One of the scariest parts of your teen learning to drive is sitting beside them as they merge into highway traffic at 65 miles per hour. But perhaps the second scariest part is waiting to see what your new car insurance rate will be.
On average, adding a teen driver to your insurance policy could increase your annual premium by $3,721, or about 125%, according to 2026 CarInsurance.com rate data. But this change varies widely by state.
Teen drivers cost the most to insure in Louisiana, where adding a teen to your policy nearly triples your average annual rate from $4,091 without a teen to $11,212 with one.
The overall cost of insurance in your state is one factor that affects teen insurance rates, and differences in state insurance regulations are another. If you live in Hawaii, for example, insurers aren’t permitted to use age or driving experience as a rating factor. Adding a teen to your policy raises your rates by an average of $67.
With a teen driver in the household, knowing what to expect when it’s time to purchase car insurance can help you budget for the added cost and choose a policy that fits your family. Explore the cheapest and most expensive states for teen car insurance in this guide.
Why does your teen pay more than everyone else on the road?
Your teen’s car insurance rate is based purely on an insurance company’s risk calculations. It’s not personal. CarInsurance.com’s teen rate data show that insurers charge about 195% more to insure an 18-year-old ($7,593) than a 40-year-old ($2,578). That’s because 18-year-olds have a very short track record of successful driving, and they’re four times more likely to be involved in a car accident, according to crash data from the Insurance Institute for Highway Safety (IIHS).
If you’ve ever been in the passenger seat as a teen driver navigates unfamiliar roadways, you’ve seen how age and inexperience can lead them to underestimate hazards and overestimate their abilities. Insurance companies base their rates on the statistical likelihood that this combination results in a crash.
Is your state overcharging you for your teen’s car insurance?
Where you live drastically affects the cost of teen car insurance. In Vermont, the average annual full-coverage rate for an 18-year-old is $4,354, according to CarInsurance.com rate data. In Hawaii, it’s cheaper still — about $1,885, but that’s a special case: Hawaii state law prohibits car insurance companies from using age or experience as a rating factor.
In Louisiana, the rate averages $13,127, or about three times higher than in Vermont, for the same level of coverage.
Your teen’s gender can also affect their car insurance rate. Going back to our examples above, the average rate for a male 18-year-old in Vermont is $4,645, about $600 per year higher than the rate for a female 18-year-old, which is $4,064.
In Louisiana, an 18-year-old female pays an average of $12,178 per year, compared to $14,076 for an 18-year-old male. In other words, a teen girl in Vermont pays an average of $10,000 less than a teen boy in Louisiana.
Full coverage for an 18-year-old costs about three times as much in Louisiana as in Vermont, the cheapest state where age actually affects the price.
Which states cost the most to insure a teen driver?
The most expensive states for car insurance for teen drivers are Louisiana, Nevada, and Michigan, where the average cost is over $11,000 per year. Rhode Island and Florida round out the top five, with average rates that are at least 47% higher than the national average.
| Rank | State | Annual average | Monthly average | Compared to national rate |
|---|---|---|---|---|
| 1 | Louisiana | $13,127 | $1,094 | +73% |
| 2 | Nevada | $12,216 | $1,018 | +61% |
| 3 | Michigan | $11,169 | $931 | +47% |
| 4 | Rhode Island | $11,129 | $927 | +47% |
| 5 | Florida | $10,832 | $903 | +43% |
| 6 | Delaware | $10,498 | $875 | +38% |
| 7 | Connecticut | $10,232 | $853 | +35% |
| 8 | Oklahoma | $9,556 | $796 | +26% |
| 9 | Georgia | $9,521 | $793 | +25% |
| 10 | Arkansas | $9,379 | $782 | +24% |
It’s worth noting that these are also among the most expensive states for car insurance overall, regardless of age. The average base rate in Michigan is $4,769, which is already nearly double the national average. Nevada’s average base rate is $4,611, and Louisiana’s is $4,091, while the national average cost for a 40-year-old driver is $2,578, according to our rate analysis.
Sophie’s tip
In Louisiana, the most expensive state, adding a 16-year-old to a policy raises the bill 186% — from $4,091 to $11,701 a year.
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Which states cost the least to insure teenagers?
