teen driver to their policy by offering a broad range of discounts.
Teens who maintain a “B” grade point average or higher in school can submit their grades to Liberty Mutual to qualify for a lower rate.
Those who complete a driver training program can also qualify for a discount.
State Farm encourages good driving habits in teens with its Steer Clear and Drive Safe & Save program, which rewards safe drivers with a reduced rate.
State Farm is another excellent option for parents who are looking for teen insurance, since it offers discounts to teens who maintain good grades in school or complete a driver training program.
MetLife offers savings of up to 15 percent to teen drivers who maintain a minimum “B” grade average in school.
Older teens who have had a license for more than two years can also complete a defensive driving program to qualify for further discounts.
MetLife also extends a multi-vehicle discount to families who add another vehicle to their policy once their teen is ready to drive.
Esurance rewards good grades by giving teens who maintain a “B” average the chance to save on car insurance.
A multi-vehicle discount, which is perfect for families who share a policy with teens who drive their own vehicle, is also available.
Travelers gives teen drivers the opportunity to receive a discount if they maintain a “B” grade point average in school.
An 8 percent discount applies to teen drivers who complete driver training programs or defensive driving classes.
A multi-vehicle discount is also available for parents adding a teen who drives a separate vehicle to their insurance policy.
USAA caters to military members and their relatives.
The company encourages parents and guardians to put teen drivers on their policies by offering competitive rates and making student discounts and driver training discounts available.
USAA also offers a multi-vehicle discount, which is ideal for families who share an insurance policy with teen drivers.
QuoteWizard lets teens and their guardians compare rates from top companies across the U.S.
QuoteWizard works with more than 40,000 insurance brokers to come up with the best possible rates and lets users submit their details online so they can receive quotes based on their specific situation.
QuoteWizard’s easy-to-use web application makes it easy to find the best car insurance for teens.
Kelly Klee isn’t an insurance provider; rather, it is a brokerage that offers teen drivers the chance to shop insurance policies with an expert in the industry.
Kelly Klee brokers can recommend coverage options that can protect the best interests of teen drivers and their guardians.
Brokers have access to insurance policies from top companies all across the U.S. and can negotiate on your behalf to secure the lowest rate, making sure you don’t miss out on any discounts which you are eligible for.
How to Reduce the Cost of Your Car Insurance for Teens
While car insurance is an expensive bill to add to your monthly budget, it’s one that’s necessary.
For teens who need to pay their own insurance bills, the cost may seem enormous.
However, without a valid insurance policy from a reliable company, you run the risk of being held responsible for repairs and medical bills for passengers and other drivers if your teen driver is at fault in a car accident.
The out-of-pocket costs of a collision can reach tens of thousands of dollars, forcing you to dip into savings or college funds to pay for a mistake that could have easily been covered by an insurance provider.
That’s why it’s so important not just to buy an insurance policy and to make sure you purchase it from a reliable provider with a strong reputation.
It’s imperative that you find the best car insurance for teens.
Keep in mind that even though insurance is expensive, there are ways you can lower the expense.
Here are some tips your family can use to help reduce your rate when you’re adding a teen driver to your policy:
- Reduce mileage by taking public transportation, walking, or carpooling
- Complete driver training and defensive driving classes
- Combine all vehicles and drivers in your household into a single policy
- Increase your deductible
- Reduce additional coverage on any older vehicles
- Take advantage of all discounts your insurance company offers
After finding the best car insurance for teens, it’s time to gather all the necessary information to complete your purchase.
Remember that many top insurance companies offer discounted rates for a variety of reasons, including having multiple drivers or vehicles sharing a policy, achieving good grades in school, safe driving, and completing driver education courses.
Make sure that you have the following information handy when you are purchasing a policy:
- The ages and dates of birth of all drivers on your policy
- Your full home address and mailing address (if it’s different)
- Detailed information about where you leave your car when it’s parked
- Your driver’s license number
- Any traffic infractions on your record
- Details about your vehicle(s), including make, model, year, condition, mileage, safety features, custom add-ons, and vehicle identification number
- An estimate of how many miles you drive each year
- Your estimated budget for auto insurance
- Proof of school grades for your teen
By coming prepared with the information listed above, you can make sure that you’re receiving an accurate rate that includes all the discounts for which you are eligible.
After reading the information above, you should have a good idea of how rates are calculated for teens’ insurance.
You should also know which questions to ask and where to shop when you’re looking for reasonably-priced teen insurance.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.