When your teen is about to get a driver’s license, you need to start thinking about teen car insurance. Whether your teen will drive a family car or their own, you still need the appropriate auto insurance. Also, like most parents, you probably have a lot of questions about insuring your teen driver.
That's why we've answered some of parents' most common questions about car insurance for young drivers or new drivers, including "Which car insurance company is best for my teenager?" An independent insurance agent can help you get set up with the cheapest car insurance for teens from a reliable carrier. But first, let's break down some of the best teenage car insurance companies and answer your biggest questions.
Key Takeaways - Best Car Insurance for Teen Drivers in 2026
Adding a teen to a parents' car insurance policy is often much cheaper than buying them an individual auto policy.
USAA offers the cheapest coverage for teens in military families, while Travelers offers the cheapest non-military rates this year.
The average cost of car insurance drops dramatically from age 16 to age 20 and beyond.
Working with a local independent insurance agent is strongly recommended, as they can help shop and compare teen car insurance quotes and policy options from multiple carriers for you to find the best deal.
How Much Is Car Insurance for Teen Drivers in 2026?
The average cost of car insurance for a 16-year-old is $10,387 per year. If you've been wondering, how much is car insurance for teens? Unfortunately for parents, teenage car insurance rates are expensive, whether you're buying them a separate policy or adding them to your own policy. However, rates do decrease as they age. The average cost of car insurance for 19-year-olds is $5,718 per year.
The insurance company compensates for the increased risk of insuring a teen driver with higher premium rates. Teen drivers are still learning traffic laws and patterns and are statistically more likely to speed and get into accidents. Therefore, teen drivers have some of the highest car insurance rates.
Average cost of teen car insurance by age (2026)
Teen driver insurance rates tend to drop quickly as the driver grows up. The table below compares the average cost of car insurance for teenagers by age this year.
| Driver Age | Average Annual Cost of Car Insurance |
|---|---|
| 16 | $10,387 |
| 17 | $8,613 |
| 18 | $7,497 |
| 19 | $5,718 |
| 20 | $5,174 |
An independent insurance agent can help you compare cheap car insurance for a 17-year-old, 18-year-old, or 19-year-old in your area.
Average cost to add a teen to a parent's car insurance policy
How much does it cost to add a teen driver to your policy? Travelers has some of the cheapest rates when you add a teen to your car insurance, averaging just $2,569 per year for a female driver. Next-cheapest is Nationwide, with an average additional rate of $2,932 per year when you add a female driver to a parent's policy.
The table below compares the cheapest carriers for adding a teen driver to a parent's auto policy.
| Car Insurance Company | Parents' Policy Average Premium | Average Premium with a Female Teen | Average Premium with a Male Teen |
|---|---|---|---|
| Allstate | $4,275 | $8,797 | $9,373 |
| Nationwide | $2,932 | $5,864 | $6,199 |
| Progressive | $2,566 | $6,958 | $7,448 |
| Travelers | $2,164 | $4,733 | $5,390 |
| USAA | $1,574 | $4,805 | $5,062 |
An independent insurance agent can help you find the most affordable young driver insurance near you, including the cheapest car insurance for a 17-year-old male.
Average Cost of Teen Car Insurance by Company in 2026
Teenage car insurance rates are much higher than those for adults in their 20s and older. However, the exact cost of teen car insurance varies depending on several factors, including the insurance company you use.
If you've been asking, "What is the cheapest insurance for a 16-year-old?" we're here to help you find the answer. This year, USAA offers the cheapest car insurance for teens belonging to military and veteran families, averaging just $5,373 per year for females. Travelers also offers some of the cheapest car insurance for teens, averaging $6,089 per year for females.
Here's a breakdown of some of the average costs of a car insurance policy for a teen driver by insurance company.