If you live in Vermont, Ohio, or Pennsylvania, adding your teen driver to your policy will cost you much less. Vermont is the cheapest state to insure a teen driver, at $4,354 a year. In Ohio, the average cost is $4,635, and in Pennsylvania, it’s $5,066, or about 33% less than the national average. Hawaii is technically the absolute cheapest at $1,885 for a teen driver, but it’s not a state where a driver’s age impacts the rate.
| Rank | State | Annual average | Monthly average | Vs. national |
|---|---|---|---|---|
| 1 | Hawaii | $1,885 | $157 | -75% |
| 2 | Vermont | $4,354 | $363 | -43% |
| 3 | Ohio | $4,635 | $386 | -39% |
| 4 | Pennsylvania | $5,066 | $422 | -33% |
| 5 | Indiana | $5,172 | $431 | -32% |
| 6 | Illinois | $5,188 | $432 | -32% |
| 7 | New Hampshire | $5,408 | $451 | -29% |
| 8 | Virginia | $5,546 | $462 | -27% |
| 9 | Maryland | $5,596 | $466 | -26% |
| 10 | Wyoming | $5,645 | $470 | -26% |
*Note: Hawaii’s 18-year-old rate isn’t a true age-based rate, as Hawaii state law prohibits car insurance companies from using age or experience as a rating factor. Vermont is the least expensive state in which age actually affects the premium.
And while it costs about $660 more to insure a male teen driver in Ohio compared to a female teen driver, parents of boys in Pennsylvania can relax knowing that there’s no gender-based difference in the average rate — boys and girls both pay the same on average.
Sophie’s tip
Vermont, at $4,354, is the least expensive state where an 18-year-old’s age actually factors into the price of car insurance.
Does your state allow insurers to charge your teen more based on their age or gender?
Not all states allow age or gender as rating factors for insurance, although most do. Six states prohibit insurers from using gender to set insurance rates: California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania.
The count had been seven until recently, but Montana once again allows it. Montana had banned gender as a factor since 1985, then reversed that decision in 2021, and that reversal was upheld in court in March 2026.
Two states, Hawaii and Massachusetts, also exclude age from the rating question entirely.
Only Hawaii and Massachusetts ban insurers from using a driver’s age to set a car insurance rate at all.
Should you add your teen to your policy, or buy them their own?
For most families, it makes more financial sense to add a teen driver to their existing coverage. Nationally, it costs about $3,700 less to add a teen to a parent’s policy than it would be for the teen to purchase coverage on their own, according to CarInsurance.com rate data.
However, there’s more to the decision than cost. Weigh the pros and cons of adding your teen driver before you make the decision.
Pros and cons of adding to your policy
- Pros: Lower combined household costs in nearly every state; you may qualify for multi-car discounts
- Cons: Your premium goes up, sometimes sharply (see our Louisiana example above); your teen’s driving record is tied to your policy as long as they’re covered by it
Pros and cons of a stand-alone teen policy
- Pros: Keeps their driving and insurance records separate; if they don’t live at home, this may be your only option
- Cons: Substantially more expensive, on average; it’ll be difficult for your teen to shop for competitive rates with little or no driving history
See everything you need to know about insuring a teen driver
See the average cost by state of a stand-alone teen policy compared to adding them to your policy in the table below. These rates are for 18-year-old drivers, using a blended average of rates for male and female drivers.
