10 Companies With the Cheapest Teen Auto Insurance in 2024

The companies with the cheapest teen auto insurance are USAA, Geico, and State Farm. These companies offer multiple discounts for teens to take advantage of and helpful training programs.

USAA offers the cheapest car insurance for teen drivers, but only military families are eligible. If that doesn’t apply to you, Geico also offers affordable rates and excellent auto insurance discounts for teens.

Our Top 10 Picks: Companies With the Cheapest Teen Auto Insurance

Learn more about the companies with the cheapest teen auto insurance below. Then, enter your ZIP code into our free comparison tool above to see personalized auto insurance quotes.

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#1 – USAA: Best for Overall Lowest Rates

Pros

• Cheapest rates: No matter where you live, USAA likely has the cheapest car insurance for teenagers.
• Good student discounts: One of the best insurance discounts for teenage drivers to take advantage of is savings for being a good student. You can save up to 10% with USAA by maintaining a good GPA.
• Superb customer service: USAA not only offers affordable car insurance for teenage drivers, but it’s also highly rated for its customer service.

Cons

• Eligibility Requirements: Not everyone qualifies for USAA membership – only active or retired military and their direct families are eligible. Learn more about eligibility requirements in our USAA auto insurance review.
• Limited local offices: USAA doesn’t have as many local offices as some of its larger competitors, which makes it more difficult to get face-to-face help.

#2 – Geico: Best for Affordable Rates for Non-Military Families

Pros

• Teen driver discounts: Geico offers several ways to get the best car insurance rates for teenage drivers, including excellent discounts. Read our Geico auto insurance review for more discount information.
• DriveEasy program: Save up to 25% on your policy by enrolling in Geico’s usage-based insurance program, DriveEasy. DriveEasy tracks your driving habits and rewards safe habits with a discount.
• Convenient digital tools: Geico makes managing your policy, making payments, and starting claims online easy with its digital tools.

Cons

• Average claims satisfaction: Many customers report satisfaction with their Geico policy, but the company does receive a number of complaints about its claims handling.
• Discount availability varies: Geico offers a variety of discounts, but availability varies by state.

#3 – State Farm: Best for Good Student Discounts

Pros

• Student discounts: State Farm offers a variety of student savings, including the good student, student away at school, defensive driving course, and driver education discounts.
• Drive Safe and Save program: You can save up to 30% by enrolling in State Farm’s Drive Safe and Save program and consistently practicing safe habits.
• Teen Safe Driver program: Another simple way to find cheap car insurance for 17-year-olds and other teens is to complete the Teen Safe Driver program.

Cons

• Limited online tools: State Farm focuses more on providing personalized service to its policyholders, so it lacks some of the online tools you can find with other providers. Learn more in our State Farm auto insurance review.
• Lengthy claims process: Despite having fairly solid customer reviews, many complain that the State Farm claims process takes an excessive amount of time to resolve.

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#4 – AAA: Best Roadside Assistance Plans

Pros

• Membership perks: When you sign up for AAA, you get access to a variety of member perks, like discounts on shopping and at restaurants. To learn more about member perks, visit our AAA auto insurance review.
• Roadside assistance: If you’re looking for the best car insurance company for teenage drivers with roadside assistance, it might be AAA. AAA is famous for having some of the best roadside assistance plans on the insurance market.
• Solid customer service: Not only does AAA offer cheap car insurance for teenage drivers, but it also has excellent customer service ratings.

Cons

• Membership fees: Drivers need to pay to be an AAA member. While AAA offers cheap car insurance for teens, annual membership fees will increase your costs.
• Coverage varies by area: AAA insurance is provided by regional clubs, which offer slightly different products and discounts. Make sure to check with a representative to see what’s available in your area.

#5 – Nationwide: Best for Accident Forgiveness

Pros

• Accident forgiveness: Nationwide offers some of the best car insurance for teenage drivers that you can add accident forgiveness to. Read our Nationwide auto insurance review to learn more about the Accident Forgiveness program.
• Diverse coverage options: Customizing your policy is easy with Nationwide as it offers plenty of add-on options. While it will increase your rates, adding more coverage is a great way to find the best car insurance for teens.
• SmartRide program: Nationwide offers a whopping 40% max discount if you sign up for the SmartRide UBI program and regularly practice safe habits.

