Carrier vs. Carrier Comparisons
The best cheap car insurance companies for teen drivers are Erie, Geico, and State Farm. Erie stands out with rates starting at $81 per month.
These providers ensure that teen drivers have access to cost-effective and reliable comprehensive insurance coverage.
| Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 |
#1 | $81 | A+ | Affordable Rates | Erie |
 |
#2 | $107 | A++ | Broad Discounts | Geico |
 |
#3 | $125 | B | Teen Programs | State Farm |
 |
#4 | $167 | A+ | Coverage Options | Nationwide |
 |
#5 | $178 | A | Family Discounts | American Family |
 |
#6 | $223 | A+ | Accident Forgiveness | Allstate |
 |
#7 | $271 | A | Customized Policies | Farmers |
 |
#8 | $279 | A | Flexible Coverage | Liberty Mutual |
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#9 | $281 | A+ | Online Tools | Progressive |
 |
#10 | $310 | A++ | College Students | Travelers |
Finding cheap teen car insurance quotes is easy. Just enter your ZIP code into our free comparison tool above to instantly compare quotes near you.
What You Should Know
- Erie offers affordable rates for teen drivers, starting at $81 per month
- Geico and State Farm cater to teen drivers with discounts and tailored programs
- Compare top car insurance companies for teen drivers to find the best coverage
#1 – Erie: Top Overall Pick
Pros
- Lowest Rates for Teens: Erie offers some of the cheapest rates for teen drivers starting at $81/month.
- Simple Policy Options: Straightforward policies make it easier for teens and parents to understand coverage.
- Consistent Value: Our Erie reviews shows how the company maintains competitive pricing without compromising on essential coverage.
Cons
- Limited Discounts: Erie has fewer teen driver discount programs than other companies.
- Geographic Restrictions: Erie teen car insurance is only available in select states.
#2 – Geico: Cheapest With Discounts
Pros
- Diverse Discount Options: Extensive teen insurance discounts are available, including those for good students and safe driving.
- Bundling Benefits: Geico bundling discounts can further reduce costs for families adding a teen driver to car insurance.
- Digital Ease: Convenient online tools and a mobile app make buying auto insurance online easy for teen drivers.
Cons
- Higher Initial Premiums: Initial Geico teen car insurance premiums may be high before applying available discounts.
- Limited Teen-Focused Programs: Geico has fewer specific programs tailored exclusively to teen drivers' learning needs.
#3 – State Farm: Best Teen Driving Programs
Pros
- Comprehensive Teen Programs: State Farm Steer Clear & Save helps lower teen insurance costs by teaching safe driving skills.
- Local Support: State Farm's extensive network of local agents provides personalized guidance for teen drivers.
- Safe Driver Discounts: Based on our State Farm reviews, the company encourages safe driving with rewards and discounts for teens.
Cons
- Not All Discounts Apply to Teens: Some discounts are more geared toward older drivers or families.
- Required Program Participation: Teens must participate in specific programs to access lower rates.
#4 – Nationwide: Cheapest Coverage Options
Pros
- Extensive Customization: Nationwide teen car insurance tailors coverage to meet diverse needs of young drivers and their families.
- Vanishing Deductible: In our Nationwide review, you’ll find that the company offers a teen insurance deductible that decreases over time, rewarding safe driving habits.
- Accident Forgiveness: Nationwide accident forgiveness prevents rate hikes after a minor accident involving a teen driver.
Cons
- Fewer Teen Discounts: There is less focus on teen auto insurance discounts compared to competitors.
- Potentially Higher Costs: Nationwide's customized plans can be more expensive, particularly for comprehensive coverage.
#5 – American Family: Cheapest With Family Discounts
Pros
- Strong Family Discounts: Our American Family review lists the teen insurance discounts for families who insure multiple vehicles or drivers.
- Teen-Specific Training Programs: AmFam provides safety courses designed to help teen drivers improve driving skills.
- Roadside Assistance: Families can add affordable roadside assistance to AmFam teen car insurance.
Cons
- Limited Market Reach: American Family isn't available in all states, restricting some families from accessing cheap teen insurance.
- High Rates for Riskier Teens: Teen insurance premiums go up higher with AmFam than other companies after an accident or claim.
#6 – Allstate: Cheapest Accident Forgiveness
Pros
- Forgives First Accidents: Read our Allstate reviews to discover how drivers can avoid teen insurance rate hikes after an accident.
- DriveWise Program: Allstate's usage-based program helps monitor and improve teen driving habits for potential discounts.
- Strong Agent Network: Drivers report great customer service experiences with access to a wide network of agents experienced in handling teen driver insurance.
