Cheapest Car Insurance for Teens [2025]: Low Premiums for Good Students, Safe Drivers, and More

A driver's license is a symbol of freedom for a teenager, but it's also a harbinger of higher car insurance costs for families: Full-coverage car insurance policies for teen drivers cost about 90% more than a typical policy on average, which is the last thing you want, especially when you're already worrying about your new driver's safety on the road.

Fortunately, there are ways to save money on coverage. Some car insurance companies, like Auto-Owners and State Farm, offer cheaper rates than the average insurer. Some teens, particularly safe drivers and good students, may also qualify for discounts.

Whether you're a parent adding a young driver to your policy or a teen looking for your own coverage, your best bet is to compare rates with multiple insurance companies, so you can find the cheapest car insurance for teens and avoid breaking your budget.

How we evaluate products

We evaluated more than two dozen car insurance companies to choose the cheapest options for teen drivers. We considered average cost as the primary factor, but we also compared third-party ratings, customer reviews, coverage options, discount opportunities, digital tools, usage-based programs, and other unique features that may appeal to families with teen drivers. We did not include companies that offer coverage in fewer than 10 states.

Cheapest car insurance for teens

Company name	Best/Excellent for	Average monthly full coverage cost	Average monthly liability-only cost
Auto-Owners	Cheap premiums	$126	$67
Erie	Accident forgiveness	$226	$174
Root	Good drivers	$238	$155
USAA	Military families	$179	$90
GEICO	New car drivers	$245	$192
State Farm	Good students	$224	$107
Data provided by Insurify

Auto-Owners

Auto-Owners offers the cheapest liability-only and full-coverage premiums for teens, according to Insurify data. The company also offers several discounts for young drivers, including a good student discount of up to 20% for maintaining at least a "B" average, a student-away-at-school discount for college students living away from home without a car, and a discount for those who participate in a teen driver monitoring program.

However, Auto-Owners sells coverage in only 26 states and doesn't offer quotes without contacting an agent.

Learn more in our Auto-Owners review.

Erie Insurance

Since teens are more likely to get into accidents than adults, and since rates normally go up after you submit a claim, it would be great if there were a way to protect against potential premium hikes. With Erie there is. Erie offers a Rate Lock feature that you can add to your policy, which keeps your premium from increasing after a claim. And if you've been an Erie customer for at least three years, you can also qualify for first accident forgiveness at no additional cost.

Teens can also qualify for the company's youthful driving discount, if they live at home. If they switch to their own car insurance policy later on, they may receive a discount for being previously insured under a guardian's policy. Plus, in some states, Erie offers a driver training discount to teens who complete an accredited driver training course.

However, Erie is less available than other insurers, as it offers car insurance in only 12 states and Washington, D.C. It's also less ideal for teens interested in telematics, since Erie's program doesn't offer a premium discount for its usage-based program.

Learn more in our Erie review.

Root

Root calculates rates for teens based on their actual driving behavior, so the company could be a good option for teens who:

• Know how to brake smoothly
• Stay off their phone while behind the wheel
• Avoid speeding
• Don't often drive late at night

Root allows you to take a test drive to get an accurate quote based on how you drive. Its average rates for teens are cheap, and the company offers roadside assistance coverage with mobile app requests.

But Root doesn't offer a long list of additional discounts like its competitors. It also offers policies in only 35 states.

Learn more in our Root car insurance review.

USAA

USAA offers auto insurance to its members, and membership is only open to military members, veterans, certain federal employees, and their immediate families. If you qualify, you can get relatively cheap coverage from the company. USAA also offers an additional discount of up to 10% for full-time students who maintain a "B" average or meet other academic standards.

Teens can also earn a discount for completing a driver training course or enrolling in SafePilot, the company's safe driving telematics program. USAA also offers 24/7 roadside assistance to get teens moving again after a breakdown.

Learn more in our USAA review.

GEICO

While teens with new cars face even higher car insurance rates, GEICO offers several discount opportunities to help offset the cost. In addition to a good student discount and a driver training discount, GEICO offers a new car discount and several vehicle equipment discounts for cars with certain safety and security features.

The company also offers mechanical breakdown insurance for new cars, which helps curb out-of-pocket costs for non-accident-related car problems. In addition, GEICO's usage-based insurance program, DriveEasy, has received a high rating from J.D. Power.

But GEICO doesn't offer guaranteed asset protection (GAP) insurance, which is important for teens with newer financed or leased cars. The company also has many complaints with the Better Business Bureau.