Cons

• Average rates: Nationwide doesn’t offer the cheapest insurance for teens, but its rates are also not the highest.
• Limited availability: You’ll need to check if Nationwide is available in your state, as the company only sells coverage in 47 states.

#6 – American Family: Best for Teen Driving Support

Pros

• Teen Safe Driver program: American Family offers exclusive savings for young people who complete a Teen Safe Driver program. Completing this program is one of the easiest ways to find the best car insurance for 16-year-olds.
• Teen discounts: There are plenty of young driver discounts to take advantage of with American Family, including special savings for young volunteers. Explore other discount opportunities in our American Family auto insurance review.
• KnowYourDrive program: Save up to 30% on your insurance by signing up for American Family’s UBI program, KnowYourDrive.

Cons

• Not available everywhere: American Family is currently available in just 19 states.
• Slow claims process: Many customers complain that American Family takes a longer time to resolve claims than expected.

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#7 – Allstate: Best for Full Coverage Policies

Pros

• Drivewise and Milewise: Allstate offers two telematics programs to help keep teenage car insurance quotes low. Read our Allstate Drivewise review for the discount option or the Milewise review if you want pay-as-you-go coverage.
• Excellent coverage options: Allstate offers some of the best teen car insurance by providing ample coverage options.
• Strong customer service ratings: An essential part of the best car insurance for teenagers is customer service. While it has some complaints, Allstate tends to receive excellent customer service reviews.

Cons

• Higher rates: Allstate excels in many areas, but it’s not usually the best place for cheap auto insurance for teens. See how much you might pay in our Allstate auto insurance review.
• Low claims satisfaction: It may have solid customer service reviews, but many policyholders report feeling unsatisfied with Allstate’s claims resolution.

#8 – Farmers: Best Discount Selection

Pros

• Personalized service: Farmers focuses more on providing excellent service through local representatives. If you want a personalized touch to your insurance experience, Farmers might be the right choice.
• Long list of discounts: Farmers offers a whopping 23 discounts to help drivers save. To learn more about your discount options, read our Farmers auto insurance review.
• Solid add-on options: There are plenty of options to customize your Farmers policy, including rental car reimbursement and customized equipment coverage.

Cons

• Limited availability: While Farmers used to sell insurance in every state, it no longer offers new policies in Florida. (Read More: Cheapest Teen Driver Auto Insurance in Florida)
• Slow roadside assistance: You can add roadside assistance to your Farmers policy, but many customers complain that the service is slow.

#9 – Progressive: Best for Teens on a Budget

Pros

• Name Your Price tool: Stay on budget by using the Name Your Price tool. Using this tool generates a list of Progressive coverage options to match your budget.
• Snapshot program: Drivers who sign up for Progressive’s Snapshot program save an average of $321 per year by practicing safe habits.
• Teen driver discounts: Progressive offers several discounts for teens to help keep their rates down. See all of Progressive’s discounts in our Progressive auto insurance review.

Cons

• Unexpected rate increases: Progressive car insurance for teens may start cheap, but many customers complain about inexplicable rate increases.
• Low customer loyalty: Despite being one of the largest insurance companies in the country, Progressive struggles with its customer loyalty ratings.

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#10 – Travelers: Best for Unique Coverage Options

Pros

• Unique coverage options: Travelers offers multiple add-ons you can include in your policy, like rideshare insurance and gap coverage.
• IntelliDrive: Safe drivers can save up to 30% on their insurance by enrolling in Travelers’ UBI program, IntelliDrive. Learn more about IntellliDrive in our review of Travelers auto insurance.
• Discount options: With 17 discount options, Travelers makes it easy to save on your insurance.

Cons

• Rates tend to be high: No matter where you live or what type of driver you are, you’ll likely find lower rates elsewhere.
• Limited online resources: Travelers lacks the online policy management tools that many of its larger competitors offer.

The Cost of Auto Insurance for Teens

If you have a new driver at home, you’re probably wondering how much insurance is for a 16-year-old. Or, maybe you’re 18, leaving home for the first time, and need to find reasonable rates for car insurance for 18-year-olds.

In either case, people generally encounter higher insurance rates until they enter their 20s. Age is one of the most important factors for car insurance — drivers under 25 will pay more for insurance the younger they are. Average car insurance rates by age vary. Check the table below to see how much minimum insurance costs for teens.

