UPDATED: APRIL 27, 2023 | 3 MIN READ
Looking for the best car insurance for young drivers? Young motorists are far more likely to end up in a car accident than any other age group. On top of that, young drivers’ accidents are often more severe when compared to other drivers. And because of this, insurance premiums for drivers in the age range are more expensive.
If you have a young driver in your household, finding the most affordable and best car insurance for your young driver is essential. Below we’ll review some of the best car insurance carriers available, how to save money, and much more.
How much does insurance cost for a teen driver in each state
Vehicle insurance rates vary from state to state and city to city. Each state has its requirements for what drivers are legally required to carry.
While most states (like Arkansas) mandate bodily injury and property damage liability coverage, some states, like Florida, may require even more protection, such as PIP coverage.
Out of every state, Georgia has the most affordable car insurance rates for teen drivers. Georgian teen premiums average about $970 yearly or around $81 monthly.
The most expensive state for young drivers is Louisiana. Teens in Louisiana can expect to pay an average of $5,587 per year, or just about $465 each month.
5 best car insurance companies for young drivers
Parents of young drivers find that some insurance carriers are far better than others. Whether due to affordability, claims processing, or overall coverage and customer service, policyholders want to know that they have insurance with the best company. Some of the best companies for young drivers include the following:
State Farm insurance is one of the top 5 insurance companies for teen drivers. It offers fair and affordable prices, particularly appealing to families with young drivers.
A young female motorist can expect to pay an average of $1,381 annually for insurance through State Farm. And a young male driver can expect to pay about $1,537 per year in premiums.
While still costly, these rates are more than $30 than the average premium for a young driver. In addition to fair pricing, State Farm offers even more perks for young drivers. If you’re 25 or younger, you could qualify for the Steer Clear program.
To qualify, you must not have been involved in moving violations or at-fault accidents within the last three years. The Steer Clear program through State Farm allows young drivers to receive up to 35% discounts toward their premium costs, which benefits them.
GEICO is another excellent choice for young drivers looking to get behind the wheel. The company features some of the lowest premium rates among insurance companies, making it possible for drivers to obtain cheap car insurance.
GEICO offers a variety of discounts designed for younger drivers, such as a good student discount, available for students with good grades of at least a B average. Students involved in sororities, fraternities, or honor societies may also qualify for discounted premiums, making GEICO a top driver choice.
Remember, insurance rates are based on many different things. Age, credit, driving history, and zip code are just some of the factors considered when an insurance company determines what you’ll pay in premiums.
Young female drivers will pay around $1,346 per year, while young male drivers can expect to pay about $1,357 per year with GEICO. These prices range from $400 to $500 less than the national average cost among teen motorists.
American Family Insurance is another great option for teen drivers, although it may be slightly more expensive than its competitors. Young women can plan on paying around $1,617 each year in insurance premiums, which comes out to $141 less than the national average. Young men spend an average rate of $1,663 in annual premiums, $197 less than the U.S. average.
In addition to the competitive pricing, American Family Insurance offers a Teen Safe Driver program, which allows young drivers to get significant discounts on their insurance by practicing safe driving.
By simply downloading the mobile app, young drivers have their driving behavior monitored for risky and distracted driving. Parents can also download this app and help monitor their children’s driving.
When teens complete their first 3,000 miles of driving within the first year, they can receive a 10% discount on their premiums. For obvious reasons, this program helps propel American Family insurance into the top five insurance company options for young motorists.
Travelers insurance is a popular carrier among older drivers and younger drivers. Young female motorists pay around $1,456 yearly, over $300 in savings compared to the national average cost.
Young male motorists can plan on spending just about $1,512 each year. This is nearly $350 less than the U.S. average.
Travelers is not only affordable but it’s also considered to have an above-average customer satisfaction rating. They offer various coverage options, and like the other insurance carriers listed above, they provide a wide range of discounts. Travelers insurance also has a high satisfaction rating regarding paying out claims after an accident.
Progressive insurance is another excellent choice for young drivers in the United States. They have several driver discounts for which teens and their families are always on board.
Progressive is also known for its digital tools, which appeal to teens. All your insurance needs can be met online via the mobile app. Progressive may not be the most affordable, but they offer a wide range of coverages and have great discount programs.
