Best Car Insurance for Teens

Find the best insurance company for your teen driver

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Car insurance for teenagers works the same as car insurance for adults and is designed to protect you financially in the event your teen driver is involved in an accident. However, car insurance for teens can be quite expensive, with insurance companies charging much higher premiums for teenagers. Families need to carefully consider the best and most cost-effective option when shopping for car insurance.

To help parents and teenagers looking for car insurance, we explored a wide variety of options. We analyzed factors like premium cost, ease of application, young driver discounts, and special programs. Keep reading to see which companies made the list of our best car insurance for teens.

The Best Car Insurance for Teens for 2021

Best Car Insurance for Teens
Best Car Insurance for Teens

Best Overall : GEICO


GEICO

 GEICO

Why We Chose It: GEICO is one of the largest auto insurers in the country with an outstanding customer service record and a range of additional perks and discounts.

What we like
  • App for policy management

  • Offers mechanical breakdown insurance

  • DriveEasy discount of up to 25%

What we don’t like
  • DriveEasy not available in all states

  • Some areas not covered by guaranteed repairs

GEICO has an outstanding client satisfaction record and offers bundling and other discounts. With its progressive approach to account management through an app, it takes our overall spot for car insurance for teens

You’ll find the basic car insurance policies on the GEICO website, including comprehensive, collision, and rideshare with add-ons for roadside assistance and mechanical breakdown coverage. And with the GEICO app, you can view your bills, contact GEICO, store electronic versions of your car and license documents, request roadside assistance, and even get an estimate for repairing vehicle damage. 

You can get a quote and purchase your policy online or over the phone, and make sure you have your driver's license, vehicle registration, and current insurance details when you apply since GEICO will want those details. Prices for comprehensive coverage averaging around $3,150 per year for an 18-year-old, but your price might change based on the age of your teen driver, where you live, and the car you’re insuring.

GEICO offers an expansive range of discounts, including up to 25% for insuring multiple cars and a 15% good student discount. You could also save up to 25% through the DriveEasy program, which uses a monitoring app and rewards you for driving safely.

GEICO offers 24/7 customer support, coverage in all 50 U.S. states, and has an AM Best rating of A++ (Superior).

Best for Good Grades : State Farm


State farm

 State farm

Why We Chose It: With a considerable 25% discount available to students doing well in their studies plus other discounts for safe driving, State Farm is our overall choice as best for good grades.

What we like
  • Numerous discounts

  • Competitive rates

  • Excellent reputation

What we don’t like
  • May need to use a local agent

  • Some reports of poor customer service

State Farm is now one of the largest insurance companies in the United States. It provides over 83 million policies through 19,000 agents nationwide. Parents of teenage drivers may find their policies particularly appealing thanks to the 25% Good Student Discount for students aged 16-25 years old who maintain good grades of B or a 3.0 GPA.

State Farm offers comprehensive collision, rental, and rideshare insurance. You’ll need your driver's license, vehicle registration, and the vehicle’s current insurance declaration page to apply for a policy. Expect to find policy premiums relatively higher than other providers, averaging around $4,400 per year for comprehensive coverage for an 18-year-old, although your cost might change based on where you live or the type of coverage you select.

State Farm offers an impressive range of discounts. Depending on your location, these may include a discount for students who only drive when they return home, up to 15% for those who attend a driver safety course, and up to 20% for young drivers with no at-fault accidents or moving violations within the past three years. And if families choose to bundle their homeowners, renters, condo, or life insurance along with vehicle insurance, they can save up to 17%.

Customer support is available around the clock via phone and an award-winning smartphone app. It won the Mobile Web Award in 2019 for best insurance mobile app which you can use to contact State Farm customer service, request emergency roadside assistance, and file a claim.

State Farm is available in all 50 states and has an AM Best rating of A++ (Superior). You can get a quote online or by contacting a representative.

Best for College Students : Allstate


Allstate Insurance logo

 Allstate Insurance logo

Why We Chose It: Allstate is our best for college students because of its discounts geared specifically toward scholars.

