When it comes to insuring a teen driver, the price tag will make you wish for the days of expensive diapers and daycare. The price you pay depends largely on where you live – the annual average rate for a teen driver aged 16-19 ranges from $1,639 in Hawaii to $8,412 in Louisiana.
- Hawaii, North Carolina and Maine are the cheapest U.S. states for car insurance for teen drivers aged 16-19.
- Louisiana, Delaware and Nevada are the priciest U.S. states for car insurance for teen drivers aged 16-19.
- USAA, Nationwide and Geico offer the cheapest rates for teens on a parent’s auto insurance policy.
Why is car insurance for teens so expensive?
Teen drivers are risky – their fatal crash rate is nearly three times higher per mile driven compared to drivers aged 20 and older. Teen drivers aged 16-19 face a higher risk of motor vehicle crashes than any other age group, according to the CDC. High risk equals expensive insurance.
Teen drivers are more likely to be involved in crashes due to several risk factors:
- Inexperience: Teens lack driving experience and are twice as likely as adults to be in fatal crashes.
- Immaturity: Risk-taking behaviors like speeding, tailgating, and distracted driving are more common among teens.
- Night driving: Teens are less experienced when driving at night, increasing the likelihood of crashes.
- Drinking and driving: Though not common, alcohol-related crashes disproportionately affect teens.
- Teen passengers: Having other teens in the car can lead to riskier driving behaviors.
- Social norms: Teens influenced by peers who drive recklessly may adopt similar habits.
- Visual scanning: New drivers may struggle with scanning the road for potential dangers.
To mitigate these risks, states have enacted Graduated Driver Licensing (GDL) laws, and parents can assist by creating a Parent-Teen Driving Agreement to guide safe driving habits.
Many state laws prohibit teen drivers from driving with teen passengers, driving at certain hours, or driving without a parent to avoid the risks listed above for a specified time period after being licensed.
In Florida, for example, driving is only allowed for 16-year-olds between 6 a.m. and 11 p.m. without a licensed adult. Once a driver turns 17, they can drive between 5 a.m. and 1 a.m. without a licensed adult.
“Teens are expensive to insure because they lack driving experience, making them more likely to be involved in accidents, which increases their risk profile for insurers,” says James Brau, Joel C. Peterson Professor of Finance at Brigham Young University. “Additionally, statistical data shows that teens are more prone to risky behaviors, further increasing the likelihood of claims. This is especially true of teenaged males, who tend to take the most amount of risk.”
Learn more about the cost of adding a teenager to car insurance
Which companies are the cheapest and most expensive for teen car insurance?
USAA, Nationwide, Geico and State Farm offer the cheapest full coverage car insurance for a teen on a parent’s policy. However, USAA is only available to military community members and their families.
See the annual and monthly rates for teens with a parent in the table below.
| Company | Annual full coverage rates | Monthly full coverage rates |
|---|---|---|
| Allstate | $2,310 | $192 |
| Farmers | $2,939 | $245 |
| Geico | $1,264 | $105 |
| Nationwide | $1,538 | $128 |
| Progressive | $1,913 | $159 |
| State Farm | $1,671 | $139 |
| Travelers | $1,806 | $151 |
| USAA* | $1,101 | $92 |
| Company | Annual full coverage rates | Monthly full coverage rates |
|---|---|---|
| Allstate | $4,036 | $336 |
| Farmers | $4,872 | $406 |
| Geico | $2,548 | $212 |
| Nationwide | $2,441 | $203 |
| Progressive | $3,857 | $321 |
| State Farm | $3,046 | $254 |
| Travelers | $3,619 | $302 |
| USAA* | $2,419 | $202 |
Note: USAA is only available to military community members and their families.
Car insurance for teen drivers: The best and cheapest way to insure teenage drivers
Which states have the cheapest car insurance for teens?
