Home Car insurance Teens drivers How to get cheap car insurance for young drivers How to get cheap car insurance for young drivers Teen and young adult drivers pay far more for car insurance than adult drivers – with an average of $8,045 annually – because they are more likely to be involved in fatal crashes. Comparing quotes and using discounts can help lower costs. View Carriers Please enter valid zip Compare top carriers in your area Written by Alisha AmbreAlisha AmbreAlisha 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.VIEW FULL PROFILE | Reviewed by Nupur GambhirNupur GambhirEditor-in-ChiefNupur Gambhir is the editor-in-chief of Insure.com and a licensed life, health and disability insurance agent in New York with seven years of experience covering insurance. Her expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Balance, The Financial Gym and MSN. She holds a BA in Economics from The Ohio State University.VIEW FULL PROFILESee moreSee less | Updated onMay 18, 2026 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Young drivers usually pay the highest car insurance rates, but comparing quotes, qualifying for discounts, and choosing the right vehicle can help lower costs significantly. Many insurers also offer savings programs for students, safe drivers, and drivers willing to use telematics programs. Car insurance rates are higher for teens and drivers under 25 because insurers consider them more likely to be involved in accidents. According to the Insurance Institute for Highway Safety (IIHS), the fatal crash rate per mile driven for drivers ages 16 to 19 is nearly three times higher than it is for older drivers. 💡 How young drivers can actually lower their rates Stay on a parent’s policy as long as you’re eligible — it’s almost always cheaper than a standalone policy Compare quotes from at least three insurers, since rates for drivers under 25 vary more between companies than at any other age Ask about every young-driver discount your insurer offers, including good student, driver training, and away-at-school Enroll in a telematics program if you’re confident in your driving habits — safe drivers often see 10–30% savings Choose a vehicle with strong safety ratings and lower repair costs, since car choice directly impacts your premium Why is car insurance so expensive for young drivers? Young drivers pay higher car insurance rates because they have less driving experience and are statistically more likely to be involved in accidents during their first years behind the wheel. According to the Centers for Disease Control and Prevention (CDC), crash risk is especially high during the first months after getting a license, and 16-year-old drivers have a crash rate per mile driven about 1.5 times higher than drivers ages 18 to 19. Insurance companies also consider factors such as distracted driving risk, nighttime driving, and claim severity when calculating premiums. Rates often begin decreasing in the early 20s and may drop more significantly after age 25 for drivers who maintain a clean driving record. Why insurers charge young drivers more: Limited driving experience Higher accident risk Greater likelihood of distracted driving More claims filed by younger drivers Higher repair and medical claim costs after accidentsThis avoids repetition while still deepening the explanation. How much does car insurance cost for young drivers? Full coverage car insurance for a 16-year-old costs an average of $10,387 per year, while 18-year-olds pay about $7,498 annually. Rates typically begin decreasing in the early 20s as drivers gain more experience and maintain clean driving records. See the table below for average car insurance rates by age and coverage level. AgeState minimum50/100/50100/300/10016$3,302$3,787$10,38717$2,726$3,118$8,61418$2,300$2,619$7,49819$1,723$1,953$5,718 20$1,521$1,723$5,17321$1,220$1,378$4,21522$1,107$1,250$3,86723$1,020$1,150$3,59624$958$1,079$3,39725$860$965$3,04430$768$865$2,73135$752$845$2,65240$738$829$2,57845$728$818$2,52850$702$788$2,42155$686$769$2,34160$684$768$2,31265$711$796$2,35370$767$858$2,49875$863$966$2,742 Powered by: What do these coverage levels mean? State minimum: The minimum amount of insurance required to legally drive in your state. Liability coverage (50/100/50): Covers up to $50,000 in bodily injury per person, $100,000 per accident, and $50,000 in property damage you cause to others. Full coverage (100/300/100): Includes higher liability limits plus collision and comprehensive coverage with a $500 deductible. 💡 Why rates drop so dramatically between 16 and 25 A 16-year-old pays an average of $10,387 per year for full coverage — more than three times what a 25-year-old pays The biggest year-over-year drop happens between ages 18 and 19, when premiums fall by nearly $1,800 Insurers reward experience, so every year you drive without an accident or violation helps lower your rate Maintaining continuous coverage during these years is just as important as the driving record itself How can young drivers lower car insurance costs? Young drivers can lower car insurance costs by comparing quotes, qualifying for discounts, staying on a parent’s policy, and choosing cars that are cheaper to insure. Safe driving habits and telematics programs can also help reduce premiums over time. Young drivers can save on car insurance by: Comparing quotes from multiple insurers. Rates vary significantly between companies, especially for drivers under 25. Looking for student discounts. Many insurers offer discounts for good grades or driver education courses. Choosing a safe, affordable car. Vehicles with lower repair costs and strong safety ratings are usually cheaper to insure. Enrolling in a telematics program. Some insurers offer discounts for safe driving habits tracked through an app or device. Raising the deductible carefully. Higher deductibles can lower monthly premiums but increase out-of-pocket costs after a claim. Should you stay on a parent’s insurance policy? Staying on a parent’s policy is usually the cheapest option for drivers under 25, since insurers charge the highest rates to young, less experienced drivers. Most insurers allow you to remain on a parent’s policy as long as you live at the same address, and many extend that to college students living away from home temporarily. Family policies often qualify for multi-vehicle discounts, good student discounts (typically through age 25), and lower overall rates than a standalone policy in a young driver’s name. Once you’re over 25, rates drop significantly, and getting your own policy may make more sense — especially if you’ve moved out, married, or bought your own vehicle. What to read next Best car insurance companies for teen drivers in 2026 Guide to car insurance for teens Insuring a teen driver in single-parent households Do you have to add a teenage driver to your car insurance policy? State laws for teen drivers Passing down the family car? Ask these 7 questions 7 signs your teenager shouldn't drive anymore Show more Our agents make it hassle-free to get the right quote. Call (844) 814-8854 Ethan Available Now Jack Available Now Robbie Available Now Ellie Available Now What discounts are available for young drivers? Young drivers may qualify for several discounts that can help lower car insurance costs. Many insurers offer savings for good grades, safe driving, driver training programs, and telematics participation. Here are some common discounts for young drivers: DiscountHow it worksGood student discountAvailable to students who maintain qualifying gradesDriver training discountOffered after completing approved driver education coursesTelematics discountRewards safe driving habits tracked through an app or deviceMulti-car discountApplies when multiple vehicles are insured on one policyBundling discountSavings for combining auto insurance with renters or homeowners insuranceAway-at-school discountMay apply to students attending school without a car Powered by: Can good grades lower car insurance costs? Many insurers offer good student discounts for drivers under 25 who maintain at least a B average or 3.0 GPA. These discounts can lower premiums by 5% to 15%, depending on the insurer and state. Which car insurance companies offer discounts for young drivers? Young drivers may qualify for discounts through telematics programs, good student savings, safe driving programs, and multi-policy discounts. Comparing programs across insurers can help drivers under 25 find lower rates. CompanyDiscounts or savings programsAllstateAccident forgiveness, new car replacement, student discountsEsuranceGood student, alumni, and safe driving discountsGEICOGood student, driver training, military, and employee discountsProgressiveSafe driving, multi-policy, online purchase, and good student discountsState FarmGood student discount and Drive Safe & Save telematics programMetromilePay-per-mile pricing for low-mileage driversNationwideSmartRide telematics programSafecoTelematics-based safe driving discounts Powered by: Can telematics programs help young drivers save money? Many insurers offer telematics programs that track driving habits through a mobile app or in-car device. Safe drivers may qualify for lower premiums based on mileage, braking, speed, and driving behavior. “When tracking, insurers look at things like daily mileage, rapid acceleration, and how hard you brake, or anything that shows erratic driving,” said Worters. “They will also look at the time of day, or night, that you drive. All of these things show how risky a driver you are…or how good a driver.” Can young drivers get their own car insurance policy? Young drivers can buy their own car insurance policy, but it’s almost always more expensive than staying on a parent’s policy. Drivers under 25 pay the highest premiums of any age group because insurers see them as higher-risk due to limited driving experience and higher crash rates. A separate policy may make sense if a young driver: Owns their vehicle outright and the title is in their name Lives at a different address than their parents Has been asked to leave a family policy Needs coverage their parents’ insurer doesn’t offer In most states, teens can legally own a car, but drivers under 18 may need a parent or guardian to co-sign vehicle registration, financing, or insurance documents. Once drivers turn 18, they can typically register, insure, and finance a vehicle on their own. ⚠️ What to know before getting your own policy Standalone policies for drivers under 25 can cost two to three times more than staying on a family policy Most insurers require proof of separate residence to remove a young driver from a parent’s policy Letting your coverage lapse — even briefly — between policies can raise future rates significantly Be ready to provide your driving history, vehicle information, and lienholder details if your car is financed Frequently asked questions At what age does car insurance get cheaper? Car insurance rates typically start dropping in the early 20s and fall more noticeably around age 25 for drivers with a clean record. Rates usually stay relatively flat from age 30 to 60 before climbing again in the senior years. How much does adding a teen driver raise car insurance? Adding a teen driver to a parent’s policy can more than double the premium. Insurers charge higher rates because drivers ages 16 to 19 have a fatal crash rate per mile nearly three times higher than older drivers, according to the IIHS. Do young drivers need full coverage? Young drivers with financed or leased vehicles are usually required to carry full coverage. For drivers who own an older car outright, liability-only coverage may make more financial sense if Does taking a driver’s ed course lower insurance for young drivers? Many insurers offer driver training discounts for young drivers who complete an approved driver education course. Savings typically range from 5% to 10%, depending on the insurer and state. What’s the cheapest car insurance company for young drivers? There’s no single cheapest insurer for every young driver — rates vary based on location, vehicle, and driving record. GEICO, State Farm, and Progressive consistently offer competitive rates for drivers under 25, especially when paired with good student or telematics discounts. Methodology In 2026, Insure.com commissioned Quadrant Information Services to analyze 65,756,440 car insurance quotes from 195 companies across 34,595 ZIP codes and 29,159 cities in all 50 states and Washington, D.C. Rates are based on a Honda Accord LX driven 10,000 miles annually with a 12-mile daily commute. Quotes reflect drivers with a good insurance score and no violations. Rates shown include averages for male and female drivers across the ages and coverage levels mentioned above. The national average full coverage premium used in this report is $2,578 annually. Sources: Insurance Institute for Highway Safety (IIHS). Teenagers. Accessed May 2026. Centers for Disease Control and Prevention (CDC). Risk factors for teen drivers. Accessed May 2026. Alisha Ambre . .Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. 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