Teenage car insurance rates: How much is car insurance for teens?

As a parent, you may be concerned about the cost of car insurance for your teenage driver. We understand that it can be quite expensive, but it’s important to consider the reasons behind it. Teenagers have limited driving experience and are at a higher risk of accidents, which is why insurance rates are higher for them.

Learn more about car insurance costs for teen drivers and how it varies depending on their age.

Teenage car insurance average cost per month

Picture this: your teenager is finally ready to hit the road, but the cost of car insurance is putting a strain on their wallet. On average, car insurance for teenagers costs around $3,775 per year or $315 per month. We understand that this can be quite expensive, especially considering their inexperience on the road and the higher likelihood of accidents.

However, there is hope! By shopping around and comparing different insurance quotes, you can find more affordable coverage for your teen driver. It’s important to find the best coverage at a reasonable price, so you can have peace of mind while your teen is behind the wheel.

Our car insurance calculator for teens can help you quickly estimate car insurance rates in your area and even help you find the cheapest price.

Car insurance calculator for teens

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Coverage level Full coverage – 100/300/100 liability, $500 collision and $500 comprehensive deductibles. State minimum liability – Liability coverage limits vary by state, no coverage for physical damage to your vehicle. Liability only – 100/300/100 liability, no coverage for physical damage to your vehicle.

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Average annual rates for teen drivers

33315 -  Fort Lauderdale

$11,195 Average rate

$15,772 Highest
rate

$9,287 Lowest
rate

Most expensive companies for auto insurance in Fort Lauderdale (33315)

Company	Average annual rate
Travelers	$15,772
UAIC	$11,549
Progressive	$11,129

Least expensive companies for auto insurance in Fort Lauderdale (33315)

Company	Average annual rate
GEICO	$9,287
State Farm	$9,485
National General	$10,315

How much it costs to add a permit driver to insurance by state

Now let’s dive into the specific costs of adding a permit driver to your insurance policy, and how it varies by state. The amount of the additional premium can vary greatly depending on where you live.

For example, in Alabama, the average car insurance cost is $1,304 per year. But for a teenage driver, it increases to $3,504– that’s $2,200 more. On the other hand, in Hawaii, the average car insurance cost is relatively low at $1,255 per year, and the additional premium for a teen is only $37.

These numbers may vary depending on the specific circumstances and insurance provider, so it’s important to do your research and find the best option for your family.

5 cheapest states to add a permit driver to insurance

Adding a teen or permit driver to your car insurance policy can significantly raise your rates, but the cost varies depending on where you live. Some states offer more affordable insurance rates for families with young or inexperienced drivers, helping them manage the added expense.

The table below shows the five most affordable states for insuring a teen permit driver.

How much it costs to add a 16-year-old to a car insurance policy

Now let’s talk about adding your 16-year-old to your car insurance policy. Brace yourself, because it can be a costly endeavor. On average, the cost of your own policy is $1,693 per year. But when you add a 16-year-old to the policy, the price skyrockets to $3,960. That’s an average increase of $2,267!

This significant increase emphasizes the higher risk associated with teen drivers. It’s important for parents to plan and budget accordingly, so they’re not caught off guard by the added expense.

How much it costs to add a 17-year-old to a car insurance policy

Adding a 17-year-old to your car insurance policy also leads to an increase in cost. While your own policy still costs around $1,693 per year, adding a 17-year-old raises the cost to $3,384—That’s an average increase of $1,691.

As a parent, it’s important to understand the financial implications of adding a teenage driver to your car insurance.

How much does it cost to add a permit driver to insurance by company?

The cost of adding a permit driver to your auto insurance can vary by company and state. According to our data, GEICO and Nationwide offer the most affordable rates for families adding a male or female teen to their policy. 

On average, adding a teen male is slightly more expensive than adding a teen female across all companies. For instance, purchasing a policy from GEICO and adding a male teen would cost $2,622 a year; on the other hand, adding a female teen would cost $2,473 annually.

Find below how much it costs to insure a teen driver by company.

What coverage level is best for teen drivers

Insurance companies consider teen drivers high-risk due to their lack of experience behind the wheel and higher likelihood of accidents. According to a report by the National Household Travel Survey, the fatal crash rate per mile for teenagers is three times the rate for drivers over age 20. All these factors contribute to higher car insurance premiums for teenagers, so choosing the right coverage level is important to protect both the driver and the vehicle.