Cons
- Potentially Higher Initial Rates: Allstate teen car insurance is more expensive than other companies on this list.
- Less Emphasis on Teen-Specific Discounts: Allstate is more focused on general discounts rather than teen-specific savings.
#7 – Farmers: Cheapest Customized Policies
Pros
- Flexible Coverage: According to our Farmers review, the company allows for extensive teen driver insurance customization.
- Optional Add-Ons: Farmers provides cheap add-ons like rental car reimbursement and roadside assistance tailored for teens.
- Personal Agent Assistance: Teen drivers have direct access to knowledgeable agents for customized policy recommendations.
Cons
- Higher Cost for Customization: Customized policies may lead to higher teen auto insurance rates for families.
- Limited Discounts for Teen Drivers: Farmers has fewer teen discount programs compared to other insurers.
#8 – Liberty Mutual: Cheapest for Flexible Coverage
Pros
- Adjustable Policy Options: Read our Liberty Mutual review to pick out a flexible teen car insurance plan.
- Discount for Defensive Driving: Liberty Mutual rewards teen drivers who complete defensive driving courses with cheaper rates.
- Usage-Based Discounts for Teens: Teen drivers who sign up for Liberty Mutual RightTrack can lower insurance rates with good driving habits.
Cons
- Limited UBI Availability: RightTrack isn't available in every state, limiting access to cheaper teen car insurance in those areas.
- Higher Premiums for Enhanced Flexibility: More flexible coverage options could result in higher teen car insurance costs.
#9 – Progressive: Best Online Tools
Pros
- Easy Online Comparisons: Progressive's strong online presence allows for easy comparison of rates and coverage options.
- Cost-Saving Online Tools: Families adding a teen driver to car insurance can use the Name-Your-Price tool online to find the cheapest policy.
- Snapshot Program: Read our Progressive review to learn how usage-based discounts through Snapshot can significantly reduce teen insurance rates.
Cons
- Limited Teen Programs: Progressive offers fewer programs specifically geared towards educating and supporting teen drivers.
- Potential Rate Increases: Teen auto insurance rates may increase significantly with a poor driving record despite initial discounts.
#10 – Travelers: Cheapest for College Students
Pros
- Student Away Discounts: Teen drivers in college at least 100 miles away can save money on car insurance with Travelers.
- Discounts for Good Students: See our Travelers review to understand how they reward academically successful teens with lower premiums.
- Strong Financial Stability: Travelers promises reliable financial strength and teen insurance claims processing.
Cons
- Premium Costs: Travelers teen car insurance is more expensive than other companies on our list.
- Varied Claims Experience: Despite strong financial ratings, teen drivers report poor insurance claims satisfaction in most states.
Teen Driver Car Insurance Rates From Top Companies
The table below compares teen car insurance rates from the cheapest companies. Erie offers the lowest monthly rates at $81 for minimum coverage and $189 for full coverage.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
|
$223 | $519 |
|
$178 | $414 |
|
$81 | $189 |
|
$271 | $629 |
|
$107 | $254 |
|
$279 | $626 |
|
$167 | $387 |
|
$281 | $662 |
|
$125 | $284 |
|
$310 | $740 |
Erie teen car insurance is only available in 12 states, so Geico is the next cheapest teen car insurance company in all states.
data-media-max-width="560">When a driver is texting, 66% of passengers are likely to ask them to stop, according to our national survey, which you can view here ➡️ https://t.co/uYr5CLTojj.#DistractedDrivingAwarenessMonth pic.twitter.com/UAX0lFPGE7
— Erie Insurance (@erie_insurance) April 10, 2023
Discounts play a major role in reducing teen driver insurance costs, and Erie, Geico, and State Farm offer a range of discounts to help lower rates. Keep reading to explore more ways to get cheap car insurance for teens.
How to Save Money on Car Insurance for Teen Drivers
Finding cheap insurance for teen drivers can be tricky, but with the right approach, you can reduce premiums while keeping reliable coverage. Below are some key strategies that can help you save on insurance costs for young drivers.
- Compare Quotes: Use online comparison tools to review multiple insurance options, ensuring you find the most affordable and comprehensive coverage.
- Bundle Policies: Combining auto insurance with other policies like home or renter’s insurance can lead to significant multi-policy discounts.
- Leverage Teen Discounts: Encourage your teen to maintain good grades or complete safe driving courses to unlock savings.
Taking the time to compare quotes and explore student discounts for teens and young drivers is key to securing the best deal possible.
