FOR FAMILIES INSURING TEEN DRIVERS
Car insurance for teens – How much it costs and how families save
Adding a teenager to your policy is one of the important insurance decisions a family makes. CarInsurance.com’s tools and rate data help you estimate costs, understand what drives them and choose coverage with confidence.
Cost of insuring your teen at age 17
Teen’s cost on family policy
$4,186 /year
Teen-only policy
$10,387 /year
Teen’s cost on family policy
$3,937 /year
Teen-only policy
$8,614 /year
Teen’s cost on family policy
$3,792 /year
Teen-only policy
$7,498 /year
Teen’s cost on family policy
$3,572 /year
Teen-only policy
$5,718 /year
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BEYOND THE NUMBERS
Teen driver cost at a glance
Insuring a teen is a major expense. Understanding these averages puts you in control when comparing carriers and costs.
AVERAGE
$670 /month
Average teen cost, age 16-19
SAVINGS
$2,900 to $4,800
Saved on parent’s policy
TEEN CRASH RISK
4x
the rate of adults 20+
CHEAPEST
$422 /month
Cheapest carrier (Travelers)
MAKING THE RIGHT CALL
Adding a teen to your policy — what to know
Teen drivers usually can’t buy their own car insurance policy until they reach the age of majority in their state. For most families, sharing a policy is cheaper, but there are times when a separate policy may make sense.
RECOMMENDED
Keep them on your policy- The teen lives at home and has a clean record
- A college student uses your car during breaks
- A student is away at school without their own car: a student-away discount may apply
RECONSIDER
A separate policy makes more sense if- The teen is financially independent and owns a car
- They have a DUI or multiple at-fault accidents on their record
- They live away from home and own a car
- They are an emancipated minor
A shared policy saves money
$7,594
$3,073
$6,666
Teen own $7,594 · Parent own $3,073 · Parent + teen $6,666
$8,495
$3,073
$7,224
Teen own $8,495 · Parent own $3,073 · Parent + teen $7,224
Savings refers to the teen’s own policy cost minus the increase in the parent’s policy cost.
PERSONALIZED SAVINGS ESTIMATE
Teen driver savings estimator
Enter your teen’s age, state and gender to see how much you can save by adding a teen to your policy versus the cost of them purchasing a policy of their own.
Should you add your teen — or get them their own policy?
No email needed. Just fill in your teen's details to see the estimated average cost of adding them.
RECOMMENDED
Stay on the family policy
YOU COULD SAVE
$11,501/year
By adding your teen to your policy instead of buying them a separate one.
Note: A teen's cost on a family policy shows how much more you'll pay after adding a teen driver
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EDITOR’S NOTE
“The fastest way to cut teen insurance costs is to stay on a parent’s policy. Most families save more than $2,000 a year from that one decision — before any discounts.”
WHAT YOU CAN CONTROL
What really drives a teen’s insurance bill
The decisions that lower the cost, the discounts most families miss and what to do at each step.
$7,553
Cost to add a 16-year-old male
Adding a 16-year-old costs more than most parents expect
The cost of adding a 16-year-old male to your policy is $7,553 per year and $6,965 for a female teen, a $588 difference in coverage costs based on gender.
$1,402
Save on premiums by choosing a safer car
A 2020 Toyota Camry costs $8,010 a year to insure for an 18-year-old.
Choosing the right car can lower your teen’s premium. Safer, smaller vehicles with lower repair costs usually cost less to insure. Insuring a 2025 Toyota Camry costs $9,412 a year for the same coverage.
3 states
Age of majority above 18
A license does not always mean legal independence
In Alabama and Nebraska, teens are not legal adults until 19. In Mississippi, the age of majority is 21, meaning teens may need a parent’s help to buy, register or insure a vehicle even after they can drive.
Up to 12%
Take advantage of discounts
The easiest savings are the ones you ask for
Parents can take advantage of discounts to help lower their premiums when adding a teen driver to their policy. Stacked with good student (12%) and driver’s ed discounts (5%), most families can save money on their policy.
CARINSURANCE.COM INSIGHTS
Facts that surprise most parents
A few interesting things about teen drivers and their rates worth knowing before you buy coverage.