Learn more in our GEICO review.

State Farm

State Farm offers a particularly generous good student discount. Teens with good grades can save up to 25%, and these savings could last until age 25. Homeschooled students can qualify by meeting standardized test requirements.

The company also offers a driver training discount and a student away at school discount, which is available to young drivers attending college without a car. Plus, State Farm offers a usage-based program, Steer Clear, specifically designed to teach teens about safe driving. Teen drivers can earn a discount for continuing to meet their state's eligibility requirements.

I'm a State Farm policyholder, and I've found the company to offer superior customer service. Each policyholder has a dedicated agent, and parents will be glad to know that the company's 24-hour roadside assistance service is fast, and in-app requests are intuitive and easy. J.D. Power also rated State Farm highly for claims satisfaction.

Learn more in our State Farm review.

What affects teen car insurance costs?

Teens pay more for car insurance due to several factors:

• Lack of experience: Teens have less practice than mature drivers, so they tend to make mistakes, like driving too fast around a curve, failing to scan for hazards, or getting distracted. These kinds of "critical errors" cause the majority of teen crashes.
• Higher crash rates: According to the U.S. Centers for Disease Control and Prevention, teens aged 16-19 are more likely to be in a car accident than any other age group. The higher crash rate means teens are more likely to file a claim, so car insurance companies charge them higher rates to account for the risk.
• Alcohol use: Alcohol use is common among teens, and teens who drink are more likely to drive impaired. When driving under the influence, teens are more likely to be in a crash.

Car insurance premiums for teens also depend on other factors besides age, including:

• Location: Teen drivers living in high-cost urban areas with high rates of theft and accidents may pay higher premiums than teens living in rural areas or small towns.
• Gender: Women tend to be involved in fewer and less serious accidents, and the difference is especially pronounced among teens. In 2022, the fatal accident involvement rate for teen boys was more than double the rate for teen girls, according to the National Highway Traffic Safety Administration. As a result, teen girls may pay lower premiums than teen boys.
• Vehicle: More expensive cars generally cost more to insure. Choosing a used vehicle that still has strong safety ratings and good security equipment can help minimize car insurance costs.
• Mileage: Teens who drive to school every day may pay more for car insurance than those who occasionally borrow a parent's car, since higher-mileage drivers have more opportunities to get in an accident.
• Coverage choices: Buying collision and comprehensive coverage, selecting higher limits for liability coverage, or getting optional coverages like GAP insurance will raise a teen's premiums. Choosing a low deductible also results in a higher premium.

How teens can get cheaper car insurance premiums

The following tips may help teen drivers save money on car insurance:

• Become a listed driver on your parents' policy: If you ask your parents to list you as a driver on their auto insurance policy, their premiums will increase, but the increase is typically less than the cost of getting your own policy as a teen. But if you're an older teen and no longer live with your parents, you may need your own insurance.
• Compare car insurance quotes: Some auto insurers offer cheaper rates to teen drivers than others. Whether you're a parent who needs to add a teen, or a teen looking for the best deal, collect a handful of car insurance quotes to compare pricing. Our list of the best car insurance companies is a great starting point.
• Maintain good grades: Some car insurance companies offer a good student discount. Academic requirements vary by company, but they usually require maintaining a "B" average or better.
• Take a driver training course: Some car insurance providers will offer discounted premiums to teens who have completed an approved driver education course.
• Enroll in a telematics program: Enrolling in a usage-based insurance program that tracks your driving behavior via mobile app or telematics device can lower your car insurance premiums if you're a cautious driver. You typically need to avoid speeding, texting behind the wheel, hard braking, driving late at night, and other risky behaviors. Some programs may lead to a premium increase for risky driving, while others, like Nationwide's SmartRide, only discount your rates.
• Consider a high deductible: Choosing a high deductible lowers your car insurance premium. However, make sure you or your parents have enough money saved to cover your car insurance deductible if you need to file a claim, especially since teens are more likely to be in a collision.
• Seek other discounts: Ask your insurance agent whether you might qualify for a low-mileage discount, a vehicle equipment discount, or any other savings opportunities.

FAQs

Bottom line

Car insurance for teens is expensive, but you can reduce the cost by choosing the right company. Auto-Owners, State Farm, and USAA are a few examples of car insurance companies that offer cheaper-than-average rates for liability and full coverage policies for teen drivers.

But it's still wise to compare customized quotes to find the best deal. You can also look out for various discounts for young drivers.