Teen car insurance rates by company (2026)
| Car Insurance Company | Average Annual Premium for Females 16-19 | Average Annual Premium for Males 16-19 | Average Annual Combined Premium |
|---|---|---|---|
| Travelers | $6,089 | $7,108 | $6,597 |
| Nationwide | $8,052 | $9,270 | $8,661 |
| Allstate | $9,283 | $10,030 | $9,659 |
| Progressive | $9,377 | $10,266 | $9,823 |
| USAA | $5,373 | $5,684 | $5,528 |
Average Cost of Car Insurance for Teen Drivers with Their Own Policy
Some teen drivers get their own car insurance policy instead of being added to a parent's policy. Teenage car insurance rates are still expensive, regardless. Keep in mind that a minor can't legally sign their own insurance policy without an adult co-signer. Here's a closer look at how much teens pay for their own car insurance policies, on average.
Average cost of solo teen car insurance policies by gender
| Gender | Average Monthly Premium | Average Annual Premium |
|---|---|---|
| Male | $614 | $7,366 |
| Female | $580 | $6,966 |
If you've been asking, "Should my 18-year-old have her own car insurance?" it's typically cheaper to add your teen to your existing policy, but you'll need to check with your specific insurer to be certain.
Average Cost of Teen Car Insurance by State (2026)
Teenage car insurance rates also vary by exact location, or the state where you live and get your policy. So, how much is car insurance for teens in your state? The table below compares the average cost of car insurance for 16-year-old female and male teens by state, both individually and when added to a parent's policy.
| State | Average Teen Female Premium | Parents' Policy Premium | Parents' Premium with a 16-Year-Old Female | Average Teen Male Premium | Parents' Premium with a 16-Year-Old Male |
|---|---|---|---|---|---|
| Alaska | $7,463 | $2,407 | $5,921 | $8,537 | $6,888 |
| Alabama | $8,718 | $2,385 | $5,640 | $9,679 | $6,306 |
| Arkansas | $11,288 | $3,008 | $6,332 | $12,680 | $7,054 |
| Arizona | $10,726 | $3,454 | $7,703 | $12,460 | $8,908 |
| California | $8,040 | $3,129 | $8,945 | $8,040 | $8,945 |
| Colorado | $12,219 | $3,417 | $7,753 | $13,692 | $8,479 |
| Connecticut | $13,132 | $3,527 | $8,097 | $14,164 | $8,868 |
| Washington, D.C. | $11,272 | $3,023 | $6,191 | $19,197 | $7,359 |
| Delaware | $11,724 | $3,304 | $7,114 | $13,432 | $8,051 |
| Florida | $14,877 | $4,618 | $10,862 | $16,184 | $11,732 |
| Georgia | $11,300 | $2,936 | $7,218 | $12,809 | $8,155 |
| Hawaii | $1,803 | $1,333 | $1,482 | $1,803 | $1,482 |
| Iowa | $8,035 | $2,383 | $4,740 | $9,153 | $5,441 |
| Idaho | $6,475 | $1,739 | $3,689 | $7,812 | $4,243 |
| Illinois | $7,917 | $2,775 | $6,653 | $8,833 | $7,370 |
| Indiana | $6,467 | $2,354 | $5,377 | $7,774 | $6,186 |
| Kansas | $8,382 | $2,658 | $5,424 | $9,513 | $6,058 |
| Kentucky | $12,250 | $2,948 | $6,077 | $13,807 | $6,843 |
| Louisiana | $16,147 | $4,441 | $11,341 | $18,822 | $12,988 |
| Massachusetts | $11,139 | $2,684 | $6,951 | $11,139 | $6,951 |
| Maryland | $8,086 | $2,806 | $6,604 | $9,186 | $7,795 |
| Maine | $6,435 | $1,618 | $3,888 | $7,539 | $4,415 |
| Michigan | $10,186 | $5,564 | $11,117 | $10,186 | $11,117 |
| Minnesota | $7,293 | $3,160 | $6,509 | $8,816 | $7,360 |
