Carrier vs. Carrier Comparisons
Erie, Geico, and State Farm stand as the leading companies for cheap car insurance for teens after an accident. Rates begin at just $81 a month.
Erie is known for its low premiums and the promise of forgiveness after accidents. Geico offers general discounts and safe driver programs, helping teen drivers lower their rates. State Farm also offers a special program for teen driver discounts called Steer Clear.
| 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 | Teen Focused | American Family |
 |
#6 | $223 | A+ | Accident Forgiveness | Allstate |
 |
#7 | $271 | A | Customized Policies | Farmers |
 |
#8 | $279 | A | Flexible Coverage | Liberty Mutual |
 |
#9 | $281 | A+ | Competitive Pricing | Progressive |
 |
#10 | $310 | A++ | Comprehensive Plans | Travelers |
Compare quotes from car insurance companies that customers recommend to get the cheapest car insurance for teens after an accident.
See if you’re getting the best deal on car insurance by entering your ZIP code above.
What You Should Know
- Erie offers teen accident forgiveness to keep premiums from rising
- Geico gives discounts for safe driving and defensive driving
- State Farm has a Steer Clear program that encourages safe driving habits
#1 – Erie: Top Overall Pick
Pros
- Good Student Discount: Discounts for teens who excel academically help lower the costs of insurance after an accident. Learn more in our Erie car insurance review.
- Driver Training Discount: Provides a list of teens who finish driver training programs and gives them discounts on safe car insurance.
- Reliable Coverage: A.M. Best A+ rating shows financial strength, crucial for teenagers needing reliable accident protection.
Cons
- Fewer Online Tools: Fewer online tools make it tough for teens who know their way around technology to handle their policies on the web.
- Restricted Discounts: Other teen insurance discounts may not be available in all states hence reducing the overall saving prospects.
#2 – Geico: Best for Broad Discounts
Pros
- Defensive Driving Discount: Teens can snag some discounts if they finish a defensive driving course. (Read More: Defensive Driving Course Benefits)
- Seat Belt Use Discount: It promotes safe driving by giving discounts on car insurance to teens who wear seat belts.
- 24/7 Customer Service: You can count on support anytime, which is super important for teens who need help after an accident.
Cons
- Longer Wait Time: Waiting for help can be long. Teens need support fast after an accident. The delay can wear on them, and frustration builds.
- Frequent Policy Changes: When rules about insurance change often, it can make it hard for teenagers to understand what is covered.
#3 – State Farm: Best for Teen Programs
Pros
- Teen Driver Discounts: It offers good student and driver training discounts and lower post-accident costs, providing a valuable offer to teens.
- Steer Clear® Program: Discounts for teens in safe driving programs, aiding post-accident. Check out State Farm car insurance review for more information.
- Nationwide Availability: It has an extensive network across the U.S. to assure teens with no coverage can purchase coverage later on for accidents.
Cons
- No Accident Forgiveness: Not having accident forgiveness can result in your premium skyrocketing after an accident.
- Longer Claims Processing: The claim resolution can be frustrating for teens needing quick settlements after an accident.
#4 – Nationwide: Best Coverage Options
Pros
- Accident-Free Discount: Helps teens get cheap rates after an accident and rewards safe driving habits. Find out more in Nationwide car insurance review.
- Multi-Policy Discount: Savings for bundling auto insurance with other Nationwide policies, helping families with teen drivers manage costs.
- User-Friendly App: The company has an advanced mobile app appealing to tech-savvy teens.
Cons
- Longer Claims Processing: Reports of slower claims handling would be a drawback for teens who just want to be done with an accident as quickly as possible.
- Restricted Customization: Policy personalization was more limited than the competitors, which diminished personalized insurance coverage for teens.
#5 – American Family: Best Teen Customer Service
Pros
- Teen Safe Driver Program: Savings for teens in the safe driver program, reducing post-accident premiums. See our review of American Family car insurance for more details.
- Strong Digital Presence: Online tools that work with the moveable façade and are easy for tech-savvy teens to manage policies with.