In Hawaii, California and Massachusetts, an 18-year-old and a 40-year-old may pay the same rates
These three states bar insurers from using a driver’s age as a rating factor — a protection that helps policyholders avoid high premiums.
Six states won’t let insurers charge your teen based on their gender
California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania ban gender as a rating factor — so a teen son and daughter with the same record pay the same rate.
In one of the most expensive states for car insurance, Louisiana, adding a 16-year-old raises a parent’s premium by 186%.
In Louisiana, the annual cost jumps from $4,091 to $11,701 the moment you add a teen driver to your policy.
Teen crashes spike every summer —between Memorial Day and Labor Day — AAA and safety researchers call it the 100 Deadliest Days.
Fatal crashes involving teens spike every summer. Talk to your teen about vehicle preparedness and what to carry before getting behind the wheel.
TOOLS & CALCULATORS
Estimate your car insurance rates now
See what affects your teen’s rate most — rates vary by location, make/model and coverage. Switch tabs to compare.
Estimated cost for ZIP 11111. Full Coverage
$462/mo
Insurance costs $5,544/year for an 18-year-old male driver. Based on millions of quotes analyzed by CarInsurance.com, teen drivers see wider rate variation by insurer than almost any other group. Your actual premium depends on your insurer, vehicle, and available discounts — this estimate gives you a clear, informed benchmark.
- Full coverage limits: $100K/$300K/$100K & $500 collision and comprehensive deductibles
- Liability-only: 50/100/100 BI/PD
- Your exact premiums may vary based on your vehicle type, driving history and insurer
--/year
--/year
- The average make-and-model rates are for an 18-year-old driver with a full coverage policy with limits of $100K/$300K/$100K and $500 collision and comprehensive deductibles.
- Note: This is the estimated average cost for the make and model you selected. Your exact premium depends on the driving record, insurance company and the coverage you choose.
BY INSURANCE COMPANY
Cheapest companies for teen drivers
See below the cheapest car insurance companies for your teen driver based on their gender.
Show rates for
Cheapest carrier
/month
Average rates across insurers
/month
| # | Company | Monthly cost | vs. cheapest insurer |
|---|
Eligibility note · USAA
USAA has the cheapest car insurance rates, but it offers services only to military members, veterans and their families.
EXPERT INSIGHTS
What the experts say
Why teens cost more to insure — and what the experts say you can do about it.
INDUSTRY PERSPECTIVES
Joel C. Peterson Professor of Finance, Brigham Young University Marriott School of Business
“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. Additionally, statistical data show that teens are more prone to risky behaviors, further increasing the likelihood of claims. This is especially true of teenage males, who tend to take the most risk.”
Director of product management, Mercury Insurance, Brea, California
Newer cars come with the most recent and sophisticated safety technology to keep your teen safe behind the wheel. But used cars that are well maintained and function properly will still offer standard safety equipment and be a cost-effective way for many families to get their teens on the road.
Lead Data Analyst, CarInsurance.com
Teen insurance rates are high partly because carriers are pricing uncertainty, not just inexperience. A teen with no prior policy of their own is an unknown risk. Continuous coverage history changes that, even time spent as a listed driver on a parent’s policy counts. Rate data shows one year of coverage history already reduces premiums for an 18-year-old by around 9%. Years spent licensed build separately on top of that, and the two factors compound together over time, meaning the teen who gets licensed early and stays on a parent’s policy is accumulating savings on both dimensions before they ever take out their own policy.
Insurance broker, A Plus Insurance
Teenage drivers are best off starting on their parents’ insurance policy first, assuming they live in the same household. Most adults have had their policy with the same insurer for years, so they are likely already getting good insurance prices. By adding a teenage driver, you may qualify for discounts on multiple vehicles and multiple drivers. Teen drivers pose a higher risk of crashes than any other age group — and that risk is directly reflected in their premiums. But smart choices about policy structure, discounts and vehicle selection can make a significant dent in those costs.
BY STATE
Car insurance rates by state
See annual full-coverage rates for every state, ranked from cheapest to most expensive. Filter by your teen’s age and gender, then search your state to see how it compares.