One of these programs designed for young drivers is the Snapshot program, which helps monitor your young driver’s driving performance to ensure safety while on the road. Drivers who complete the Snapshot program can save up to $156 on annual premium costs.
Reducing insurance costs for young drivers
It’s no secret that your insurance will inevitably increase when your teen driver gets ready to hit the road. However, there are ways to help reduce the cost of car insurance. Let’s take a look below at some of the available options out there for helping to reduce insurance costs for young drivers.
Keep your teenage driver on your policy
One of the best ways to save money when you have a young driver is to keep them on the parent’s policy. Of course, whether this is the most cost-effective method will depend on your situation.
Always reach out to an agent to compare expenses between adding to your own policy or starting a new one for your young driver. Insurance costs vary depending on many things, such as where you live, clean driving records, credit scores, and more.
Make sure you’re getting every discount available to you
Most insurance carriers offer discounts designed specifically for teens and other young adults. One of the most popular types of car insurance discounts includes a good student discount, which is generally geared towards high school and college students who carry, at a minimum, a B average.
Another popular discount option for young drivers is discounts based on mileage usage. Essentially, if your driver keeps the mileage on the vehicle at a minimum, they could qualify for a discount on their annual premium.
Look into taking a defensive driving course
Teens and young adults are at the highest risk for accidents compared to other drivers. Because of this, driver education classes, such as defensive driving courses, are sought after to help reduce car insurance premiums for teen drivers and teach technique and safety tips.
Most carriers offer an incentive to enroll in defensive driving courses to help teach young drivers safe techniques while on the road. Often, when a teen completes a defensive driving course and obtains a certificate of completion, they’ll be eligible for significant cost savings.
But it’s not just a program designed for young drivers. Each driver in your family can take one of these courses to help reduce the overall insurance cost each year.
Look for an insurance company that offers a teen driving program
Teen drivers are far more at risk of getting involved in an auto accident than their parents. Because of this, parents often dread the day their young drivers get behind the wheel.
New drivers are more prone to be easily distracted, text while driving and make poor judgment calls on the road. For this reason, many insurance providers offer teen driving programs, which can help significantly increase driving skills and even lower rates on auto insurance.
Allstate’s TeenSmart program
Allstate’s TeenSmart program is an excellent resource for young drivers. The program utilizes videos, activities, and driving simulations. The program covers social and behavioral factors contributing to car accidents among teenagers.
American Family Insurance’s Teen Safe Driver program
American Family Insurance offers a teen program called the Teen Safe Driver program. It’s a mobile app that helps keep track of a teenager’s driving behaviors while on the road.
When a teen motorist hits 3,000 miles or one year behind the wheel (whichever comes first), a discount on the annual insurance premium will be applied. The discount will be automatically renewed yearly until the driver’s 21st birthday.
SmartPath from Hanover Insurance
Hanover insurance offers a mobile app called SmartPath. The app monitors driving behavior and scores the teen’s driving habits.
Some patterns that can be tracked through the SmartPath app include speeding, what time they’re driving their vehicles, braking habits, and potential distracted driving. The more the teens improve their graded scores through the app, they can earn discounts on vehicle insurance and rewards through Amazon.
State Farm’s Steer Clear program
State Farm Insurance provides a program for teen drivers called the Steer Clear program. This program is designed to help train students how to drive safely. The program comprises learning modules, videos, and traffic scenarios and is five hours long.
Once the young driver completes five hours of driving, with a minimum of 10 trips in the car, and five hours of online coursework, they’ll be eligible for the completion certificate. The company can then use this certificate to provide a discounted insurance premium.
Who is the cheapest car insurance for young drivers?
While many auto insurance companies offer fair pricing for teen drivers, GEICO is the most affordable for most families. The average premium cost for a teen can range from $1,346 to $1,357 per year with GEICO.
What is the best car insurance for people under 25?
Travelers insurance is the best car insurance for individuals under 25. Not only does Travelers offer fair pricing, but it also offers a wide variety of coverages and discounts.
Is GEICO good for young adults?
GEICO is an excellent carrier for young adults. Not only is it the most affordable for this age range, but it also offers many discount opportunities and plenty of coverage.
Find the best car insurance for young drivers
Do you have a young driver in your home ready to get on the road? If so, you’ll want to ensure you find the most affordable auto insurance rates available.
Get a car insurance quote online, or call us to get started with your teen’s car insurance policy today.