For drivers under 20, rates have gone up quite a bit in recent years. For many young drivers, car insurance is unaffordable and makes owning a car out of reach. Cheap teen car insurance may even sound unrealistic. Teen drivers take more risks behind the wheel and as you might imagine are some of the most distracted drivers on the road. As a consequence, insurers have no choice but to charge high rates for these young motorists.

A 16-year-old looking for a full coverage policy can expect to pay about $7,150 per year. That’s almost $600 a month which is what some people pay for rent. The good news is there are effective strategies young drivers can implement that can really lower their rates and make the dream of car ownership a reality.

 

The Best And Cheapest Insurers For Teens

There are several carriers that on average have lower rates for young drivers. Here are five that have some of the cheapest premiums for drivers under twenty.

1. Pekin – for teens with no tickets, rates for liability-only coverage average about $2,290 a month, or $191 a month.
2. Auto-Owners – rates for drivers under 20 start at $2,354 or $196 per month
3. USAA – To qualify for USAA auto insurance you must be in the military or have a close family member that is. Rates start at $2,389 or $199 a month for teen liability coverage.
4. Progressive – rates for good teenage drivers start at $2,612, or $218 per month
5. Geico – Teenager auto insurance starts at $2,705, or $225 per month

Auto Insurance For 16-Year-Olds

Insuring a 16-year-old driver can be super expensive due to their lack of experience and much higher risk profile. Insurance companies view 16-year-olds as the riskiest drivers out there, as they are new to the road and more prone to accidents and violations.

Also, many 16-year-olds are constantly on their phones, even while driving, leading to more auto accidents than older motorists. Consequently, premiums for this age group tend to be the highest.

When insuring a 16-year-old, parents should consider the following factors:

1. Adding the teen to the family’s existing policy: This is a great way to save money on young driver coverage. Most insurance companies allow parents to add their 16-year-old to their existing auto insurance policy. With most insurers, adding a teen onto an existing policy can save you over $1,000 per year.
2. Choosing the right coverage: It’s smart for younger drivers to carry higher liability limits to protect against potential lawsuits in the event of an accident. Collision and comprehensive coverage should also be considered to protect the vehicle.
3. Enrolling in a driver’s education course: Many insurers offer discounts for teens who complete a state-approved driver’s education course or defensive driving program.
4. Maintaining good grades: Most insurance companies offer insurance discounts for students who maintain a B average or higher in school.

Cheap Teen Car Insurance For 17-Year-Olds

As teens gain more driving experience, insurance rates may start to decrease slightly, but not by much. This is because 17-year-olds are still considered high-risk drivers by most insurance companies, and premiums remain really costly.

When insuring a 17-year-old, parents should consider the following factors:

1. Monitoring driving habits: Insurance rates can be influenced by the teen’s driving record. Encouraging safe driving habits and avoiding accidents and violations can help keep rates lower.
2. Consider increasing deductibles: Raising the deductible on collision and comprehensive coverage can lower the overall premium cost.
3. Get multiple discounts: Many insurers offer discounts for teens who take advanced driver’s education courses, maintain good grades, or participate in safe driving programs.
4. Buy a vehicle that has multiple safety features: Choosing a vehicle with advanced safety features, such as electronic stability control and airbags, can help lower insurance costs and save you about 10% per year.

Insuring 18-Year-Olds

At 18, teens are considered legal adults and may have the option of obtaining their own insurance policy. While rates are still higher than those for older, more experienced drivers, premiums tend to decrease slightly for 18-year-olds compared to younger teen drivers.

When insuring an 18-year-old, parents and teens should consider the following factors:

1. Consider buying a separate policy: While it may be more expensive initially, an 18-year-old can obtain their own insurance policy, which can help establish their own insurance history and potentially lower rates in the long run.
2. Get student discounts: Many insurers offer discounts for full-time students who maintain good grades or attend a college or university away from home.
3. Choosing a safe and affordable vehicle: Buy a lower-performance vehicle that has four cylinders and four doors. Buying a used vehicle that is ten years old or even older can save you hundreds each year.
4. Considering usage-based insurance: Some insurers like Progressive offer usage-based insurance programs that track driving habits and reward safe driving with lower rates.

