It’s important to do your research to get the lowest rates.
Adding a young driver to your car insurance policy can skyrocket the rate as much as $3,500 per year. To save money, you should take your time to find the best car insurance for teens. Otherwise, you may end up paying more than necessary.
In this article, we will look at the process of getting coverage for your child and evaluate the top options for teen drivers. We’ve already done the research and found some insurance providers that offer cheap insurance for young drivers.
In this article:
- Adding Teens To Your Auto Insurance Policy
- Get The Cheapest Car Insurance For Teens
- Best Car Insurance For Teens
- USAA: Coverage For Military Families
- Geico: Ideal For Students
- Progressive: Simple Comparison Shopping
- AAA: Discounts With Membership
Adding Teens To Your Auto Insurance Policy
Once your teen receives a driver’s license, you have to begin preparing for the additional expense. As a two-car family, you are looking at a 58 percent average increase in rates. As a three-car family, those numbers go even higher.
The reason for this increase is the additional risk that teenager drivers bring. Inexperienced teenagers are more likely to get into accidents, and according to the Centers for Disease Control and Prevention, the leading cause of death for teens is motor vehicle accidents. Every day, six teenagers between the ages of sixteen and nineteen will die due to a motor vehicle crash.
With higher rates, you need to take your time when choosing car insurance for teens. Once you find the provider you want to work with, though, adding your teenager isn’t difficult.
- Ask the company when it requires coverage. Some expect you to add the teen while driving with a permit, while others wait until your child has a license.
- Get quotes on your existing policy, but also consider changing the plan to one with higher liability protection.
- Remember to ask for discounts.
- Shop various providers every time you are up for renewal.
It’s often more cost-effective to add a teen driver to your policy instead of having them receive their own. Of course, this does increase your yearly premiums but saves your child money over the cost of a single policy. Most companies provide a family discount or lower rate when insuring multiple vehicles.
Another reason to add your teen to your policy is to receive coverage no matter what car they drive. If your teenager is involved in an at-fault accident, it won’t matter which one of the covered vehicles was damaged.
What Affects The Price Of Car Insurance?
As you evaluate the best car insurance for young adults, you will find that most companies use the same criteria when deciding the premiums. These factors determine most of the cost:
- Age: Teen drivers have less experience behind the wheel and therefore pose a higher risk.
- Credit score: Because creditworthiness is an excellent gauge of responsibility, the premiums rise the lower the credit score is. Unfortunately, most teens don’t have a credit history, which continues to put them at a disadvantage.
- Driving record: Your young driver doesn’t have a record to speak of. This lack of history makes it challenging for the insurance company to determine how high of a risk each person poses. To protect itself, the provider charges more than average to compensate.
- Vehicle: Driving a car with a good safety rating and advanced safety technology helps to lower the price. Car insurance companies also evaluate the type of car to determine how much it would cost to repair or replace.
- Location: Where you live plays a huge role in your premium. If you live in a city that puts you at risk for car theft, you will see higher rates than those in a rural area. Required coverage also varies by state.
- Demographics: Women tend to pay less than men for car insurance during the teen years. In addition, you can expect to pay less if you have a college degree and are married, which isn’t usually the case for teenagers.
- Level of coverage: Finally, the insurance company factors in the level of protection you desire. If you choose the highest plan, you will pay more. In addition, your deductible will alter the price of your premium.
Get The Cheapest Car Insurance For Teens
Thankfully, there are steps you can take to ensure you receive cheap car insurance for young drivers. As you evaluate the top providers, you will find that many of them provide car insurance discounts to help you keep more money in your pocket. These driver discounts vary based on the company, but you want to look for options, such as:
|Good Student Discount||If your teen driver receives good grades, your provider might offer a discount. As one example, Geico provides a discount for anyone with a B average or higher.|
|Low Mileage Discount||While this discount is available to anyone, it is especially useful for teens that simply drive back and forth to school. Make sure your provider knows how many miles your child will be driving.|
|Student Away Discount||If your teen won’t be driving for a portion of the year while away at school, make sure you inform the provider to receive a lower rate. Some full-time students can earn a discount for the months when there isn’t any active driving.|
|Safe Driving Discount||Some providers now have apps and unique devices that allow for the monitoring of your teen’s driving habits. Not only will this technology help your child become more aware of what’s happening on the road, but it also allows you to receive a discount for their good behavior.|
Best Car Insurance For Teens
To protect your teen drivers, you should evaluate each insurance company by several criteria. Young adults have additional needs, so you want to look at more than just cost. We recommend looking at the insurance rating, level of customer service, available discounts, and perks such as accident forgiveness. In our top 12 industry review of the best car insurance providers, we found a few providers that have cheap car insurance for teens.
|Insurance Company||Overall Rating
|USAA||5.0||Military and family members only||24/7 customer service designed to work with the unique needs of military personnel|
|Geico||4.5||None||Family pricing plans and additional savings perks|
|Progressive||4.5||None||Multi-car discount and comparison tool shopping|
|AAA||4.0||Requires AAA roadside assistance membership||Good student discount|
|State Farm||4.5||None||Discounts for location and good grades|
||4.0||None||Multiple discounts for teen drivers|
USAA: Coverage For Military Families
Our top choice when looking at the best car insurance for young adults is USAA. If you are currently enlisted or part of a military family, it makes sense to use this provider for your insurance needs. In the 2019 J.D. Power Auto Insurance Study, USAA was awarded a perfect 5.0 rating for overall satisfaction. Additionally, the company scored 5.0 ratings across the board for policy offerings, price, billing process, interaction, and claims. No other company evaluated can boast of the same outcome.