CHEAPEST STATE
NATIONAL AVERAGE
MOST EXPENSIVE
Teen gender
Teen age
Methodology
CarInsurance.com analyzed auto insurance rates collected from Quadrant Information Services for teen drivers aged 16-19 buying their own policy and teens added to their parent’s policy. The rates are for a full coverage policy with limits of $100k/$300k/$100k and $500 collision and comprehensive deductibles. It’s important to note that the rates are for comparison purposes only and the exact rates may vary based on your insurance company, coverage limits, ZIP code and the type of car you drive.
RATES BY AGE
Rates drop with every year behind the wheel
The cost to insure a 16-year-old teen costs $614 more than adding a 19-year-old. Pick an age to see the average monthly premium and what changes at each milestone.
AVG COST AT THE AGE 16
$10,392/year for full coverage policy ($100k/$300k/$100k & $500 collision and comprehensive deductibles)
- 81.7% more expensive than age 19
WHAT CHANGES AT THE AGE 16
- Added to a parent’s policyIn nearly every state, a driver under 18 can’t sign their own policy. A 16-year-old is added to a parent or guardian’s coverage.
- Expensive premiumsWith zero driving history, this is the most expensive insurance year a driver will ever have — carriers price for the average new driver.
- Discounts might applyGood student and driver’s education discounts may be available. Ask about both as soon as you add your teen to your policy.
AVG COST AT THE AGE 17
$8,616/year for full coverage policy ($100k/$300k/$100k & $500 collision and comprehensive deductibles)
- 17.1% cheaper than age 16
- 50.7% more expensive than age 19
WHAT CHANGES AT THE AGE 17
- Provisional restrictions begin to easeMost states relax curfew time and passenger rules at 17, lowering the calculated risk profile.
- Safe driving pays offA teen who enrolled in a usage-based program at 16 now has a full year of data, enough for carriers to apply additional savings at renewal.
- Rates start to dropAdding a 17-year-old driver costs $3,937 more per year in insurance, $249 less than adding a 16-year-old.
AVG COST AT THE AGE 18
$7,500/year for full coverage policy ($100k/$300k/$100k & $500 collision and comprehensive deductibles)
- 27.8% cheaper than age 16
- 31.1% more expensive than age 19
WHAT CHANGES AT THE AGE 18
- Eligible for unrestricted licenseAt 18, a teen can sign their own policy. A parent’s policy still wins on cost for most families, but the choice is now theirs.
- Safe driving pays offA second incident-free year deepens the safe-driver signal and further pulls the rate down.
- College student discountHeading to school 100+ miles away without the car unlocks the student-away-at-school discount, often up to 10%.
AVG COST AT THE AGE 19
$5,712/year for full coverage policy ($100k/$300k/$100k & $500 collision and comprehensive deductibles)
- 44.9% cheaper than age 16
WHAT CHANGES AT THE AGE 19
- Lower premiumsRates are lower, from $7,498 to $5,718 for ages 18 to 19, making insurance affordable for teens.
- Qualify for a safe driver discountA teen who started at 16 now has three years of driving experience — enough to qualify for safe-driver discounts.
- Shopping aroundAt 19, a teen can get their own policy, but it’s important that they compare quotes from multiple companies to get the best rates.
RATE CHART
Rate trends as your teen gets older
Insuring a teen driver is expensive, but it doesn’t stay that way. Rates drop steadily every year from age 16 onward, with the largest cost decrease at 25, when most carriers reassess risk. A teen on their own policy, who stays claim-free, can expect to pay thousands less per year by their mid-twenties.
| Age | Female annual rate | Male annual rate |
|---|---|---|
| 16 | $9,846/year | $10,928/year |
| 17 | $8,121/year | $9,105/year |
| 18 | $7,047/year | $7,946/year |
| 19 | $5,395/year | $6,041/year |
| 21 | $4,020/year | $4,411/year |
| 25 | $2,997/year | $3,091/year |
| 30 | $2,729/year | $2,734/year |
RATE TRENDS
Annual full-coverage average
AGE 19 $5,718
AGE 21 $1,503
$1,375/year 26.3%
Provisional restrictions end in all states. Most insurers start charging you the same way they do adult drivers.
AGE 21 $4,215
AGE 25 $3,044
$1,171/year 27.8%
Most carriers pay less attention to your age and focus more on your driving record and other factors.
