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

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Getting car insurance for a teen driver can be a shock to the budget. Full coverage averages $637 per month, or about $7,647 per year — far higher than what most adults pay. The reason is simple: teens have limited driving experience and are more likely to be involved in accidents, which raises their risk in the eyes of insurers.

The good news? You can still find ways to lower those costs. Comparing quotes, choosing the right coverage, and taking advantage of discounts can make a big difference in what you pay for your teen’s policy.

How to use our car insurance calculator

Enter your ZIP code, gender, and age, then select a coverage level. The calculator instantly estimates what teen drivers in your area typically pay for car insurance.

Why teens need to use a car insurance calculator

Car insurance is one of the first real financial decisions you’ll make. A calculator helps you:

• See how your age and location affect your rate
• Compare coverage levels before committing
• Spot ways to save, like staying on a parent’s policy or qualifying for a good student discount

Car insurance calculator for teens

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Liability limits State Minimum – Liability coverage limits vary by state. 50/100/50 – $50,000 injury liability for one person, $100,000 for all injuries and $50,000 for property damage. 100/300/100 – $100,000 injury liability for one person, $300,000 for all injuries and $100,000 for property damage.

100/300/100

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Average annual rates for teen drivers

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Average monthly cost of car insurance for teenagers

Car insurance for teens costs $637 per month on average, or $7,644 per year for full coverage — significantly higher than what most adult drivers pay.

Here’s a look at the average monthly and annual cost of car insurance for teens.

How much does it cost to add a licensed teen to your car insurance?

Adding a licensed teen to your car insurance can increase your premium significantly, depending on where you live — rising by as little as $101 in Hawaii but as much as $9,941 in Louisiana.

Rates vary widely by state. For example, in Alabama, the average annual premium for full coverage is $2,215, but that climbs to $7,082 once a teen driver is added — an increase of nearly $4,975.

Exact costs depend on factors like your insurer, your teen’s age and driving record, and even the type of car they’ll be driving. Comparing quotes from multiple companies is the best way to find affordable coverage for your family.

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What are the cheapest states to add a teen driver?

Adding a newly licensed teen to your car insurance can raise your rates, but how much depends on where you live. Some states make it easier on families, offering more affordable premiums for households with young or inexperienced drivers.

Hawaii is by far the most affordable state for adding a teen driver, at just $152 per month ($1,822 per year) — a fraction of what most states charge. Vermont comes in second at $364/month, followed by Ohio ($416), Virginia ($431), and Wyoming ($454), rounding out the five cheapest states nationwide.

The table below highlights the five states where adding a teen driver increases costs the least.

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

Adding a 16-year-old to your policy can cause one of the biggest jumps in cost. A parent’s policy alone averages $3,184 per year, but once a 16-year-old is added, it climbs to $7,699 — a difference of $4,515.

This sharp increase reflects the higher risk insurers associate with brand-new drivers who have little experience behind the wheel. Families should plan for this added cost and explore discounts to help offset the increase.

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

Adding a 17-year-old is still expensive, but slightly less than adding a younger teen. The typical parent’s policy costs $3,184 per year, and rises to $7,429 when a 17-year-old is added — an increase of about $4,244.

While rates remain high, they tend to drop gradually as your teen gains experience and maintains a clean driving record.

Which insurance companies are cheapest for teen drivers?

USAA offers the cheapest rates for teen drivers among major insurers, averaging $4,847 per year for a female teen and $5,145 for a male teen — though coverage is limited to military families. Among broadly available insurers, Travelers comes in lowest at $5,086 for a female teen and $5,781 for a male teen, while Farmers is the most expensive, reaching $8,981 and $9,521 respectively.

The table below shows how much different insurance companies charge to add a teen driver to a parent’s policy.

What coverage should you choose for your teen driver?

Experts recommend full coverage with limits of 100/300/100 for teen drivers — a higher standard than the minimum liability most states require. These numbers represent your liability limits:

• $100,000 for bodily injury per person
• $300,000 for bodily injury per accident
• $100,000 for property damage

Teen drivers are three times more likely to be involved in a fatal crash per mile than drivers over 20, according to the National Household Travel Survey, making strong coverage especially important.

Full coverage typically includes:

• Liability insurance. Covers injuries and property damage you cause to others.
• Comprehensive and collision. Comprehensive pays for non-collision damage like theft, vandalism, or weather. Collision covers your vehicle in an accident with another car or object.
• Uninsured/underinsured motorist coverage. Pays for repairs or medical bills if your teen is hit by a driver with little or no insurance.

Full coverage costs more than a minimum liability policy, but discounts can offset the difference — bundling home and auto, good student discounts, multi-vehicle discounts, and defensive driving courses are among the most common ways to save.

How to save money when adding a teen driver

Adding a teen to your policy will raise your premium, but the right combination of discounts, vehicle choice, and safe driving habits can meaningfully offset the cost.

Why is car insurance more expensive for teens?

Teen drivers are statistically more likely to be involved in accidents due to limited experience and riskier driving behaviors. Insurers also factor in age, gender, location, and vehicle type when determining rates. These risks translate into higher premiums — but responsible habits and smart policy choices can help close the gap over time.

Mistakes to avoid when adding a teen driver to your insurance

Avoiding these common missteps can help you protect your finances and your teen on the road.

• Not adding your teen to your policy. Some parents skip notifying their insurer to save money, but that’s a costly mistake. If your teen is involved in an accident and isn’t listed on the policy, the claim could be denied — or your coverage could even be canceled.
• Choosing only minimum coverage. Teens are more likely to get into accidents, and basic coverage often won’t cover all the damages. It’s worth choosing higher liability limits and adding comprehensive and collision coverage to better protect your family financially.
• Overlooking discounts. Ask your insurer about programs that reward safe habits and good grades. Discounts for driver education, strong academic performance, or safe driving technology can lower your premiums significantly.
• Not shopping around. Rates for teen drivers vary widely between companies. Comparing quotes from multiple insurers ensures you’re getting the best deal, especially since your current provider may not remain the cheapest once your teen is added.
• Skipping household driving rules. Insurance helps manage financial risk, but safety starts at home. Set clear expectations for when and how your teen drives, including phone use, curfews, and passenger limits. Consistent rules encourage safer driving and help prevent costly accidents.

Getting your teen behind the wheel is a big milestone, and it comes with new responsibilities for both of you. Staying proactive about coverage, safety, and savings helps ensure your teen is protected every mile of the way.

Alisha Ambre

 

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Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.