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Best Cheap Car Insurance for Teens and Young Drivers in 2024

Updated
Kailey Hagen
Author: Kailey Hagen
Kailey Hagen
Kailey Hagen
Writer

Kailey Hagen has been writing about small businesses and finance for almost 10 years. Articles she's written for The Motley Fool have been syndicated to USA Today, MSN, and Yahoo! Finance. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

Scoring a great deal on auto insurance isn't easy at any age, but when you're a young driver, there's an added challenge. Teens have less experience on the roads and are more likely to get in accidents, so car insurance for teens tends to be pricey. But scoring a great rate is still doable. This guide will walk you through how it can be done and which car insurers young drivers may want to take a closer look at.

Best Cheap Car Insurance for Teens and Young Drivers: Our Picks

The Picks
Offer Best For Next Steps
Graphic of Progressive
Progressive
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Flexible Policies
Get a Quote
Graphic of Allstate
Allstate
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Pricing
Get a Quote
Graphic of Liberty Mutual
Liberty Mutual
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Extra Coverage Options
Get a Quote
Graphic of Geico
Geico
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Student Discounts
Get a Quote
Graphic of State Farm
State Farm
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Claims Handling
Get a Quote
A note from our Head of Product Ratings, Robin Hartill
Image of reviewer

At Motley Fool Money, insurers are rated on a scale of one to five stars. We primarily focus on pricing, coverage options, and customer satisfaction; however, we also take into account features like unique discounts, online and app-based experiences, and branch access. Our highest-rated auto insurers generally offer low costs, solid coverage, and high customer satisfaction.

Best for flexible policies: Progressive

Award Icon 2025 Award Winner
Logo for Progressive
Best for Flexible PoliciesProgressive
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
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Pros

  • Snapshot provides personalized rates so safe drivers save more
  • Premiums are below average for many drivers
  • Unique coverage options, including pet injury and custom parts

Cons

  • Below-average J.D. Power rankings
  • Above-average number of complaints with the National Association of Insurance Commissioners
  • Young drivers and those with an accident history may find Progressive more expensive

Why we recommend Progressive for teens and young drivers

Progressive is famous for its Name-Your-Price tool, which helps drivers of all ages get the most bang for their buck. This tells drivers exactly what coverage they can afford based on how much they're willing to spend.

Read our Progressive review

Best for pricing: Allstate

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Logo for Allstate
Best for PricingAllstate
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
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Pros

  • Nationwide coverage
  • Affordable premiums
  • Pay-per-mile program allows infrequent drivers to reduce costs
  • Full-featured website

Cons

  • Above-average number of complaints with the National Association of Insurance Commissioners
  • Premiums are costlier than average for those with an accident history
  • Customer service reviews are mixed

Why we recommend Allstate for teens and young drivers

Allstate had the cheapest car insurance for teens in our analysis, though the difference was slight. One of the largest insurers in the nation, the company also offers solid car insurance coverage options and a variety of ways to save at any age.

Read our Allstate review

Best for extra coverage options: Liberty Mutual

Logo for Liberty Mutual
Best for Extra Coverage OptionsLiberty Mutual
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
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Pros

  • Financially stable
  • Above-average customer satisfaction among large insurance companies nationwide
  • Customizable plans
  • Growing access to digital services
  • Multiple discounts available to reduce rates

Cons

  • Credit-based insurance score
  • More expensive than competitors for established drivers with a clean driving record

Why we recommend Liberty Mutual for teens and young drivers

Liberty Mutual doesn't offer the cheapest car insurance for teens, but it does have some less-common coverage options like new car replacement, gap insurance, and accident forgiveness. These may appeal to teens worried about their car or their insurance rates following an accident.

Read our Liberty Mutual review

Best for student discounts: Geico

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Logo for Geico
Best for Student DiscountsGeico
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Get a Quote

Pros

  • Nationwide coverage
  • Affordable premiums
  • Easy application process
  • Ample discounts

Cons

  • Fewer in-person agents than some competitors
  • Mixed reviews on J.D. Power Customer Satisfaction ratings
  • Above average number of complaints with the National Association of Insurance Commissioners

Why we recommend Geico for teens and young drivers

Geico offers a huge selection of discounts, including some specific to teens, like a good student discount for teens who maintain a B-average or better in school and a driver's education discount for teens who complete an approved course.

