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Finding the Cheapest Car Insurance for Teen Drivers

Car Insurance For Teen Drivers

Are you looking to get cheap car insurance for teen drivers?

When searching for an insurance policy for your teenager, it may seem impossible to find an option that doesn’t break the bank. Since they are new to driving and still young, they are subject to some of the higher car insurance rates on the market. Since it’s uncommon to find cheap one month car insurance for under 21; you must find a policy that you can afford for a 6-month or 12-month policy. 

As you start to shop and do your research, you may be wondering what is the cheapest car insurance for 17-year-olds? Are there any opportunities for saving? What should I look for in a policy for my teenager? Let’s take a look at a few key points to keep in mind as you start shopping for insurance policies:

How Much is Car Insurance for Teen Drivers?

The national average for a 6-month full coverage car insurance policy for an 18-year-old is $1,510. With that in mind, you can still find rates that range anywhere between $1,266 to over $3,589. However, you are still looking at paying at least $211 a month to keep your new driver fully insured. If you are adding your teenager to your current insurance policy, you may be able to get a better rate than having them open a policy on their own. Combining insurance policies is a savings hack that can help you get a cheaper rate. 

Cheapest Car Insurance for Teen Drivers from Large Companies

Two of the most affordable car insurance options for your young driver would be Erie and USAA. However, both of these have specific and unique qualification requirements that may not apply to your teenager. For example, Erie only services 12 states and Washington D.C, a very limited portion of the United States population. USAA is only available for active and formal military members and members of their families. If you meet either of these requirements, these are two great insurance companies that will help you stay under budget and feel at ease when your teenager is behind the wheel. 

Cheapest Car Insurance for Teen Drivers by State

Car insurance rates tend to vary by individual, age, driving history, and state. Even if you find the cheapest policy for your teenage driver, it may not be the most affordable policy for the state you live in. For example, Iowa has the lowest add-on rate for teenagers and Florida has one of the highest. These are things to be mindful of while doing your research. We recommend making sure that you are shopping for policies that align with your address and the state you reside in.

The Average Cost of Car Insurance for 16-year-olds

In most states, 16 is the youngest you can be to have a driver’s license. With that in mind, it’s no wonder 16-year-olds are prone to higher insurance rates. The average cost of car insurance for 16-year-olds can be anywhere from $311 to $1,141 a month for full coverage. It is estimated that 20% of 16-year-old teens get into a car accident during their first year on the road. Since 16-year-olds are more prone to accidents, many car insurance companies will price policies higher. 

The Average Cost of Car Insurance for 18-year-olds

If your teenager has been driving since they were 16, when they turn 18 they will have a driver’s history and a bit more credibility built with their car insurance company. If they are on a policy with their parents, the average car insurance cost for an 18-year-old drops to about $251 a month but can go as high as $598. It is recommended to keep your teenagers on your policy even when they turn 18-years-old to get the most affordable car insurance rates. 

Why is Car Insurance for Young Men so Expensive?

Did you know that the motor vehicle death rate for males between the ages of 16 to 19-year-olds is nearly double that of females of the same age? This statistic provides optimal insight into why insuring young men can often be more expensive than insuring young women. With this in mind, some states have pushed to not allow gender to determine car insurance rates for a teenager. If you are concerned about the motor vehicle death rate among young men, we recommend enrolling your teenagers in driver courses and teaching them better-driving habits. 

How Teens Can Save on Car Insurance

Fortunately, some incentives can help your teenager save on their car insurance policy. Many car insurance companies reward teenagers for good grades or any driver’s education courses they have taken in the past. These small discounts can help you get closer to the rate you desire. You may also consider talking to your car insurance provider about the teenager’s annual mileage. If they are only traveling to and from school, your car insurance company will consider this when they are putting together an insurance quote.

Another factor you may want to consider is the type of car you plan on allowing your teenager to drive. Whether you are passing down your car or looking for cheap classic cars to insure for 17-year-olds, the car may play a determining factor in the rate you are offered.

As you start to shop for the cheapest auto insurance for a 19-year-old or a 17-year-old, there are a lot of factors you need to consider. We recommend starting with speaking with your current car insurance provider. Sometimes, adding a driver to your current plan can help you save money and lower the rates. Continue to research rates, insurance companies, and look for ways to save on car insurance for your teenager! This is the best way to ensure you are getting the best rate for your new driver and save money as they start their journey as a licensed driver. 

Featured Image: Megapixl

About the author: Liam McGillivray is a writer and editor at Wealthy Millionaire. He holds a Master's degree in Public History from the University of Victoria and a BA in History and Classical Studies from Queen's University. His interests include fantasy literature, NFT gaming, and film studies.

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