Are you a teenager or parent of a teenager looking for auto insurance? If so, it won’t take long before you find out that insuring young drivers is going to be expensive. Younger drivers on average exhibit high-risk driving habits, which leads to more accidents. There was a drastic change of how I drove when I was 17 years old vs when I turned 25.
You might be safe driver, but when it’s time to rate a driver, car insurance providers go by statistics. Statistics show that younger drivers are involved in more reckless driving than other age groups. Statistics show that men get into more accidents than women.
All of this affects how much you will end up paying. Another reason why teen drivers pay more is that insurance companies factor credit ratings. Teens usually have little to bad credit. With that said, there are many carriers that can help you to cut the cost and that is what this article is all about. I will help you to find the best cheap car insurance for teens and I will even give you tips to lower the cost.
Average car insurance rates for teens
Teen drivers pay over $4500 a year on auto insurance on their own insurance policy. Adding a teen onto your policy can cost you an extra $200 a month.
Common teen car insurance discounts
Good student discount – This is a common discount that allows you to save 5% or more if you or your teen driver gets A’s or B’s.
Multi-car discount – Add two, three, four or more vehicles on to your insurance policy to save on auto insurance.
Defensive Driving – Completing a driver’s education program can save you 10%. Drivers who complete approved driver education courses are statistically proven to get into less accidents. You must be under 21 years of age. You must also complete a certain number of hours and you must have proof of completion.
Away from home – If you have a student who is attending school over 100 miles away and does not drive while they are away at college, then you will qualify.
Occasional Driver – This discount can help to reduce your premium if you don’t drive as much. If your teen driver is not the primary driver of your vehicle and drives less, then you may qualify.
Ways that teen drivers can save on auto insurance.
Compare quotes – The best way to save on auto insurance is by shopping around and comparing quotes. Many people are unaware that they can be paying hundreds less a month on insurance if they would just compare rates which is what we can help you with.
Insuring a cheaper vehicle – There is no denying that the make and model of your vehicle plays an essential role in the rate that you will pay for auto insurance. Insuring a sports car would cause you to pay more than a regular vehicle.
Buying a safe vehicle – If your car has safety features, such as air bags, anti-theft systems, anti-lock brakes, electronic stability control, etc. most companies will give you a discount.
Get discounts – Make sure that you use all the discounts that are available to you. Never leave discounts on the table. Call your insurance provider and ask them if there are any discounts that you are eligible to receive.
Raise your deductible – Increasing your deductible will result in more out of pocket expenses if you ever run into an issue. However, this might lower your monthly auto insurance rates.
Tips for teenage drivers
Buckle up – When I was in high school I had a friend who died in a car accident. Unfortunately, he was not wearing a seat belt when the vehicle that he was in crashed. Statistics show that seat belts save lives.
Accident forgiveness – Parents should not be afraid to add accident forgiveness coverage. With accident forgiveness if you ever get into an accident your rates will remain the same. This is perfect for teens who are more likely to get into accidents.
No one should drive your car but you – Never let your friend drive or borrow your car. You will regret it if something bad happens. With a car comes great responsibility and discipline. If you are the insured driver, then you should always be the driver of your vehicle.
Roadside assistance – You never know when you will run into problems. You always want your teen drivers to be protected. Emergency roadside service covers flat tires, jump starts, gas delivery. fuel delivery, locksmith services, and sometimes even mechanical labor.
Limit night driving – Most driving fatalities happen at night. It is always best to limit night time driving as much as possible.
No texting and driving – Any distractions should be removed while driving. It was reported that cell phone use leads to over 1.5 million crashes ever year.
Never drink and drive – Centers for Disease Control and Prevention, reported in 2010 that 1 out of 5 teens who were involved in deadly car crashes had alcohol in their system. It is best to stay away from alcohol. Teen drivers can complete a drug and alcohol course which may result in an insurance discount.
Always obey the speed limit – The reason it is important to follow the speed limit is to obey the law, protect yourself, and protect other drivers.
Watch the weather – Bad weather conditions increase accidents. Young drivers do not have as much experience as older drivers. It is important to teach your younger drivers what to do if they are ever caught in a storm.
Keep both hands on the wheel – I understand that it might look cool to drive with one hand but driving with two hands keeps your car stable.
Learner’s permit insurance – Certain companies offer insurance for those who need to insure a driver with a learner’s permit.
Best states for teen drivers
- New York
- Oregon
- Illinois
- Maryland
- Washington
- Louisiana
- California
- Delaware
- New Jersey
- Georgia
- Alaska
Worst states
- Montana
- Wyoming
- North Dakota
- South Dakota
- Nebraska
- Missouri
- Mississippi
- Idaho
- Iowa
- Oklahoma
- Arizona
GEICO
GEICO is already an auto insurance provider that offers low rates, but they will help to cut the cost for teens and new drivers. Honor Roll students and good drivers are able to save with GEICO. One of the best ways for teens to save with GEICO is to be involved in a fraternity, sorority, or certain organizations. Teen drivers can easily save by attending one of the colleges on GEICO’s list.
