Best cheap car insurance for teens in 2024

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State Farm is the top insurer for teens looking for the best, cheap car insurance policy, according to an Insure.com study, followed by Geico and Nationwide.

Insure.com analyzed data on the top auto insurance companies and ranked each from 1 to 5, with 5 being the top score. We examined rates offered to teens, a survey of insurance consumers and data from respected third parties A.M. Best, which measures financial strength, and the National Association of Insurance Commissioners (NAIC), which tracks customer complaints.

Overall, Insure.com gave State Farm a score of 4.36 out of a possible 5 for drivers between the ages of 16 and 19.

While State Farm is rated the top company for teens, that doesn’t mean it’s the right company for every teenager. Drivers often have different wants and needs when it comes to insurance. Some might be willing to pay for extra protection while others may only be interested in the lowest price.

The top auto insurance companies for teens

To select the best car insurance companies for teens, Insure.com analyzed insurance rates, an Insure.com survey of insurance consumers, and data from highly respected third parties that track insurance companies: NAIC’s Complaint Ratio (1.00 is the norm) and A.M. Best ratings (A++ is superior). 

State Farm has a relatively low complaint score of 0.52 from the NAIC and A.M. Best rating of A++, indicating a high level of financial stability. 

State Farm average rates for teens, $5,337 annually, falls right in the middle of the rates offered by the companies we ranked. 

For the rates, we reviewed data from more than 100 insurance companies and analyzed more than 5 million quotes. We looked at rates for a 2023 Honda Accord LX  driver between the ages of 16 and 19 with no violations. We considered coverage of 100/300/100 – meaning $100,000 for bodily injury per person, $300,000 for bodily injury per incident and $100,000 for property damage per incident – with a $500 collision/comprehensive deductible. We assume a 12-mile commute and 10,000 miles driven annually.  

We also tapped the results from a survey Insure.com conducted in the fall of 2023 that asked 1,500 insurance customers to grade their company’s customer experience, claims expertise, policy offerings and other products and services. 

State Farm came out on top in our ranking (below), followed by Geico and Nationwide.

It should be noted that USAA had a higher score than many of the insurers and is listed on the table below. However, it’s excluded from the overall ranking because it only provides services to military community members.

Compare the best car insurance companies for young drivers

*USAA scored well, but is excluded from the overall rankings since it’s only available to military families.

But just because an insurance company tops a list doesn’t mean that particular carrier is right for everyone. Other insurers might offer coverages, rates and options that better match your particular needs.

For instance, some insurance consumers might fall into a high-risk category while others might consider online support a deciding factor when picking an insurer.

When Insure.com crunched all its numbers, the companies we ranked were rated best for teens in these categories.

The top 5 car insurance providers for teen drivers

The top five auto insurance companies for teens are State Farm, Geico, Nationwide, Travelers and Progressive.

Below is a scorecard for each of the top five.

Additional details about these auto insurance companies are available in Insure.com’s listing of the best car insurance companies of 2024. 

State Farm 

• Overall rating: 4.36
• A.M. Best rating: A++
• NAIC Complaint Ratio: 0.52
• Average annual savings from possible teen discounts: 15%
• Average annual full coverage premium for teens: $5,337

Geico

• Overall rating: 4.21
• A.M. Best rating: A++
• NAIC Complaint Ratio: 0.77
• Average annual savings from possible teen discounts: 8%
• Average annual full coverage premium for teens: $5,049

Nationwide

• Overall rating: 4.05
• A.M. Best rating: A+
• NAIC Complaint Ratio: 0.66
• Average savings from possible teen discounts: 9%
• Average annual full coverage premium for teens: $5,285

Travelers

• Overall rating: 4.03
• A.M. Best rating: A++
• NAIC Complaint Ratio: 1.03
• Average savings from possible teen discounts: 9%
• Average annual full coverage premium for teens: $4,726

Progressive 

• Overall rating: 3.73
• A.M. Best rating: A+
• NAIC complaint ratio: 0.73
• Average annual full coverage premium for teens: $7,172

Average car insurance costs for teenage drivers

Car insurance is typically more expensive for teens than other drivers. The average annual rate for a 16- to 19-year-old driver is $5,600. Meanwhile, the average for a 40-year-old driver is $1,895. 

