Key Takeaways
- Erie has the lowest sample rates for teen drivers, followed by Auto-Owners, USAA, and Geico.
- Discounts, including good student discounts, may help young drivers save money on car insurance.
- Teen drivers are considered to have a higher risk of being in an accident than other age groups.
You don’t have to be a young driver to be a new driver. But many Americans first get behind the wheel as teenagers or young adults, two age groups that typically pay higher car insurance rates than older drivers. Rates for teen drivers can be especially high due to their lack of driving experience and greater likelihood than other age groups of being in an accident.
Our research indicates that average car insurance costs are higher for teens and young adults than for older adults and seniors, two demographics that generally have longer driving histories and are viewed by providers as less risky to insure.
Erie has the lowest average rates in our analysis for female and male teen drivers. Its sample premiums for female 17-year-old drivers are $2,932 per year below the national average, while its sample premiums for males are $3,026 per year below the national average. Erie sells car insurance policies in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin, as well as in Washington, D.C.
In our rate study, Auto-Owners and USAA have the second- and third-lowest average rates for teenage drivers. Auto-Owners sells policies in 26 states, and USAA only sells car insurance to current and former members of the military and their families.
Geico, with the fourth-lowest sample premiums, is widely available, selling policies to anyone in all 50 states. Its rates are 23% lower than the national average for female 17-year-olds and 26% lower for males.
The table below includes sample teen driver rates for the 10 insurers in our rating of the best car insurance companies.
As drivers enter young adulthood, average car insurance costs tend to decrease dramatically, though they’re still higher on average than rates for older motorists. In our rate study, USAA has the cheapest sample rates for both female and male young adult drivers.
Nationwide, which sells policies in all but four states
(Alaska, Hawaii, Louisiana, and Massachusetts) has the next cheapest rates for female young
adult drivers, and Geico is the next cheapest for males in this age group.
As drivers get older and gain experience behind the wheel, their rates will typically go down if they avoid speeding tickets, accidents, and other blemishes on their record. But until then, comparing car insurance costs can help you land affordable rates, saving you hundreds or even thousands of dollars per year.
We analyzed average car insurance rates for some of the nation’s largest auto insurers, looking at sample premiums for different age groups and other demographics. Even though we found that teen drivers and young adults pay higher rates on average than their older, more experienced counterparts, average costs for each age group vary widely by insurer.
Older, more experienced drivers are less likely to get into an accident and file an insurance claim. Because of this, insurers view new, young drivers as riskier to insure, so they charge them higher premiums.
It’s worth noting that many factors other than age impact the cost of a car insurance policy. The type of car you drive and the coverage you select will make a difference. So will your driving history. For instance, we found that, on average, a driver with a single speeding ticket pays $435 more per year for car insurance than a driver with a clean record.
Your location affects rates as well. For example, our separate study of car insurance rates at the state level found that in Texas, the statewide average cost of car insurance for a male teenage driver is $5,397 per year. In Ohio, the average annual cost for a male teen is $4,008. Average car insurance costs also vary between different cities in each state.
The table below includes the national average rates for
a 12-month policy for teen drivers (age 17), young adults (age 25), adults (age 35), and
senior drivers (age 60).
Information compiled by the U.S. Centers for Disease Control and Prevention (CDC) notes that teenagers are at higher risk of being in an accident than other age groups. They’re more at risk when driving at night or on weekends. Certain behaviors – like not wearing a seat belt – also increase the risk, according to the CDC’s report.
Other risk factors include:
- Inexperience
- Distracted driving
- Speeding
- Drinking and driving
- Drug use
Male teens, teenagers who are driving with teen or young adult passengers, and newly licensed teens are among the highest risk.
All drivers, including teens, can take steps to help reduce car insurance rates. These range from how you shop for car insurance to how you drive. Auto insurers also typically offer discounts that can help lower your premium.
Here are a few things to help keep your premium as low as possible:
- Maintain a clean driving record: The average cost of car insurance for a driver with a ticket, an accident, or a DUI is higher than for a driver with a clean record.
- Shop around for coverage: Our rate study found that average rates for all age groups vary widely by insurance provider. Comparing quotes from multiple insurers can help you find the coverage you need at the lowest price possible.
- Consider a driver safety course: Young drivers may be rewarded with lower rates from some insurers for completing a driver training course.
- Take advantage of other discounts: Before you buy a policy, investigate discounts offered by the insurers you’re considering. These vary by company but can add up to substantial savings over the course of a policy term. Some, like good student discounts, may be an especially good fit for younger drivers. We’ll discuss discounts in more detail below.
- If possible, consider a safer vehicle: Some vehicles, such as high-performance cars, are considered less safe by insurers and are generally more expensive to insure. Consider your insurance costs before buying a new car.
- Carefully weigh your coverage: You can typically save money on a policy by raising your deductible, but you’ll have to pay more out of pocket if you’re in an accident. You can also save by carrying less coverage, but you’ll have less financial protection. Read our report on how much car insurance you need for an overview of things to consider as you’re weighing your options.
Auto insurers offer many different types of discounts that help qualifying drivers lower their costs. Some of the options that might be an especially good fit for young drivers include:
Many providers offer good student discounts for young drivers who perform well in school. This typically has to do with keeping a grade point average at or above a certain level.
Some insurers offer a discount for drivers who complete an approved defensive driving course.
Some insurers have apps or other devices that can monitor driving habits, such as braking and acceleration, to tailor your rate based on how safely you drive.
This is another way your driving habits may help you save on car insurance. If you don’t drive a lot, your insurer may offer you a discount.
Ultimately, the best car insurance for you depends on your personal situation. Most insurers offer a core set of major coverages, including liability, uninsured/underinsured motorist, collision, and comprehensive coverage. However, optional coverages and discounts can vary widely by company. That makes shopping around and comparing options and rate quotes an important part of finding the best car insurance for you and your circumstances.
Younger drivers, in particular, may benefit from good student and defensive driving course discounts. But they may also benefit from many discounts that can apply to drivers of any age or experience level, such as paperless, anti-theft devices, or automatic payment discounts.
Though not all discounts offer big savings on their own, multiple discounts can add up to major savings over time.
Most states require a minimum level of car insurance, and most require drivers to carry proof of a valid car insurance policy. One situation that commonly requires proof of car insurance is a traffic stop. Your proof of insurance may be a physical car insurance card issued by your insurer or a digital version on your phone. Most states accept a digital version of the document.
This can depend on your insurer. In many cases, canceling a policy is a relatively simple process with no fee involved, though some insurers may charge a fee. Review your policy and contact the company to get a clear idea of the cancellation process and whether there’s a fee. You might also be entitled to a refund for the portion of the policy period that’s unfinished.
Keep in mind that it’s illegal to drive without car insurance in most states, so have a new policy lined up before canceling an old one. Learn more in our guide to changing your car insurance.