A few colleges that can help you save are University of Pittsburgh, University of New Hampshire, University of North Carolina, University of Denver, University of Detroit Mercy (MAAC), Southeastern Oklahoma State University (GAC), Southern Arkansas University (GAC), Purdue University, Rollins College, Campbell University, Central Washington University, Chicago State University, Florida Institute of Technology Alumni Association, Texas State University, California State University, Bakersfield, etc. With hundreds of colleges and organizations to choose from there is a strong chance that you will be able to save with their membership discount. With GEICO, your son or daughter is able to move off of your insurance policy onto their own while still being able to enjoy the same benefits.
American Family
AmFam goes above and beyond to help their young drivers to save on auto insurance. AmFam offers 5 insurance discounts that specifically cater to teen drivers. American Family offers a good student discount to help you to lower your insurance rates. With AmFam you have the choice of enrolling in their teen safe driver program. This is great program to help your teen drivers to become safer drivers.
With this discount, the AmFam app will monitor distracted driving such as texting and driving. The app will also monitor other risky driving behaviors. The goal is to teach your young drivers to become smarter drivers which reduces tickets, reduces accidents, and saves you money in the long run. The Truemotion app helps teen drivers to be excited about being a safe driver. The app scores trips and they will be able to see their score improve as they drive safe. Just by signing up you will receive a discount. After your child completes 3000 miles with the program, you will be able to receive a 10% discount on your auto insurance policy. Similar to other top insurance carriers AmFam offers an Away at School discount.
Drivers who are under 25 years of age and complete at least 40 hours of community service for non-profit organizations will be able to save on auto insurance. The last way that teen drivers can save with AmFam is if their parents are AmFam members. The Generational discount allows you to save if mom or dad is a customer of American Family.
USAA
USAA offers low annual rates. However, there is one drawback of USAA insurance. If you are not active, retired, or if you have no military personnel in your family, then you will not be able to use USAA. USAA only offers insurance and discounts to military families. If your parents used USAA and then you start your own policy you will be able to save 10% on your own policy. Teen drivers drive less than others. 16 to 19 year old male drivers drive an average of 8,206 miles per year. Female drivers drive an average of 6,873 miles per year. These numbers are thousands of miles less than any other age group.
If your teen drives less than national average, then you will be able to save with auto insurance. If you have a vehicle that is 3 years old or less you will be able to save. One last feature for young drivers that I want to talk about with USAA is Automatic License+, which helps to monitor, coach, and encourage your teenagers. Enrolling in this program is free. In fact, when you enroll you will receive a $25 Amazon e-Gift card. As soon as you enroll you will receive a free adapter that you can plug into your cars OBD port. This program gives you peace of mind about handing over your keys. The adapter will capture your teen’s progress. If your child is ever in an accident, then USAA will notify local emergency services.
Progressive
With Progressive Insurance if you add your newly licensed teen who is under 18 years old to your policy you will be able to save on auto insurance. The amount that you will be able to save with this discount varies per person. Progressive also offers a Good Student discount and once again the amount that you will be able to save varies. The great thing about Progressive is that there are many ways that you can save on auto insurance. Progressive offers one of the greatest savings for safe drivers. You will be able to up to 31% if you have not had no at-fault accidents or tickets in the past three years.
You can also sign up for their SnapShot program which will help you to save over $100 by being a safe driver. Progressive has different overhead costs than other companies which allows them to offer cheaper rates than some of the most popular carriers. Progressive is known for insuring high-risk drivers. If you have a hard time getting insurance, then Progressive is a good option. Along with low rates you will get a company that is backed with billion in assets to pay your future claims. In the J.D. Power Auto Claims Study Progressive rated about average. BBB gave Progressive an “-A” rating. This allows us to know that Progressive will handle any customer complaints that you may have.
Travelers
Travelers might not offer that many teen driver specific discounts, but they do offer low car insurance rates for families with teen drivers. You can expect family rates of under $150 a month. Travelers is a great insurance provider for all-around discounts. There are many ways that you can save to lower your rates. When you have multiple cars listed on your policy, then you will be able to save 8% on your auto policy. Safe drivers who insure with Travelers can save another 10 to 23% on auto insurance. If you have had no gaps in your insurance, then you will be able up to 15%. Travelers Good student discount allows you to receive up to an 8% discount.
