Cheapest Teen Auto Insurance Options

When it comes to insuring a vehicle for a teenager, there are several factors to consider, including the driver's age, state of residence, and gender. The cost of insurance varies depending on these factors, but generally, it is more expensive to insure a teenage driver due to their lack of experience and higher risk of accidents.

To keep insurance costs down, it is recommended that teenagers drive older and safer vehicles. Trucks, SUVs, and crossover vehicles tend to be among the cheapest to insure for teens. Additionally, opting for a vehicle with good safety ratings and features, such as electronic stability control, airbags, and anti-lock brakes, can help reduce insurance premiums.

Some of the cheapest vehicles to insure for teenagers include the Mazda MX-5 Miata, Subaru Outback, Volkswagen Golf GTI, Chevrolet Corvette, and MINI Cooper. These vehicles offer a balance between safety and affordability, making them a good choice for parents looking to insure their teenage drivers.

Cheapest cars to insure for teenagers

The cost of car insurance for teenagers can be high, but there are ways to reduce the financial burden. One way is to choose a car model that is cheaper to insure. This can depend on a number of factors, including the age, gender, and state of residence of the teenager, as well as the safety features of the car. Here are some of the cheapest cars to insure for teens:

Mazda MX-5 Miata

The Mazda MX-5 Miata is one of the cheapest cars to insure for teenagers. According to Value Penguin, the average annual insurance cost for this car is $2640. It is a small compact car that is considered safe and affordable.

Subaru Outback

The Subaru Outback is another affordable option for teen drivers. With an average annual insurance cost of $2735, it is the second cheapest car to insure according to Value Penguin. The Outback is an SUV that offers a good balance between safety and affordability.

Volkswagen Golf GTI

With an average annual insurance cost of $2740, the Volkswagen Golf GTI is the third cheapest car to insure for teenagers, according to Value Penguin. It is a compact car that provides a combination of performance and practicality.

Mini Cooper

The Mini Cooper is also a cost-effective choice for teen drivers, especially for 17-, 18-, and 19-year-olds. According to MoneyGeek, the annual insurance cost for a 17-year-old is $1,867, while it is $1,619 for an 18-year-old, and $1,128 for a 19-year-old.

Honda Civic

The Honda Civic is a popular choice for teenage drivers and is considered one of the safest cars on the road by the Insurance Institute for Highway Safety (IIHS). It has various safety features, including airbags, anti-lock brakes, and stability control, making it a good option for parents concerned about safety.

Chevrolet Corvette

The Chevrolet Corvette is one of the cheapest cars to insure for 16-year-olds, with an annual insurance cost of around $2,303. It is also a good option for 17-, 18-, and 19-year-olds, with slightly lower insurance rates for older teens.

In addition to choosing a car model that is cheaper to insure, there are other ways to reduce the cost of car insurance for teenagers. One way is to add the teenager to an existing family policy, which is often more cost-effective than purchasing an individual policy. Taking a defensive driving course, maintaining a good grade point average, and driving safely can also help lower insurance rates.

Factors that affect insurance rates

Several factors affect insurance rates for teenagers. Here are the key determinants:

Age

Age is a significant factor in determining insurance rates, with teen drivers falling into the high-risk category and attracting substantially higher premiums than adult or senior drivers. Rates typically decrease as individuals get older, with a more significant drop once they turn 25.

Location

The location of the insured individual plays a role in insurance rates. Different states have varying regulations regarding car insurance requirements, which insurers consider when setting rates. Additionally, living in a highly populated area or a metro region increases the likelihood of accidents and insurance claims, resulting in higher premiums.

Gender

In most states, insurers use gender as a factor in determining car insurance rates. Crash statistics show that male drivers, especially in their early years of driving, are more likely to be involved in accidents, and these crashes tend to be more severe. As a result, male drivers often face higher insurance rates than female drivers.

Driving History

A clean driving history contributes to lower insurance rates. Conversely, accidents, moving violations (such as speeding or DUI), or at-fault claims will lead to higher premiums. Maintaining a safe driving record and avoiding claims can help keep insurance costs down.

Credit Score

Insurers also consider an individual's credit score when calculating insurance rates. A low credit score often results in higher premiums, as it is associated with a higher likelihood of filing claims. Building and maintaining a good credit score can help reduce insurance costs.

Vehicle Type

The type of vehicle driven influences insurance rates. Brand-new sports cars or vehicles with extra safety features tend to be more expensive to insure due to higher replacement costs or the cost of repairing or replacing those safety features. Opting for an older, more sensible vehicle can help keep insurance costs down for teenagers.

Annual Mileage

Insurance companies also take into account the annual mileage of the vehicle. Longer commutes or higher mileage increase the risk of accidents, leading to higher premiums. Informing your insurance company if your annual mileage decreases can result in lower rates.

Coverage Level

The amount of coverage chosen also impacts insurance rates. While purchasing only the minimum required coverage may seem tempting to save money, it may not provide sufficient financial protection in an accident. Opting for higher coverage limits will cost more but can offer invaluable peace of mind and better financial protection.

Marital Status

Married couples often receive lower insurance rates than single drivers. Insurance companies consider married individuals less active and safer drivers, resulting in fewer accidents and claims. Additionally, married couples can benefit from multi-car and multi-policy discounts when combining their insurance policies.

Previous Insurance Coverage

Maintaining continuous auto insurance coverage can lead to better rates. Insurance companies view individuals without lapses in coverage as less likely to get into accidents. Staying with the same insurance company for an extended period can also result in loyalty discounts.

