Getting affordable car insurance as a young driver can be incredibly challenging, especially if you have no prior driving record or accidents on file. Auto insurance rates for teen drivers are notoriously expensive – on average, teens pay nearly three times the rate that older drivers pay.
Fortunately, there are some affordable insurance options available for young motorists, provided you shop around and qualify for certain discounts. We compared over 25 top insurance providers to determine the carriers offering the best rates to youthful drivers. In this comprehensive guide, we outline the 7 best car insurance companies for young drivers based on cost, coverage options, discounts, and more.
The 7 Best Car Insurance Companies for Young Drivers
| Company | Average Monthly Rate for Young Drivers | Discounts Offered | Our Rating |
|---|---|---|---|
| USAA | $166 | Good student, driver training, multi-vehicle | ★★★★★ |
| Geico | $200 | Good student, driver training | ★★★★☆ |
| State Farm | $135 | Steer clear, good student | ★★★★☆ |
| Allstate | $225 | Smart student, safe driving course | ★★★☆☆ |
| Progressive | $175 | Good student, distant student | ★★★☆☆ |
| Nationwide | $198 | Good student, defensive driver | ★★☆☆☆ |
| The General | $280 | Transfer discount | ★★☆☆☆ |
As you can see in our comparison, USAA and State Farm tend to offer the lowest average monthly premiums for teen drivers, plus they offer some of the best discounts. Read on as we explore what makes each of these carriers stand out when it comes to insuring young motorists.
What Factors Affect Insurance Costs for Teen Drivers?
As a young driver with little experience behind the wheel, car insurance carriers view you as a high risk compared to more seasoned drivers. Some of the main rating factors that contribute to expensive premiums include:
- Age – Teen rates start increasing around age 16. Rates peak around ages 18-19.
- Driving Experience – Less experience means higher risk to insurers. Rates start dropping around age 25.
- Gender – Statistically males get in more accidents, so young male drivers pay more.
- Type of Vehicle – Insuring a sports car costs more than insuring an old sedan.
- Location – Insurance rates are higher if you live in a congested, accident-prone area.
Fortunately, maintaining a clean driving record with no accidents or tickets can save you a tremendous amount on insurance over the next 5+ years. Let’s look at some top insurance picks for young drivers aiming to keep rates affordable.
The 7 Best Auto Insurers for Young Motorists
🏆 USAA: Best Overall for Young Military Drivers
For drivers with military affiliations, USAA is hands-down the best insurer for young drivers. Not only do they have the lowest average rates for teen motorists nationally, but they offer a host of ways for young drivers to save.
Discounts Offered
- Good Student Discount – For maintaining a B average or better, save up to 15%.
- Driver Training Discount – Take an accredited defensive driver course for 15% off.
- Multi-Vehicle Discount – Insure multiple vehicles to save up to 20%.
- Annual Mileage Discount – Drive less per year for a lower rate.
USAA also offers accident forgiveness to members which keeps rates steady after your first at-fault accident. Rates won’t skyrocket with a minor incident. Combine affordable pricing with superior customer service and it’s easy to see why USAA takes our #1 ranking.
Monthly premium estimate: $166
Our rating: ★★★★★
Geico: Best for High-Risk Young Drivers Needing SR-22
Known for hilarious ad campaigns featuring geckos and cavemen, GEICO actually has very competitive rates for rookie drivers. In states like California and Hawaii with the most expensive minimum coverage requirements, Geico tends to have better premiums for high-risk drivers than competitors.
They also offer an easy quote option for shoppers needing SR-22 insurance after an accident, license suspension, DUI, or other violation. Essentially SR-22 proves you carry liability coverage by informing the DMV anytime your policy lapses. High-risk drivers need it, and GEICO makes it easy to obtain.
Discounts Offered
- Good Student Discount – Maintain at least a B average to save.
- Defensive Driving Discount – Certain driver training courses earn discounts up to 10%.
Monthly premium estimate: $200
Our rating: ★★★★☆
State Farm: Best Young Driver Discounts
State Farm offers some of the lowest quotes in the country for drivers under 25 and provides more opportunities to save than most competitors.
Discounts Offered
- Steer Clear Discount – Licensed for under a year? This discount reduces accidents drastically for newly licensed motorists.
- Good Student Discount – Earn a discount based on your grade point average.
- Defensive Driving Discount – Pass an auto safety course for reduced rates.
State Farm also offers penalty forgiveness for young insureds so first-at-fault accidents won’t trigger a spike in rates like with most insurers. Combine very affordable pricing with stellar industry reputability and it’s easy to see why State Farm takes our #3 ranking.
