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Teens are some of the most expensive drivers to insure. But these nine companies offered them some of the most affordable rates this year.
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Young drivers have some of the most expensive auto insurance premiums in the nation, with the average costing nearly $6,300 in 2023. It’s understandable, due to the higher frequency of accidents among young drivers. But that doesn’t make it any easier for teens and their parents to stomach when the bill comes due.
Fortunately, not all insurers charge teen drivers quite this much for coverage. We crunched the numbers and found the nine car insurance companies that offered the best rates to young drivers in 2023.
The nine companies with the best car insurance for teen drivers in 2023
The following nine car insurance companies had the lowest average annual premiums for teen drivers in 2023:
COUNTRY Financial ($2,639)American Family ($3,319)USAA ($3,557) *GEICO ($4,459)Travelers ($4,726)Erie Insurance ($4,796)Nationwide ($5,621)State Farm ($5,692)Auto-Owners Insurance ($5,891)
* USAA auto insurance is only available for active-duty military members, veterans, and their families.
It’s important to recognize that these are just averages. The actual rates these companies offer a teen driver could be quite different, depending on factors like the driver’s location, their accident history, and their vehicle make and model. It’s also reasonable to assume that rates with all companies will be slightly higher in 2024 due to inflation.
How teen drivers can score great rates on car insurance in 2024
All of the above rates were based on a single driver profile. Each company evaluated that profile uniquely, which led to wildly different quotes. That’s why shopping around is crucial before purchasing an auto insurance policy. Comparing policies is the only way to know which one offers the most coverage at the most affordable price.
Some companies offer more teen-specific discounts, which could also affect affordability. Some insurers give discounts to students with good grades, for example, while others may offer savings to teens who complete a driving course. More discounts don’t always translate to a lower rate, but keeping an eye out for teen-related savings opportunities is still a good idea.
If parents are willing, keeping a teen on their auto insurance policy will likely be more affordable than the teen purchasing their own policy. This may enable them to take advantage of discounts, like bundling discounts, they wouldn’t be able to claim on their own.
Finally, opting for a higher deductible is another way to lower premiums. However, this does increase out-of-pocket costs in the event of an accident. Families who go this route may want to save for the deductible in an emergency fund so they’re prepared if an accident occurs.
Even after taking all of the above steps, car insurance for a teen driver will probably still be more expensive than insurance for older drivers. There’s not much families can do about this, other than to be patient and try to drive safely. As the teen ages, their insurance rates will automatically start to come down as long as they don’t have accidents or tickets on their records.
Our best car insurance companies for 2022
Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.
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