Whether you’re a new driver or a parent gearing up to insure your teenager, the sticker shock of auto insurance costs can really throw you off. Our analysis shows that, on average, car insurance for teenage girls runs about $6,410, while teenage boys face an average of $7,377. Yep, that’s right, the guys usually get hit a bit harder, costing about 15% more to insure than the gals.

But don’t sweat it too much! There are ways to ease the strain. Teen drivers and their parents can shop around, comparing quotes from different insurance providers. Plus, it’s worth digging into any available discounts to snag the best deal on car insurance for your teen.

Who Has the Cheapest Car Insurance for Teen Drivers?

Based on our findings, the average annual rate for a 17-year-old female driver in the U.S. sits at $6,410, while for their male counterparts, it jumps to around $7,377.

Erie stands out with the lowest average annual rates for both genders, with females paying approximately $3,478 per year and males around $4,351 annually. Auto-Owners follows closely behind, offering a rate of $3,655 per year for female teens and a slightly higher $4,673 for males.

USAA also boasts competitive rates for teen drivers, with averages of $4,164 for females and $4,424 for males annually. Worth noting, though, is that USAA exclusively serves the military community.

On the flip side, Farmers hits the highest end of the spectrum with hefty sample premiums of $12,806 per year for 17-year-old females and $14,022 for males in the same age group.

Typically, it’s more cost-effective to add a teenager to an existing auto insurance policy rather than getting a separate one. But brace yourself for a bit of sticker shock if you opt for a separate policy.

Average Car Insurance Premiums For 17-Year-Olds

COMPANY 17-YEAR-OLD FEMALE 17-YEAR-OLD MALE
Allstate $10,102 $11,282
American Family $5,267 $6,654
Auto-Owners $3,655 $4,673
Erie $3,478 $4,351
Farmers $12,806 $14,022
Geico $4,908 $5,463
Nationwide $5,297 $6,358
Progressive $8,875 $9,726
State Farm $5,551 $6,816
USAA $4,164 $4,424
National Average $6,410 $7,377

How To Save on Car Insurance for Teens

When you’re gearing up to get auto insurance for your new driver, chances are you’ll score some discounts along the way. Just be ready to dive into a bit of research and don’t hesitate to lean on your insurance agent for guidance if needed. Here are a few strategies for both you and your teen to trim down the cost of your family’s auto insurance policy.

Here are some tips to help you and your teenager save money on your auto insurance:

  1. Keep those grades up: Maintaining a B average or better, or being in the top 20% of the class, can often score you a discount of up to 10% with many insurers, depending on where you live.
  2. Take a driving class: Approved driver training or defensive driving courses can also lead to discounts of 5% or more, so it’s worth looking into.
  3. Ask about military discounts: If your teen is a member of the military, your household may qualify for USAA membership, which typically offers some of the most affordable rates. Many other insurers also offer military discounts, so be sure to inquire if you qualify.
  4. Drive safely: Keeping a clean record over time can lead to a good driver discount, but it usually takes at least three years or more to qualify with most insurance companies.
  5. Assign your teen to the least expensive car: If your insurer assigns a principal driver to each car as part of a multi-car discount, make sure your teen is assigned to the least costly vehicle to insure.
  6. Increase your deductible: Opting for a higher deductible can lower your premiums. Consider using any savings to increase your teen’s liability coverage, as recommended by the Insurance Information Institute.
  7. Limit your teen’s driving: Listing your child as an occasional-use driver rather than a principal can sometimes save you money.
  8. Consider a monitoring program: Some insurers offer monitoring programs that track driving habits with a device installed in the vehicle or a smartphone app. You might qualify for a significant discount, but keep in mind the potential risks of sharing personal data with your insurer and the possibility of rate increases if risky behavior is detected.

 

FAQs

How do I add a teen to my car insurance?

The first thing to figure out is when you actually need to add your teen to your policy. Sometimes, it’s right when they get their permit, while other times you might be able to hold off until they pass their driving test and have their license in hand. Once you’ve got that timing down, get a quote from your current insurance company. Use it as a benchmark while you shop around to see if other companies offer better deals. And don’t forget to ask about any discounts that might apply to your situation.

Whether you stick with your current insurer or switch for a better deal, make sure your teen is added to the policy at the right time. Then, get ready to repeat this process each year when your policy is up for renewal. And keep an eye out for discount opportunities. Good grades often earn discounts at most major insurers, and some may offer extra savings if your teen completes approved driving courses.

Between renewals, help your teen build good driving habits. It not only keeps them safe but also benefits your family and everyone else on the road. Plus, it’s worth noting that even minor driving infractions can have bigger consequences for teen drivers than for adults, which can lead to increased costs for you, both in the short term and potentially for years to come.

Should teens get their own car insurance?

Typically, you’ll save more money by adding teen drivers to your existing auto insurance policy or by shopping for a new policy that covers everyone in your household, rather than setting teens up with a separate policy. When teens have their own policy, they miss out on common discounts like bundling home and auto insurance or insuring multiple vehicles on the same policy.

However, there are some potential drawbacks to adding your teen to your auto insurance policy. You’re likely to see your rates go up, and any privileges you enjoyed, such as a good driver discount or a claim-free discount, may be lost if your teen gets tickets or causes an accident. Additionally, depending on your state’s laws, you might be responsible for any out-of-pocket costs that exceed your policy limits in the event of an accident involving your teen.

When should a teen get car insurance?

Getting car insurance for your teen as soon as it’s required is crucial. Typically, this happens when your teen gets their driver’s license, but it’s wise to confirm with your insurance company. You may also need coverage if your teen has a learner’s permit, so it’s best to double-check. If your teen won’t be driving any of the household vehicles for any reason, it’s important to have a discussion with your insurance agent about how to handle this situation.

Why is teen car insurance so expensive?

When it comes to driving, young drivers statistically pose the highest risk. Until your teen proves they’re responsible behind the wheel, insurance companies will charge extra due to this added risk. Data from the Insurance Institute for Highway Safety (IIHS) reveals that drivers aged 15 to 19 are four times more likely to be in a crash compared to older drivers, based on miles driven, and three times more likely to be involved in a fatal accident.

Having a teenage passenger further increases the risk, with the driver being about two and a half times more likely to drive recklessly. Adding multiple passengers raises the risk even higher, to about three times. Additionally, teenage drivers have the lowest seat belt usage, as per the National Highway Traffic Safety Administration data, which further increases the chances of a crash turning fatal.

Overall, teen drivers are about twice as likely to be involved in a fatal crash compared to adult drivers. These factors collectively contribute to the increased likelihood of your teen being in a fatal crash, which is why auto insurance for teens comes with a hefty price tag.

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