How much is car insurance for a 17 year old?

Car insurance for a 17-year-old driver is nearly $5,925, on average, for a year of full coverage on their own policy. That’s more than $4,000 over the national average ($1,758) for drivers age 30. Newly licensed drivers are expensive to insure. They are inexperienced, naturally, and have a high rate of accidents. Auto insurance companies view that as risky. So, they charge new, teen drivers much higher rates. But there are still ways to get car insurance for a 17-year-old driver and save, while still ensuring you have sufficient coverage. Here we'll explain how.

As the table below shows, adding a teen to a parents’ policy is much cheaper than buying separate coverage under the teen’s name. While there is a huge savings between adding a teen and the teen having his or own policy, the cost to add the teen is generally significant.

For the cost to add a teen, CarInsurance.com compared rates in 10 zip codes in each state. The family profile we used owned a 2017 Honda Accord driven by a 45-year old man buying full coverage. Then we added a 17-year old teen to the policy

Car insurance cost for a 17-year-old female

The average cost for insurance for a 17-year-old female is $5,490. That’s for a policy of her own that includes comprehensive and collision coverage, with liability limits of 100/300/100. Teen female drivers age 17 pay $867 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 on. You'll see that adding a teen is much less expensive. That's because when teens get their own policy, they qualify for few discounts compared to their parents. Also, teens are commonly listed as a secondary driver on parents' policies.

Car insurance for a 17-year-old girl

Car insurance price for a 17-year-old male

Boys age 17 pay, on average, $6,357 for their own full coverage policy. That’s about $867 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 his parents.

Car insurance for a 17-year-old boy

How much does it cost to add a 17-year-old to car insurance?

Though adding a teen to a parent policy is cheaper than the teen having his or her own separate policy, the cost of adding a teen driver can still be pricey. Below are the average annual costs to add a 17-year-old boy or girl to your coverage.

Every situation is different, but to get an idea of what you can expect to pay, CarInsurance.com compared rates in 10 ZIP codes in each state. The family profile we used owned a 2017 Honda Accord driven by a 45-year old man buying full coverage. Then we added a 17-year old teen to the policy. Here's what happened:

The average household's car insurance bill rose by about 106% to add a teen age 17.

A teenage boy was more expensive. The average bill rose 117%, compared with 95% for teenage girls.

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

You’ll see in the chart below how much it costs to add a teen driver to a parent policy and how much you save doing so:

When it comes to car insurance for young drivers, most parents take the easier, and far more common, approach of adding a teen to their policy. For one thing, it's likely to be cheaper.

Insurers base premiums on several factors, including the experience and driving record of the policyholder. A 17-year-old won't have that, which means higher rates.

Also, as CarInsurance.com Senior Consumer Analyst Penny Gusner points out, the teen won't be eligible for rate reductions the parent may qualify for, including multi-vehicle, multi-policy and loyalty discounts. Still, adding a 17-year-old driver to your policy means a significant hike in your rates.

Cheapest car insurance for 17-year-olds

Below you’ll see how auto insurance companies rank in price for a 17-year-old driver buying his or her own full coverage policy. Concord, Liberty Mutual, USAA, North Carolina Farm Bureau, Safeco, Geico  and Erie had the cheapest car insurance for 17-year-olds among national carriers surveyed by CarInsurance.com.

Car insurance for 17-year old: State minimum coverage

Each state has minimum car insurance requirements that you must have to drive legally. This level of coverage is typically the cheapest, but it also provides limited protection. In most states, buying just the required coverage means your insurance will pay for others’ injuries and car damage, but not for your own injuries or car repairs. You’ll see in the charts below how much minimum coverage costs, on average, per year in each state, for a teen buying his or her own policy, as well as how that compares to the cost when added to a parent's policy.

Car Insurance for a 17-Year-Old Girl: State minimum coverage

Car Insurance for a 17-Year-Old Boy: State minimum coverage

Recommendations and FAQs drivers

Liability protection is the first step when you insure a 17-year-old.

Gusner says it may be a mistake to think state-mandated minimum coverage is enough. 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.

You don't want to be liable for out-of-pocket payments so make sure your basic liability coverage protects your assets. Besides raising your liability amount, Gusner suggests purchasing an umbrella policy, which raises liability protection after you reach those basic limits. An umbrella with $1 million or more of protection may be reasonable.

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.

