How to Get Cheap Car Insurance for Young Drivers
Knowing how to get cheap car insurance for young drivers will save you money, with some discounts resulting in savings as high as 25%. Some of the most common ways teenagers can save on car insurance rates include taking approved driver's education courses, making good grades, and bundling policies. Driving an older car and opting for less coverage can also lead to significant savings.
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Daniel Walker
Licensed Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Insurance Agent
UPDATED: Mar 21, 2024
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As a right of passage, teenagers and younger drivers look forward to getting their driver’s license. While parents may be excited for their new driver, wrapping their heads around the cost of car insurance for young drivers may feel overwhelming.
Fortunately, there are several ways that parents and young drivers can work toward getting affordable coverage. It’s why we’ve put together this guide on how to get cheap car insurance for young drivers.
Whether it’s making good grades, taking a driver’s ed course, adjusting your teen’s car insurance coverage, or opting for an older car — saving money on car insurance for young drivers isn’t impossible. Keep reading as we go through our need-to-know list on how you can begin saving now.
Not sure if your current insurer offers the best bottom line for your young driver? Begin shopping for rates now by entering your ZIP code into our free car insurance comparison tool.
How to Get Cheap Car Insurance for Young Drivers
Whether you are a parent helping your young adult with coverage, or a young driver responsible for paying your own insurance, we know you want to save. And we don’t blame you. Just taking a look at the average, monthly insurance rates for teenage drivers is enough to bring on a case of sticker shock.
Below, we’ve put together the average car insurance premiums for a 17-year-old male and female drivers. This data is a result of partnering with Quadrant, and factors in drivers from various backgrounds and locations:
Average Monthly Car Insurance Rates for Teens by Company| Group | Single 17-Year-Old Female | Single 17-Year-Old Male |
|---|---|---|
| USAA | $401.00 | $449.00 |
| Geico | $471.00 | $523.00 |
| Nationwide | $480.00 | $598.00 |
| State Farm | $496.00 | $610.00 |
| American Family | $500.00 | $678.00 |
| Farmers | $710.00 | $762.00 |
| Progressive | $724.00 | $802.00 |
| Allstate | $774.00 | $887.00 |
| Travelers | $776.00 | $1,071.00 |
| Liberty Mutual | $968.00 | $1,143.00 |
The numbers say it all: insuring new drivers is costly. However, it’s obvious that some car insurance companies charge significantly more or less than others.
For instance, where the average monthly rate for 17-year-old drivers is in the $400 dollar range for USAA customers, that figure skyrockets to over $1,000 for 17-year-old males insured with Travelers and Liberty Mutual.
But here’s the deal: the savings won’t come unless you take action.
Lucky for you, we’ve come up with a comprehensive list of savings strategies you can begin putting into practice. Simply put? How to get cheap car insurance for young drivers starts now. Let’s begin with some of the most common discounts for teens.
Take Driver’s Education Courses
It’s simple: teenagers who take a certified driving course can lower their insurance premiums. Even a written course will help, but if the course provides behind the wheel, on the road experience — the savings can be significant.
Not sure whether your insurer offers discounts for driver’s education courses? We’ve done some digging, and have listed out some of our nation’s major insurers and whether they offer this discount:
Driver's Education Discounts by Car Insurance Company| Insurance Company | Driver's Ed Discount (%) |
|---|---|
| 21st Century | - |
| AAA | - |
| Allstate | 10% |
| American Family | - |
| Ameriprise | - |
| Amica | 5% |
| Country Financial | 10% |
| Esurance | - |
| Farmers | - |
| Geico | - |
| Liberty Mutual | 10% |
| MetLife | 10% |
| Nationwide | - |
| Progressive | 10% |
| Safe Auto | 10% |
| Safeco | 5% |
| State Farm | 15% |
| The General | 8% |
| The Hanover | 5% |
| The Hartford | 3% |
| Travelers | 8% |
| USAA | 3% |
It’s plain to see that a large number of some of the most well-known insurers offer a discount for driver’s education courses. In fact, one of the largest discounts we found is 15 percent with State Farm. Several companies, ranging from Progressive to Liberty Mutual, offer a ten percent discount.
Listen to this: insurers have compared the driving records of teenagers who have taken behind-the-wheel driving courses with those who have not. Those who have taken a driver’s education class that provides time actually driving have lower accident rates than those who have not taken a course.