| Missouri | $8,422 | $2,955 | $6,229 | $10,080 | $7,281 |
| Mississippi | $9,973 | $2,472 | $5,785 | $10,277 | $6,480 |
| Montana | $9,375 | $2,660 | $6,128 | $9,820 | $6,283 |
| North Carolina | $7,904 | $2,747 | $6,829 | $7,904 | $6,829 |
| North Dakota | $6,458 | $2,469 | $5,159 | $7,589 | $5,992 |
| Nebraska | $8,710 | $2,503 | $5,297 | $10,554 | $5,968 |
| New Hampshire | $6,804 | $1,711 | $4,102 | $7,687 | $4,589 |
| New Jersey | $13,069 | $3,139 | $8,051 | $14,850 | $9,190 |
| New Mexico | $10,328 | $2,989 | $5,962 | $11,333 | $6,489 |
| Nevada | $15,988 | $4,232 | $9,938 | $17,110 | $11,181 |
| New York | $8,918 | $5,788 | $11,775 | $10,395 | $12,436 |
| Ohio | $6,120 | $1,967 | $4,721 | $6,735 | $5,175 |
| Oklahoma | $10,309 | $3,667 | $7,589 | $11,839 | $9,123 |
| Oregon | $8,766 | $2,702 | $6,863 | $9,271 | $7,649 |
| Pennsylvania | $9,015 | $3,575 | $9,143 | $9,015 | $9,143 |
| Rhode Island | $11,470 | $3,256 | $8,553 | $12,885 | $9,742 |
| South Carolina | $8,849 | $2,289 | $5,442 | $10,230 | $6,128 |
| South Dakota | $9,466 | $3,159 | $5,280 | $11,028 | $5,997 |
| Tennessee | $9,986 | $2,455 | $5,721 | $11,579 | $6,495 |
| Texas | $9,348 | $3,897 | $9,051 | $10,004 | $9,569 |
| Utah | $11,135 | $2,672 | $6,256 | $12,727 | $7,043 |
| Virginia | $5,597 | $2,215 | $6,362 | $7,028 | $7,316 |
| Vermont | $4,650 | $1,586 | $3,733 | $5,416 | $4,306 |
| Washington | $9,919 | $2,539 | $5,086 | $10,406 | $5,567 |
| Wisconsin | $10,863 | $2,225 | $5,228 | $11,878 | $5,691 |
| West Virginia | $10,926 | $2,315 | $5,474 | $11,905 | $6,170 |
| Wyoming | $4,629 | $1,919 | $4,669 | $7,484 | $5,760 |
Five Best Car Insurance Companies for Teen Drivers in 2026
The best car insurance for teens depends on your family's needs and budget. If you've been wondering, "What is the best insurance for first-time car owners?" we're here to help you answer that question with a few of our top recommended carriers.
Depending on your priorities, you might determine that the best insurance for teen drivers or first-time car owners comes from a local carrier with outstanding customer feedback or from a carrier that offers the highest discounts. We've broken down the best car insurance for teen drivers by category from just a handful of our top-rated carriers for you to start with.
- Best Teenage Car Insurance Overall: Erie
- Best Teenage Car Insurance for Roadside Assistance: Progressive
- Best Teenage Car Insurance for Military Families: USAA
- Best Teenage Car Insurance for Good Student Discounts: Travelers
- Best Teenage Car Insurance for Low-Mileage Drivers: Nationwide
Best Teenage Car Insurance Overall: Erie
Some of the best car insurance for teens overall comes from Erie Insurance. We selected Erie as one of our choices for the best insurance for teen drivers, thanks to their excellent premium rates when adding a teen to a policy compared to many other insurance companies. The average teen car insurance policy premium is $4,601 per year from Erie.
But Erie also offers many extra perks for teen drivers, such as new car replacement coverage and gap insurance. The carrier even continues to offer outstanding rates for teen drivers with an accident history or other traffic violations like speeding tickets.
