USAA, American Family, and State Farm are the top cheap car insurance companies for 17-year-olds, with rates starting at $225 per month.

USAA is the least costly for military families, adding a teen driver. American Family has incentives for using its teen driver tracking app, and State Farm has excellent local agents to assist young drivers.

Company	Rank	Monthly Rates	A.M. Best	Best For	Jump to Pros/Cons
	#1	$225	A++	Military Rates	USAA
	#2	$230	A	Tracking App	American Family
	#3	$235	B	Local Agents	State Farm
	#4	$240	A+	SmartRide Program	Nationwide
	#5	$245	A++	Competitive Rates	Geico
	#6	$248	A++	Multi-Policy Discounts	Travelers
	#7	$250	A+	TeenSMART Program	Allstate
	#8	$252	A	Student Discounts	Farmers
	#9	$255	A+	Snapshot Program	Progressive
	#10	$260	A	Good Students	Liberty Mutual

This article will outline how the pros and cons of these companies. Then compare these providers to the cheap car insurance companies for teen drivers in order to choose the best car insurance for a 17-year-old.

Affordable car insurance rates are just a click away. Enter your ZIP code into our free quote tool above to find the best policy for you.

What You Should Know

• USAA gives the best rates for 17-year-olds, beginning at $225 a month
• American Family offers discounts for teens who use its Teen Safe Driver app
• State Farm is notable for its local agent support and safe driver discounts

#1 – USAA: Top Overall Pick

Pros

• Unbeatable Rates for Teen Drivers: Provides the cheapest coverage for 17-year-old drivers, the best option for military families.
• Military Family Benefits: Offer incentives and advantages to teenagers from service-member families.
• Driver Training Program: This program trains 17-year-old drivers to drive better and earn discounts.

Cons

• Limited Availability: Services are restricted to military members and their families, excluding many 17-year-old drivers from non-military backgrounds.
• Fewer Local Agents: Has fewer local agents compared to other insurers, potentially inconvenient for those seeking best military car insurance options face-to-face.

#2 – American Family: Best Teen Driver Programs

Pros

• Teen Safe Driver Program: Utilizes an application that tracks 17-year-old drivers and provides feedback and possible insurance discount information.
• Generous Good Student Discount: Significant insurance discounts are available for 17-year-old drivers who are in school and maintaining a B average.
• Affordable Full Coverage Option: This option covers 17-year-old drivers fully for $425, which is cheaper than most auto insurance companies.

Cons

• Potentially Higher Rates for High-Risk Teens: Drivers under 17 with traffic violations or accidents may face policy rates that are higher than those of some other insurers.
• Potential for Stricter Underwriting: Some 17-year-old drivers may find the underwriting process more stringent, as noted in our review of American Family car insurance.

#3 – State Farm: Best for Local Agent Support

Pros

• Extensive Network of Local Agents: As mentioned in our State Farm car insurance review, it provides personalized support for 17-year-old drivers and their families.
• Multiple Discount Opportunities: They provide discounts for young drivers if a student does well in school, takes driver training, or has more than one car.
• Strong Mobile App for Tech-Savvy Teens: A highly-rated mobile app allows 17-year-old drivers to easily manage policies, file claims, and access important information.

Cons

• Limited Rideshare Coverage Options: The coverage isn’t as wide as the others. This could be a problem for 17-year-olds working in the gig economy.
• Fewer Bundling Options: 17-year-olds may have fewer bundling plans compared to other companies to families desiring to get more discounted insurance products.

#4 – Nationwide: Best for Vanishing Deductible

Pros

• Vanishing Deductible: Allows 17-year-old drivers to reduce their deductible by $100/year. If they maintain a clean driving record, it can reach up to $500.
• On Your Side® Review: If 17-year-olds complete an approved safety course, they earn a discount, encouraging them to learn and drive better.
• Teen Driver Safety Course Discount: Families can check their insurance each year to ensure it still meets their needs, especially for seventeen-year-olds behind the wheel.