Experts recommend purchasing a full coverage policy with limits of 100/300/100 for added protection. The policy includes the following coverages:

• Liability insurance: It covers the injuries and damage you cause to other driver’s vehicle. 

• Comprehensive/ Collision Coverage: Comprehensive coverage protects your car against natural disasters, theft and vandalism. Collision coverage covers the damage to your car caused by a collision with another vehicle or object. 

• Uninsured/Underinsured Motorist Coverage: UM/UIM coverage will pay for the repairs if your car is damaged in a crash caused by a driver who lacks insurance or has insufficient coverage.

Full coverage is expensive compared to the minimum liability coverage, but there are ways to lower your insurance cost, such as bundling your home and auto policies, taking advantage of discounts and enrolling your teen driver in a defensive driving course.  By choosing the right coverage and exploring discounts, you can help ensure your teen driver is protected without overpaying for insurance.

Tips for parents and teens

Parents and their teen drivers can work together to find smart ways to save on car insurance. Here are some tips to help you keep your premiums low.

For parents:

• Add your teen to your policy: Instead of getting a separate policy for your teen, consider adding them to your existing policy. This often comes with multi-car and multi-driver discounts.
• Choose the right car: Opt for a safe and reliable vehicle that is not too expensive to insure. Avoid high-performance cars or luxury vehicles, as they generally come with higher insurance costs.
• Encourage good grades: Many insurers offer discounts for teens who maintain good grades. This not only rewards academic achievement but also suggests responsible behavior.
• Explore discounts: Discounts such as safe driver, good student and multi-policy can significantly reduce premiums.
• Raise deductibles: Increasing your deductible (the amount you pay before insurance kicks in) can lower your premium. However, make sure you can afford to cover the deductible cost.

For teen drivers:

• Focus on safe driving: Your driving record plays a big role in insurance costs. Avoid speeding, distractions, and risky behaviors to maintain a clean record.
• Take a defensive driving course: Completing a defensive driving course not only enhances your skills but can also qualify you for discounts with some insurers.
• Drive less, pay less: Some insurance companies offer discounts for low annual mileage. If you don’t drive your vehicle regularly, you can take advantage of pay-per-mile car insurance. 
• Avoid tickets and accidents: Traffic violations and accidents can significantly increase your insurance rates. Practice caution and follow traffic rules diligently.

Car insurance rates for teen drivers are generally higher compared to older and more experienced drivers. This is due to the higher risk associated with a lack of driving experience and the tendency for riskier behavior on the road. Insurance companies consider various factors when determining rates for teenage drivers, including age, gender, location, type of vehicle, and academic performance.

Statistics show that teen drivers have a higher likelihood of being involved in accidents and as a result, insurance companies charge higher premiums.

Common mistakes to avoid when adding a teen driver to insurance

Adding a teen driver to your auto insurance policy can be daunting. With the excitement of your teen getting behind the wheel comes the responsibility of ensuring they are adequately insured. Avoiding common pitfalls can save you money and provide peace of mind. Here are some mistakes to steer clear of when insuring a teen driver.

• Not adding your teen to your existing policy: Some parents think not informing their insurance company about a new teen driver will save money. But if your teen gets into an accident and isn’t listed on your policy, the insurance company may deny the claim or cancel your coverage.
• Opting for minimum coverage: Teens are statistically more likely to be involved in accidents. Minimum coverage may not fully cover damages, leaving you financially responsible for the difference. Consider higher liability limits and comprehensive coverage for adequate protection in case of a serious accident.
• Overlooking available discounts: Ask your insurer about discounts for good students, completing driver’s education courses, or installing safety devices. Many companies offer reduced rates for teens who maintain a certain GPA or complete an accredited driving program.
• Failing to shop around: Different insurers have varying rates and discounts for teen drivers. Get quotes from multiple insurance providers. An insurer that was affordable before adding your teen may no longer offer the best rates.
• Neglecting to set driving rules: Without rules, teens may engage in risky behaviors that could lead to accidents and increased insurance rates. Set clear expectations about driving times, passenger limits and phone usage. Enforcing these rules can promote safe driving habits.

Final thoughts

It’s fine to feel overwhelmed by the high premiums, especially as they can strain your budget. However, understanding the factors influencing these rates, such as the teen’s age, driving experience and location, can empower you to make informed decisions. By exploring discounts, adding your teen to an existing policy, and choosing a safer vehicle, you can help reduce costs and protect your teen on the road.