Cheap Auto Insurance for Teens of Divorced Parents in 2024 (Top 9 Companies Ranked)

When you need cheap auto insurance for teens of divorced parents, State Farm, USAA, and Progressive have the lowest average rates on the market.

At $130 per month, State Farm has the lowest car insurance for children of divorced parents. It’s the cheapest company for teen auto insurance due to its UBI savings, ample discounts, and driver education programs.

Our Top 9 Company Picks: Cheap Auto Insurance for Teens of Divorced Parents

Read on to explore the best auto insurance for children of divorced parents and where to find the lowest rates. You can also enter your ZIP code above to compare quotes from multiple companies and find the best auto insurance for teens of divorced parents.

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#1 – State Farm: Top Pick Overall

Pros

• Good student discounts: Among its 13 discounts, State Farm offers a few ways for students to save. One of the most popular is State Farm’s good student discount, which offers 25% savings for students who maintain good grades.
• Steer Clear program: The Steer Clear program helps young drivers improve their skills by giving them helpful feedback. Earn a discount of up to 15% by completing the program.
• Drive Safe and Save: Drive Safe and Save is State Farm’s usage-based auto insurance program that tracks your driving behavior. Learn how much you can save with Drive Safe and Save in our State Farm auto insurance review.

Cons

• Limited online options: While you can start claims through the app, you’ll have to speak with a representative to purchase a policy. State Farm also lacks a live online chat option, meaning you’ll need to talk to someone over the phone.
• Add-ons lacking: State Farm has everything you need for standard coverage, but it lacks some popular add-on choices. For example, you can’t add accident forgiveness or gap insurance to your policy.

#2 – USAA: Best for Military Families

Pros

• Safe driving discounts: You’ll find savings for being a safe driver among USAA’s 14 car insurance discounts.
• Affordable rates: USAA is almost always the cheapest option for car insurance, no matter where you live. To learn more about why USAA’s rates are so cheap, read our USAA auto insurance review.
• SafePilot: USAA’s UBI program SafePilot offers a maximum savings of 30% if you consistently practice safe driving behaviors.

Cons

• Eligibility requirements: Teens need at least one parent to be either active or retired military to qualify for USAA membership.
• Some coverage options lacking: USAA doesn’t have a few popular policy add-ons, like gap insurance.

#3 – Progressive: Best for Teens on a Budget

Pros

• Name Your Price tool: Teen auto insurance can be pricy, but Progressive has a tool to help you stick to a budget. Simply enter your monthly budget into the Name Your Price tool to see how what coverage options are available.
• Snapshot: Agree to have your driving habits tracked with Progressive’s Snapshot program to save on your insurance. The average driver saves $156 annually after signing up for Snapshot.
• Teen driver discounts: Progressive has a few discounts to help young drivers save, including one just for having a driver under 18 on your policy. For more discount information, check out our Progressive auto insurance review.

Cons

• Snapshot can increase rates: Unlike most UBI programs, Snapshot can increase your rates if you don’t consistently practice safe driving habits.
• Mixed ratings: Despite being one of the largest insurance providers in the country, Progressive struggles with its customer service ratings.

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#4 – Allstate: Best UBI Savings

Pros

• Drivewise: Safe drivers can save up to 40% by enrolling in Allstate’s UBI program, Drivewise. Another telematics program – Milewise – is available in some states, which you can learn more about in our Allstate auto insurance review.
• Coverage options: Allstate offers a wide variety of coverage options to help you personalize your policy, including accident forgiveness and new car replacement.
• Discount opportunities: Allstate has several ways for young drivers to save, especially if they get good grades. Other easy discounts include savings for staying accident-free and signing up for paperless documents.

Cons

• Higher rates: While it offers a ton of excellent coverage options, you’ll pay higher rates for Allstate insurance. Although young drivers can find affordable rates, Allstate tends to be one of the most expensive options for older drivers.
• Mixed reviews: Many Allstate customers report feeling unsatisfied with their insurance experience, especially when it comes to customer service.

#5 – Nationwide: Best Vanishing Deductible for Safe Drivers

Pros

• SmartRide: Earn an immediate 10% discount on your insurance by signing up for Nationwide’s UBI program SmartRide. After an evaluation period of four to six months, your discount can increase by up to 40%.
• Vanishing Deductible: Sign up for the Vanishing Deductible program to lower your deductible by $100 every year you remain claims-free, up to $500. Learn more about how vanishing deductibles work
• Add-on options: Nationwide offers several valuable add-ons, including gap insurance, car key replacement, and pet insurance.