Minimum Coverage Auto Insurance Monthly Rates for Teen Drivers

Minimum insurance is your cheapest option for coverage, but it doesn’t offer your car very much protection. If you have some room in your budget, you should consider full coverage. Check below to see how much more full coverage costs.

Full Coverage Auto Insurance Monthly Rates for Teen Drivers

You might notice that insurance for a 16-year-old is substantially higher than for even slightly older drivers. Although car insurance for 18-year-olds is cheaper, it’s incredibly high compared to older adults.

However, age isn’t the only factor that determines your rates. Insurance companies also look at gender, location, driving history, and the make and model of your car. So, when you’re trying to figure out how much car insurance is for an 18-year-old per month, remember that your age isn’t the only thing that defines you.

The Cost of Auto Insurance for a 16-Year-Old

The highest rates for car insurance are for 16-year-olds. These new drivers are not only more likely to get into an accident, but car insurance companies can’t look at their driving records to get an idea of how safe they are because they have no history. You can compare rates to find cheap auto insurance for 16-year-olds.

Because of how much car insurance is for a 16-year-old per month, it’s best to add young drivers to a parent or guardian’s plan whenever possible.

The Cost of Auto Insurance for a 17-Year-Old

Many 17-year-olds have about a year of driving experience, which helps lower car insurance rates. However, finding cheap car insurance for 17-year-olds can still be a challenge. Although insurance for a 17-year-old is high, your rates will drop with age as long as you keep your driving record clean.

The Cost of Auto Insurance for an 18-Year-Old

Most states consider teens legal adults when they turn 18, which means they can buy insurance without a parent or guardian’s signature. As you can see, an 18-year-old pays less than younger teens, but rates are still high. To get a better idea of how much insurance is for an 18-year-old, make sure to compare rates for individual plans.

The Cost of Auto Insurance for a 19-Year-Old

19-year-olds pay the least among teen drivers. However, young drivers won’t see significantly lower rates until around 25. If you’re looking for cheap car insurance for new drivers under 21, make sure to check for discounts. Since many 19-year-olds are either considering college or are already attending, many car insurance companies offer school discounts.

Why Car Insurance Quotes for Teens Are High

Teenage car insurance rates are high for one simple reason — risk. Car insurance companies want to insure the least risky people possible, and teen drivers are more likely to be involved in incidents than nearly every other demographic.

To get an idea of why teen car insurance is so high, consider the following statistics:

• According to the CDC, unintentional injuries, including car accidents, are the leading cause of death for young adults aged 15 to 20.
• According to the CDC, male teen drivers are twice as likely to die in a car accident than females.
• Having teen passengers increases the likelihood of a teen driver causing an accident.
• According to the IIHS, 16-year-old drivers are three times more likely to get into an accident than 19-year-olds due to the difference in their driving experience.

Driving a car presents a risk to teens that insurance companies don’t ignore. Since you are statistically more likely to get into an accident when you’re younger, you’ll be charged more for your insurance.

The good news is that your rates won’t stay high forever. Your rates will drop as you age as long as you keep your driving record clear.

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Teens May Need Their Own Auto Insurance

Teens may wonder if they should get their own insurance, while a parent or guardian may ask if their child is covered by their auto insurance. While it’s more affordable for a teen to join a parent or guardian’s policy, there are times when buying their own insurance is necessary.

However, a minor usually can’t buy car insurance without a parent or guardian’s signature. Since minors can’t legally enter contracts, insurance companies won’t sell a policy to anyone under age. The only exception to this is teens who have been emancipated by the court and can make legal decisions for themselves.

In general, it’s cheaper for teens to join a parent or guardian’s policy. There are only a few occasions when teens should consider their own plans:

• They are the only car owners in the household.
• Other adults in the household have high-risk auto insurance, and joining their policy would cost more.
• The teen is eager to take a step toward financial independence.

Unless any of these apply to you, joining a parent or guardian’s policy is the best way to find the cheapest car insurance for teens.

Adding a Teen to Your Auto Insurance

Not only can a parent or guardian add a teen to their policy, but it’s also the best way to find affordable insurance for teenage drivers. Adding a young person to an existing policy can help teen drivers save up to 45% on auto insurance.

