Parents can feel anxious when their teenager gets behind the wheel. It is expensive to add them to their car insurance policy. Which sometimes make them ask “what is the cheapest car insurance for teens.”
Teenage drivers have the highest car insurance rates. High-risk drivers who have significant driving records or are at high-risk pay rates. If you are familiar with the basics of car insurance, you will be able to reduce your rate substantially. So we introduce you to the top cheapest car insurance for teen in 2022
Due to the high risk of teen drivers. We reviewed rates from 78 national car insurance companies and found that the average increase for adding teens to parent policies is $2,121. This typically doubles the premium.
Shopping around is a great way to save money, even with high-cost teen drivers. We compared significant insurance companies based on price, complaints level, and repair. This helped parents to find the cheapest car insurance for teen
Your teenage son or girl just turned 16 and now wants to drive the car to school. You are worried about the high insurance costs you will face. We have your back, but don’t be alarmed! A team of writers and analysts created this article to help you find the cheapest car insurance for teen.
What is Teen Car Insurance
Teens car insurance is mandatory to protect their newest driver and vehicle. The Balance reports that teens are the most expensive age group for insurance because they are young drivers and new to the driving sport. Drivers between the ages of 16 and 24 are called “young drivers.” For every year of driving experience gained, young drivers with a clean driving record will see their insurance rates drop.
Many teenagers are excited to drive for the first time. As a parent, however, you might have concerns about car insurance, particularly regarding affordability.
In some states, a 16-year old can get an independent car insurance policy. However, all states require that you are at least 18 to purchase car insurance.
It is possible to find cheapest car insurance for teen. You can also set up email notifications to be notified when the cheapest car insurance for teen. This allows you to save both now and in the long term.
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Difference Between Teen Car Insurance and Young Driver Car Insurance
This section is essential to protect both parents and young drivers and teens. Many parents are confused about the difference between a young driver car insurance and teen car insurance. They think they are the same. It is essential to know that teen car insurance differs from young driver car insurance.
Teen car insurance is available for teenagers legally capable of driving; drivers aged 16-19 years. Young drivers are those between 21 and 25 years old.
As we get older, the cost of car insurance falls. Teen drivers have higher rates than young drivers. National insurance companies continue to consider young drivers and teen drivers alike. Young drivers may find it more expensive than teen drivers, but it can still be affordable. It is better to discuss this with your carrier. Ask your insurance company about the cheapest car insurance for teen drivers and young drivers before buying your policy.
When Do You Need Full Coverage Insurance As Teen Drivers
Let’s suppose you own a Mercedes Benz and want to add your teen driver to your policy. Full coverage will provide you with comprehensive and collision coverage. This is because luxury and sports cars can have costly parts, making them expensive to repair.
These vehicles also have a high actual value. If your car is damaged in an accident, replacing it can be costly. Full coverage insurance covers the cost of replacing or repairing the vehicle. Full coverage insurance can cost more, but it is worth it.
Why Is Car Insurance Expensive for Teen Drivers?
Insurance companies cannot access the driving records of teens when they calculate the cost for a policy because they aren’t familiar with their driving habits. The Balance states that insurance companies base the cost of a policy on statistics about teen drivers.
These statistics show that teens file more claims than other drivers and are more costly. Companies are less likely to insure teens drivers because of these higher costs. Therefore, they charge higher rates for teen drivers. Insurance rates are also higher for teens who don’t have credit histories and are often not married. Auto insurance costs vary from one driver to the next because of bad driving records, high accident rates, and more expensive accidents.
Male drivers under 25 years old pay the highest insurance rates. The rate he pays depends on his marital status and whether or not he is the primary driver of the car being insured. The accident rates for both genders have decreased due to the rise in young female drivers over the past twenty years. The 15- to 20-year-old driver accounted for 10% of fatalities and 13% of police-reported crashes. In 2011, there were 4,347 fatal crashes involving drivers aged 15-20, a decrease of 48 percent from the 8,325 in 2002.
How much is car insurance for teens?
According to the Insurance Institute for Highway Safety, teens are four times more likely to be in car accidents than drivers aged 20 and older. According to the Centers for Disease Control and Prevention, car accidents are the number one cause of death for teens in the United States.