| Rank | State | Individual policy | Parent’s policy (no teen) | Parent’s policy (with teen) | Cost of adding a teen |
|---|---|---|---|---|---|
| 1 | Louisiana | $13,127 | $4,091 | $11,212 | $7,122 |
| 2 | Nevada | $12,216 | $4,611 | $10,364 | $5,754 |
| 3 | Michigan | $11,169 | $4,769 | $8,974 | $4,205 |
| 4 | Rhode Island | $11,129 | $3,366 | $8,844 | $5,478 |
| 5 | Florida | $10,832 | $4,713 | $9,256 | $4,543 |
| 6 | Delaware | $10,498 | $3,450 | $8,091 | $4,641 |
| 7 | Connecticut | $10,232 | $3,682 | $8,441 | $4,759 |
| 8 | Oklahoma | $9,556 | $3,299 | $7,372 | $4,072 |
| 9 | Georgia | $9,521 | $2,479 | $7,836 | $5,356 |
| 10 | Arkansas | $9,379 | $3,267 | $6,768 | $3,501 |
| 11 | Colorado | $9,377 | $4,152 | $8,961 | $4,809 |
| 12 | Washington, D.C. | $9,373 | $3,983 | $9,050 | $5,068 |
| 13 | New Jersey | $9,048 | $3,668 | $8,856 | $5,188 |
| 14 | Texas | $8,804 | $4,085 | $8,399 | $4,314 |
| 15 | Washington | $8,744 | $3,012 | $6,022 | $3,010 |
| 16 | California | $8,698 | $3,648 | $9,130 | $5,482 |
| 17 | Utah | $8,340 | $2,810 | $6,581 | $3,771 |
| 18 | South Carolina | $8,326 | $3,048 | $7,335 | $4,287 |
| 19 | Arizona | $8,036 | $3,009 | $7,634 | $4,624 |
| 20 | New Mexico | $7,990 | $3,193 | $6,426 | $3,234 |
| 21 | Mississippi | $7,840 | $2,520 | $5,890 | $3,370 |
| 22 | Kentucky | $7,658 | $3,312 | $6,638 | $3,326 |
| 23 | Kansas | $7,648 | $2,802 | $5,704 | $2,902 |
| 24 | Tennessee | $7,636 | $2,599 | $5,560 | $2,962 |
| 25 | South Dakota | $7,561 | $3,228 | $5,694 | $2,466 |
| 26 | Wisconsin | $7,430 | $2,657 | $6,020 | $3,363 |
| 27 | Alabama | $7,124 | $2,178 | $4,954 | $2,776 |
| 28 | West Virginia | $7,071 | $2,692 | $6,812 | $4,120 |
| 29 | Montana | $7,008 | $2,851 | $5,948 | $3,098 |
| 30 | Massachusetts | $6,955 | $2,702 | $6,055 | $3,353 |
| 31 | New York | $6,935 | $4,121 | $7,954 | $3,834 |
| 32 | North Dakota | $6,914 | $2,586 | $5,336 | $2,750 |
| 33 | Minnesota | $6,912 | $3,209 | $7,006 | $3,797 |
| 34 | Iowa | $6,710 | $2,854 | $5,560 | $2,706 |
| 35 | Nebraska | $6,691 | $2,633 | $6,062 | $3,430 |
| 36 | Missouri | $6,511 | $2,317 | $5,136 | $2,818 |
| 37 | North Carolina | $6,151 | $2,964 | $7,241 | $4,277 |
| 38 | Maine | $6,124 | $1,805 | $3,898 | $2,094 |
| 39 | Alaska | $5,956 | $2,439 | $7,020 | $4,580 |
| 40 | Oregon | $5,828 | $2,379 | $5,482 | $3,104 |
| 41 | Idaho | $5,680 | $2,022 | $4,306 | $2,284 |
| 42 | Wyoming | $5,645 | $2,053 | $4,563 | $2,510 |
| 43 | Maryland | $5,596 | $2,454 | $5,708 | $3,254 |
| 44 | Virginia | $5,546 | $2,376 | $7,444 | $5,068 |
| 45 | New Hampshire | $5,408 | $1,929 | $4,950 | $3,022 |
| 46 | Illinois | $5,188 | $2,508 | $6,284 | $3,776 |
| 47 | Indiana | $5,172 | $2,147 | $4,830 | $2,683 |
| 48 | Pennsylvania | $5,066 | $2,762 | $6,177 | $3,415 |
| 49 | Ohio | $4,635 | $2,142 | $4,442 | $2,300 |
| 50 | Vermont | $4,354 | $1,765 | $4,830 | $3,064 |
| 51 | Hawaii | $1,885 | $1,968 | $2,035 | $67 |
Notice the price difference for adding a teen driver vs. buying them their own policy varies across states, which is why it’s important to compare rates for both options.
For example, California ranks a respectable No. 16 in cost for a stand-alone teen policy ($8,698). But when adding a teen to an existing driver’s policy, California ranks No. 3 for the sharpest increase, with an average jump of $5,482 in your rates.
Similarly, in Georgia, a teen’s individual policy averages $9,521, placing the state at No. 9 for cost. But adding that teen to your policy costs an additional $5,356 on average, which puts Georgia just two stops behind California, at No. 5.
Meanwhile, it’s relatively cheap for Vermont teens to purchase a standalone policy; the state is second-cheapest overall with an average rate of $4,354. But add that teen to a Vermont parent’s policy, and the state drops all the way down to No. 36, with an average additional cost of $3,064.