Cons

• Limited Availability in Some Areas: Not all states offer the same coverage and programs, so some 17-year-old drivers might not have access to everything.
• Mixed Customer Service Reviews: Has received mixed feedback, potentially frustrating for teens and families, as noted in our Nationwide car insurance review.

#5 – Geico: Best for Digital Experience

Pros

• Competitive Rates for Young Drivers: Options include a $245 monthly premium. Geico's the fifth cheapest plan with average benefits overall.
• Extensive Discount Options: Provides a wide range of discounts benefiting 17-year-old drivers, including good student, driver's education, and multi-policy discounts.
• Online Resources for Teen Drivers: The company's website and mobile app provide a lot of information and resources geared toward 17-year-old drivers.

Cons

• No Gap Insurance: Doesn't offer gap insurance for 17-year-old drivers, potentially disadvantaging families financing new vehicles.
• No Teen Driver Monitoring Program: Geico doesn’t offer a dedicated program for teen car insurance discounts.

#6 – Travelers: Best for Customizable Policies

Pros

• Responsible Driver Discount: Rewards 17-year-old drivers who maintain a clean driving record, offering incentives for safe driving habits.
• Student Away at School Discount: 17-year-old drivers attending school far from home without a car can earn a discount.
• New Car Replacement Coverage: Good for families with 17-year-old drivers who usually drive new cars, helpful for keeping up total loss.

Cons

• Higher Rates Compared to Top Competitors: While competitive, rates for 17-year-old drivers are higher than the top five cheapest options.
• Limited Specialty Coverage Options: May not offer as wide a range of specialty insurance coverage for 17-year-olds, as noted in our Travelers car insurance review.

#7 – Allstate: Best for Reward Programs

Pros

• Allstate Rewards Program: 17-year-old drivers can earn safe driving bonus points, redeemable for merchandise and gift cards.
• Your Choice Auto® Package: Include accident forgiveness and deductible rewards, important for 17-year-old drivers who are likely to cause accidents.
• Claim Satisfaction Guarantee: As highlighted in Allstate car insurance review they give families with 17-year-old drivers the needed assurance.

Cons

• Potentially Complex Policy Structure: The policy structure at Allstate can be complex. New drivers sometimes find the optional features confusing.
• Mixed Customer Service Reviews: Some have good experiences while others have not, which could be frustrating for 17-year-olds who need help with claims or have questions.

#8 – Farmers: Best for Student Discounts

Pros

• Youthful Driver Discount: It provides discounts if a 17-year-old joins the policy, which may reduce the premiums for the entire family.
• Distant Student Discount: Special discount for 17-year-olds who go to school far from home and don't have their own car.
• New Car Pledge: This pledge is for families with 17-year-old kids who drive newer cars. It gives them extra safety if the car gets completely damaged.

Cons

• Limited Availability in Some Areas: Coverage and specific programs may not be available in all states, potentially limiting access for some 17-year-old drivers.
• Fewer Digital Tools: May offer fewer digital tools and resources compared to some competitors, as noted in our Farmers car insurance review.

#9 – Progressive: Best for Usage-Based Insurance

Pros

• Snapshot Program: As mentioned in Progressive car insurance review, they offer personalized rates, discounts, and feedback, benefiting safe 17-year-old drivers with affordable insurance.
• Deductible Savings Bank: Allows 17-year-old drivers to reduce their deductible by $50 every six months they remain claim-free.
• Small Accident Forgiveness: Prevents rate increases for claims under $500, common among new 17-year-old drivers.

Cons

• Potential for Rate Increases: Some customers report significant rate increases for 17-year-olds after claims or at renewal time.
• Limited Specialty Coverage Options: May not offer as wide a range of specialty car insurance options for 17-year-olds as some competitors.

#10 – Liberty Mutual: Best for New Car Owners

Pros

• Better Car Replacement: Offers 17-year-old drivers a newer car if the car is a total loss.
• Teacher's Auto Insurance: Provides niche insurance and possibly lower premiums for 17-year-olds whose parents are teachers.
• 24-Hour Claims Assistance: Claims service around the clock is very useful to 17-year-old drivers who require help during the evenings and on weekends.