Earn Good Student Discounts
Here’s some good news: almost all insurers will offer car insurance discounts to students with good grades. And when it’s all said and done, this discount will get all parents closer to the goal of how to get cheap car insurance for young drivers. General rules for eligibility include:
- Must be a full-time student at a high school or college.
- Must be between the ages of 16 and 24 are eligible.
- Maintain a 3.0 GPA, which is a B average.
Once more, we’re listing out some of the nation’s largest insurers and whether they offer a good student discount:
Good Student Discount by Car Insurance Company| Insurance Company | Good Student Discount (%) |
|---|---|
| 21st Century | - |
| AAA | - |
| Allstate | 20% |
| American Family | - |
| Ameriprise | - |
| Amica | 10% |
| Country Financial | 25% |
| Esurance | 10% |
| Farmers | - |
| Geico | 15% |
| Liberty Mutual | 22.50% |
| MetLife | 15% |
| Nationwide | 10% |
| Progressive | - |
| Safe Auto | 10% |
| Safeco | 15% |
| State Farm | 25% |
| The General | 8% |
| The Hanover | 5% |
| The Hartford | 3% |
| Travelers | 8% |
| USAA | 3% |
With savings as high as 25 percent from State Farm and Country Financial, the incentive is undeniable. Teenagers will need to submit their report card or letter from their school to the insurer whenever the policy comes up for renewal.
Keep this in mind: insurance companies and their policies vary. If there are two teenagers in the family, a full good student discount may not apply to both, so parents need to shop around.
Buy a Safer Car for Teenagers
What cars are cheapest to insure for new drivers? When it comes to cars, remember this: parents should research the safety rating of any car they plan on buying for their teenager. Something else to remember:
A higher safety rating means lower premiums.
The Insurance Institute for Highway Safety (IIHS) regularly tests and evaluates cars for safety. The IIHS found that while teens are the riskiest drivers, they also drive the least safe vehicles. Tempting as a flashy, newer car might be for a teen, it may not necessarily be the safest option. (For more information, read our “What are the best cheap cars for teens to insure?“).
Our advice? If you want cheap car insurance for young drivers, choose a basic, older, non-sporty car with updated safety features for their first vehicle in order to keep insurance premiums down.
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Get a Smaller Car or a Safety Assessment
Remember that the price of car insurance for a young driver is not based simply on them as a driver, but also the type of car he or she drivers. So, how does one get cheap car insurance for a young driver and a choice of cars? By remembering this:
The less fancy, and more basic the car is the cheaper the insurance may be.
Buyer, be aware that some older vehicles do not get a discount, even if they are less expensive. Many older vehicles lack some safety features that are common on newer models.
Reduce Car Insurance Coverage for Young Drivers
Not every car driven by a young driver requires full coverage. Perhaps you only need an affordable liability-only option. Or, perhaps you can decide to forgo optional coverages, like comprehensive car insurance.
One way to get cheap car insurance for young drivers? Consider a reduction in car insurance coverage.
Whatever you decide to do, we strongly suggest you don’t make the decision until you’ve done your research. Begin now by digging deeper into your basic coverages, such as liability auto insurance, and also look into additional options such as uninsured motorists coverage.
Buy Usage-Based Insurance
Some car insurance companies offer what is called pay as you go or pay as you drive programs. Both of these programs fall under the general umbrella of something called usage-based insurance, or UBI.
How does this form of insurance work? And how can it help you in how to get cheap car insurance for a young driver?
A fact not many people take into consideration is that the more you drive the more likely you are to get into an accident. The more accidents you get into, the more claims your insurer has to file.
This is why your carrier likely asks you about how much you drive your car. Those who don’t drive as much can, at times, earn lower rates. If your teenager fits into that category, be sure to bring that up to the insurer, and ask about potential price cuts.
Well, it all boils down to allowing your car insurance company to track your driving. The insurance company will do so either through a device that can be installed in a car or through a mobile app. It will record driving habits and allow you to get data on potential bad driving habits before they evolve into more risky behavior.
Companies will typically commit to tracking your driving for a set period of time. If the data shows that you’re a safe driver, you can earn discounts. This means that if your teen is a good driver who doesn’t put a lot of miles on his or her car, UBI could prove to be a money saver.
Not all companies have a UBI program, so reach out to your agent or representative to learn more. Another factor that can impact your rates? Where you live. Be sure to check out rates by state to see how your premium is being impacted.