Erie Insurance was founded in 1925 and is a Fortune 500 company. The carrier has outstanding ratings from AM Best and the Better Business Bureau (BBB). The vast majority of Erie's customer feedback is positive. In addition to car insurance, Erie also offers boat, RV, and umbrella insurance, and many other types of personal coverage.
| Pros: | Cons: |
|---|---|
Excellent rates compared to other carriers for adding teen drivers to an existing car insurance policy
|
Drivers with poor credit history can expect to pay much higher rates
|
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Offers accident forgiveness and vanishing deductibles
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Coverage is only available in 12 states
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Continues to offer great rates for drivers with accident history or traffic violations
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Offers new car replacement coverage and gap insurance
|
Best Teenage Car Insurance for Roadside Assistance: Progressive
Our pick for the best car insurance for teens when it comes to roadside assistance is Progressive. We selected Progressive as one of our choices for the best insurance for teen drivers, thanks to its extensive roadside assistance coverage that goes above and beyond that provided by other carriers. In fact, Progressive's roadside assistance coverage offers a winching service to retrieve vehicles trapped in snow, mud, sand, or water if it's within 100 feet of the road, as well as a tow to the closest qualifying repair shop.
Teens who sign up for Progressive's Snapshot telematics program can save an average of $322 per year based on good driving behavior. Progressive was founded in 1937 and offers coverage in most states. The carrier holds an outstanding financial strength rating from AM Best and offers 24/7/365 customer service.
Progressive makes customer service highly accessible thanks to its mobile app and live chat options, as well. In addition to car insurance, Progressive offers many other products, including boat insurance, classic car insurance, motorcycle insurance, condo insurance, and many more.
| Pros: | Cons: |
|---|---|
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Offers many additional types of coverage
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Coverage not available in every state
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Offers exceptional roadside assistance coverage
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Poor rating by the BBB
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High financial strength rating
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Some mixed customer feedback
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Highly accessible customer service
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Best Teenage Car Insurance for Military Families: USAA
When it comes to offering the best car insurance for teens in military families, the winner is clearly USAA. We selected USAA as one of our top choices for the best insurance for teen drivers, thanks to its super affordable rates to add teen drivers to existing car insurance policies and its great prices for folks with an active or retired military member in the family.
The average cost of teen car insurance from USAA is $5,528 per year, which is the lowest of all the carriers we compared. USAA also offers accident forgiveness and new car replacement coverage.
USAA was founded in 1922 and holds outstanding ratings from both AM Best and the BBB. The carrier also has high ratings by Moody's and Standard & Poor's. Auto insurance is offered in all 50 states. USAA offers a mobile app and online claims reporting to help make customer service highly accessible. In addition to car insurance, USAA also offers home insurance, health insurance, flood insurance, and many other products.
| Pros: | Cons: |
|---|---|
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Great rates for adding teen drivers when compared to most other carriers
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Must have a military member in the family to qualify for coverage
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Offers accident forgiveness and new car replacement coverage
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Not BBB accredited
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Offers great rates for folks in military families
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Coverage is available in all 50 states
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Best Teenage Car Insurance for Good Student Discounts: Travelers
The winner for the best teenage car insurance discounts is Travelers. We chose Travelers as one of our picks for the best insurance for teen drivers thanks to their great rates when compared to other carriers and their inclusion of many different types of discounts on top of those savings. Travelers also has the most affordable teen driver premiums for non-military families, averaging $6,597 per year.
In fact, Travelers offers not only good student discounts but also discounts for students away at school. If you have a teen driver listed on your policy who's away at school at least 100 miles from home and won't be driving your vehicles while they're away, you can qualify for an additional discount on your policy.
Travelers was founded in 1853 and has outstanding customer service ratings. Auto insurance is currently available in 42 states. Travelers works primarily with a large network of independent insurance agents, helping to make the insurance journey much more personalized and streamlined for existing and prospective customers.