The cost for comprehensive and collision insurance, on average, per year is $436, according to the Insurance Information Institute. The average yearly rate for comprehensive is $139, and collision costs $297.

If you opt for comprehensive and collision, consider higher deductibles to lower your rate. Of course, you'd then have to pay for minor repairs following an accident.

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, which includes comprehensive and collision insurance.

To drive legally, you only need state required liability insurance, which pays for damage and injuries of others in accidents you cause. It doesn’t cover your own car. However, because teens are inexperienced, and as a demographic have more accidents than experienced drivers, it’s wise to have full coverage on the car your teen drives.

Insurance applies to the car, not the driver. That means the coverage on the car that the teen is driving will apply to accidents and damage caused by the teen.

Gusner recommends a full coverage policy of the following:

• $100,000 for injury liability for one person, to pay for medical bills for those injured in an accident you cause
• $300,000 for all injuries in one accident that’s your fault
• $100,000 for property damage you cause, for instance, to repair a car you hit
• Collision insurance, to pay for damage to your car regardless of fault in an accident
• Comprehensive, to pay for damage to your car from hail, flooding, fire, vandalism, animal strikes, and to replace it if stolen

It really is worth the extra money to be fully protected during the time your teen is driving your car. Otherwise, you can be on the hook to pay out of your own pocket for even minor accidents that can exceed a bare-bones policy. The cost to jump from state minimum to full coverage with a 17-year-old daughter on your policy is about $1,800, but that’s just $150 a month for peace of mind. For a 17-year-old son, the cost to buy full coverage with him on your policy instead of state minimum is $1,966, or $164 a month.

Teen Driver Safety

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

Teen drivers get into fewer fatal accidents than when their parents were teens. Driving safety experts say a primary reason for this improvement is Graduated Driving License (GDL) laws.

States have varying levels of GDL laws. These include 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 and even 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.

Though teen driver statistics have improved since the 20th century, the National Highway Traffic Safety Administration reported that teen-involved fatal accidents are on the rise this decade. There were 2,082 teen-involved fatal accidents in 2016, which was an increase over 1,886 in 2015.

One common issue with teen drivers is distracted driving. The National Highway Traffic Safety Administration (NHTSA) said about 30 percent of teens say they've texted while driving. Plus, a teen's risk of an accident increases six-fold when dialing a phone number, the NHTSA said.

There are many other types of distracted driving, including fiddling with the radio, eating while driving and chatting with friends.

You might not be able to drive in the vehicle with your teen at all times, but there's a way to influence your child when you're not around. That's being a role model. Don't text while driving, don't get distracted while driving, follow the rules of the road and don't get sucked into road rage. Your child is watching you and will pick up on your habits.

Lead by example and your teen will have a better shot of driving safely

Adding a Teen to Parents' Policy is Usually More Affordable

Parents frequently take the easier -- and 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, Gusner says 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.

Auto Insurance Discounts for 17-Year-Olds

Car insurance discounts are one way to keep down your costs. The good news is that teens are eligible for discounts.

Car insurance discounts for teens vary by state and company, but here are some of the more common ones:

• Driver's Ed: You may be able to get a 5 percent discount if your teenager completes a driver education course. Taking the class may be required, under state law, as a step toward getting a license.
• Good student: A discount up to 15 percent may be available for drivers who maintain a 3.0 or "B" average in the classroom.
• A driving contract between parents and teen: Insurers may give up to a 5 percent discount to teens who sign a contract with their parents specifying driving rules, such as limiting hours on the road and the numbers of passengers.

Shop Around for Car Insurance

Adding a teen to your policy will increase the cost of your policy. There's no way around that.

If you're a teen buying a policy, you will face much higher rates than your parents.

The best way to combat this is to shop around. Compare car insurance quotes from multiple insurance companies.

Each insurer uses its own method for calculating what you pay, so prices for the same policy can vary significantly.

"The teen's policy premium could be lower from one insurer to another," Gusner says.

You can take a little financial solace in knowing that the high cost of insuring a young driver fades over time. Average car insurance rates by age show that premiums begin to significantly decrease when drivers turn 26.

Check out the other teen driver pages on CarInsurance.com:

• Car insurance for a 16-year-old
• Car insurance for an 18-year-old
• Car insurance for a 19-year-old

Car insurance for teens is more than any other age group. However, going accident-free and avoiding traffic tickets, a teen will see his or her car insurance rates decline each year.