Have Good Teenage Driving Records
Again, how can you get cheap car insurance for young drivers? Well, one of the biggest factors that affect the insurance premium for students is their driving record. It can be harder to find cheap car insurance for young drivers with accidents on their records.
DUI/DWI convictions or multiple speeding tickets can have exponential effects on the premium for insurance. What’s more, is that teens are already considered high-risk drivers by most insurance companies.
The associated fees with DUI/DWI convictions are extremely expensive. If a younger driver is convicted of a DWI or DUI, the base insurance premium could be raised thousands of dollars for a minimum of three years.
In addition, some insurance companies will not insure younger drivers who have multiple moving violations. The best practice is to utilize as many safety driving tips as possible.
Remove Points on Driving Records if Possible
First of all, it is a given that if you are under the age of 25 you will pay higher car insurance rates. Finding the cheapest companies that will quote you a lower rate isn’t something a younger driver can pull out of thin air.
A helpful tip? If you have points on your record you may be able to get some removed by taking some defensive driving classes.
As an added bonus, many car insurance companies offer discounts tied to defensive driving courses. Be sure to contact an agent or representative to see what is applicable and what isn’t.
Bundle Car Insurance Policies
If your teenager is driving a car, we know it’s likely that you as a parent are probably driving a car too. But beyond that, you probably also have a home or an apartment to insure.
When it comes to having multiple policies under one roof, it almost always pays to bundle.
In other words, the more lines of insurance you can open with one company – say, using Progressive for your auto and home – the more likely your insurer is to offer some sort of discount.
So, if you can insure your teen’s car and your car with the same provider (along with your home, or perhaps even an RV or motorcycle), consider going for it — especially if a discount is involved.
Pay a Higher Deductible
It’s simple: higher auto insurance deductibles mean lower payments. As a result, opting for a higher deductible could be a valid option in the quest to find cheap insurance for young drivers.
When parents consider the option of buying auto insurance for teenagers, they need to weigh their options. Are you willing to pay a higher deductible if your child gets into an accident?
Consider this: the amount of the deductible should at least be in an amount that is reasonable and can be met in case of an accident.
Shop Around for Cheap Car Insurance Rates
Carefully compare online quotes from different insurers. Premiums for the same coverage will vary considerably from one company to another.
Remember to compare apples to apples and be sure that the lower quote provides all the coverage you need. This will help you find cheap auto insurance for new drivers, whether it’s the cheapest car insurance for 18-year-olds or 16-year-olds.
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Frequently Asked Questions: How to Get Cheap Car Insurance for Young Drivers
Have more questions? We’ve got answers. When it comes to how to get cheap car insurance for young drivers, we’re now exploring your frequently asked questions.
#1 – Who has the cheapest car insurance for young drivers?
Our analysis is simple: the cheapest car insurance rates around will come from USAA insurance. On average, single 17-year-old males and females are paying $449 and $441 a month, respectively.
Keep in mind, USAA is only available to those who have served in the military (as well as spouses and children). Outside of USAA, you can find competitive rates with Geico, at an average of $523 and $471 a month for 17-year-old males and females, respectively.
#2 – What is the cheapest car insurance for first-time drivers?
Again, we can point to USAA, Geico, and even Nationwide and State Farm for having some of the lowest average monthly rates for young drivers. However, what you end up paying will, in large part, vary from person to person and from company to company. We just can’t stress it enough: finding the cheapest car insurance possible will mean doing some legwork.
Use our checklist to search for the biggest and best discounts, and evaluate your car insurance needs. The more you can do your homework, the better rates you’ll pay — even as a first-time driver.
#3 – What is the cheapest car insurance for under 25?
We’ve found that Geico, Progressive, and USAA offer some of the most competitive rates for drivers under the age of 25. This not only factors in cost but also the availability of discounts and programs.
We get it. Car insurance for young, inexperienced drivers won’t always be a walk in the park. But what shouldn’t be difficult is having a grasp of the many discounts and programs your teenage driver can take advantage of to save money.
We’ve done a lot of the legwork for you by presenting some of the most common ways you can begin saving. Now, the choice is yours. Choose to look for discounts, explore your options, sign up for the programs, and most importantly — save money.
Comparing rates among top car insurers for your young driver is just a point and a click away. Start saving money now on teenage car insurance by plugging your ZIP code into our free car insurance comparison tool.