- Responsive Customer Service: Known for its excellent customer support, it is crucial for teenagers and parents when managing claims following an accident.
Cons
- Limited Customization: It may not give as much policy personalization as other insurers, therefore it doesn’t provide tailored coverage for teens.
- Complex Policies: Inexperienced teens find the policy details ‘difficult to understand’.
#6 – Allstate: Best for Accident Forgiveness
Pros
- TeenSMART Program: Helps teens save money on their car insurance if they finish the program, especially after they've had an accident.
- New Car Replacement: Offers new car replacement for newer vehicles, beneficial for teens with newer cars. Find out more in our Allstate car insurance review.
- Safe Driving Bonus: Reward teens who don’t have accidents or get in trouble while driving. It helps them remember to be safe on the road.
Cons
- Coverage Gaps: Problems of gaps in coverage for some customers may leave teens unprotected.
- Limited Personalization: Teen auto insurance policies may not be as customizable as those offered by other insurers.
#7 – Farmers: Best for Customized Policies
Pros
- Comprehensive Coverage Options: It provides generous coverage options, starting at $272/month for teens who need full protection after an accident.
- Signal® App Discount: Offers discount when using the app, which helps teens practice good driving behavior. Read Farmers car insurance review for more information.
- Multi-Policy Discount: Savings for families with teen drivers who bundle auto insurance with other Farmers policies.
Cons
- Limited Discounts: There are fewer discounts with this insurer. This may mean less chance for teens to save money.
- Higher Deductibles: Premiums often carry higher deductibles. This means teen drivers will pay more out of pocket for insurance.
#8 – Liberty Mutual: Best for Flexible Coverage
Pros
- Comprehensive Coverage Options: Provides a great deal of coverage choices for teens who need extensive protection after a crash.
- Teen Driver Discounts: Provides substantial savings for teens, including good student and driver training discounts, lowering post-accident costs.
- Accident Forgiveness: Prevent increases in premiums for teen drivers after a first at-fault accident. See more on our car insurance review of Liberty Mutual.
Cons
- Higher Starting Rates: Starting at $279, premiums can be pretty steep for some teens, especially after they've had an accident.
- Complex Policies: Teens can also find policy details challenging and difficult to understand.
#9 – Progressive: Best for Competitive Pricing
Pros
- Competitive Rates: Sells affordable premiums from $281 to suit teens who are looking for affordable options after an accident.
- Snapshot® Program: This program offers discounts for teens on safe driving habits. For more information, check out our Progressive car insurance review.
- Accident Forgiveness: Helps prevent premium increases after the first at-fault accident, crucial for teens recovering from an incident.
Cons
- Higher Starting Rates: Premiums starting at $281 can be pretty pricey for some teens, especially after they've had an accident.
- No Nationwide Availability: Only available in certain areas, which means some teens can’t get it after an accident.
#10 – Travelers: Best for Comprehensive Plans
Pros
- Comprehensive Coverage Options: Travelers car insurance policies are ideal for teens needing protection after an accident. See our Travelers review for more information.
- Accident Forgiveness: Helps keep your premiums from going up after your first at-fault accident, which is important for teens bouncing back from a mishap.
- Stable Financial Outlook: Strong financial ratings ensure reliability for teen car insurance after an accident.
Cons
- Higher Starting Rates: Some teenagers may find it expensive for premiums to begin at $311, particularly following an accident.
- No Nationwide Availability: Only available in certain areas, so some teens can’t access it after an accident.
The Impact of an Accident on Teen Car Insurance Rates
Insurers consider teenagers as high-risk drivers because of their lack of experience, and an accident only increases this risk. This may mean that after an accident, rates can rise by as much as 50% or higher. Refer to the table below for the minimum and full coverage monthly rates offered by leading insurers:
| 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 |
Auto insurance premiums go through the roof when a teenager has an accident. Fortunately, Erie and Geico offer accident forgiveness options or special discounts to help reduce teenage drivers' insurance costs.
For more information on this topic, check out our guide on the best car insurance for high-risk drivers.
