How much is car insurance for a 17 year old?

The cost of insuring teens gets a little cheaper after teens have had a year of driving under their belts. But the auto insurance expense is still high compared with that of older drivers.

The average car insurance rate for a 17 year old on their own policy is $6,272 a year for full coverage – $523 per month. That rate is more than $4,500 higher than the national average of $1,682 for 40-year-old drivers.

Auto insurance companies charge 17 year old drivers higher rates because these drivers pose a higher risk to insurers than more experienced drivers do, says Carole Walker, executive director of the Rocky Mountain Insurance Information Association.

“It’s not just that teen drivers are inexperienced behind the wheel, but they’re also more likely to engage in high-risk behaviors, such as distracted and impaired driving, speeding and not wearing seatbelts,” Walker says.

In fact, the risk of car crashes is highest among teens aged 16-19 than in any other age group, according to the Centers for Disease Control & Prevention. And per mile driven, teen drivers 16-19 are almost three times as likely to be in a fatal crash than drivers 20 or older.

Fortunately, there are some things you can do to reduce the cost of car insurance for your new driver.

Car insurance for teens: What’s the average cost for a 17 year old?

What you pay to insure your teen driver will vary, of course. The insurer you choose can make a big difference in terms of what you will pay. Other factors – ranging from the state where you live to the car you drive – play a big role in what you will pay.

To give you an idea of what to expect to pay for car insurance for young drivers, we provide average annual rates by state in the charts below. You will notice that adding a teen to your own policy is much less expensive than having your teen purchase their own policy, which teens can only do if they’re emancipated adults or have reached the age of majority in your state.

Car insurance costs for a 17-year-old female

The nationwide average cost for insurance for a 17-year-old female is $5,576. Teen female drivers aged 17 pay $696 less than males their age.

Below, you’ll see average insurance costs by state for a 17-year-old female, and how that compares to the price of a parent policy with the child added.

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Car insurance costs for a 17-year-old male

Males aged 17 pay, on average, $6,272 for their own full coverage policy. That’s about $696 more than their female counterparts. You can compare rates for a male 17-year-old with his own policy to that of being added to a parent’s policy.

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How much do you save by adding a 17 year old to your insurance vs. a teen’s own policy

You can see in the chart below how much it costs to add a teen driver to a parent policy and how much you can save.

Cheapest car insurance for 17 year olds

Below you’ll see how major carriers compare on rates when you add a teen driver age 17 to your coverage. For this scenario, Island, North Carolina Farm Bureau, New Jersey Manufacturers, Nationwide and Erie were the cheapest among insurance companies we surveyed for adding a female.

Parent policy with a female, age 17

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Parent policy with male, age 17

Island, North Carolina Farm Bureau, New Jersey Manufacturers, Nationwide and USAA were the cheapest for adding drivers who are 17.

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What’s the average annual car insurance rate for a 17-year-old driver with their own policy?

If your teen is buying her or his own policy, Island, North Carolina Farm Bureau, Erie Insurance and Mapfre came in with the lowest female rates for full coverage.

You can also sort the columns for state minimum and mid-level liability policies in the table below.

Average annual car insurance rates for a 17-year-old female

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Average annual car insurance rates for a 17-year-old male

For 17-year-old male drivers on their own policies, Island, North Carolina Farm Bureau, Erie Insurance, USAA and Mapfre are among the national carriers with the cheapest car insurance rates.

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What are the rules for a 17-year-old driver?

Most states have laws that restrict where and when 17 year olds can drive. These stipulations are usually called Graduated Driver License (GDL) laws and apply to drivers younger than 18.

GDL laws vary by state with some states having very strict laws and others having very lenient ones. Over time, you “graduate” from a provisional or restricted license you get as a teen to a standard license with no restrictions.

GDL laws typically include provisions for the following:

• Limiting drive time to daytime hours.
• Requiring a passenger who is over a certain age to be in the car.
• Not allowing passengers under a certain age to be in the car.
• Banning the use of cellphones for both calls and texting.
• Limiting destinations to work and school.

For more details on GDL laws and why they are important, check out the most and least dangerous states for teen drivers.

Teen driver safety

The reason why car insurance for a 17 year old is so expensive is that newer drivers are more likely to get into accidents. Accidents lead to claims, which increases costs for insurance companies.

States have varying levels of Graduated Driving License (GDL) laws. These include a learner’s permit, minimum hours of supervised driving and restrictions on passengers and hours a teen can drive. There are also bans on texting and using a cell phone.

When a driver turns 17, he or she will age out of some GDL laws. However, many states still restrict drivers until they’re 18 or 21. For 17-year-old olds, restrictions include passenger and nighttime limits for unsupervised driving. GDL laws vary by state, so it’s best to check your state’s GDL laws.

Adding a teen to a parent’s insurance policy is the cheapest

Parents frequently take the less costly approach of putting a teen on their existing policy. It’s usually cheaper than getting a separate policy because the cost of a policy takes into account the experience and driving record of the policyholder.

A 17 year old doesn’t have a proven track record on the highway, which means higher rates when an insurer crunches the numbers.