AGE 25 $3,044
AGE 30 $2,731
$313/year 10.3%
You pay adult-driver costs, which usually stay the same until rates rise again later in life.
VEHICLE CHOICE
Cheapest vehicles to insure for teen drivers
Average annual full-coverage costs for 18 to 19-year-old drivers, ranked by make. The right vehicle choice can save you more than $10,000 compared with the most expensive pick.
-
1
Smart
Compact
$6,171 /year
$219 less expensive than the Fiat
-
2
Fiat
Hatchback
$6,390 /year
$604 less expensive than the Subaru
-
3Subaru
Sedan
$6,994 /year
$823 more expensive than the Smart
| # | Make | Full coverage cost | State minimum liability cost | Liability-only cost |
|---|---|---|---|---|
| 1 | Smart | $6,171 | $2,441 | $3,410 |
| 2 | Fiat | $6,390 | $2,607 | $3,620 |
| 3 | Subaru | $6,994 | $2,562 | $3,561 |
| 4 | Mini | $7,198 | $2,476 | $3,457 |
| 5 | Honda | $7,295 | $2,786 | $3,896 |
| 6 | Mazda | $7,325 | $2,696 | $3,752 |
| 7 | Buick | $7,425 | $2,814 | $3,923 |
| 8 | Volkswagen | $7,467 | $2,741 | $3,818 |
| 9 | Jeep | $7,634 | $3,046 | $4,188 |
| 10 | Ford | $7,673 | $3,006 | $4,130 |
WAYS TO SAVE
How teen drivers can lower insurance costs
Most families can lower teen driver insurance costs by making a few smart choices. These four strategies are the ones that usually make the biggest difference.
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Keeping your teen on a parent or guardian’s policy is usually the cheapest option. Family plans often include discounts that standalone coverage cannot match.
HOW TO APPLY
- Add your teen as a rated driver on the existing policy.
- Check for multi-car and good student discounts.
- Compare the cost again at each renewal.
-
The biggest teen discounts are good student and away-at-school discounts. These can lower premiums and help you save money.
HOW TO APPLY
- Ask whether a good student discount is available.
- Check if your teen qualifies for the away-at-school discount.
- Submit report cards or enrollment proof if needed.
-
The car matters a lot when it comes to teen insurance costs. Safer, smaller vehicles usually cost less to insure than faster or larger ones.
HOW TO APPLY
- Look for vehicles with strong safety ratings.
- Choose models with lower repair and claim costs.
- Avoid high-horsepower or expensive-to-repair cars.
-
Teen insurance rates can vary a lot from one insurer to another. Comparing quotes at every renewal can help you save on premiums.
HOW TO APPLY
- Get quotes from at least three insurers.
- Compare quotes every policy term.
- Make sure you compare the same coverage limits.
What parents worry about most when insuring teen drivers
CarInsurance.com conducted a poll of 1,247 parents of teen drivers to understand their biggest concerns, priorities and pain points when making car insurance decisions.
2/3
of parents rank distracted driving as their top concern, ahead of cost, inexperience and other factors.
Cost increase
57.3%
Teaching good driving habits
42.3%
Finding the right coverage
0.3%
“What stands out in the survey is that parents deal with two worries at once: the premium increase and teaching good driving habits to their teens. But the same habits that keep teens safer on the road — avoiding tickets, crashes and risky driving — are also the ones that can help reduce premiums over time.” -Shivani Gite Contributing writer and researcher at CarInsurance.com
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Recently answered questions
Can my 16-year-old get their own auto insurance without an adult co-signer?
In most states, 16-year-olds cannot enter into an insurance contract independently because they haven’t reached the age of majority (typically 18). A parent or guardian usually needs to co-sign or own the policy. Your 16-year-old can be listed as a driver on a parent’s policy and may even be the primary driver of a specific vehicle on that policy.
How does car insurance work for a child in shared custody with divorced parents?
If the teen regularly drives cars at both households, ideally, they should be listed on both parents’ policies. Most insurers require that all regular drivers in a household be listed — failing to list a teen driver can result in a denied claim. The most cost-effective solution is often to list the teen with the parent with the lower-risk profile and disclose the custody arrangement to the insurer so they can properly rate the policy.