In addition to car insurance, Travelers offers many other coverage options, including classic car insurance, RV insurance, snowmobile insurance, and many other products.
| Pros: | Cons: |
|---|---|
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Offers good student discounts and student away-at-school discounts
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Auto insurance only offered in 42 states
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Great rates for adding teens to an existing policy
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Large volume of complaints filed through the BBB
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Excellent customer feedback
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Well-established carrier
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Best Teenage Car Insurance for Low-Mileage Drivers: Nationwide
Our final pick for one of the carriers offering the best car insurance for teens who are low-mileage drivers is Nationwide. We selected Nationwide as one of our top choices for the best insurance for teen drivers thanks to its offering of SmartMiles, which is a pay-per-mile program that provides flexible rates depending on your teen driver's overall mileage. Through this program, families with teen drivers on their policies can also receive an additional discount of up to 10% when renewing their policy if their teen maintains a safe driving record.
Nationwide was founded in 1925 and holds outstanding ratings from both AM Best and the BBB. The carrier offers 24/7 claims reporting and makes customer service easy.
In addition to insurance, Nationwide also offers retirement and investment options. Along with car insurance, Nationwide offers golf cart insurance, scooter insurance, personal watercraft insurance, and many other products.
| Pros: | Cons: |
|---|---|
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Well-established carrier
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Coverage only offered in 47 states
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SmartMiles program offered
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Some mixed customer feedback
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Additional discounts offered for safe drivers upon policy renewal
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Outstanding financial strength rating
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How to Add a Teen to Your Car Insurance
The requirements for when you must add a teenage driver to your car insurance policy vary depending on location and carrier. In some states, you are required to add your teen to your car insurance policy as soon as a learner's permit is issued, but in others, it’s not required until the driver passes their exam and has a formal license. These requirements can vary by insurance company, too.
But just like the steps of how to get a car loan or how to finance a car, there are typically just a few things you need to do to ensure that your teen is listed as an insured driver on your policy, like:
- Call your insurance company: First, you'll want to call your independent insurance agent or carrier directly to let them know about the change.
- Talk through the changes: If you're unhappy with the rate your current car insurance carrier is offering once you add a teen to your policy, you might choose to shop around for a better rate instead. Your independent insurance agent can help you with this.
- Ask about discounts: Inquire with your car insurance company whether they offer any type of teen driver discounts, including for safe drivers, good students, etc.
- Have your teen's driver’s license and vehicle information ready: Make sure you have your teen's license and vehicle information at hand before making the call to your insurance company.
- Confirm policy and new ID cards: Once your new policy and ID cards are issued, double-check them to ensure there are no errors.
A local independent insurance agent can easily help you add a teen driver to an existing auto policy.
When insurance companies require you to add a teen driver
Teens with learner's permits need car insurance, but they can be covered by your existing auto policy with no rate change at this stage. Still, it's important to notify your insurance company as soon as your teen gets a learner's permit and begins driving. When your teen driver is fully licensed, that's when you'll experience a rate increase.
Graduated Driver Licensing (GDL) and Teen Car Insurance
The three graduated driver licensing program is available nationwide, and is used to teach new drivers better behaviors on the road. GDL programs have helped reduce fatal crashes by up to 38% and can have a positive effect on car insurance rates. The stages are learner, intermediate, and full.
- Learner's permit: Requires supervised driving practice, up to 70 hours with an experienced driver. Hour requirements vary by state.
- Intermediate license: Drivers are allowed on the road with certain restrictions, such as driving with other teens in the vehicle or nighttime driving. Restrictions vary by state.
- Full license: The driver now enjoys full road privileges.
Be sure to research the GDL rules and restrictions in your state before allowing your teen driver on the road.
How to Find the Best Car Insurance for Teenage Drivers
Adding a teen driver to a parents' policy is usually the cheapest option. When you're ready to find the best teen auto insurance, start by comparing quotes from top-rated carriers in your area.