These discounts, along with the defensive driving course benefits, can significantly lower the overall premium, helping teens and their families manage insurance expenses more effectively.
| Insurance Company | Available Discount |
|---|---|
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Good Student, Smart Student, Defensive Driving, Early Signing |
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Good Student, Teen Safe Driver, Defensive Driving, Bundling |
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Safe Driver, Bundling, Good Student, Driver Training |
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Good Student, Distant Student, Bundling, Good Driver |
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Good Student, Defensive Driving, Bundling, Seat Belt Use |
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Good Student, Accident Forgiveness, Bundling, New Graduate |
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Good Student, Defensive Driving, Accident-Free, Bundling |
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Good Student, Teen Driver, Distant Student, Multi-Car |
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Good Student, Steer Clear® Safe Driver Program, Multi-Car, Driver Training |
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Good Student, Driver Training, Bundling, Continuous Insurance |
Some providers also offer specific programs for teen driver insurance, like the State Farm Steer Clear® Safe Driver Program. These help young drivers improve their skills while keeping insurance costs manageable, offering peace of mind for both teens and parents.
What You Need to Know Before Buying Teen Car Insurance
Age, driving experience, and the type of vehicle play a significant role in determining teen insurance premiums. Insurance providers assess these elements along with location and driving history to calculate risk, which directly impacts the cost of coverage.
Comparing quotes from different insurers is one of the best ways to find the most affordable coverage.
Getting car insurance quotes online through a free comparison tool can help families quickly identify the best options and take advantage of any discounts available, ensuring that teen drivers have reliable and affordable protection.
Key Takeaways for Affordable Teen Car Insurance
Erie, Geico, and State Farm are the best cheap car insurance companies for teen drivers. Erie is the cheapest teen car insurance company in 12 states, but Geico and State Farm are avaialble nationwide.
Geico has a long list of discounts for teens, but State Farm offers specialized teen driver programs to cut costs and encourage responsible driving.
Comparing multiple companies is one of the top ways customers save money on car insurance. When you’re ready to see how much you can save, enter your ZIP code below.
Frequently Asked Questions
What discounts do car insurance companies offer teen drivers?
Many insurance companies offer good student discounts, driver safety program discounts, and bundling policies with family plans. Some insurers also provide discounts for low-mileage driving or vehicles equipped with safety features.
How do teen driver programs from car insurance companies work?
Teen driver programs, like State Farm’s Steer Clear, focus on improving driving skills through educational resources. Completing these programs can often qualify teens for additional discounts on their insurance premiums.
How can teen drivers get the cheapest car insurance rates?
Teen drivers can get the cheapest auto insurance rates by maintaining good grades, enrolling in driver training courses, and choosing a car that is cheaper to insure. Adding teens to a family policy is usually cheaper than buying a separate policy. Keeping teen drivers safe on the road will also lower rates.
Can teen drivers get their own car insurance policy, or do they need to be on their parent’s policy?
Teen drivers can get their own car insurance policy in most states. Some companies may require teens to have a parent as a co-signer or primary policyholder if they’re under 18. However, it's generally more affordable to add a teen driver to a parent’s policy.
Which states offer the cheapest car insurance rates for teen drivers?
States like North Carolina, Ohio, and Maine are known for having some of the lowest car insurance rates for teen drivers. Rates vary widely by state due to differences in regulations and risk factors.
Which car insurance company offers the best coverage for new teen drivers?
Geico, Erie, and State Farm are top picks for teen drivers due to their broad coverage options, affordable rates, and numerous discounts. These insurance companies offer accident forgiveness, which can be particularly beneficial for new teen drivers.
What factors affect teen car insurance rates?
Factors such as the driver’s age, driving experience, vehicle type, location, and driving record impact car insurance rates. Teens typically pay higher premiums due to their lack of driving experience and higher risk of accidents.
Get fast and cheap auto insurance coverage today with our quote comparison tool below.
How do teen driver safety programs affect insurance rates?
Teen driver safety programs often lead to lower insurance rates. Insurers reward safe driving habits, and completing these programs shows a commitment to driving responsibly, which lowers the risk of accidents and claims.
What are the best car insurance companies for teen drivers?
The The best and cheapest car insurance companies for teen drivers often include Geico, Erie, and State Farm, known for offering competitive rates, discounts, and teen driver programs. These companies also provide options for good student and driver training discounts, which can help reduce costs for young drivers.
What car insurance companies offer good student discounts for teen drivers?
Many car insurance companies, including Geico, State Farm, and Allstate, offer good student discounts. Teens who maintain a B average or higher can qualify for significant savings on their car insurance premiums.