Completing an approved driver education course can also end up saving you 8%. Travelers Student Away at School discount can help you to save up to save up to 7%. Travelers has two featured programs that you can benefit from. Their first program is their Affinity program. With this program, you can save by being an employee or member of a participating business, association, or credit union. Their 90-day IntelliDrive Program will help you to save up to 20% if you exhibit safe driving habits. This program is only available in 8 states. These states include Alabama, Connecticut, Illinois, Indiana, Maine, Minnesota, Nevada, Ohio, and Virginia
State Farm is the largest auto insurer in the United States. With State Farm, you can easily add a teen to your policy by contacting your local agent or logging into your account. Teens can save with State Farm with their SteerClear discount. This discount will help you to save as much as 15% while helping you to become a better driver. To be eligible for this insurance discount you must be under the age of 25. You must have no at-fault accidents or violations during the past three years. Steer Clear is not available in every state. You can save up to 25% with the State Farm Good Drivers discount. It is rare to be able to save over 20% with this insurance discount. If you insure cars that are owned by related individuals in your family, then you will be able to save up to 20% with State Farm. State Farm rated about average in the J.D. Power Claims and Shopping Study. In the Home Insurance Study and Property Claims Study State Farm received 4 out of 5 Power Circles in Overall Satisfaction. State Farm was the top company in the 2017 Life Insurance Study. State Farm is a proven company that you can trust.
Esurance
If you have a Pac-12 student on your policy, then you will be able to receive a discount with Esurance. The amount that you will be able to save with this Pac-12 discount is 15%. Pac-12 schools include: University of Arizona, Arizona State University, University of California at Berkeley, University of Colorado Boulder, University of Oregon, Oregon State University, Stanford University, and more. With Esurance you can save even more money by being claim-free for the past 5 years. To qualify for this policy one person on the insurance policy must have 5 years of driving experience. You must have also had insurance before switching to Esurance. You will be able to save 10% to 25% on your Premium. Good students with Esurance can save 10% on liability, collision, and medical payments coverages. With their Defensive Driver discount, you will be able to save up to 10% on certain coverages. With Esurance you can sign up for DriveSense which is their personalized discount for good driving habits. When you enroll in this program you will automatically receive a 10% discount. Esurance received a positive score in the J.D. Power Auto Claims Study. When it comes to financial strength Esurance received an “A+” rating from A.M. Best.
Auto-Owners
With Auto-Owners good students will be able to save up to 20% on auto insurance. If a student on your policy is 100 miles away from home without a vehicle you will be able to save with Auto-Owners Student Away at School Discount. Auto-Owners Policyholders can also qualify for their Teen Driver Monitoring Discount. This is a rare discount which is also helpful to parents. To be eligible for this insurance discount you must have a permanently installed GPS systems in your teenager’s car. This is perfect for monitoring your children and saving at the same time. In the U.S. Auto Claims Satisfaction Study Auto-Owners received 4 out of 5 Power Circles in overall Satisfaction, 4 out of 5 Power Circles in First Notice of Loss, 4 out of 5 Power Circles in Claim Servicing, 4 out of 5 Power Circles in the Estimation Process, 3 out 5 Power Circles in the Repair Process, 5 out of 5 Power Circles in Rental Experience, and 4 out of 5 Power Circles in the Settlement category. Auto-Owners excels across the boards. However, they are only available in 26 states.
Erie Insurance
Erie only offers auto insurance to 12 states. The 12 states that Erie offers insurance in includes: District of Columbia, Illinois, Indiana, Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin. On average Erie stacks up well with the top insurance carriers. On average eastern states are able to save more with Erie than with other companies. Under the Auto & Leisure section you will notice that Erie offers Insurance for Teen Drivers. To help with the rising costs of insuring young drivers Erie offers discounts to help young drivers to save anywhere from 5 to 20 percent. Their Youthful Driver Discount helps drivers living with their parents to save money. Drivers must be under 21 to be eligible for this discount. If you have been insured with another company either under your parents or on your own policy, then you will qualify for the Youthful Longevity Discount. Other discounts to helps teens save with Erie is the College Student discount and the Driver Training Discount. Erie is one of the best rated companies that you will ever find. Erie scored 4 out of 5 Power Circles in the Auto Claims Study making it the 5th best company for claims.
Honorable mention – Nationwide
Nationwide is included because they have one of the top family car insurance discounts in the insurance industry. With this discount, you will be able to share your discounts with those who live in your home. With the family plan discount, you may be able to save up to 15%.
Bottom line
Your car insurance rates don’t have to be a ridiculous amount. Whether you are a single parent or you are divorced there are many ways to save. Many people are missing out on discounts and lower rates. There are many great providers out there such as GEICO, Erie, State Farm, American Family, and more. Take the time to compare quotes today to save yourself and your family some money.