Does a good-student discount apply to college students or only high schoolers?
Most carriers offer the good-student discount to full-time college students under a certain age who maintain a 3.0 GPA or higher. You’ll typically need to provide a transcript or report card at renewal. Some carriers accept national honor society membership or a Dean’s List confirmation in lieu of a transcript. Always ask at renewal; it’s easy money that many families forget to claim after the teen transitions from high school to college.
COMMON QUESTIONS
Most asked questions about insuring a teen driver
Filter by topic or search by keyword. Answers reviewed by licensed insurance professionals.
Showing 7 of 7 questions
Teen car insurance is expensive because young drivers have less driving experience. Insurers generally see teen drivers as more likely to be involved in accidents and file claims. Rates are especially high for newly licensed drivers. Costs may decrease over time if the teen maintains a clean driving record.
Teen car insurance rates may start to go down as the driver gains more experience. Keeping a clean driving record can help lower costs over time. Rates often decrease more sharply as drivers enter their 20s. However, savings depend on the insurer, location and driving history.
Teen drivers may qualify for several car insurance discounts. Common options include good-student discounts, driver-training discounts and student-away-at-school discounts. Availability varies by company, so families should ask their insurer what discounts are available.
Teens can lower car insurance costs by maintaining good grades and avoiding accidents or tickets. Taking a driver safety course may also help reduce premiums with some insurers. Driving a safe, affordable vehicle can make coverage less expensive. Families can also compare quotes from multiple companies to find a better rate.
Most major carriers offer a 12% discount for full-time students under 25 who maintain a B average (3.0 GPA) or rank in the top 20% of their class. Proof is required at every renewal — usually a transcript or report card.
Full coverage can be worth it if the teen drives a newer or more valuable car. It can help cover damage from accidents, theft, vandalism or weather-related events. For an older, low-value car, liability-only coverage may be enough. Families should compare the cost of full coverage with the cost of replacing or repairing the vehicle.
A 16-year-old can’t get their own car insurance policy in any state until they reach the age of majority. Minors usually can’t sign a binding insurance contract on their own, so a teen under 18 needs to be listed as a driver on a parent’s policy. For most families, keeping the teen on the parent’s policy stays cheaper until they move out or buy a car of their own.
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ABOUT THIS GUIDE
Why you can trust this guide
Independent rate data, named editors and auditable sources — so you can see exactly where the numbers come from.
Why trust CarInsurance.com?
At CarInsurance.com, our mission is simple: to make car insurance easier to understand. With more than 20 years focused exclusively on auto insurance coverage, we provide expert guidance, interactive tools and trustworthy content — all designed to help you make confident, informed choices.
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Editorial team
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![Laura Longero]()
Laura Longero Editor-in-ChiefLaura Longero is the editor-in-chief of CarInsurance.com and a Nevada-based insurance expert. With more than 15 years of experience simplifying complex financial and insurance topics, she provides clear, trustworthy guidance to help drivers make confident coverage decisions. She serves as a media spokesperson for CarInsurance.com and has been featured in Consumer Affairs, MotorTrend and Business Insider and completed the pre-licensing course in Personal Lines Property & Casualty Insurance.
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![Shivani Gite]()
Shivani Gite Contributing WriterShivani Gite is an insurance and personal finance writer with a degree in journalism. She specializes in simplifying complex insurance topics, providing readers with clear and accessible guidance to make informed coverage and financial decisions.
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![Dr. Matthew R. Auer]()
Dr. Matthew R. Auer Industry ExpertProfessor of Public Policy at University of Georgia. Expert on insurance risk modeling and climate change impacts on insurers.
Sources & Methodology
CarInsurance.com analyzed auto insurance rates from Quadrant Information Services for male and female teen drivers ages 16 to 19. Rates were analyzed by company, gender, vehicle type and state.
The rates are based on the following coverage levels: full coverage with $100K/$300K/$100K & $500 collision and comprehensive deductibles, state minimum coverage and liability-only coverage with $100K/$300K/$100K limits. The average cost of adding a teen to a parent’s policy is based on a three-person policy.
Rates are for comparison purposes only. Your exact rate may vary based on your location, insurer, driving history, vehicle and other factors.
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