Car Insurance For Teens
Getting car insurance for a young driver can be pricey due to their lack of driving experience, so a separate policy may not be the best option. In most cases, it’s more affordable to add your licensed or permitted teenage driver to your existing auto insurance policy. Your policy’s coverages and limits will extend to your teen driver, and some insurers, including Progressive, offer discounts to help offset the cost of insuring a new driver.
Average Cost Of Car Insurance For Teen Drivers
The average cost of car insurance varies for male and female young drivers, with female teen drivers generally paying less than males. Keep in mind, however, that Hawaii and Massachusetts ban the use of age to calculate car insurance premiums. Additionally, California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania prohibit using gender as a rating factor.
Female drivers typically pay less than their male peers since male drivers are seen as riskier to insure. Studies show that males speed more and generally exhibit more risky behavior behind the wheel than female drivers. Teenage drivers and young adults also have the highest cell phone usage of all age groups, which may increase the risk of causing an accident or getting a ticket due to distracted driving.
Here is the average annual premium for full coverage car insurance for teen males and females added to their parents policy:
*Rates reflect the total cost for two adult drivers, one teen and one vehicle
Car insurance rates generally decrease as drivers get older and gain more experience behind the wheel. By maintaining a clean driving record and taking advantage of discounts, teenage drivers can typically expect lower car insurance costs over time.
Car Insurance For Teenager Drivers
Car insurance for teenager drivers is a necessity, especially with their higher risk level.
As soon as a teenager starts to prepare for their driving test, young driver car insurance should become a priority.
Young drivers can be added to their parents policy or they can get their own policy. Its usually more cost-effective to bundle policies together. When looking for their own policy, young drivers should do plenty of research to ensure they get the best rate possible.
Tip: Have your teenager help to pay for their own car insurance. This will help them understand the responsibility of having and driving a car.
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Related Topics & Resources
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Your Age And Your Car Matter
Many young people get annoyed when their parents suggest older, safer cars as a first vehicle. Left to their own devices, most young people would like to drive something sleek and sporty. But this is one of those cases where mom and dad were right!
Car insurance carriers are already factoring your age into how much you pay. Generally, teenage drivers pay the most for car insurance, though that price will naturally lower as you get older.
While you cant change how old you are, you can change what you drive. Insurance carriers pay attention to which types of vehicles are involved in accidents more often. So driving around an old beater of a car may not be very exciting, but it may be a good way to keep your monthly bill down.
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How To Keep Your Premium Affordable: Shop Your Coverage
Adding a young driver to your policy or obtaining your first policy as a novice driver is always going to be expensive but there a few things you can do to ease the financial pain.
This is an excellent time to shop your coverage. Your current insurer will rerun your rates with the new driver so why not expand the search.
Get quotes from at least five different insurers and always make sure you are comparing apples to apples when it comes to deductibles and coverage levels.
Can My Car Insurance Company Find Out About My Teen Driver If I Dont Tell Them
Yes, auto insurance companies get reports on undisclosed additional drivers in a household and youthful drivers, says Penny Gusner, CarInsurance.com consumer analyst.
So if your insurer sees a 15-year-old, or older teen, on the report, the insurers are likely to ask if that teen is driving yet. If the teen is licensed and driving, the insurance company will want to add him or her immediately.
The company may ask when the teen was licensed to charge you retroactively for the time that the teen was a licensed driver and should have been on the policy.
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Never Get Liability Only
At this point, you might think that the math is very simple. If having more than one type of coverage adds to the bill, then you can keep costs low by only getting the minimum insurance coverage, right? In most cases, that means only getting liability coverage.
In terms of the monthly bill, its true: Having only liability coverage will lead to the lowest possible bill. But this could end up being very expensive if you or your young driver gets in a wreck!
Keep in mind that the state-required liability coverage only pays a minimal amount for medical and property damages. In most states, that means it will pay to fix damage to other vehicles but not your own. If you are at fault for an accident, having liability only will not repair or replace your vehicle. If the wreck is bad enough, you may end up with no vehicle at all.
Our advice? Young drivers should have both liability and collision coverage, at the least. This makes sure you can get your vehicle repaired or replaced regardless of who was at fault.