What we like
  • Discount options targeted at college student

  • Can get quotes and purchase policies online

  • 24/7 customer service via phone or app

What we don’t like
  • Below-average levels of client satisfaction

  • Premiums may be higher than for other providers

Allstate offers numerous ways for college students to save money on their premiums including a Smart Student Discount if you maintain a B average, a Resident Student Discount for students attending college at least 100 miles from home, and the Milewise Program that adjusts premiums according to the miles driven.

Allstate wants to foster safe driving habits among teenagers, and they do so via the Drivewise app that gives driving feedback and rewards in the form of discounts, although it’s unclear what exactly these discounts and rewards are (you may need to contact the company for details). Additionally, you can enjoy up to a 25% discount by bundling home and auto insurance. 

With Allstate, you can choose from collision damage, comprehensive cover, liability, medical payments, and underinsured motorist policies plus 24-hour roadside assistance plans. 

You can contact Allstate to apply for a policy with your license, vehicle details, and current insurance details. Policy premiums are typically higher than competitors, averaging around $5,500 per year for comprehensive coverage for an 18-year-old. Your actual policy cost may vary based on your location or other factors. Customer service is available 24/7 by phone, email, or app.  

To begin the application process, which you can do online or over the phone, you’ll need your driver's license, vehicle registration, and the vehicle’s current insurance details. Allstate offers coverage in all 50 states and has an AM Best rating of A+ (Superior).

Best for Accident Forgiveness : Nationwide


Nationwide

 Nationwide

Why We Chose It: Nationwide provides generous accident forgiveness, making it a standout choice for this category.

What we like
  • Discount for safe drivers

  • Online quotations and purchase

  • SmartRide program with up to a 40% discount 

  • 24/7 customer service via phone or app

What we don’t like
  • Coverage not available in Alaska, Massachusetts, Hawaii, or Louisiana

  • Varying reports of low levels of client satisfaction

  • Accident Forgiveness not available in every state

The risk of being in a fatal car accident is nearly three times higher for teenagers than those aged 20 or older. Following an accident, insurance companies typically raise the cost of premiums substantially, especially if you are at fault. With a generous accident forgiveness policy that could help you and others on your policy avoid a rate increase after your first at-fault accident, Nationwide was named our top choice for accident forgiveness. Although not available in all states, the Nationwide Accident Forgiveness policy is additional coverage that protects the policyholder and additional driver on the policy. However, it can only be used once per policy.

Nationwide options include comprehensive, collision, towing and labor, medical payments, and uninsured motorist. There are also several additional options including guaranteed repairs and a vanishing deductible option that lowers your deductible by $100 for each year’s safe driving, up to $500 total. Drivers could also benefit from SmartMiles, which bases cost on mileage, and SmartRide, which offers a potential 40% discount depending on your driving. Bundling multiple insurance policies earns a variable discount. 

Policy premiums start at around $3,400 per year for comprehensive coverage for an 18-year-old, but your cost may vary based on location, age of your teen driver, and other factors.  

You can get a policy and quote online or over the phone; to begin the application process, you’ll need your driver's license, vehicle registration, and the vehicle’s current insurance details.

Coverage is available in 46 states and Nationwide has an AM Best rating of A+ (Superior).

Final Verdict 

Insurance for teenage drivers can be pricey, but there are ways to save on policy costs if you shop around and find a provider that offers discounts and rewards. 

GEICO is our overall choice for car insurance for teens as it has an excellent customer service record and a range of attractive perks and discounts. If you have an exemplary student in your family, consider State Farm with its substantial 25% discount available to dedicated students doing well in their classes, or Allstate, our top choice for college students, which offers discounts explicitly geared toward scholars who drive safely and do well in their studies.

Finally, teenagers who have experienced an auto accident need not worry about a policy price hike with Nationwide, our choice for best for accident forgiveness.