All of this means that teens will pay more for insurance. However, how much is dependent on where they live, their gender, age, and whether the teen is the primary policyholder. An average 16-year old driver who is newly licensed can pay 44% more for complete coverage than a 19-year-old driver.
Although the insurance cost for teenage drivers can vary widely from one state to the next, these are the average annual prices for full and minimal coverage.
- 16-year-olds are eligible for $6,613 full coverage and $2,733 minimum coverage.
- For 17-year-olds, $5,373 for complete coverage and $2,206 for minimal coverage
- 18-year-olds are eligible for $4,837 full coverage and $1,938 minimum coverage.
- 19-year-olds are eligible for $3,716 full coverage and $1,451 minimum coverage.
Whole coverage insurance policies in our analyses include comprehensive and collision coverage, uninsured/underinsured motorist protection, and increased liability limits. Only state-mandated coverage is included in minimum coverage policies.
Are teens allowed to be covered by their parents’ car insurance?
There are no legal consequences for teens staying on their parent’s auto insurance policies. It is also the cheapest car insurance for teen in getting a separate policy.
A teen can also receive discounts and benefits that their parents are eligible for, which might not be possible for teens on their own.
It is important to remember that parents would have to pay more for their monthly premium if a teen was added to their policy.
There is no legal requirement that young drivers have their insurance once they start living independently and paying their bills.
You might be able to get your car insurance and not have to rely on your parents.
Average Costs of Adding a Teen Driver to Your Policy
Start planning your budget to increase your car insurance rates. According to Insurance.com data, adding a teenager driver to a parent’s policy can typically increase the bill by 44 percent – this is for a one-car household, according to Insurance.com data.
A two-car-two family will see an average increase in auto insurance by 58 percent. A three-car family will see an average increase of 62%.
Teen drivers are the most difficult to insure. The Centers for Disease Control and Prevention found that drivers aged 15-19 are four times more likely than older drivers to cause a crash, making car accidents the No. Teen suicide is the No. 1 cause of death.
Uncertain if your teenager should be added to your policy or if you should purchase a separate policy.
There is an easy solution: ask your company to provide three types of quotations.
Ask for quotes on car insurance for parents with teens, without teens, and for a separate policy to cover your teenager. This will give you an idea of the cost for each case.
According to RateForce analysis, adding a teenage driver to your policy costs half the price of buying separate policies for the exact driver. Your policy can be made cheapest car insurance for teen drivers
A teenager driver’s average car insurance rate under a separate policy is $3865. The average cost to add a teen driver is $1690. This is nearly half the cost of an individual policy for a teenage driver.
The annual cost of car insurance is $2980 for a parent with no teenager. The average annual cost of car insurance for a teenager driver is $5740. If the parent wishes to purchase a separate policy, the annual average cost will be $7530. This is the average difference in car insurance rates between different profiles.
How Teen Drivers Can Save on Car Insurance
Teen car insurance can be pretty expensive, but there are many ways to lower your costs. According to The Balance, parents should check with their insurance company to see if they offer the following discounts for teen drivers:
- Good Student Discount: Many car insurers offer a good student discount for students with a 3.0 GPA. You will need to submit your most recent transcript or report card from your teen driver to your insurance company to qualify for this discount. Teen drivers eligible for the Good Student Discount could save an average of $283.
- Defensive Driver/Safe Driving Discount: Statistics show that teens who have taken a defensive driving or professional driving course are less likely than others to drive recklessly, which can result in citations and even accidents. To qualify for a safe driving discount, your insurance company may require that your teen driver take a particular course. Make sure to check with your provider before enrolling in a class.
- Student “Away” Discount:If your teen driver is at college or not at home during high school, they might be eligible for an “away discount.” This discount could save you an average of $404
Knowing what insurance companies consider when covering teen drivers will help you decide which policy is right for you. You can rest assured that your teen driver will be protected. This could even help you save money.
Cheapest Car Insurance For Teen Requirements
There are certain mandatory coverages that you must have when getting the cheapest car insurance for teen.
This means that you should get the minimum amount required by law for the state in which you live.