Drivers in Hawaii, the state with the cheapest car insurance for teens, save nearly $7K annually over drivers in Louisiana, where teens pay an average rate of $8,412 per year. After Hawaii, teen drivers in North Carolina, Maine, New Hampshire and Iowa pay the least for car insurance in the U.S., on average.
See the top 10 cheapest states for teen driver car insurance in the table below.
| Rank | State | Avg annual teen rate |
|---|---|---|
| 1 | Hawaii | $1,639 |
| 2 | North Carolina | $3,909 |
| 3 | Maine | $4,082 |
| 4 | New Hampshire | $4,141 |
| 5 | Iowa | $4,422 |
| 6 | Virginia | $4,495 |
| 7 | Vermont | $4,534 |
| 8 | Texas | $4,611 |
| 9 | Indiana | $4,615 |
| 10 | Ohio | $4,700 |
Which states are most expensive for teen car insurance?
Louisiana is the most expensive state for teen car insurance by far – nearly $1K annually more than the second most-expensive state, Delaware. Nevada, Florida and Rhode Island round out the top five most expensive states for teen car insurance in the U.S.
See the top 10 most expensive states for teen driver car insurance in the table below.
| Rank | State | Avg annual teen rate |
|---|---|---|
| 1 | Louisiana | $8,412 |
| 2 | Delaware | $7,551 |
| 3 | Nevada | $7,451 |
| 4 | Florida | $7,289 |
| 5 | Rhode Island | $7,119 |
| 6 | Connecticut | $7,059 |
| 7 | Arizona | $7,027 |
| 8 | Montana | $6,807 |
| 9 | Oklahoma | $6,734 |
| 10 | Kentucky | $6,609 |
You might also be interested in: FAQ: Teen drivers
At what age can teens start driving?
Most states allow teens to obtain a learner’s permit at age 15 or 16, followed by a provisional or intermediate license before getting a full license.
How can I lower my teen’s car insurance rates?
Many insurers offer discounts for good grades, safe driving courses, and having a vehicle with safety features. Adding a teen to a family policy is often cheaper than a separate policy.
“Some strategies to lower teen insurance premiums include adding them to your existing policy, as multi-car discounts are often available, and encouraging them to maintain good grades, which may qualify them for a good student discount,” Brau says. “Additionally, choosing a vehicle with safety features and enrolling them in a driver’s education course can also help reduce premiums. We always had our children as the primary driver on our lowest-valued cars (typically cars that were 20-years old and cost us less than $5,000) and that seemed to help as well. On these super-cheap cars, we didn’t carry collision insurance which really decreased the rates. If the kids got in a wreck, we fixed the car ourselves or donated it to charity.”
What are the most common causes of teen driver accidents?
Inexperience, distracted driving (especially cell phone use), speeding, and driving with teen passengers are the leading causes.
Can my teen drive alone with a learner’s permit?
No, a licensed adult (typically 21 or older) must accompany the teen while driving with a learner’s permit.
How do Graduated Driver Licensing (GDL) laws work?
GDL laws introduce driving privileges in stages, typically with restrictions on night driving, the number of passengers, and requiring more supervised practice.
What should I do if my teen gets into an accident?
Ensure safety first, contact authorities, gather insurance and vehicle information, and file a claim with your insurance company. It’s important to remain calm and guide your teen through the process.
How many hours of supervised driving does my teen need before getting a license?
Requirements vary by state, but many states require 40-50 hours of supervised driving practice, including some nighttime driving.
Resources & Methodology
Sources
Methodology
CarInsurance.com commissioned Quadrant Information Services to pull the following data sets:
- Rates for males and females driving a Honda Accord LX with a clean driving record. The hypothetical driver has a full coverage policy with limits of 100/300/100 and $500 comprehensive/collision deductibles. The data comes from 53,409,632 quotes, 170 companies and 29,152 cities.
- Rates for males driving a Honda Accord LX with a clean driving record. The hypothetical driver has a full coverage policy with limits of 100/300/100 and $500 comprehensive/collision deductibles. The data comes from 694,408 quotes, 73 companies and 548 cities.
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