Compare Providers

Best Car Insurance for Teens
Insurance Provider Why We Picked It Average Annual Premiums  Discounts Offered
GEICO Best Overall $3,150 Up to 25% for multiple cars, 15% good student discount, 25% through the DriveEasy program, Plus 13 others
State Farm Best for Good Grades $4,400 Student-away discount, defensive driving 15% discount, good student discount of 25%, 20% Steer Clear discount, 17% multiple bundled insurance, Drive Safe and Save discount, and more
Allstate Best for College Students $5,500 Drivewise discount, 25% discount by bundling home and auto insurance, Smart Student discount, and more 
Nationwide Best for Accident Forgiveness $3,400 Up to 40% SmartRide discount, up to 20% multiple policy discount, safe driver, good student, accident-free discount, and more

FAQs 

What is the Average Cost of Car Insurance for Teens? 

In our research for the four categories, we found the average cost of teen car insurance was around $4,100 annually, but the amount you pay for car insurance depends on factors such as:

  • Age
  • Gender
  • Location
  • Driving record
  • Car you drive
  • How much you use the car
  • Your credit score
  • Policy limits and deductible

Because the price of car insurance is so variable, it is essential to shop around and request quotes from several insurance companies based on your details.


Do I Have to Add My Teen to My Car Insurance Policy?

Like any driver, a teen driver must have car insurance, but no rules stipulate that you must add your teen to your car insurance policy. Instead, teens can purchase their own car insurance policy, but the price for this may be higher than adding them to your policy. 

What Should I Look for in a Car Insurance Policy for My Teen?

Since younger, less experienced drivers have higher odds of being involved in an accident, it’s essential to have adequate coverage. You may want to consider insurance that covers medical expenses, coverage for the other driver if your teen is at fault, and collision coverage that covers damage to your car, no matter who caused the accident.

Legally, most states require limited coverage, which will be less expensive than fully comprehensive cover but could end up costing you more in the event of an accident.


Why Is Car Insurance for Male Teens so Expensive?

Male teenagers between the ages of 16 and 20 have the most expensive auto insurance premiums for several reasons. First off, first-time car insurance buyers, both men and women, have no proven driving record which may prompt the provider to discount their rate. 

However, the death rate for male drivers aged 16–19 involved in a car accident was around twice as high as their female counterparts in 2018.

In addition, teenage males engage in risk-taking behavior behind the wheel, which car insurance companies reflect in their prices. In one study looking at gender differences between teenage drivers, crashes involving male teenagers were significantly more likely to involve blood alcohol concentrations of 0.08% or more, speeding, reckless driving, night driving, and felony crashes such as hit-and-run, homicide, or manslaughter.

The good news is that as young drivers enter their twenties and maintain a clean driving record, premiums are likely to drop.


What Is The Best Way to Save on Car Insurance for Teenage Drivers?

Teen drivers may find the best way to save money on car insurance is to join a parent’s policy. Otherwise, the best approach is to review the providers available in your location and see which company has the cheapest offerings. You can also ask if they have any discounts available, including:

  • Good grade discount: Some auto insurers offer discounts for maintaining a high GPA or getting straight As.
  • Defensive driving discount: If you take a defensive driving course, some car insurance companies may offer you a discount on your rate.
  • Student away-at-school discount: If you’re enrolled in college or go to school away from home, you could qualify for this discount.

Families may also be able to save money on teen car insurance by bundling policies, taking a defensive driving course, or taking advantage of any employer-sponsored discounts.

Methodology


We gathered evaluated 15 of the most popular companies that offer teenagers car insurance before selecting our top picks. We assessed a range of factors to reach our conclusions including how easy it was to get a quote and buy a policy. Extra weight was also given to a company if they offer account management through a mobile app which is likely essential to tech-savvy teens. 

Because stability and customer service are other essential factors to consider, we reviewed AM Best ratings and reviews regarding client satisfaction wherever possible. 

College students and young drivers in general often have financial limitations, therefore monthly premium costs and overall pricing were essential elements in our analysis. Factors such as discounts that could lower prices for safe driving and commitment to good grades also impacted our decision.

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Article Sources
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