Cheap Car Insurance For Teenage New Drivers: Detailed Guide

Key Insights

• Teen car insurance is one of the most expensive insurance policies in every state of our country.
• Adding a teen driver can increase your policy premium to a huge amount.
• There are a lot of different factors that affect the cost of car insurance for teen drivers and this is why the amount of car insurance can vary from person to person.
• There are some ways and discounts you can try to get an affordable teen car insurance policy.
• Teen drivers are not required to buy full coverage but are recommended for better coverage limits.

So your teenage son or daughter has just turned sixteen and is now asking for the car to their school. And you are afraid of the high insurance charges you’ll get. Well don’t worry, we have got your back! Our team of analysts and writers have worked together to create this well-researched blog to help you get cheap car insurance for new drivers in your city.

This blog is your detailed guide, make sure to read till the end and bookmark it to refer to later also. Our objective with this blog is to provide you with all the details you need to know about buying car insurance for a teenage driver. You will get the details of all the best companies as well as the ways you can try to save more money.

RateForce knows the blog is a bit longer but it is worth it. After reading this blog you don’t have to refer to any other resource to know more. We have tried to cover all your doubts and confusion about teenage car insurance rates. Happy reading!

Why teen drivers get higher insurance rates than any other driver?

The first question that pops up in our head is; why teenage drivers get higher insurance rates? As per the insurance companies around the country; teen drivers are much risky as compared to other experienced drivers. Do you know every day almost 6 teen drivers die in fatal road accidents?

With the increasing number of road accidents due to teen drivers, insurance companies have to pay huge claims every year. And this is the reason they charge higher from the teen drivers.

Read more >> How Much Does Your Car Insurance Go Up After an Accident?

Cheapest car insurance company for parents with a teen driver

Finding cheap car insurance for teens is a top concern for parents initiating their hunt for car insurance. Parents usually start their search by looking at affordable options online, asking relatives or friends for recommendations, and carefully comparing quotes & policies to find the most affordable coverage.

But today, there are so many websites that are providing the rates from different car insurance companies in one place. So instead of relying on the information from others’ check different companies and compare the rates yourself.

According to our analysis; GEICO has the cheapest car insurance rates for teen drivers. The national average for car insurance rates for teen drivers is $3180, while it is $2493 with GEICO. We also have USAA as the cheapest car insurance company, but it is only for current and former military members.

Let’s have a look at the top car insurance companies for teen drivers around the country:

GEICO

• GEICO is leading the race for the most affordable car insurance in the country. Even though the car insurance rate of the company is higher than the national average, it is still a lot cheaper than the other carriers.
• The company provides an amazing discount for students with good grades as well as memberships to some organizations. 
• Moreover, the company provides driver education and safety programs. The drivers who have completed driver training programs get discounted rates.
• The average car insurance rate for full coverage by GEICO is $4211 for a 16 years old driver. While the average car insurance for a 19-year old for full coverage rate is $2487.

Nationwide

• Nationwide is popular not for its cheaper car insurance for first-time drivers but the features of the policies. The company has some specific features to support teen and young drivers.
• Students who have an average of grade B or higher can get a good student discount. Plus the company provides accident forgiveness for the first at-fault drivers. Hence if a young driver gets into an at-fault accident for the first time then the company will not increase the insurance rates.
• The best part of Nationwide’s policy features is the SmartRide insurance measure for usage-based insurance. This for the drivers who have safe driving habits, they can save good money.
• The average car insurance rate for full coverage by Nationwide is $5421 for a 16 years old driver. While for a 19 years old driver the average full coverage rate is $3462.

USAA

• USAA provides the cheapest car insurance rates for all the states around the country. But the only problem is the services of the company are limited to current serving or retired military drivers or their family members.
• Just like Nationwide; USAA also has a SafePilot program that provides custom rates for drivers with safe habits. The company uses telematics to record the driving habits and then create custom pricing for the driver’s policy. Plus the company provides a discount for teen drivers who have completed the driver training program.
• The average car insurance rate for full coverage by USAA is $2356 for a 16 years old driver. On the other hand, for a 19 years old driver the average full coverage rate is $1839.

Progressive

• The Progressive auto insurance company is very much popular among teen drivers because of its smartphone app. The app provides 24/7 roadside assistance, helps in instant claim filing, and even changing the policy.
• The company has special teen discounts for drivers between 16 years and 19 years old. Moreover, they provide an additional good student discount for an average grade point of B or higher. By combining all these types of discounts the teen drivers can get lower insurance rates as compared to the other companies.
• The average car insurance for 16-year-old drivers for full coverage by Nationwide is $5725. While for a 19 years old driver the average full coverage rate is $3479.

Average cost of car insurance for teens by coverage level

Wondering what coverage level will be more suitable for the teen driver?
Confused if you should go for full coverage insurance of the state’s minimum insurance coverage for your teenager?

We can understand your situation, every company has different advice for the parents and this results in more confusion. The best way to understand this is by taking examples. 