How to lower insurance rates for teens

There are several ways to lower insurance rates for teens. Here are some strategies to help reduce the cost of insuring a teenage driver:

Add Them to Your Policy

Including your teen on your existing insurance policy is generally more affordable than purchasing a separate policy for them. While adding a teen driver to your policy will increase your rates, it is still a more cost-effective option than getting them individual coverage. This is because insurance companies view teens as high-risk due to their lack of driving experience and are therefore more expensive to insure.

Shop Around for Insurance

Not all insurance companies determine rates in the same way, so it is worth shopping around to find the best rates and discounts for teen drivers. Compare quotes from multiple insurance providers and look for companies that offer specific discounts for teens, such as good student discounts or discounts for completing a defensive driving course.

Choose the Right Car

The type of car your teen drives can significantly impact insurance rates. Opt for a safe and sensible vehicle with a good safety rating, rather than a sports car or luxury vehicle. Older, used cars are also cheaper to insure than newer models, and may not require comprehensive or collision coverage.

Encourage Good Grades

Most insurance companies offer discounts for students with good grades. Encourage your teen to maintain a B average in high school or a GPA of at least 3.0 in college, as this can help lower their insurance premiums.

Consider Usage-Based Insurance

Usage-based insurance (UBI) programs use telematics devices to monitor driving habits and offer discounts for safe driving patterns. If your teen is a responsible driver, this can lead to significant savings on their insurance premiums.

Raise Your Deductible

You can also consider raising your deductible, which will lower your insurance premium. However, keep in mind that a higher deductible means you will have to pay more out of pocket if your teen is involved in an accident.

Emphasize Safe Driving

Accidents and moving violations can increase insurance rates, so encourage your teen to drive safely and avoid submitting minor claims. The longer your teen goes without filing a claim, the cheaper their insurance will become.

Look into Discounts

In addition to good student discounts, some insurance companies offer discounts for teens who complete defensive driving courses or driver training programs. If your teen is away at college and not driving the car regularly, you may also qualify for a discount.

By combining these strategies, you can help lower insurance rates for your teen driver and make their coverage more affordable.

Discounts for teens

There are several discounts available for teens that can help lower the cost of car insurance. Here are some strategies to reduce insurance premiums for teens:

Good Student Discounts

Most car insurance companies offer good student discounts for teens who maintain good grades in school, usually a B average or a GPA of at least 3.0. This discount can save up to 25% on insurance premiums and may last until the teen turns 25. Homeschooled students may also qualify by submitting evidence of taking certain national standardized tests.

Driver Training Discount

Some insurance companies offer discounts for students under 25 who move away to school and only use the car while at home during vacations and holidays.

Defensive Driving Course Discount

Taking a defensive driving course can help teens reduce their insurance rates. Many classes can be completed online, and checking with the insurance company beforehand is recommended, as they may require specific providers.

Safe Driving Discounts

Some insurance companies offer programs that teach young motorists how to drive more safely and help lower insurance costs.

Away-at-School Discounts

Several insurance companies offer discounts to parents with teens who are away at school without a car. This allows parents to save on insurance while ensuring their teens remain insured when they borrow cars at school or back at home.

Choosing a Safe and Sensible Vehicle

Opting for a late-model sedan or an older SUV instead of a sports car or luxury vehicle can result in lower insurance rates for teens. Additionally, older, more run-down vehicles may not need comprehensive or collision coverage, as the insurance cost for the year may exceed the value of the vehicle.

Increasing the Deductible

Increasing the deductible on the teen's coverage can help lower the insurance premium. However, this should be weighed against the risk of young drivers being more prone to accidents, as the deductible amount will need to be paid in the event of an at-fault accident.

Cheapest insurance companies for teens

When it comes to finding the cheapest insurance companies for teens, there are several factors to consider. The type of vehicle, age, state of residence, and gender all play a role in determining insurance rates. Here are some of the cheapest insurance companies for teens and the factors that influence their rates:

Travelers

Travelers insurance company offers affordable rates for teen drivers, with an average annual cost of $1,249. They provide various discounts, such as good student, driver-training, and student-away-at-school discounts. Their rates vary depending on the age, gender, and driving record of the teen driver.

USAA

USAA is a great option for military servicemembers, veterans, and their families. They offer affordable rates and several discounts for teens, including roadside assistance and accident forgiveness. However, their availability is limited to eligible members only.

Geico

Geico is known for its competitive rates and generous discounts, making it one of the cheapest insurance companies for teens. A minimum coverage policy for a teenager costs an average of $1,355 per year. They have consistently received great ratings from both editors and customers.

State Farm

State Farm is the largest auto insurance company in the United States, making it a widely available option for teens. They offer a range of specialty coverage types and discounts, including good student and driver training discounts. State Farm's rates will vary based on the specific details of the policy and the driver's information.

Mercury

Mercury Insurance is a good choice for teens in the 11 states where it operates. While they don't offer as many discounts as other companies, their base premiums are competitive. Mercury specializes in standard auto insurance and is ideal for teens seeking basic coverage.

Grange

Grange Insurance offers favourable rates for teen drivers and is available in 13 states. They provide a variety of auto insurance types, including mandatory coverage and add-ons like new car replacement insurance and pet injury coverage. Grange also offers 17 auto insurance discounts to help lower costs further.

In addition to these companies, it's worth mentioning that some states have lower average insurance rates for teens. For example, Hawaii does not use age as a factor in determining car insurance costs, making it one of the cheapest states for teen drivers. North Carolina also has low average rates for full-coverage policies.

When searching for the cheapest insurance for teens, it is essential to compare quotes from multiple companies and consider various factors, such as age, gender, driving record, and the type of vehicle. Taking advantage of discounts and maintaining a good driving record can also help lower insurance costs for teens.

Frequently asked questions