What Is The Cheapest Car Insurance For Teens In 2022?

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Car Insurance for Teens

Finding the cheapest car insurance for teens in the USA is not quick and easy as you might think.

There are thousands of providers to choose from and most can provide similar services for reasonable prices.

But if you want the best, cheapest car insurance for teens in USA, you will have to be patient and find the perfect plan for your minor child or teen.

Keep reading and see what the cheapest options are.

Teens make up a large percentage of drivers on the road today, which means that as a parent, you probably have a teenager who will be needing to get his or her license and buy a car.

And one of the first things you need to do is to find out how much it will cost to insure your teen’s new vehicle.

How much is car insurance for teen drivers?

Thing is, the amount of money it costs to insure your child depends on a number of factors, including:

  • Age

The older your child gets before they start driving, the more their car insurance premiums will cost.

This is because insurance companies consider teens inexperienced drivers, and there are laws in place that require them to build up their experience by practicing with an adult driver in the car before they take to the road on their own.

  • Age of the vehicle

The prices you’ll pay for your teen’s car insurance will vary depending on the vehicle he or she drives.

If you purchase brand new cars for each of your kids as soon as they turn 16, expect your premiums to go up significantly because insurance companies consider new cars high-risk vehicles.

Although car insurance for teens  rates differs by state, here are the average prices we found for both full and minimum coverage, by age:

  • 16-year-olds: $6,613 for full coverage; $2,733 for minimum coverage.
  • 17-year-olds: $5,373 for full coverage; $2,206 for minimum coverage.
  • 18-year-olds: $4,837 for full coverage; $1,938 for minimum coverage.
  • 19-year-olds: $3,716 for full coverage; $1,451 for minimum coverage.

How Much Does It Cost to Add a Teen Driver in Your State?

A teenager’s car insurance premiums may vary depending on the state he or she lives in.

For instance, teenage drivers in Hawaii can get full coverage for only $950 annually, while in Alabama, the lowest rates are over $3,000.

STATE AVERAGE PREMIUM FOR TWO PARENTS AVERAGE INCREASE FOR A TEEN DRIVER
Alabama $1,401 $1,880
Alaska $1,135 $1,529
Arizona $1,258 $1,803
Arkansas $1,338 $1,565
California $1,781 $2,812
Colorado $1,731 $1,543
Connecticut $1,666 $1,906
Delaware $1,525 $1,911
Florida $2,088 $2,969
Georgia $1,549 $1,831
Idaho $967 $1,467
Illinois $1,254 $1,519
Indiana $1,066 $1,323
Iowa $964 $813
Kansas $1,164 $1,033
Kentucky $1,466 $1,791
Louisiana $2,309 $3,104
Maine $916 $1,033
Maryland $1,448 $1,763
Massachusetts $1,551 $2,160
Michigan $3,345 $3,390
Minnesota $1,303 $1,243
Mississippi $1,370 $1,728
Missouri $1,528 $1,528
Montana $1,429 $1,209
Nebraska $1,259 $1,177
Nevada $1,538 $2,193
New Hampshire $783 $971
New Jersey $1,814 $1,937
New Mexico $1,340 $1,633
New York $1,948 $2,159
North Carolina $1,123 $1,488
North Dakota $1,183 $1,051
Ohio $923 $1,063
Oklahoma $1,600 $1,607
Oregon $1,077 $1,284
Pennsylvania $1,309 $1,731
Rhode Island $1,579 $2,105
South Carolina $1,289 $1,462
South Dakota $1,366 $1,176
Tennessee $1,078 $1,687
Texas $1,421 $1,859
Utah $1,259 $1,537
Vermont $936 $1,117
Virginia $965 $1,341
Washington $1,086 $1,419
West Virginia $1,330 $1,682
Wisconsin $1,105 $1,249
Wyoming $1,275 $1,684

Large companies offering teen drivers the cheapest car insurance

Car Insurance for Teens
Car Insurance for Teens

For the purpose of finding the cheapest insurance companies for teen drivers, we compared large insurers that are available in almost every state.

Allstate, Geico, Progressive, State Farm, and USAA fall into the top five auto insurance companies in the United States.

USAA, on the other hand, only insures active military personnel, veterans, and their families.

Based on the average annual price for both full and minimum coverage, we have compiled an overview of the largest insurance companies, excluding USAA, from cheapest to most expensive.

Geico

Age

Average full coverage rate

Average minimum coverage rate

16

$4,148

$1,574

17

$3,566

$1,333

18

$3,158

$1,167

19

$2,533

$916

State Farm

Age

Average full coverage rate

Average minimum coverage rate

16

$6,329

$2,613

17

$4,922

$2,007

18

$4,414

$1,774

19

$3,455

$1,365

Allstate

Age

Average full coverage rate

Average minimum coverage rate

16

$7,779

$2,892

17

$6,356

$2,278

18

$5,545

$1,831

19

$4,299

$1,327

Progressive

Age

Average full coverage rate

Average minimum coverage rate

16

$9,139

$3,460

17

$7,684

$2,874

18

$6,514

$2,393

19

$3,911

$1,417

The fact that your insurance policy comes from a large company does not guarantee you a better policy – it’s often the local and regional insurers who are offering the cheapest rates in those areas. 

When it comes to choosing a car insurance company, it is essential that you compare as many quotes as you can to find the cheapest insurance company in the state.

The average cost of car insurance for 16-year-olds

The cost of insuring sixteen-year-olds is the highest due to the fact that they are not very experienced drivers.

In Hawaii, 16-year-olds can get full coverage for less than the cost of the lowest-priced policy because the state does not allow the use of age to determine insurance prices.

For a driver of any age, you can expect to pay approximately $1,000 to $1,100 for full coverage in this state.

Teenagers in Louisiana are most likely to pay the highest rates for insurance policies with full coverage.

An annual stand-alone insurance policy typically costs over $11,500.

The average cost of car insurance for 17-year-olds

Even though the cost of insurance for a 17-year-old driver is not as high as for 16-year-olds, it is still quite high.

For a 17-year-old in the U.S., the average annual premiums are about $5,370 for full coverage and $2,206 for minimum coverage.

A 17-year-old’s full-coverage policy in North Carolina costs less than $2,660 per year on average, the lowest among all states apart from Hawaii.

A 17-year-old living in Iowa can get a cheap policy for just over $1,000 a year for the minimum coverage.

In Louisiana, 17-year-olds pay $9,255 per year for full coverage – the highest annual rate among other states.

In Michigan, the average minimum coverage rate is just under $4,070 per year.

The average cost of car insurance for 18-year-olds

For an 18-year-old driver, the average annual premium is just over $4,830 for full coverage, and just under $1,940 for minimum coverage.

With a premium of $2,398, North Carolina is the state offering the lowest average full coverage rate and Iowa the lowest average minimum coverage rate at $812.

The state of Louisiana has the highest premiums for full coverage, while the state of Michigan has the highest rates for minimum coverage.

The average cost of car insurance for 19-year-olds

Generally, teenagers aged nineteen are more affordable to insure than those aged sixteen and seventeen because they have more experience in the way of driving and have been licensed for longer.

About $3,717 is the average annual policy rate in the United States for a 19-year-old with full coverage.

The average price for a 12-month policy with minimum coverage is $1,451.

A driver aged 19 can find the cheapest insurance in North Carolina. 

Typically, the cost for a full coverage policy is $1,490 per year and slightly less than $550 per year for a minimum coverage policy.

Compared to all other states, Louisiana has the highest average cost for full coverage – over $6,240 per year.