When you need full coverage insurance for teen drivers

Let’s say you have a Mercedes Benz and you want to add your teen to your policy. Then the best coverage for you will be full coverage (collision and comprehensive coverage). The major reason behind this is; luxury or sports cars have expensive parts and the repair costs for these vehicles can be a bit expensive.

Moreover; the actual cost value of these vehicles is also high. As a result; if the car gets totaled in an accident then replacing the car can dig a hole in your pocket. With full coverage insurance, you don’t have to worry about the repair or replacement of the car. The cost of full coverage can be higher but it will be at least worth it.

When you should go for a minimum requirement insurance

Let’s say you have a basic second owner hatchback; Honda Civic and you want to add your teen driver to your policy. You can always go for a minimum required coverage or liability coverage only.

The cost of repair of the vehicle is not going to be too much as the parts are not much expensive. Plus you can always replace the car on your own, the actual cost value of the car is not going to be too much.

In this case, buying full coverage insurance will not be a smart decision. This is because the cost of the premium is going to be more than the value of the car.

Cost of adding a teen to your car insurance policy

Confused if you should add your teenager to your policy or you should buy a separate policy for him or her?

We have a simple solution for you, you can simply ask your company for the three different types of quotations.

Ask for car insurance quotes for parents without teenagers, with teenagers, and then a separate policy for your teenager. You will get a clear idea of how much you will have to pay in each case.

As per the analysis by RateForce, adding a teen driver to your policy is half as expensive as buying a separate policy for the same teen driver. Hence adding your teen driver to your policy is a cheaper alternative for you.

The average car insurance rate for a teen driver for a separate policy is $3865. On the other hand, the average cost of adding a teen driver to your existing policy will be $1690. This is almost half of the individual policy for a teen driver.

On average, the annual cost of car insurance for a parent without a teenager is $2980. While the annual average car insurance cost with a teen driver will be $5740. And if the parent wants to buy a separate policy then the annual average cost will be $7530. This is the average difference between the different car insurance rates for different profiles.

Difference between teen car insurance and young driver car insurance

This is also a very important section to cover for all the parents and the teen and young drivers. Most parents get confused between teen car insurance and young driver car insurance. They believe that both are the same. It is important to understand that teen car insurance is different from car insurance for young drivers.

Teen car insurance is for the teenagers that are legally eligible to drive; drivers between 16 years and 19 years old. While young drivers are the ones between 21 years and 25 years of age.

With age the rate of car insurance keeps decreasing, hence teen drivers get higher insurance rates than young drivers. Some national insurance companies still consider teen drivers and young drivers the same. It can be a bit expensive for young drivers and a bit affordable for teen drivers. So it is always better to make it clear with your carrier. Before buying your policy, ask the insurance company about teen drivers and young drivers.

Read more >> Cheap Car Insurance For Young Drivers

Cheapest car insurance for teens by state

Yes, you read it right. Car insurance rates can vary a lot for different states, cities, and even localities. The area where the driver lives play a major role in the car insurance cost. A driver living in Hawaii might get lower insurance rates as compared to a driver in California. Hence it is important to check the car insurance rates for different states before buying your house.

Insurance companies check various factors for each state to decide the insurance premium for the driver. These factors include the condition of the road, the climate type, and the crime rate of the state. The company then analyses all these factors and then decides what the insurance rate will be for the driver. For example, if a state has high crime rates then the chances of car stealing are higher. Hence the company will provide higher insurance quotes.

Knowing how your age impacts your car insurance rates is crucial, as it varies by state. In certain states, like California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania, insurance companies are not permitted to use gender as a factor when calculating insurance premiums.

Here is the list of top states of our country along with the list of average car insurance rates for full coverage, basic premium, and minimum liability. This list will help you to get a clear picture of how the states can increase or decrease the insurance rates.

State	Full Coverage Insurance	Basic Premium Insurance	State Minimum Liability Insurance
Alabama	$4,305	$3,977	$2,811
Alaska	$4,453	$4,009	$1,753
California	$3,203	$3,153	$2,104
Colorado	$4,708	$4,052	$2,654
Florida	$5,619	$5,490	$2,318
Georgia	$3,722	$3,182	$3,513
Illinois	$3,150	$4,004	$2,592
Kentucky	$5,615	$5,280	$4,673
Michigan	$5,442	$4,761	$4,247
Missouri	$3,213	$3,230	$3,073
New York	$4,923	$3,837	$2,176
Texas	$5,229	$4,250	$4,021
Washington	$2,132	$1,950	$1,246

Auto insurance for teens by gender

Car insurance companies do not believe in gender equality when it comes to providing insurance policy rates. The gender of the driver impacts a lot on the car insurance cost for any state, city, or area. On average, we can say that a male teen driver has to pay $380 extra as compared to a female teen driver.

As per the insurance carriers around the country, female drivers have much clean record and zero to one at-fault accident on record. On the other hand, male drivers have a high number of DUIs and at-fault accidents on their records. Plus they tend to cross the speed limit more as compared to female drivers.