Young teens can’t purchase their own policy
An important point to note is that, in most states, your 16- or 17-year-old driver is most likely a minor, meaning they legally can’t buy their own insurance or sign contracts. So, until your teen reaches your state’s legal age of adulthood (18 in most places), they’ll typically have to be added to your policy anyway. In Alabama and Nebraska, the age of majority is 19, and in Mississippi, it’s 21, so in those states, they’ll likely be on your policy even longer. Emancipated teens are an uncommon exception.
The higher cost isn’t permanent — your teen’s car insurance rate will typically drop as they age and gain more experience.
How much cheaper will car insurance get as your teen gets older?
The biggest single-year drop in rates happens at age 19, according to national rate data from Quadrant Information Services. Average rates fall every year starting at 19, and they’re down by more than half — about 59% — by age 25, so there’s relief on the horizon. By that time, the national average car insurance rate reaches $3,044, just 18% off from the $2,578 a typical 40-year-old pays.
See the average annual rate by age and the change from the year prior in the table below.
As you wait for age and experience to work their magic on your car insurance premiums, maintaining safe driving habits is one of the best things you can do to keep your rates from jumping further.
“Drive defensively, drive safely and eventually you will get lower rates,” says Lauren McKenzie, a licensed agent with A Plus Insurance. That goes for both you and your teen driver.
Sophie’s tip
If the bill feels steep right now, remember that it’s temporary. Mark the calendar for your teen’s 19th birthday and shop rates again then, because that’s when rates usually drop the most.
Frequently Asked Questions: Cheapest states for teen car insurance
Why is car insurance so expensive for an 18-year-old?
Insurers base car insurance prices largely on driving experience, and 18-year-olds don’t have a long driving history to pull from. Teenage drivers are statistically more likely (about four times) to be involved in a crash. Insurers evaluate that risk when pricing their policies.
What state has the cheapest car insurance for teen drivers?
The cheapest insurance for teen drivers is in Hawaii, with an average annual rate of $1,885. However, the state does not use age or driving experience as a rating factor. Of the states where age affects the price, Vermont is the cheapest, with an average annual rate of $4,354 for teen drivers.
Is it cheaper to add your teen to your policy or to buy them their own policy?
It’s almost always cheaper to add your teenage driver to your policy instead of buying them their own coverage. Adding your teen driver will save you roughly $3,700 per year on average compared to a stand-alone teen policy. However, your premiums will almost assuredly go up, sometimes significantly.
At what age does car insurance go down for teens?
Fortunately for parents footing the insurance bill, rates begin to drop at age 18, with a steep average drop of 24% at age 19. That means you won’t have to wait until they turn 25 for some rate relief.
Can insurance companies charge different rates based on gender?
Most states allow insurers to use gender as a rating factor, so teen boys typically pay more for car insurance than teen girls. Six states prohibit gender in insurance rates: California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania.
Does car insurance really drop at 25?
Rates do typically drop at age 25, but average rates fall faster at ages 19 and 21.
Why is car insurance so cheap for teen drivers in Hawaii?
Hawaii is one of only two states, along with Massachusetts, where insurance companies cannot use age as a rating factor when setting rates. That’s likely to have a greater impact on teen insurance rates than the state’s no-fault insurance system or factors such as its size and climate.
Resources & Methodology
Resources
- Insurance Institute for Highway Safety (IIHS), “Teenagers”. Accessed August 2026.
- Michigan Legislature, “MCL – Section 500.2153”. Accessed August 2026.
- Insurance Business Magazine, “Married drivers can get a discount says Montana”. Accessed August 2026.
- California Department of Insurance, “Commissioner issues regulations prohibiting gender discrimination in automobile insurance rates”. Accessed August 2026.
- Hawaii Department of Commerce and Consumer Affairs, “What You Need to Know About Auto Insurance in Hawaii”. Accessed August 2026.
Methodology
CarInsurance.com analyzed millions of auto insurance quotes, using data from its 2026 State of Auto Insurance Report to calculate average rates.
Estimated premiums are based on a sample profile of an 18-year-old male and female driver with a clean driving record and good insurance score, carrying a full coverage policy with limits of 100/300/100 and $500 deductibles for collision and comprehensive coverage, unless otherwise stated.
The rates are for comparison purposes only. Your actual premium will vary based on your location, driving history, vehicle type, deductible selection and coverage needs. Read the detailed methodology for more information.
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