You can also call your independent insurance agent, and they can do this step for you and then provide you with the best results. But there are a few things to keep in mind when shopping around for teenage car insurance, including:
Leave your teen on your existing policy
It often ends up being cheaper to add a teen driver to an existing policy rather than getting them a policy of their own. Adding a teen to a family policy costs an average of $3,048 per year, while getting them an individual policy averages $4,866 per year. You can ask to compare quotes from your existing car insurance provider for both of these options. If your teen driver is headed to college, our guide to college student car insurance covers the discounts and rules for staying on a family policy while away at school.
Ask about discounts
If you're not already signed up for various car insurance discounts, make sure to check with your insurance company to get any added to your policy that you qualify for. Students in your household who are away at school might earn you a discount, as well as teens or other household members who are safe drivers or even students who earn good grades. Good student discounts can help you save an average of 16%, while student-away-at-school discounts average 18%.
Shop around
Don't settle for the first teen car insurance quote you receive. Switching to the cheapest carrier in your state can help you save hundreds to thousands of dollars per year. Ask your independent insurance agent to shop and compare quotes from multiple car insurance companies that insure teens. They'll help you find the best possible rate.
Look into companies that offer accident forgiveness
When you have a teen driver on your policy, having accident forgiveness becomes a much more attractive option. Certain carriers offer accident forgiveness for teen drivers to help keep premium rates as low as possible after they're involved in an accident. Look into policies from Erie, USAA, Allstate, and Liberty Mutual to get accident forgiveness benefits, which are especially valuable for teen drivers given their higher at-fault crash rates.
Look into companies that offer new car replacement coverage
Another attractive option for teen driver parents is new car replacement coverage. If your existing vehicle is totaled, new-car replacement coverage can pay to replace it with a new car of the same make and model.
How to Save on Car Insurance for Teens in 2026
Be sure to shop around for car insurance quotes for your teen. Rates vary among insurance companies, which offer a variety of discounts that apply to teen drivers. These include:
- Good student discount (~16%)
- Defensive driving discount (~5%)
- Low-mileage discount (~6%)
- Student-away discount (~18%)
- Safety features discount
- Multi-policy discount
- Driver monitoring discount
Your independent insurance agent can help you find an insurance company that offers a variety of teen driver discounts. Your agent can help you get the cheapest car insurance rates available in your area.
Telematics and pay-per-mile programs for teens
Many major carriers offer programs that can help teen drivers save on their car insurance, either for good driving behavior or for driving fewer than a certain number of miles per year. Ask your independent insurance agent about Nationwide SmartMiles, Progressive Snapshot, Allstate Drivewise, USAA SafePilot, and Travelers IntelliDrive. Savings range from 5% to 30% on average.
Driver's education and defensive driving course discounts
Most insurers offer between 5% and 10% savings if your teen driver completes a state-approved driver's ed or defensive driving course. Certain states mandate insurer participation in these discounts. Ask your independent insurance agent for more details about defensive driving course insurance discounts for teens.
Best and Worst Cars for Teen Drivers' Insurance Costs
When insuring a teen driver, it's commonly recommended to avoid sports cars and large SUVs, as these can have some of the highest insurance rates, especially for young drivers. The table below compares some of the cheapest vehicle types to insure for teens in 2026.
| Vehicle | Average Annual Premium |
|---|---|
| MINI Cooper | $1,730 |
| Subaru Forester | $1,891 |
| MINI Electric | $1,910 |
| Subaru Outback | $1,929 |
| Mazda CX-5 | $1,957 |
| Honda Pilot | $1,996 |
| Honda Odyssey | $2,006 |
Should I Put My Teen Driver on Their Own Car Insurance Policy?
Adding a teen driver to your car insurance policy can potentially raise your rates significantly (i.e., anywhere from 20% to 180%, depending on your state), but it's always best to add your teen to your family policy rather than purchase a separate policy. Additionally, minors can't sign their own insurance policies without an adult co-signer.
If you purchase a separate policy for your teen driver, you might be tempted to purchase insufficient coverage limits or exclude them from your other policies. This is never a good idea in a family where any driver could operate any of your vehicles at any time.
Why Is Teen Car Insurance So Expensive?