Lay Some Ground Rules
- Discuss when, where, how and with whom your teen can drive
- Limit the number of passengers in the car
- Establish a curfew
- Insist your driver wear seatbelts at all times
- Limit teen driving during high-risk times, like Friday or Saturday nights
- Set driving-area limits
- Prohibit driving under the influenceor riding with friends who are
How Teens And Young Drivers Can Get Car Insurance Coverage
To get started, collect and compare car insurance quotes from multiple providers. This will help you find not only the best price but also the right coverage for yourself or your teen driver.
Once you have the right quote, determine what purchasing options are available. While some companies only allow you to buy insurance through an agent, others may allow you to receive a quote and purchase a policy online. Either way, be sure to ask what kinds of discounts are available.
When your policy becomes active, there is typically an online dashboard or mobile app that allows you to manage your payments and view claims in some cases, you can file claims or request roadside support online, but in others, youll need to call.
Why Choose Myfirst For Cancelled Policy Insurance
Most insurers will routinely decline to quote or price you a superior price however, our aim is to get you a great policy at a great rate whilst offering you brilliant cover.
Non disclosures or misrepresentation Sometimes people do get it wrong and we try our best to make sure you arent penalised profoundly.
Validation or documentation problems if your policies been cancelled for failing to supply documents or have failed to do anything the insurer has required, we can get you back driving.
Missed direct debits Missing a payment for your insurance doesnt make you more susceptible to a claim, we know this and will make sure your premiums represent that
Speeding on a black box
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Cheapest Car Insurance Company For Teen Drivers
The cheapest widely available auto insurance for teen drivers is offered by State Farm.
A State Farm policy for an 18-year-old costs an average of $3,518 per year, which is 29% cheaper than the national average of $4,917.
Although they aren’t an option for everyone, Country Financial, Erie and USAA are the cheapest insurers overall. Erie is only available in 12 states and Washington, D.C., while Country Financial is in 19 states. USAA only offers policies to current and former military members.
Find Cheap Auto Insurance Quotes in Your Area
Teen drivers are almost always charged considerably more because they are less experienced behind the wheel and more prone to risky behavior. A teen driver pays more than three times as much as a 50-year-old for full coverage.
Average Cost Of Car Insurance For 20
Of the young drivers demographic, 20-year-old drivers have the highest annual car insurance rates on average.
Heres what our analysis of 2020 car insurance rates by state shows for 20-year-old drivers with good credit and no recent accidents:
Hawaii is the cheapest state for full coverage insurance with an average annual rate of $1,105, followed by North Carolina and Idaho.
Louisiana is the most expensive state for full coverage at $5,650 per year on average .
Hawaii is the cheapest state for minimum-required car insurance with an average annual rate of $362. North Carolina and Iowa have the next cheapest yearly rates on average.
Michigan has the most expensive minimum-required car insurance on average per year at $2,605.
See below for how your state stacks up for both full and minimum coverage rates for 20-year-old drivers.
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Monthly Car Insurance Rates For 18
- Country Financial offers the cheapest rates, at $223 per month for full coverage. However, it’s only available in 19 states.
- Erie has the second-cheapest rates for 18-year-old drivers at $247 per month. Erie is a regional company and only offers car insurance in 12 states and Washington, D.C.
- State Farm is the cheapest car insurance company for 18-year-olds that is widely available across the country with a rate of $272 per month.
Final Thoughts On How To Get Cheap Insurance For Young Drivers
Taking the time to pursue any of the previously mentioned measures is worth it, the pros agree.
Because young drivers are so expensive to insure, even a small percentage difference in premiums or deductibles can easily mean hundreds of dollars in savings over the course of a year, Michael advises.
Zhou echoes those thoughts.
Most insurers have flexible car insurance policies wherein you can customize the coverage based on what you only need and can afford, he says.
Moss points out that COVID-19 and inflation have altered the auto insurance market dramatically over the last few years.
Prices have shifted and carriers are carefully selecting what risk profiles they want to write. So if you dont shop the market, the odds are very low you will find the best price and policy for you and your young driver, Moss says.
Finally, remember that theres no getting around an indisputable fact.
The younger you are as a driver, the higher the chances are that your policy will cost more, Schrader says.
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Teenage Defensive Driving Courses
Safe driving is always a must and can keep premiums low, even for young drivers. One claim is enough to make rates skyrocket. Teens can sometimes qualify for safe driver discounts if they maintain a claims-free record.