Best Car Insurance Discounts for Teens After an Accident
Even after an accident, teens can still qualify for several discounts that help lower their overall insurance costs. Common discounts include defensive driving and safe driver programs designed to encourage safe driving habits and reduce accident-related risks.
| Insurance Company | Available Discount |
|---|---|
|
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 |
|
Good Student, Defensive Driving, Accident-Free, Bundling |
|
Good Student, Teen Driver, Distant Student, Multi-Car |
|
Good Student, Steer Clear® Safe Driver Program, Multi-Car, Driver Training |
|
Good Student, Driver Training, Bundling, Continuous Insurance |
Teens and their parents can find ways to lower the cost of insurance after an accident. They can combine discounts to make it more affordable. Read our article "Top ways customers save money on their car insurance" for more saving tips.
Accident Forgiveness: How It Can Help Teen Drivers
Many auto insurance companies offer accident forgiveness programs, which prevent premium increases after the first at-fault accident. This is particularly valuable for teen drivers who are more likely to have accidents.
Insurers like Geico, Liberty Mutual, and Progressive offer accident forgiveness as an add-on or standard feature in their teenage car insurance policies.
While it may increase the initial premium slightly, it can save hundreds of dollars in the event of an accident, providing peace of mind for teens and their parents.
Read More: What kind of car insurance do you really need?
Saving on Teen Car Insurance After an Accident: Tips and Strategies
Erie, Geico, and State Farm are top choices for teens who need cheap car insurance after an accident.
Erie is known for excellent customer service and robust discounts, Geico offers affordable premiums with a variety of policy options, and State Farm provides personalized coverage and a strong reputation.
To keep car insurance for new drivers manageable after an accident, it’s crucial to shop around for quotes and take advantage of available discounts.
Ready to shop around for the best teen car insurance company? Enter your ZIP code below and see which one offers the coverage you need.
Frequently Asked Questions
What is the youngest age to get car insurance?
The youngest age to get car insurance varies by state but is typically 16, which coincides with the minimum driving age in most states. However, teens should be aware that insurance rates are generally higher for younger drivers, especially after an accident.
At what age is car insurance cheapest?
Car insurance rates typically start to decrease around age 25, assuming a clean driving record. For teens who've had an accident, it's crucial to maintain a good driving record thereafter to eventually qualify for cheaper rates.
Who typically has the cheapest teen car insurance after an accident?
For teens after an accident, companies like Geico and Erie often provide competitive rates. To compare options, check out our list of best car insurance companies.
How can teens find cheap car insurance after an accident?
Teens can find cheap car insurance after an accident by shopping around, taking advantage of good student discounts, completing defensive driving courses, and considering higher deductibles. It's also beneficial to stay on a parent's policy when possible.
Do you need insurance for a learner driver?
Yes, learner drivers need to be insured. For teens, being added to a parent's policy as a learner driver can be a more affordable option, especially if they've had an accident.
See if you’re getting the best deal on car insurance by entering your ZIP code below.
Do I need to add a teen driver to car insurance with a permit?
Yes, most states require teen drivers with learner's permits to have an insurance policy or be added to a parent or guardian's policy.
Who is most expensive to insure?
Teenage drivers, especially those with accidents on their record, are often the most expensive to insure. Male teens generally face higher rates than females. To understand why, read our article on why car insurance is so expensive.
What is a minor accident for car insurance?
A minor accident usually involves minimal damage to vehicles and no injuries. For teens, even a minor accident can significantly impact insurance rates, making it crucial to find cheap car insurance options after such incidents.
What do you say after a minor accident?
After a minor accident, it's important to remain calm and exchange insurance information. Teens should avoid admitting fault and contact their parents and insurance company immediately. For more guidance, read our article on when to file a car insurance claim.
What is the difference between an incident and an accident for car insurance?
An incident is any event that occurs, while an accident specifically refers to an unintentional or unexpected event resulting in damage or injury. For teens seeking cheap insurance after an accident, this distinction may affect their claims and subsequent rates.
Take the first step toward cheaper car insurance rates. enter your ZIP code below to see how much you could save.