Read our Geico review

Best for claims handling: State Farm

Award Icon 2025 Award Winner
Logo for State Farm
Best for Claims HandlingState Farm
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Get a Quote

Pros

  • Stable company with plenty of financial backing
  • Highly rated customer service
  • Premiums for drivers with one accident are lower than some competitors
  • Growing access to digital services
  • Multiple discounts, including multiline, safe driver, and student away from home
  • Coverage available for car rental and travel expenses

Cons

  • Quality of service can vary based on the individual agent
  • Poor credit-based insurance score drives up premium rates

Why we recommend State Farm for teens and young drivers

State Farm bested all the companies listed here in J.D. Power's latest Auto Insurance Claims Satisfaction Survey. It also has some nice teen driver discounts that can help young drivers reduce their rates.

Read our State Farm review

How much is car insurance for teens?

Car insurance for teens can be very expensive. When parents add a teen driver to their policy, industry estimates suggest costs increase around 150%. This means adding a teen to a policy originally priced at $1,500 annually would cause premiums to increase to $2250.

A policy for a teen driver also costs more than double what insurance would cost for older motorists. For example, average annual premiums for an 18-year-old are $5,988 annually, compared with $2,208 for a 35-year-old and $1,979 for a 65-year-old.

The table below shows average costs for teens depending on age and sex based on Motley Fool Money's research.

Age Female Male
16 $198 $221
17 $183 $208
18 $161 $177
19 $108 $124
Source: Quadrant Information Services

Insurance for teens is very expensive because:

  • Teens lack driving experience, which creates an increased crash risk.
  • Teens' brains are not yet fully developed and as a result, they are more likely to take risks that increase collision risks.
  • Drivers under age 25 have higher DUI rates, which in turn increases collision risks.
  • Teens are more likely to engage in distracted driving, which is a major risk factor for auto accidents.
  • Teens are statistically more likely to become involved in serious crashes, with the Insurance Institute for Highway Safety indicating they have double the risk of a fatal collision.

Should teens be on their parents' car insurance policy?

Remaining on a parent's car insurance policy typically costs teen drivers less than trying to purchase their own, so it's an appealing option. Fortunately, there's no legal reason why teens can't be on their parents' insurance if the family's in agreement.

This gives a teen driver the benefit of any discounts their parents qualify for, like a multi-policy discount for bundling home and auto and a discount for continuous insurance coverage, that teens may not qualify for on their own.

Of course, adding a teen driver means higher rates for parents, so that's something each family has to consider. Parents wary of taking on the extra cost may have their teen pay the difference between their current premiums and their new ones.

There's no law about when a young driver has to get their own insurance, but in most cases, if they're living independently, paying for their own expenses, and driving their own vehicle, they should probably have their own policy.

Tips for finding cheap car insurance for teens and young drivers

Parents and teens who need help finding affordable insurance for young drivers should take the following steps:

  • Try to keep a teen on a parent's policy. It can be much less expensive to add a teen to a parent's coverage than to buy a standalone policy.
  • Shop around for insurance. Different insurance companies price policies for teen drivers differently. It's very important to get multiple quotes to avoid overpaying for coverage.
  • Complete a driver's education course or defensive driving course. It's common for insurance companies to offer reduced premiums for teens who have received specialized driver training.
  • Earn good grades. Good student discounts are generally available to teen drivers who earn a B average or better.
  • Ask about other discounts. Many insurers provide savings for teen drivers who are members of certain organizations, so it's always worth asking about all of the different ways to save.
  • Consider programs that track driving behavior. Some insurers allow motorists to install apps that track their driving and they make adjustments to premiums for those who demonstrate a strong safety record. When teens are eligible, using one of these apps could help to reduce premiums.
  • Choose the right vehicle. Cars with anti-theft devices and with advanced safety features (such as collision warnings) can help to reduce premium costs, because these safety features reduce the risk of an expensive insurance claim being made.
  • Behave responsibly behind the wheel. If a teen gets a ticket or is involved in any other incidents on the road, this can send rates skyrocketing. That's especially true as insurers have only a short driving history to go on when assessing how much risk a teen presents.
  • Increase the deductible. If it is affordable for parents or teens, raising the policy's deductible could result in lower premiums. Be aware this could result in higher out-of-pocket costs if a claim is made.

Taking these steps can help to keep premiums down so insurance is as affordable as possible for young drivers.

Best car insurance for teens

Here are some of the best car insurance providers for teen drivers:

Overall cheapest car insurance for teens

Here's an overview of average monthly car insurance premiums, based on our analysis of quotes for drivers aged 16 to 19 from five of the best insurance companies.