If you wish to take it one step further, you can have your teen driver complete an approved defensive driving course. Internet Technology has even allowed these courses to be held online and your teen can be eligible for a driver training discount. Completion shows car insurance companies that your young driver is serious about being a safe and smart driver.
Through the class, teens learn how to be mindful when driving and how to approach obstacles, among other lessons for driving safely. This can help you get more affordable teen car insurance rates with discounts and savings on top of your teenager continuing their safe driving.
What Can I Do To Help My Teen Become A Better Driver
There are several ways you can reduce parent anxiety about teen driving. For example, you can use smartphone programs to disable texts and notifications. Another good strategy is to go back to the basics. Familiarize yourself with the rules of the road and your cars safety features. Safe teen driving starts with you being a good role model.
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Best Teen Car Insurance For Student Away From Home: Allstate
If you’re a teen student living away from home, your parents can often get a discount on their bill. Allstate offers one of the most competitive examples of this.
Allstate offers a discount for those whose teen drivers are under 21 and attend school at least 100 miles away from where their car is garaged. Thats just one of three ways to access the companys smart student discount. If your young driver fits that description, this can decrease the cost of insuring them while attending college. This is generally the cheapest option for policyholders in that situation.
Faqs: Young Drivers Car Insurance: Your Questions Answered
Dont worry this is simply to check your details and wont affect your credit score.
Insurance providers will only do a hard search if you want to pay for your car insurance monthly.
Comprehensive insurance is undoubtedly the best available it offers the most protection and can give you lower insurance premiums.
However, as there are more types of incidents to pay for, your insurer can sometimes charge a high premium.
Insurers also take into account the psychology of their customers if someone is looking to buy a less comprehensive cover, they could potentially be less responsible and more likely to crash in the first place.
In general, its hard to predict. Make sure you always compare the price of comprehensive insurance, even if youre shopping around for the cheapest one possible. You can often find it for the same price or even cheaper than a lower cover plan!
However, you mustnt try to change your job title to reduce your quote price. You could get caught out here and even end up paying more!
Also, if your occupation means a lot of driving, you can expect a higher premium due to more time on the road!
You can also look at used-car listings to see the current price of a similar model and condition to yours.
The cars current value depends on a range of factors, including its make, age, mileage, service history, modifications, and general condition.
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When To Purchase Teens Car Insurance
You should purchase auto insurance for teen drivers after they pass their driving test and obtain their drivers license. Before, your teen had coverage under the household car insurance policy since they are still in the learnerâs permit phase of their driver training.
But the minute your teen gets that shiny, brand new drivers license, it is time to get them coverage. All young drivers on the road need auto insurance, and teen drivers are no exception.
Start planning how they will get coverage for your young driver before they get their drivers license, just so everyone is on the same page when the time comes.
Do I Have To Add My Teen To My Policy If He Doesnt Own A Car
If your teen is old enough to drive and has obtained a drivers license, the answer is yes, you need to add your teen to your policy, says Arevalo.
It is very important that you add your teen to your policy to ensure that youre covered in case he or she gets into an accident while driving your vehicle.
Even if you do not allow your teen to drive your vehicles, car insurance for teens is important because the chance of a joyride, while you are on vacation or out to dinner, is always there.
If you fail to add your teen to your car insurance policy and he or she is in an accident, regardless of whether you gave your permission to use the car or not, your insurer may deny the claim.
That means youre on the hook for claim costs. Many insurers explicitly note in their policies that unless you notify them of additional drivers or risks, those individuals will not be covered.
Even in the event that they do cover the claim, most car insurance companies will require you to pay back premiums from the time the teen was licensed.
If your teen has a license but is never going to drive your vehicles, it is possible to have the teen driver specifically excluded from your policy.
While excluding the teen may lower your premium, if Junior decides to take the vehicle out one night, there will be no coverage whatsoever, putting you at risk.
Many car insurance companies want you to tell them about household residents who are over a certain age whether that person is licensed or not.
What Age Is A Young Driver
While some might categorize a young driver as anyone 16 to 25 years old, or even anyone under 30, this analysis focuses on those 20 to 25 years old. Because car insurance rates for teens and young adults can vary significantly, this breakdown gives a more accurate depiction of the average auto insurance rates for a young driver. Annual rates generally continue to drop after age 25, but not as steeply. Once you reach 70, rates begin to increase on average.
Looking for a deeper dive into teen car insurance rates? Check out our in-depth look at finding the cheapest car insurance for teens.