Monthly premium estimate: $135
Our rating: ★★★★☆
Allstate: Best Device-Based Discounts
Allstate offers one of the widest varieties of usage-based or app-based discounts through their Drivewise program. Drivers can track mileage, speed, acceleration, braking, turns, and phone distraction to earn significant discounts. Safe driving means savings up to 25% for conscientious teens.
They also offer new car replacement and custom equipment coverage to protect your shiny new ride or investment in aftermarket parts/audio. But most appealing for young motorists is their array of discounts.
Discounts Offered
- Smart Student Discount – Maintain a B average or better for reduced premiums.
- Driving Training Discount – Pass an approved defensive driving course and save an extra 5-10%.
Monthly premium estimate: $225
Our rating: ★★★☆☆
Progressive: Best for Capable Students Heading to College
For students with their sights set on higher education, Progressive offers unique discounts that follow you through the college years.
Discounts Offered
- Good Student Discount – Maintain a B or better average and save up to 10%.
- Away at School Discount – Attending school more than 100 miles from home means savings up to 35%.
Progressive also insures drivers in some specialized situations where other carriers shy away, like international students attending university in the US. Overall flexible pricing and broad coverage capabilities make them a great pick for youth in transition to adulthood.
Monthly premium estimate: $175
Our rating: ★★★☆☆
Nationwide: Best Company Training Program
A slightly smaller insurer compared to top names like State Farm and Geico, Nationwide edges out similar smaller competitors by offering policyholders access to the Nationwide Driving Academy. This program goes beyond defensive driver discounts by teaching accident avoidance skills first-hand behind the wheel.
Interactive modules teach key skills like panic braking, crash avoidance, and more that help reduce collision rates substantially for young drivers. Nationwide policies also include vanishing deductibles that reduce your out-of-pocket costs by $100 every year you remain claims-free.
Discounts Offered
- Good Student Discount – Maintain at least a B average to save.
- Defensive Driving Discount – Pass an approved course for reduced premiums.
Monthly premium estimate: $198
Our rating: ★★☆☆☆
The General: Best for High-Risk Young Drivers Unable to Find Coverage
Known for specializing in higher-risk insurance, The General is the best option for young drivers unable to find coverage elsewhere due to tickets, license suspensions, duis, or serious violations. They underwrite policies other carriers automatically decline applications for.
Just know their rates tend to be higher and they have limited discount offerings compared to our other top picks. But if you have no other option due to driving history issues, The General offers affordable liability plans to satisfy state minimums so you can legally get on the road again.
Discounts Offered
- Transfer Discount – Switch to The General from a competitor and save.
Monthly premium estimate: $280
Our rating: ★★☆☆☆
How Can Young Drivers Save on Car Insurance?
As we’ve covered, there are two main ways for teen motorists to secure affordable rates:
1. Maintain a clean driving record with no accidents, speeding tickets, DUIs, or other violations. Infractions spike rates higher immediately.
2. Qualify for all possible discounts like good student, defensive driver, low mileage, multi-vehicle, anti-theft devices, and more. Ask providers what’s offered.
Getting quotes from multiple insurers is also key, as pricing varies wildly from one carrier to another due to proprietary risk analysis formulas. Securing quotes from 5+ companies ensures you find the best deal.
Compare rates for free from leading insurers below:
Finally, consider adding your new license to your parents’ policy temporarily if rates will be lower. Just make sure you aren’t skimping on critical coverages like injury or uninsured motorist coverage just to save money. Carrying adequate protection in case of an at-fault accident is essential.
FAQs about Young Driver Insurance
Below we’ve compiled key questions and answers to provide extra clarity regarding insuring youthful motorists:
How much is car insurance for an 18 year old?
Average rates for an 18 year old are $243 per month or $2,916 annually which is very pricey. Fortunately insurance gets cheaper every year you keep a clean driving record!
Does car color affect insurance cost for young drivers?
Yes! Bright colors like red or yellow may cost more since they’re involved in a disproportionate number of speeding incidents. Neutral colors like white and silver are cheaper to insure.
Do mileage-based policies save teen drivers money?
Yes, since teens tend to drive fewer total miles per year compared to adult drivers, low mileage discounts of 5-15% are an easy way to save.
Can you insure someone else’s car as a young driver?
Yes – you can insure a car you don’t own but insurance follows the driver, not the car. So rates will still be high if you’re the primary driver based on age.
What vehicles are cheapest to insure for teens?
The most affordable vehicles for teens and new drivers are typically larger sedans, minivans, and small SUVs. The best used car models we recommend checking out are: Toyota Camry, Ford Fusion, Chevrolet Malibu, Honda CR-V, Ford Escape.
We hope this detailed guide and tips provide clarity regarding securing affordable coverage for young drivers. Following these strategies and comparing insurer options ensures you find favorable rates. Just remember – safe driving and clean records also lead to financial savings over the long run.