Among various discounts, USAA provides lower rates with the following incentives.
- Driver Training: Any driver under the age of 21 can take a basic driver training course and receive a discount.
- Safe Driving: Premiums continue to decrease once the policyholder maintains a good driving record over five years.
- Good Student: If your teen gets good grades, you can expect a further decrease in the premium.
- Multi-Vehicle: Lowering your premium is simple when you own multiple vehicles.
Aside from those benefits, USAA provides roadside assistance and accident forgiveness plans as well. With complete protection, it’s easy to feel safe when choosing this company to cover your teen. In fact, the coverage doesn’t end when your child moves away from home and is ready for their own policy. USAA has a 10 percent Family Legacy discount when the time comes for your child to get an individual policy.
Best for Military Families
Our best overall pick: Offers great customer service to military members and their families.
Geico: Ideal For Students
Geico is known for more than just an adorable gecko spokesperson. It is one of the top insurance providers in the country. Not only does Geico maintain an A+ Better Business Bureau (BBB) rating, but it also fared well on that same J.D. Power study.
As some of the best auto insurance for young adults, we like Geico for its long list of discounts and incentives. Here are just a few of the discounts you and your teen could receive:
|Good Student Discount||Lower premiums if the teen maintains a B average or higher|
|Good Driver Discount||Additional savings for anyone that has been accident-free for five years|
|Membership Discount||Lower premiums for select fraternity and sorority memberships|
||Discounts depending on the university or college you graduate from|
|Air Bag Discount
||Up to 40 percent off for having a vehicle with full-front seat airbags|
|Seat Belt Use Discount
||Up to 15 percent off if you and your passengers always wear seat belts|
|Defensive Driving Discount
||Discounts available if you or your teen takes a defensive driving course|
Many young drivers also appreciate the high-tech app that’s available to users. Some perks you can expect with the Geico app include:
- Vehicle care features that monitor the car’s maintenance
- App locator to find gas, nearby attractions, and parking
- Voice-activated resource for use with Amazon’s Alexa
Ideal for Students
Our 2nd favorite and best for those ineligible for USAA: Offers competitive pricing and great coverage.
Progressive: Simple Comparison Shopping
Progressive didn’t rank as highly in the claims department as some of the other options, but the perks this company offers make it a top contender of car insurance for teens. Progressive is one of the largest insurance providers in the nation and has been in business since 1937. It currently sits in 99th place on the Fortune 500 list.
Not only does this provider have a strong reputation, but it offers several discounts to help you save even more. Some advantages to using Progressive when choosing car insurance for teen drivers include:
- Multi-Car Discount: If your teenager has their own vehicle, you can save by including the car on your policy.
- Good Student Discount: As long as your child maintains a B average or better, you will receive extra savings.
- Usage-Based Coverage: Only pay for protection when it is needed. If your child goes away to school without the vehicle, you won’t have to break the bank during that time.
Probably the best part about getting Progressive insurance is the provider’s price comparison tool. Instead of shopping with multiple companies, you can simply use the price comparison tool offered by Progressive to see the rates of competing companies. It’s not unheard of to find a lower rate with another company as a result of this tool. That level of transparency is difficult to find in the insurance industry.
Simple Comparison Shopping
Our 3rd best overall pick: Offers a number of ways to get a discount, including the Snapshot tool or bundle options.
AAA: Discounts With Membership
AAA is known for more than just roadside assistance and car rental discounts. With your membership, you can receive low insurance premiums – even when your teen is included in the policy. AAA has been widely regarded as a leader in the industry and maintains an A+ BBB rating. With your coverage, you can receive some perks including:
- Accident Forgiveness: Eligibility is determined by driving history.
- Extended Car Rental Expense Coverage: It’s simple to extend the rental car coverage for the entire time that your vehicle is receiving repairs.
- 12-Month Policies: While most companies only cover you for 6 months at a time, AAA has a 12-month policy option.
- Pet Coverage: Your teens aren’t the only important occupants in the vehicle. AAA also covers your pets.
- New Vehicle Replacement: AAA replaces your vehicle after a total loss in the first year of coverage with this plan.
- GAP Coverage: If the vehicle is considered a total loss and you owe more than it’s worth, AAA will pay off the remaining balance on the loan with this optional coverage.
If you are looking for a wide variety of plan options, from car insurance to roadside assistance and more, you might consider getting a membership to AAA and checking out the policies.
Most Trusted Brand
Our 5th favorite provider: Offers a variety of discounts and is made up of regional auto groups.
Protect Your Vehicles And Your Teens
When it comes to saving money on a teen auto insurance policy, it might be tempting to lower the level coverage. While this is a way to save money upfront, consider the implications if your teenager gets into an accident.
It’s far better to go with mid- to high-level coverage and shop for the best rates for auto insurance for teens. You can do this by receiving multiple quotes from several different insurance providers. Once you have coverage in place, don’t forget to shop before every renewal to see if any new discounts have become available.
Once you find the right car insurance for teens, you can ensure that both your loved ones and your automobiles are protected.