Car Insurance Provider Average Monthly Premium for Teens
Allstate $142.00
State Farm $142.91
Progressive $144.08
Geico $154.56
Liberty Mutual $254.65
Data source: Quotes from insurers.

Programs that help teenage drivers

There are many programs that help teenage drivers to reduce the risk of collisions. These include:

  • The TeenDrivingPlan Program from Children's Hospital of Philadelphia: This program helps parents effectively supervise teen drivers, enables teens to identify specific driving goals to focus on, and helps parents and teens track their skill development as teens learn to drive.
  • Alive at 25: This four-hour course was developed by the National Safety Council to teach teens about some of the biggest driving risks, including speeding, distraction, inexperience, and peer pressure.
  • B.R.A.K.E.S.: This is a free defensive driving program designed for teens between the ages of 15 and 19 to help teens learn crash avoidance, off-road recovery exercises, and other hands-on skills that can reduce the risk of serious injuries and fatalities.
  • teenSMART: This teaches situational awareness and helps new drivers learn to anticipate dangerous situations and assess risk behind the wheel.

Insurance companies may also provide resources for parents and teens, including information about driver's education and defensive driving courses that teens can take to reduce insurance premiums while learning how to be safer behind the wheel.

Compare premiums for auto insurance for teens

The data below gives parents and young drivers some idea of how much car insurance for teens will cost. But there are many other factors that come into play here, like what discounts a teen may qualify for and whether they have accidents on their record. The only way to know which company will offer a teen the best rate is to get some quotes.

Here's a closer look at the average cost of car insurance for teens with clean driving records, based on our analysis.

Average monthly car insurance Male Female
16 Year Olds $210 $221 $198
17 Year Olds $195 $208 $183
18 Year Olds $169 $177 $161
19 Year Olds $116 $124 $108
Average Monthly Premium for Teenage Drivers w/Clean Record

Discounts on car insurance for teens and young drivers

Here are some discounts the best car insurance for teens offers to young drivers. Note that not all insurers have all these discounts and not all discounts are available in all states.

  • Driver safety course discount: Young drivers who complete an approved defensive driving course may qualify for a discount.
  • Good student discount: Students who maintain a B-average or better qualify for discounts with many insurers as their high GPA shows maturity and responsibility.
  • Safe driver discount: Teens may not qualify for a safe driver discount immediately, but they may qualify for one over time, especially if they enroll in a telematics program that monitors their driving via a small device placed in the vehicle.
  • Student away at school discount: College students who live elsewhere and only drive their vehicles when they're visiting home may qualify for a discount because they're putting fewer miles on their cars and thus, have a reduced risk of accidents.

These aren't the only discounts a teen driver may qualify for. Always check with an insurer for a full list of available discounts.

Tips for finding cheap car insurance for teens and young drivers

Finding affordable auto insurance for young drivers isn't always easy, but following these tips can help parents and young drivers find the best rate:

  • Compare quotes from several insurers before making a purchase
  • Inquire about discounts available to young drivers
  • Consider joining a parent's policy
  • Work to establish a safe driving record
The Picks
Offer Best For Next Steps
Graphic of Progressive
Progressive
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Flexible Policies
Get a Quote
Graphic of Allstate
Allstate
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Pricing
Get a Quote
Graphic of Liberty Mutual
Liberty Mutual
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Extra Coverage Options
Get a Quote
Graphic of Geico
Geico
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Student Discounts
Get a Quote
Graphic of State Farm
State Farm
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for Claims Handling
Get a Quote

FAQs

  • Yes, car insurers will sell directly to teens, though in some states, the teen may need a parent to cosign. Going solo is usually more expensive than remaining on a parent's insurance policy, though, so it's not ideal for those trying to keep costs low.

  • There's no single company that offers the best car insurance for teens. But if parents and young drivers get some quotes, they can find the one that offers the best deal right now.

  • Every company calculates its rates differently, based on age, driving history, vehicle make and model, location, and more. So the only way to determine which has the cheapest rate for teenagers is to get quotes and compare them.

  • Most auto insurance policies cover teen drivers in their parents' vehicle even if the teen is not on the policy themselves. However, the teen must have the parent's consent to drive the vehicle in order for any claims to be covered.

  • It is usually cheaper for a teenage driver to be on their parents' car insurance policy than to be on their own policy, but it's up to each family to decide how they want to handle their teen's auto insurance.