You should add any teen with a new license to your policy if they’ll be driving a family car. Adding a teen driver to your insurance won’t raise your rates by too much and will ensure your vehicle is covered no matter who is driving. Teen driver insurance will cost more if they own a car, but it’ll still be cheaper than buying an individual policy.

The good news is that adding a teen driver to your policy is usually simple. Most companies allow you to quickly add new drivers and vehicles to your policy online.

How to Add a Teen Driver to Your Policy

Adding a teen driver to your car insurance policy is a simple process. If you already have a policy, adding a teen is as easy as calling an insurance representative. Once a new driver is added to your policy, your representative will check for new discounts that might apply.

The teen’s car will be added to the policy, and you’ll be informed of how much your new rate will be. If you don’t have a policy — or you’re shopping around for a better price — you’ll need some basic information about the teen driver, such as their driver’s license number.

Whether you add a teen to an existing policy or start a new one, you should continue helping them learn how to drive safely. Keeping a clean driving record is the only way teen auto insurance quotes decrease.

How Teens Can Save on Their Auto Insurance

Although teen car insurance quotes are always higher, there are plenty of ways to save on your monthly rates. If you’re looking for cheap car insurance for teens, try the following:

• Take a driving class. Most major insurance companies offer a discount for teens who take approved driving courses, such as a defensive driving discount. As a bonus, teens can learn valuable driving skills.
• Maintain your grades. There are auto insurance discounts for good students, so one of the best ways to save money on insurance for teens is to maintain a GPA of at least 3.0. 
• Assign the cheapest car in your household. Many insurance companies require you to assign a primary driver. Assigning your teen to the least expensive vehicle in your household can save you money.
• Keep your record clean. How do auto insurance companies check driving records? A clean driving record will save you money. Traffic incidents like speeding tickets or car accidents on your driving record will dramatically increase your rates.
• Increase your deductible. You can lower your monthly payment by increasing your deductible if you can afford to pay more before your insurance kicks in.
• Try usage-based insurance. Usage-based auto insurance plans monitor your driving — as long as you practice safe habits, you’ll earn lower rates.

These are the easiest ways to keep your insurance down when teens already have a car they need insurance for. If the teen doesn’t have a vehicle yet, looking at cheap, good cars for teens can also help save you money.

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Good, Cheap Cars for Teens

When it’s time to find a teen’s first car, there are several things to look for. Most importantly, it’s a safe vehicle, but you should also look for reliability and affordability. Of course, teens will also appreciate a little bit of style. While there are plenty of choices for cool cars for teens, here are some of the cheapest cars to insure for teenagers:

• Ford Taurus: The Taurus was discontinued in 2019 but remains a popular choice for teen drivers. To find the perfect mix of safety and affordability, try to find a 2013 or 2014 model.
• Honda Accord: When it comes to cool, cheap cars for teens, the Honda Accord is a classic. With great safety ratings and an affordable price tag, the Accord will probably be a popular choice for years to come.
• Honda Civic: Another popular Honda for teens, the Civic also has stellar safety ratings. As a bonus, the Civic has excellent gas mileage.
• Mazda 3: When it comes to cars for 16-year-olds, the Mazda 3 has solid safety ratings, gas mileage, and affordability. Teens also appreciate Mazda’s sporty drive.
• Subaru Outback: Subaru is well known for its safety and reliability. All of Subaru’s hatchbacks are solid choices, but the Outback is probably the most popular.
• Toyota Camry: When it comes to nice, cheap cars for teens, one of the best choices is the Toyota Camry. The Camry has fantastic safety ratings and a reputation for reliability.
• Subaru Impreza: When you’re looking for good cars for 16-year-olds, the Subaru Impreza matches safety with style.
• Ford F-150: If you’re looking for good trucks for 16-year-olds, the Ford F-150 is an excellent option because it has one of the highest safety ratings.

Finding a cheap car for teens doesn’t have to be a challenge — there are plenty of options for buying used cars that won’t break the bank. Comparing quotes from multiple companies can help you find the cheapest car to insure for teenage drivers.

The Role of the Graduated Driver’s License

A graduated driver’s license is a three-part program designed for young teen drivers that was developed by state legislators to help improve driving skills to avoid motor vehicle accidents. The majority of major collisions in the United States occur with drivers between 16 and 20.