Liability insurance provides financial protection to drivers at fault for an accident. There are two types of liability insurance:
- Bodily injury coverage
- Insurance coverage for property damage
Bodily injury liability insurance covers medical and other expenses for anyone injured by the policyholder or any other driver listed on the policy.
Property damage liability coverage covers repairs to vehicles and other property damaged in an accident.
Depending on the state of residence, you might also be required to purchase comprehensive, collision, underinsured/uninsured motorist, and personal injury protection coverage.
Top 10 Cheapest Cars To Insure For Teens In 2022
Below are the cheapest cars to insure for teens to get the cheapest car insurance for teens. The cheapest cars for teens to insure include:
- Honda Odyssey: $2788.
- Subaru Legacy: $2792.
- Mini Paceman: $2807
- Mazda MX-5 Miata: $2640.
- Subaru Outback: $2735.
- Volkswagen Golf GTI: $2740.
- Mini Countryman: $2766.
- Volkswagen Routan: $2769.
- Smart Fortwo: $2776.
- Fiat 500L 19: $2786.
Cheapest Car Insurance For Teen In 2022
1. Nationwide insurance
Nationwide Insurance has one of the lowest rates for adding a teenager driver. It also includes top-quality tech fundamentals like both usage-based and pay-per-mile insurance. It offers excellent pricing for teens and has a Forbes Advisor rating of 5.0. This is one of the cheapest car insurance for teen.
2. Geico insurance
Geico insurance is an excellent option for parents who want to add their teen to their existing policy. This is one of the cheapest car insurance for teen.
They also provide excellent customer service and an affordable average cost for teens drivers. According to the Forbes advisor, it has a rating of 4.0.
3. Allstate insurance
Allstate Insurance offers excellent technical fundamentals and outstanding customer service. They offer both usage-based insurance and pay-per-mile insurance. This is one of the cheapest car insurance for teen.
Allstate Insurance offers discounts for teens who complete teen SMART. This computer-based driving improvement program includes videos, simulations, and other activities. Forbes rates Allstate Insurance at 3.5.
4. Erie insurance
Erie Insurance offers very affordable insurance policies for teens who need car insurance. Their auto insurance policies are very affordable for families. You can get a discount if your teen takes teen SMART.
This is one of the cheapest car insurance for teen. This driving improvement stimulation is done on a computer using videos, simulations, and other activities. Erie Insurance currently has a rating of 3.5 on Forbes Advisor.
5. State Farm insurance
State Farm insurance is well-known for its exceptional customer service, above-average pricing, and outstanding tech knowledge. The insurance offers tech conveniences like digital ID cards or virtual car insurance claims.
Steer Clear is also available. This program helps teens learn better driving by using the mobile app. It also offers a discount for those who complete it. This is one of the cheapest car insurance for teen.
6. Travelers insurance
Travelers insurance is a trusted choice that offers solid coverage and good scores in customer happiness, teen pricing, and teaching fundamentals. It is also rated 3.5 by Forbes Advisor for its high claims satisfaction. This is one of the cheapest car insurance for teen.
7. Iowa farm bureau
Although it has Iowa in its name, the bureau sells insurance in Nebraska and other states. They provide fantastic car insurance and roadside assistance, and replacement cost average. You can also get discounts for teen drivers, which are usually more costly .This is one of the cheapest car insurance for teen in Iowa.
8. PEMCO insurance
PEMCO insurance is only available in the Pacific Northwest. It covers all drivers. You can also get discounts for both your home and auto and specific safety features. This is one of the cheapest car insurance for teen. You can also receive discounts if you’re a student at the University of Washington.
9. Amica Mutual
Amica Insurance is well-known for its low minimum coverage premium, high claims, and outstanding customer claim scores. This insurance is an excellent choice for affordable coverage and reliable service.
It boasts excellent technological connections, including the ability to file an auto claim through an online account, its chat feature, or its mobile app. This is one of the cheapest car insurance for teen.
The insurance for auto owners is well-known for its outstanding coverage options and easy claims process. It also offers Gap insurance and add-ons such as accident forgiveness or a decreasing deductible. This is one of the cheapest car insurance for teen.