Beyond that, a 17 year old won’t get the same car insurance discounts as a parent, including multi-vehicle, multi-policy and loyalty discounts. But even with those discounts, adding a 17-year-old driver to a policy still means a significant hike in rates.

Another benefit of sharing a policy is that the teen is covered if he borrows your car on occasion, and the parents are covered if they drive the teen’s car.

Check out our detailed parents’ guide on the best and cheapest way to insure teenage drivers

Car insurance discounts for 17 year olds

Discounts can help you cut the high cost of insuring a young driver. Several discounts are available that young drivers can use to reduce their car insurance bills. They vary by state and insurer but may include:

• Good student: Holding at least a 3.0 or “B” average might nab you a discount of up to 16.
• Parent-teen driving contract: Some insurers will give teens a 5% discount if the young drivers are willing to sign a contract with their parents that states the driving rules they pledge to follow.

Shopping around can lower the cost of adding a teen

While adding a teen to your auto insurance policy is expensive, you can cut costs if you shop around and compare quotes to find the best auto insurance rates.

Car insurance rates should drop once a teen gains a few years of driving experience and keeps a clean driving record. By age 26, costs should decline significantly.

CarInsurance.com has guides for car insurance for 16 year olds, 18 year olds and 19 year olds that break down rates for car insurance for teens.

Other ways to save on car insurance for your teen

Clean driving record

If you are looking for ways to lower car insurance costs, keeping a clean driving record is tough to beat. Insurance companies tend to reward drivers of all ages who avoid speeding, accidents, reckless driving and distracted driving. 

Give a second thought to filing a claim

If your teen is in a minor at-fault accident, it might not make sense to file a claim. Before you call your insurance company, have a clear understanding of how much your insurance rates might increase if you file a claim for an at-fault accident.

In some cases, paying out of pocket makes more financial sense over the long haul.

FAQs for insuring 17-year-old drivers

Can a 17 year old have a car in their name and insure it?

A 17 year old can own a car and insure it in most states, but only if a parent or legal guardian co-signs for both the vehicle’s title and insurance coverages.

Are the state minimum requirements enough for my teen driver?

Liability protection is the first step when you insure a 17 year old. State minimums are usually not enough. Medical bills and costs tied to property damage can start high and quickly go higher, depending on the injuries to those involved.

 If you’re financing your vehicle, comprehensive insurance and collision coverage are required. If you own your car outright, you can opt-out if you want, but that means you’re not covered for theft, damage to your vehicle from an accident or from hail, fire, floods and vandalism.

Why are teen car insurance rates higher?

Car insurance companies base rates on risk. They consider a person’s driving experience, claims history, location, type of vehicle and other factors.

A driver with a risky (or a limited) driving record will pay more than a motorist who hasn’t filed a claim in a decade.

Does a 17 year old have to have full coverage?

There is no law requiring teen drivers to have full coverage. However, if the car being driven is leased or financed, the lender will mandate that you have full coverage, including comprehensive and collision insurance.

 To drive legally, you only need state-minimum liability insurance, which pays for damage and injuries to others in accidents you cause. It doesn’t cover your own car.

However, because teens are inexperienced, it’s wise to have full coverage for the car your teen drives.

Do you need insurance to drive with a learner’s permit?

Most states require that you have at least minimum liability insurance to drive. Liability insurance is what covers damages a driver may cause to people or property in an accident. This also applies to a 17 year old, who must show that their owner’s policy currently covers the vehicle.

 What are the best cars for 17 year olds?

Besides protecting your teen, your insurance company may show its appreciation for buying a top car for teens by trimming your rate.

 The Insurance Institute for Highway Safety (IIHS) offers some basics when looking for a vehicle:

• Vehicles with more powerful engines can tempt (young drivers) to test the limits, according to the IIHS.
• Get Electronic Stability Control (ESC), which helps maintain control on curves and slippery roads.
• Consider cars with top safety reviews from the IIHS and National Highway Traffic Safety Administration.

Final thoughts: Car insurance for a 17 year old

Being the parent of a teen driver is stressful and expensive. It may be tempting to get them their own policy to teach them independence, but adding your teen to your auto insurance policy is a great way to save money.

Make sure you are leading by example. In other words, don’t text and drive and then tell them it’s unsafe for them to do the same thing. Provide exemplary driving behavior, assure that your children are following GDL laws and shop for car insurance at each renewal to make sure you’re getting the best deal.

These things will ensure your teen understands how to drive safely and will result in you paying the least amount possible for their car insurance.

Resources & Methodology

Sources:

1. Centers for Disease Control & Prevention. “Teen Drivers: Get the Facts.” Accessed June 2022.
2. Governors Highway Safety Association. “Teen and Novice Drivers.” Accessed June 2022.
3. Insurance Institute for Highway Safety, Highway Loss Data Institute. “Teenagers.” Accessed June 2022.

Methodology:

CarInsurance.com commissioned Quadrant Information Services in 2022 to field rates for full coverage auto coverage data by ZIP code for 17-year-old and 40-year-old drivers.

– Michelle Megna contributed to this story.