A new driver between 16 and 17 cannot receive a standard driver’s license without completing specific steps. These steps include an instructional permit and an intermediate driver’s license. Upon completing each step successfully, a teen may apply for a standard driver’s license.

To apply for an instructional permit, the applicant must pass the vision and written test.

They can then pay the fee, after providing the required documentation. The instructional permit is similar to the learner’s permit. Drivers must be chaperoned by an adult over 21 with a valid state-approved driver’s license. They must maintain the validity of the instructional permit for at least 12 months before moving on to the second step.

The next step, called the intermediate license, is the level between an instructional permit and a standard driver’s license — the newest level of added protection for teen drivers. Previously, a teen driver only needed to possess a learner’s permit until they reached the required age.

They would then have the ability to apply for a standard driver’s license. Today, they must complete the intermediate license phase. To obtain an intermediate license, the applicant must complete a series of requirements. 

hey must also complete and pass a driver’s education course as established by the Motor Vehicle Commission and the State Board of Education. As you can see, the importance of keeping our youth safe while on the road is vital. Most auto insurance companies will require you to provide this information upon requesting auto insurance.

Lowering Your Insurance Bill

Now that your child is driving, it is time to do some research to find the best ways to lower your insurance bill. Some of the important steps to insure inexperienced drivers are as follows:

• Comparison-shopping: Explore the insurance market and the various companies that can offer you and your teenager coverage. Get quotes from your own company, online, or through an insurance agent. You should also talk to your family and friends, and ask them for recommendations.
• Discounts: Car insurance companies offer discounts for teenagers. If your teen is a good student, many companies will offer discounts of up to 25%.
• Driver’s education: Registering your student in driver’s education and defensive driving courses will also save you money.
• Buying a new car: If you want to buy your teen a new car, make sure you get the right car. Buying an SUV or sports convertible will be frowned upon in insurance circles.

Combine all of these steps to get cheap auto insurance for teens.

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Choosing the Right Vehicle

Most teens will not have brand-new cars. In fact, many experts recommend cars that are between five and seven years old for first-time drivers. Cars that are dated between five and seven years old are still equipped with a number of safety features, like automatic airbags and passenger restraints. They also have updated engine systems that are easier to maintain.

The car insurance industry knows the types of vehicles that have driven records of accomplishment, like the Honda Accord and the Toyota Camry. They tend to base their comparisons around these model types for younger drivers.

Insurance companies also have a good idea of how much these vehicles cost to repair. This is something you should keep in mind as the inevitable can occur. If your teen is involved in a collision, the car will require a stay at the body shop. It is always best to find a durable vehicle, with manufacturer’s parts that are easy to locate.

Safety Is Vital for Teen Drivers

Safety on the road is the number one priority of every parent today. It is equally as important to the auto insurance provider you select. You must teach your teen to be smart if they ever require maintenance on their vehicles. Replacement parts are part of owning a car. It is essential that you follow the advice of your car insurance company and only purchase original equipment provided by the manufacturer or OEM parts.

Many auto shops will try to convince you that non-OEM parts are just as safe, but less expensive; the reality is they may cause more damage.

Copycat car parts seldom meet federal standards for safety provided by the U.S. Department of Transportation. They often have a poor fit or may rust fast and cause other major issues. It is never wise to teach your teens that cheaper is better, especially when it comes to their safety.

Shop Around for the Most Affordable Auto Insurance

The only way you’re going to know if you’re getting the cheapest car insurance for your teen driver is to get several quotes from different companies. Try a variety of companies, from large nationwide corporations to local providers, and see what your best deal is.

Make sure you are getting fair comparisons. To do this, you need to make sure that you are being quoted for the same level of coverage. While it’s a good idea to get quotes for different amounts, like one for $500 and a $1,000 deductible, be sure to do this from each company.

For example, you may think that one company has the best deal until you see that instead of quoting you the recommended 100/300/50 amount of liability, they are quoting the state minimum amounts, which are usually far lower. Since your teen is more likely to cause an accident, this is not the time to be lowering this coverage.

Start comparing quotes today by entering your ZIP code into our free online comparison tool below to see which company offers the best teen insurance for you.

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