Below is a look at the average teen-driver rates from some national insurers.

*USAA has the cheapest rates, but it’s only available to military families.

Full coverage insurance is a comprehensive auto insurance option that includes collision coverage, which helps pay for damages to your vehicle if you’re involved in an accident; comprehensive coverage, which helps cover non-collision events, such as theft, vandalism and natural disasters; and liability insurance, which helps cover the cost if you cause injury or property damage to others in an accident.

Average car insurance cost for young drivers in 2024

In general, car insurance is more expensive for young drivers because they are more inexperienced and likely to make mistakes. As drivers get older, they generally see a drop in insurance. As noted above, the national average cost for a 40-year-old driver is $1,895.

Compare that to car insurance rates for teens and young adult drivers:

• Teens, aged 16-19: $5,600
• Young adults, aged 20-24: $2,971

But there are ways for teens to save, says Randy Humphreys, personal lines director at insurance agency Reliable Risk Management. Increasing your deductible, driver education and good student discounts are all ways to lower teen car insurance costs, he says.

“[The] biggest thing for teen drivers is [the] good student discount,” says Clayton Fischer, an agent at Blue Marlin Insurance. Most carriers offer a discount for students who have a 3.0 or higher GPA, he says. 

Average car insurance cost for 16-year-old male and female drivers

There can be a difference in insurance rates for men and women, although California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania ban insurers from using gender when setting rates.

*USAA has the cheapest rates, but it’s only available to military families.

Average car insurance cost for 17-year-old drivers

Prices often start coming down with each birthday a teen has.

*USAA has the cheapest rates, but it’s only available to military families.

Average car insurance cost for 18-year-old drivers

Rates for 18-year-old drivers are much less than those for 16-year-old drivers.

*USAA has the cheapest rates, but it’s only available to military families.

Average car insurance cost for 19-year-old drivers

Rates for 19-year-old drivers can sometimes be half what 16-year-old drivers pay.

*USAA has the cheapest rates, but it’s only available to military families.

Average car insurance cost for 20-year-old drivers

While young adult drivers see higher rates than older drivers, there’s still a drop-off in cost.

*USAA has the cheapest rates, but it’s only available to military families.

Teenage car insurance rates vs. other age groups 

Car insurance rates, as we’ve noted, can vary greatly by age. Below is a look at the average full-coverage rates for drivers of different ages compared to rates for the state minimum.  

As you can see, the average rate for car insurance coverage is higher for teen and young drivers. Some of the reasons for higher car insurance rates for teen drivers include:

• Inexperience
• Higher likelihood of behaviors that result in claims
• Location, especially if you live in a high-density area
• Amount of time spent driving, especially if the teen driver has activities, work and school

Best car insurance discounts for new drivers

Some car insurance companies offer discounts that can help teens reduce their car insurance costs. These include discounts for completing driver’s ed, maintaining good grades and employing usage-based insurance products.

Below is a look at what a typical teen could save if they received most of the discounts they were eligible for.

*USAA is only available to military families

Factors that affect car insurance rates for young drivers

Several factors affect your car insurance rate: Your car make and model, the coverage you chose, your driving history, where you live and, of course, your age. 

Some other things that can influence car insurance rates:

• Whether you bundle your car insurance with other policies
• Whether there are other drivers in your household
• Whether you receive insurance discounts 

Tips to save on car insurance for teen drivers

Some of the best ways to reduce the cost of car insurance for teen and young drivers include:

• Looking for discounts: Common savings include good student discounts, driver tracking and completing safe-driving classes. Ask insurers what discounts they offer and how they can impact your insurance rate.
• Comparing rates: Shop around and get at least three quotes to compare rates.
• Getting lower coverage: Rather than getting full coverage, especially if your teen driver has a less-expensive car, it can make sense to focus on state minimums for liability. But experts advise always having enough coverage to financially protect yourself. 
• Choosing a higher deductible: You’ll likely get a lower car insurance rate if you can afford a higher deductible.

What our expert says

Q: How can teens save money on car insurance?

Clayton FischerAgent, Blue Marlin Insurance.

“[The] biggest thing for teen drivers is [the] good student discount,” he says. Most carriers offer a discount for students who have a 3.0 or higher GPA, he says.