Teen drivers are statistically more likely to cause accidents than more experienced drivers, leading to higher premium rates for teenage car insurance. Most experts agree that immaturity and lack of driving experience are the two main factors that cause teen drivers to have such a high crash rate. Because they are inexperienced drivers, teens often fail to recognize hazardous situations and don’t respond appropriately. In addition, teens are more likely to engage in risky activities such as speeding and tailgating.
Car insurance for teenage drivers is notoriously expensive, but the crash statistics don't lie. In 2023 alone, there were 3,048 fatalities reported from accidents involving young drivers, aged 13-19. With these alarming stats in mind, it might be easier to understand why teen auto insurance rates are sky-high.
What Makes Teenagers More Prone to Accidents?
Teens as a group are risky drivers. In addition to immaturity and an inability to appropriately recognize risky situations, they face numerous risk factors that impact their likelihood of getting into accidents.
- Low-risk perception: Unfortunately, many teens mistakenly believe they're invincible, even when behind the wheel of a car. Young drivers underestimate the risks they face and overestimate their ability to respond.
- Risk-taking: Invincibility, again. Teen drivers are more likely to engage in risky driving behaviors like speeding, tailgating, running red lights, violating traffic rules, making illegal turns, passing dangerously, and failing to yield. Speeding is involved in 33% of fatal teen driver crashes, drinking in 22%, and improper seatbelt use in 51%.
- Skill deficiencies: Young drivers are new drivers. They haven’t yet mastered the skills they need to stay safe.
- Alcohol and drug use: Unfortunately, substance abuse is a leading cause of serious crashes among teen drivers. Teens with alcohol or drugs in their system are even more prone to crashes than older drivers who may have consumed similar substances.
- Distraction: Teens are easily distracted by many things, including having their friends in the car while they drive. In fact, the fatality risk of teen drivers is four times higher when they are driving with passengers than when they are driving alone.
- Night driving: Night driving takes practice, and teen drivers are less experienced night drivers than their adult counterparts. In addition, teens are more likely to be tired and even under the influence of drugs or alcohol at night.
Be sure to talk with your teen about safe driving behaviors and the risks involved on the road.
FAQs About Teenage Car Insurance
Do you have to add a teenage driver to your insurance?
Your teen driver must be insured, but you don't necessarily have to add them to your existing car insurance policy. You can choose to buy your teen their own separate policy, but this tends to be much more expensive. Requirements for when to add your teen to an existing policy vary by state and carrier, with some carriers and locations requiring you to add them at the permit stage.
How much is teen car insurance?
The average cost of car insurance for a 16-year-old is $10,387 per year, which drops to $5,174 per year by age 20. Teen car insurance is much more expensive than car insurance for more experienced drivers.
How can I save money on car insurance for teens?
To save money, shop and compare policies and rates from at least three different carriers. Asking about discounts from your car insurance carrier can also help you save money on teen car insurance. Many carriers offer discounts for good students, safe drivers, and even students who get good grades. These discounts can help you save between 5% and 20%.
Is it cost-effective for parents to add teen drivers to their insurance?
Though adding a teen driver to your auto insurance policy will cause your premium rates to increase quite a bit (often between 70%-150%), it's still a more cost-effective option than the alternative. Parents who choose to let their teen get their own separate car insurance policy end up paying much more for coverage than if they'd added their teen to an existing policy. The average cost of adding a teen driver to an existing policy is $3,048 per year, compared to the average cost of an individual teen policy of $4,866 per year.
Should my teen participate in a usage-based driving program?
Enrolling your teen in a telematics program can help you save between 5% and 30% on your premiums. Some carriers offer special programs for low-mileage teen drivers that provide the benefit of significant discount savings on each bill, such as Allstate Drivewise, Progressive Snapshot, USAA SafePilot, and Nationwide SmartRide.
If my teen has a driver’s license but does not drive, will my insurance rates still increase?