Cons

• Limited local agents: Nationwide has fewer local representatives than some of its competitors, making it more challenging to get face-to-face help in some areas.
• Not available everywhere: Despite its name, Nationwide is not available in every state. Check our Nationwide auto insurance review to see if you can buy a Nationwide policy in your state.

#6 – Erie Insurance: Best Customer Service

Pros

• Teen driver discounts: Erie offers a youthful driver discount, though you’ll need to speak with a representative to qualify.
• Excellent customer service: Erie focuses more attention on its policyholders, leaving more customers happy with their service than many of its competitors. Compare Erie’s rates with top competitors in our review of Erie auto insurance.
• YourTurn: YourTurn is Erie’s UBI program that tracks driving behaviors like speeding and hard braking. Rather than offering a discount, YourTurn rewards safe drivers with cash rewards.

Cons

• No online quotes: Erie’s website lacks some of the online tools that bigger companies have. If you’re interested in an Erie policy, you’ll need to speak with a representative.
• Limited availability: Erie is a smaller insurance company and currently only sells coverage in 12 states.

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#7 – Farmers Insurance: Best Family Plans

Pros

• Extensive network of local agents: Insurance can be confusing, especially for teens getting coverage for the first time. Farmers representatives are readily available in person or over the phone to help.
• Ample discounts: Farmers offers a whopping 23 discounts to help drivers save, several of which are meant for teens. Explore your discount options in our Farmers auto insurance review.
• Signal app: Enroll in Farmers’ telematics program by downloading the Signal app. Driving safely while using the Signal app can save you up to 30% on your coverage.

Cons

• No policies in Florida: Farmers announced in 2023 that it would no longer sell new policies in Florida.
• Lacking online options: While most major car insurance companies are moving towards digital policy management, Farmers offers fewer options to manage your coverage online.

#8 – Liberty Mutual: Best for Add-on Options

Pros

• RightTrack: Save up to 30% on your coverage by enrolling in RightTrack, Liberty Mutual’s telematics insurance program.
• Discount opportunities: Liberty Mutual offers several ways for young drivers to keep their rates as low as possible, plus several other discount options.
• Diverse coverage options: Adding more coverage to your policy increases your rates, but Liberty Mutual has plenty of options if your budget allows for it. Read our review of Liberty Mutual to explore your add-on options.
• TeenSMART discount: Complete Liberty Mutual’s driving program to earn a discount on your insurance. TeenSMART focuses on staying safe on the road and avoiding accidents.

Cons

• Rates can be high: Liberty Mutual’s rates are usually close to the national average. It has affordable rates for younger drivers eligible for discounts, but older drivers might see less competitive rates.
• Below average claims satisfaction: Liberty Mutual struggles with its customer service, claims satisfaction, and overall trustworthiness ratings.

#9 – American Family: Best for Young Volunteers

Pros

• KnowYourDrive: KnowYourDrive is a telematics program that drivers of all ages are eligible to enroll in. You can save up to 20% with KnowYourDrive.
• Teen Safe Driver program: The Teen Safe Driver program is a UBI program specially created for teens. Not only can you earn a discount by driving safely, but you can also get personalized tips on improving your driving skills.
• Good student discounts: American Family offers several discounts, including ones for young students. These include maintaining a good GPA, volunteering for at least 40 hours per year, and passing a defensive driving class.

Cons

• Limited availability: American Family sells insurance in just 19 states. Learn more about American Family’s availability in our American Family auto insurance review.
• Higher rates: While it doesn’t have outrageously high rates, you’ll likely find lower prices with companies other than American Family.

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Auto Insurance for Teens of Divorced Parents Rates

Teenage auto insurance rates are almost always higher than coverage for older adults, but some companies offer better prices than others.

Check below to see the average minimum insurance cost for teen drivers from our top companies.

Minimum Coverage Monthly Auto Insurance Rates: Teens of Divorced Parents

Minimum insurance is your cheapest option for coverage, but it’s not the best protection. Check the average full coverage rates below to see if you might have room in your budget for more protection.