As a result, insurance companies find female drivers much safer customers than male drivers. On average, the female teen driver pays $3180 for minimum coverage, while a male driver pays $3975 for minimum coverage. Let’s see the breakdown of this to have a clear picture.

Auto insurance for male teenage drivers

Adding your son to your policy will be more expensive for you than adding a daughter to the same policy. The reason we have discussed above; male teen drivers present higher risks as compared to female teen drivers.

The average car insurance cost for a teen driver with a son is $1875. Again it varies for different companies. Hence we have the below list of all the top insurance national companies that can provide teen car insurance to male drivers:

Auto Insurance Carrier	Annual Car Insurance Premium
Farmers	$2,723
GEICO	$2,531
Allstate	$2,922
Nationwide	$2,306
Progressive	$2,682
State Farm	$2,484
Liberty Mutual	$2,483
Amica	$2,678
USAA	$2,042

Auto insurance rates for female teenage drivers

Adding a daughter to your existing policy will also increase your insurance premium to a huge extent. But it might not be that much expensive for the drivers of the USA. Adding a teen daughter can increase your insurance rates by $1098 annually. And this is much lower than the average insurance cost for a male teen driver.

The reason behind this is; as per insurance carriers around the country, female drivers are much safer as compared to male drivers. But these rates vary for different car insurance companies. Let’s have a look at the top car insurance companies in our country and their rates for female teen drivers.

Auto Insurance Company	Annual Car Insurance Premium
Farmers	$2,144
GEICO	$1,952
Allstate	$2,343
Nationwide	$1,727
Progressive	$2,103
State Farm	$1,905
Liberty Mutual	$1,904
Amica	$2,099
USAA	$1,463

How to save on car insurance for teen drivers?

The high rates of car insurance can be too expensive for some drivers. Especially when you have to add a teen driver to your policy. Hence we can understand that you must be searching for some ways to save some money. Here are some ways you can try to get the cheapest car insurance rates for teen drivers:

1. Get as many discounts as possible

The best part of getting teen car insurance is you can apply for a student discount. Every company has its terms and conditions for student discounts. But on average, the driver should have at least an average of B grade or higher to get qualified.

Other than student discounts there are several other types of insurance that a driver can combine. Discount types like multiple vehicles discount, homeowners discount, or good driver discount. By combining two or more car insurance discounts you can lower the policy premium to a great level.

2. Shop around and compare the rates

Another way to get lower car insurance rates for teen drivers is to check the rates from different insurance companies. You can shop around in your city and ask for quotations from different companies.

And then you just have to compare the rates from all these companies to check which one has the cheapest rates. By combining the rates you’ll get a better idea of how different companies charge for the same policy. Yes, each company can have a different rate for the same driver. The reason behind this is simple, each car insurance company follows a different method and algorithm to calculate the rates.

3. Utilize the latest technologies

Technology and the latest devices are playing a major role in deciding the car insurance rates for different drivers. Nowadays car insurance carriers use telematics to yield data about the driving habits of the drivers. This data is playing a major role in deciding if the driver belongs to the risky category or safe category.

Insurance companies connect the car to either a beacon-like device or an app. This helps them to store the related to the driving habits. Based on this data the insurance carrier can provide you a customized insurance rate. But it is important to keep in mind that if the company finds out that your driving habits are dangerous then the rates can also increase. So make sure you have that confidence in your driving skills before opting for this model.

4. Add a teen driver to the parent’s policy

The best way to get the cheapest car insurance for new drivers is to add them to their parent’s policy. There are some amazing benefits of staying in your parent’s policy. Most of the time; the parents have established credit scores. Hence they already have lower car insurance rates. Plus you’ll also get other discounts like multiple cars discounts and even good and experienced driver discounts. So combining all these discounts your insurance rates can get decreased to almost 60 percent of your existing rates.

Moreover, if the parents have paid for the car then it is compulsory to get an insurance policy under the parent’s name. In most cases for teen drivers; parents bought the car for them. Hence they have no other option than to add their policy under their parent’s existing policy. 

5. Avoid high-value cars for the teen drivers

Yes, we know your teen son or daughter is asking for that high valued luxury car. But the insurance rate for that car can almost be double that of any low-valued car. Or you might want to add your kid to the policy of your existing high-value car. Again this can impact your insurance rates.

The best strategy here is to provide a lower-valued vehicle to your kid. The actual cost value of that vehicle will be low hence your insurance company will provide lower insurance rates for the car.

FAQs About Car Insurance for First-Time Drivers

Conclusion

We hope our blog has helped you understand everything you need to know about car insurance for new drivers.

RateForce understands that the car insurance rates for drivers between 16 years and 19 years can be too much for a normal person. That is why we have tried to cover all the important details that can help you to save some money.

Still, have some doubts about buying car insurance for teen drivers? We have an expert team for you. Get in touch with us today and discuss all your queries.

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