Yes, because insurance companies have no way of knowing whether your teen is actually driving. If you're trying to keep premiums down while your teen is licensed and you're certain they never drive, you could have them surrender their license to the DMV. The DMV will likely provide written documentation of that surrender, which can be given to your insurance company as proof.
Some companies may lower your rates in this case, but they are not obligated to. Also, some states allow driver exclusions, which can be used if a teen has a driver's license but doesn't drive.
Will we have coverage if my teen has an accident but is not on my insurance?
There might be coverage if an uninsured teen driver is involved in an accident. The majority of policies cover all members of the household without you having to report them as drivers. However, some policies may restrict coverage for family members to those who were reported to the company when the policy was put in place. If your teen was specifically excluded from your auto insurance policy, you wouldn't have coverage for the accident.
When do teen auto insurance rates begin to go down?
Typically, teen driver insurance rates tend to drop after the driver experiences three years with a clean driving record. Rates also tend to start dropping dramatically when you insure a 20-year-old driver vs. a teen, and continue to drop through age 25. Depending on your state, rates may drop by 50% after three accident and ticket-free years, with another drop after six years with a clean driving record. And after the age of 25, car insurance rates should go down again (if the driving record remains clean). For a full breakdown of rates, discounts, and top carriers once your teen ages into their 20s, see our guide to car insurance for young adult drivers.
How much will my car insurance premiums go up if my teen has an accident or speeding ticket?
If your teen driver cannot keep a clean driving record and gets involved in a crash or gets a speeding ticket, expect your rates to increase significantly. Just one speeding ticket can cause a 14% premium increase. However, you can try to minimize these increases by getting a policy from a carrier that offers accident forgiveness.
Does the type of car that teens drive affect premium costs?
Yes. While teen rates will always be high, the car you choose can help you save some money on your premiums. From an insurance perspective, sports cars encourage speeding, while sedans and small SUVs can be considered the safest. Large trucks and SUVs are more prone to rollover crashes. Try to provide your teen with a somewhat older vehicle that will cost less if it gets into an accident and doesn’t have the inherent safety concerns of other types of vehicles.
In 2026, the MINI Cooper and the Subaru Forester are two of the cheapest vehicles to insure for teen drivers.
How much does it cost to add a 16-year-old to your car insurance in 2026?
It costs an average of $2,893 to $4,921 per year to add a 16-year-old driver to your policy, depending on their age and gender.
What is the cheapest car insurance company for teen drivers in 2026?
USAA offers the cheapest car insurance for teen drivers in military families, averaging $5,528 per year, while Travelers is the cheapest non-military option, averaging $6,597 per year.
At what age does car insurance get cheaper for teens?
There's a significant drop in insurance costs at age 20, of about $3,739 per year. This rate decrease continues through age 25 and beyond.
How much can a good student discount save on teen car insurance?
Good student discount percentages vary by carrier, with Allstate having one of the best savings rates of 20%. These discounts are offered to students with B-averages or 3.0 GPAs, typically, though Allstate has more generous eligibility requirements of a 2.7 GPA.
An Independent Insurance Agent Can Help You Find the Cheapest Car Insurance for Teens
When you're ready to find affordable car insurance for your teen driver, no one's better equipped to help than a local independent insurance agent. These agents have access to all the carriers on our list and many others near you. They'll shop and compare quotes and policy options for you to find the best deal.
Sources
https://www.insurance.com/auto-insurance/life-events/car-insurance-for-young-adults.aspx#How_much_does_it_cost_to_add_a_teenager_to_a_car_insurance_policy
https://www.moneygeek.com/insurance/auto/cheap-car-insurance-for-teen-drivers/#cheapest-cars-to-insure
https://www.carinsurance.com/Articles/car-insurance-16-year-old.aspx?_cl=oQ73DprFFiMGz2Yxf6A5whbb
https://www.allstate.com/auto-insurance/north-carolina-graduated-driver-licensing-laws
https://www.iihs.org/research-areas/fatality-statistics/detail/teenagers