Car insurance is vital for all drivers (it's even required in 48 states). If you are looking for car insurance for teens, it can cause you a migraine. That pain will increase if you insist on looking for the cheapest car insurance for teens.
Finding the best car insurance for teens can be a challenge. What sort of coverage do you need? How do you balance cost and coverage? Do you need collision coverage?
Before we get started, there's one thing to keep in mind. Most car insurance companies believe it's a greater risk to cover a first-time, teenage driver than experienced drivers with good driving records. The average cost of car insurance for teens is often much higher than they are for older drivers.
When a minor driver is added to an existing policy, rates increase by about 130 to 140 percent. An additional 20 to 40 percent increase is possible if the young driver is involved in a car accident or receives a speeding ticket. Rates like these tend to stay the same until a driver reaches the age of 20.
USAA: The majority of us aren't qualified for a policy with the United Services Automobile Association, but if you have a family member who is a military member or veteran, your teen driver may be able to acquire fantastic coverage at a lower cost.
With the cheapest car insurance choice among big car insurance companies, USAA allows families to possibly save hundreds of dollars per year. It also offers many incentives as its competitors, including reductions for good students and drivers who have completed driver training courses. Also noteworthy is that kids who switch from a family policy to car insurance may be eligible for a 10% Legacy discount.
Most individuals won't receive coverage via USAA, but if you believe you might be, getting car insurance quotes from it before making a final decision is a smart idea.
Nationwide: Teens pay more for car insurance since it is assumed that their lack of experience makes them more likely to be involved in accidents. Whether or not this is true, one out of every five 16-year-old drivers has an accident on their record during their first year behind the wheel.
Nationwide is one of the few insurance companies that extends its accident forgiveness plan to drivers under the age of 18, which means that if a teen driver is involved in an all-too-common fender bender, their family's auto insurance cost will not soar. Nationwide provides roadside assistance to young drivers, which should let their parents sleep a bit easier.
Nationwide includes a plethora of educational resources for new drivers and pieces aimed at adults who may be considering adding a teen to their policy.
Progressive: College students and their parents place a high focus on saving money. Nobody likes to pay a lot of money for auto insurance, especially if the vehicle in issue is only used occasionally. It's stressful enough to think about paying thousands of dollars a month in insurance for a car that's nearly always parked.
Progressive offers everyday low pricing, but it has also designed a series of discounts tailored to college students. Progressive also offers discounts to students who live more than 100 miles away from home and do not commute to school, as well as usage-based vehicle insurance rates that save money for individuals who drive their cars seldom.
Teens can also take advantage of Progressive's Snapshot program, which offers discounts and other advantages to drivers who drive responsibly.
On Progressive's website, parents may find a list of guidelines to assist them in deciding whether to add their teenagers to their existing insurance or get them their own.
Erie: Erie Insurance, located in Pennsylvania, has been insuring drivers for over 95 years, and its good reputation extends to young drivers as well. Discounts ranging from 5% to 20% are available from Erie to assist in covering the cost of adding an (inexperienced) driver to your insurance policy.
For young drivers, Erie offers three separate auto insurance policy reductions. The Youthful Driver Discount is available to unmarried young drivers under 21 who live with their parents. The Youthful Longevity Discount is available to unmarried young drivers who've already been covered by a parent or guardian's Erie plan. The Driving Training Discount is available to unmarry young drivers who've completed an accredited driver's ed course.
A distant student discount is also available for families of college students who do not drive their children to school.
The car insurance company Erie is operational in the following states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington, DC. If you are a resident of one of these states, you should consider what an Erie teen auto insurance coverage offers.
Insurance premium coverage expenses can be reduced in several ways. Being a careful driver and driving a more fuel-efficient car can help save money. Certain car insurance companies save motorists who drive less than the average number of miles each year. Discounts are also available based on how frequently you use your car.
Teens may also be eligible for good student discounts or discounts based on safe driving behaviors learned through a defensive driving course or graduated driver licensing programs. Young drivers can get discounts if they take driver's education courses and maintain a B average.
If the younger driver on your policy isn't driving because they're at college, you might be able to save money. You may also qualify for a lower rate if you have a young driver on your policy who is away at college and does not have access to a car.
Every insurance company offers additional savings based on your coverage options and other circumstances, so it's worth double-checking which ones apply to you before you sign up.
It's also worth mentioning that many car insurance companies will let you add a teen driver to your coverage for free if they only have a learner's permit, which includes kids taking driver's education classes. It's also true that adding teen guys to a policy costs more than adding teen girls because they're more likely to be involved in a serious car accident.
The greatest coverage for you is that which meets your needs, solves your concerns, and is appropriate for your circumstances.
What makes a good car insurance company for teens is similar to what makes a good one in general. Before making a selection, remember to research your prospects and weigh all of your possibilities.
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
Access your digital insurance card through the app. You no longer need to carry your physical insurance card with you.
Receive reminders before your renewal. Way.com will also send new quotes from up to 45 insurance companies with your renewal reminder.
Keep everyone on your policy up to date by sharing your insurance information.
Make changes to your policy right from the app (coming soon) and ask for expert advice.