Cons

• Complex Policy Structure: Some customers say that Liberty Mutual's insurance policies and extra features can be hard to understand for new drivers.
• Potential for Stricter Underwriting: Some 17-year-old drivers might experience a tougher approval process when applying, as noted in our car insurance review of Liberty Mutual.

Minimum vs. Comprehensive Car Insurance Rates for 17-Year-Olds

Finding cheap car insurance for a 17-year-old involves comparing coverage and policy options from multiple companies. USAA and American Family are the cheapest teen car insurance companies for 17-year-olds. Compare the monthly rates for basic and full coverage below:

Insurance Company	Minimum Coverage	Full Coverage
	$250	$445
	$230	$425
Farmers	$252	$442
	$245	$440
	$260	$460
	$240	$430
	$255	$450
	$235	$420
	$248	$438
	$225	$410

While minimum coverage offers the most affordable option, it may not provide sufficient protection for 17-year-old drivers. Full coverage with collision and comprehensive insurance offers greater financial security in the event of a major accident or damage.

Comprehensive coverage includes additional protections, such as collision and theft, which are crucial for new drivers who may be more prone to accidents. Learn more about what kind of car insurance you really need.

Why Car Insurance Costs are High for 17-Year-Olds

Insurance rates for 17-year-olds tend to be higher due to a number of contributing factors. Below are some key reasons why young drivers face elevated premiums, affecting their ability to find affordable coverage options.

• Limited Driving Experience: Inexperienced drivers are more prone to errors, leading to a higher risk of accidents.
• Distracted Driving: Teens are more likely to engage in distractions like using mobile phones, increasing the likelihood of incidents.
• Riskier Vehicles: Many teens drive older vehicles that may lack modern safety features, raising the chances of serious damage in an accident.
• Higher Accident Rates: Statistics show that younger drivers are involved in more accidents compared to older, more experienced drivers.

These factors combined make it essential for 17-year-olds to demonstrate safe driving habits to reduce their insurance rates over time gradually. For more information, check out our article on why car insurance is so expensive.

Lowering Car Insurance Costs for 17-Year-Olds

Reducing the cost of car insurance for a 17-year-old can be achieved through several strategies. Encouraging good academic performance often qualifies teens for good student discounts.

Insurance Company	Available Discount
	Smart Student, Teen Driver, Multi-Policy, Defensive Driving
	Good Student, Teen Safe Driver, Multi-Policy, Defensive Driving
	Good Student, Signal® App, Multi-Policy, Defensive Driving
	Good Student, Multi-Policy, Defensive Driving, Driver’s Ed Discount
	Good Student, New Car Replacement, Multi-Policy, Defensive Driving
	Good Student, Accident-Free, Multi-Policy, Defensive Driving
	Snapshot®, Good Student, Teen Driver, Multi-Policy
	Good Student, Steer Clear®, Multi-Policy, Defensive Driving
	Good Student, Teen Driver, Multi-Policy, Defensive Driving
	Good Student, Safe Driver, Family Discount, Defensive Driving

Always be informed, check the available discounts you can get for the lowest possible insurance premiums.

Completing a defensive driving course can also lead to significant savings with teen discounts. Learn more about defensive driving course benefits.

The Cheapest Car Insurance Companies for 17-Year-Olds

USAA, American Family, and State Farm are the best cheap car insurance companies for 17-year-olds. While minimum coverage is the cheapest, full coverage provides better protection for young, inexperienced drivers.

USAA has the cheapest minimum and full coverage auto insurance for 17-year-olds in military families, but American Family and State Farm have cheap rates for all types of teen drivers.

Car insurance for new drivers is typically higher due to factors like limited experience and higher accident rates. However, discounts for good students, defensive driving, and multi-policy bundles can significantly reduce premiums.

Affordable car insurance rates for 17-year-olds are just a click away. Enter your ZIP code into our free quote tool below to find the best policy for you.