Car Insurance Coverage For 19-Year-Olds

As teens approach their early 20s, insurance rates start to come down a bit, though they’re still higher than rates for older, more experienced drivers.

When insuring a 19-year-old, both parents and teens should go over several factors: 

1. Maintaining a clean driving record: A clean driving record with no accidents or tickets can help lower insurance rates for 19-year-olds.
2. Get multiple discounts: Get a safe driver and low mileage and any other discount you qualify for.
3. Bundle policies: Bundling auto and home insurance, or other policies like condo or renters insurance, can lead to solid discounts from almost every insurer out there.
4. Exploring usage-based insurance: As with 18-year-olds, usage-based insurance programs from companies like Metromile can save you 10% and even more.

Auto Insurance Discounts For Teens

Many insurance companies offer various discounts that can help lower the cost of insuring a teen driver. Here are 10 common discounts to explore:

Good Student Discount:

Available for young teen drivers who maintain a specified grade point average (typically a B average or higher).

Driver’s Education Discount

This discount, often 10%, is offered for completing a state-approved driver’s education course or defensive driving program

Safe Driver Discount  

Available for those with a clean driving record, free of accidents and tickets, looking for cheap teen can insurance.

Low Mileage Discount

Offered for teens who drive fewer miles annually, reducing their risk exposure.

Multi-Vehicle Discount

Discounts for insuring multiple vehicles on the same policy.

Multi-Policy Discount

Discounts for bundling auto insurance with other policies, such as renters or homeowners insurance.

Passive Restraint Discount

Available for vehicles equipped with airbags, anti-lock brakes, and other safety features.

Telematics or Usage-Based Discount

Discounts for participating in programs that monitor driving habits and reward safe driving.

Defensive Driving Course Discount

Offered for completing an approved defensive driving course.

Early Quote or Renewal Discount

Discounts for obtaining a quote or renewing a policy before the effective date.

Recommended Teen Car Insurance Coverage 

While every family’s needs may vary, here are some recommended coverage options to consider when insuring a teen driver:

1. Liability Coverage: This coverage protects against bodily injury and property damage that the insured driver may cause to others in an accident. It’s recommended young drivers carry higher liability limits, such as 100/300/100 or higher, to provide adequate protection.
2. Collision Coverage: This coverage pays for repairs or replacement of the insured vehicle if it’s involved in an accident, regardless of fault.
3. Comprehensive Coverage: This coverage protects against non-collision events, such as theft, vandalism, weather-related damage, and collisions with animals.
4. Uninsured and Underinsured Motorist Coverage: This coverage provides protection if the insured is involved in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage to pay for damages.
5. Medical Payments or Personal Injury Protection (PIP): These coverages help pay for medical expenses and lost wages if the insured or their passengers are injured in an accident, regardless of fault.

It’s important to note that state-specific minimum coverage requirements may vary, and it’s always recommended to consult with an insurance professional to ensure adequate protection.

Cheapest Cars to Insure for Teens

Choosing both a fun car to drive that is also cheap to insure can be a bit of a challenge, but there are a few options you can check out. Here are five of the cheapest cars to insure for teens.

1. Honda Civic (Sedan or Coupe)
2. Toyota Corolla
3. Hyundai Elantra
4. Kia Forte
5. Volkswagen Jetta

These vehicles tend to have lower repair costs and good safety ratings. They also have some of the cheapest teen car insurance rates, meaning you could save hundreds per year driving one of these vehicles.  Just remember, it’s important to consider several factors, such as the vehicle’s safety features, fuel efficiency, and overall cost of ownership.

The Final Word On Cheap Teen Car Insurance

Getting cheap teen car insurance can seem like an impossible task but there are affordable options out there if you follow a proven strategy. This means driving cars that are cheap to insure for teens and also taking advantage of multiple discounts. Teens should get added to their parent’s policy, which can really boost their savings. Young drivers should also compare at least 10 quotes to see which insurer has the best rates for their risk profile.

Compare the cheapest teen auto insurance and save hundreds with direct rates. To start your quote, enter your zip code. Save more money today on affordable young driver insurance.