Full Coverage Monthly Auto Insurance Rates: Teens of Divorced Parents

Teen auto insurance rates can be up to four times as expensive as what older adults pay, but a guardian or parent can help them save up to 50% by adding them to an existing policy.

50-50 Custody Car Insurance for a Child of Divorced Parents

In most cases, the parents of a teenage driver add the child to their auto insurance coverage plans. If you are divorced, your teenager’s auto insurance coverage depends on you and your ex-spouse’s custody arrangement. Typically, if you are the parent with primary custody, you will add the teen to your car insurance plan.

However, if you share joint custody of your child, you and your former spouse have more options, including 50-50 custody car insurance for your teen. In joint custody arrangements, both parents usually add their child to their car insurance policies, especially if the teenage driver uses a car at both residencies. After your child turns 18, custody rules will no longer apply.

Auto Insurance Rates for Teenage Drivers

Teenage drivers have some of the most expensive auto insurance rates among motorists. Their auto insurance rates are higher than average due to the heightened risk associated with their age. To illustrate, the National Highway and Traffic Safety Administration (NHTSA) explains that teenagers have a higher rate of fatal accidents because of their lack of experience operating a motorized vehicle.

While adding a teenage driver to your plan, auto insurance companies will typically apply a surcharge to your insurance rates. The surcharge protects your insurance company from any major losses caused by your child.

If your teenage driver causes an accident or gets a ticket, the surcharge is likely to be much higher. Sometimes, this additional cost can remain on your bill for as long as five years. The high cost of insuring a teenager will likely make 50-50 car insurance policies appealing for parents who share custody.

Keeping Your Teenage Driver Safe

You and your ex-spouse may want to share relevant fatality statistics with your teen and lay down ground rules to ensure that your child prioritizes safety while driving. Consider the following driving rules for your teenager:

• Always wear a seatbelt
• Never exceed the speed limit
• Do not drink and drive
• Follow traffic rules
• Keep a clean driving record
• Strive for good grades

The NHTSA recommends setting and following clear consequences for violating these rules.

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Auto Insurance Requirements for Teenage Drivers

Even if your child does not have their own car yet, your teen must still be covered under insurance if they are driving. There are some general steps that you should take to ensure that your teen has the proper auto insurance coverage.

You should first contact your auto insurance agent to notify them of an additional driver in your household. Your auto insurance company will then request updated information concerning your teen’s driving status.

If your child ends up purchasing a car in their own name, the auto insurance company must receive notification about this change as soon as possible. If not, your child may not have coverage. If your child is in an accident without coverage, you will likely spend an enormous amount of money and may need to hire a lawyer to mitigate the consequences.

Insurance companies know the requirements in your state, which is why they ask for your ZIP code first when getting a quote.

An uninsured accident may also damage your teen’s driving record, leading to higher auto insurance rates for several years. Auto insurance for teens after an accident is almost always expensive.

Teen Auto Insurance Options

If avoidable, teen drivers should not be listed as a policyholder on their own policy. In fact, most auto insurance companies will not agree to provide this type of coverage for a teen driver because of their notorious high risk.

Even if your teen can get auto insurance as a policyholder, they will likely be unable to pay for insurance rates by themselves.

Adding Multiple Vehicles to Your Policy

It is generally cheaper to add a second vehicle to your insurance policy. Some auto insurance companies will offer a discount if you have multiple cars insured under the same insurance plan. If you purchase a new vehicle in your name for your child, the price per vehicle for your auto coverage will likely drop.

In short, listing all vehicles in your household under the same policy is financially wise since separate auto insurance policies cost more without a discount.

Good Student Discounts for Teen Drivers

Most auto insurance companies will offer a good student discount. Upon providing proof that your teenager has an exceptionally high grade point average, most insurance companies will offer a student discount in recognition of their responsible behavior. Teen drivers who earn good grades are generally less likely to engage in reckless behavior while on the road.

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Joint Custody Car Insurance and Teenage Drivers

As soon as your child starts driving, you must make sure that your teenager is covered on at least your or your ex-spouse’s car insurance plan to avoid expensive costs. Generally, auto insurance coverage for teenagers is impacted by custodial arrangements. If you and your ex-spouse share joint custody, it is possible to arrange a 50-50 custody car insurance plan for your child.

Enter your ZIP code into our free quote comparison tool to find the cheapest rates for teens of divorced parents.

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