This article aims to bring to light the cheapest car insurance companies for teenagers. As you may know, teen car insurance isn’t particularly the cheapest thing out there, but thanks to this you wouldn’t go into the middle market prepared.
In this article, I have put together the 15 cheapest car insurance companies for teenagers, all that is left for you is to review each service they offer and support statuses and choose the one that best suits your needs. So, without wasting any more time, let’s get down to business.
How much does teen car insurance cost?
Car insurance is usually expensive. It is no different for teenagers. In fact, when it comes to auto insurance, young drivers pay more than their older, more experienced counterparts.
This is primarily because teens ages 16 to 19 are almost twice as likely to experience fatal car accidents, according to the Insurance Institute for Highway Safety (IIHS).
Basically, teen car insurance should cost around $169 per month on average. The price is high because teens are also more likely to be distracted while driving.
Should teens be on their parents’ car insurance policy?
Well, there are no legal implications for a teen to stay on their parent’s car insurance policy, and besides, it’s sometimes cheaper than getting a separate policy for a teen.
The teen also enjoys benefits and discounts that their parents qualify for, which the teens might not be able to qualify for on their own.
However, it may be important to note that adding a teen to a parent’s policy would incur more charges for the parent to pay their monthly premium.
Although there is no law on when a young driver must obtain their own insurance when they begin to live independently, pay their own bills and expenses, and drive their own car.
It may be time for you to go ahead and get your own car insurance and stay off your parent’s policy.
Teen car insurance requirements
When you go to get your teen car insurance, there are a few mandatory types of coverage that you must get.
Basically, this means getting the minimum amount of liability insurance required based on the state you’re in.
Liability insurance is basically financial protection for drivers who are at fault in the event of a car accident. Liability insurance has two basic types;
- Bodily Injury Liability Coverage
- Property Damage Liability Coverage
Bodily injury liability insurance pays for medical and other expenses if the policyholder or any other driver named on the policy injures someone and is deemed to be the cause of the accident.
However, property damage liability coverage pays for repairs to someone’s vehicle or other property that might have been destroyed during the course of the accident.
Depending on your state of residence, you may also need to purchase comprehensive, collision, underinsured/uninsured motorist, and personal injury protection coverage.
The 15 best cheap car insurance for teenagers in 2022
Now let’s go to the core of the article, which is the 15 best cheap car insurance for teenagers in 2022.
I have compiled the best list that I could find from different sources and I really hope that it provides the help that you are looking for.
Nationwide insurance offers one of the lowest average costs for adding a teen driver.
It also comes with top-notch tech underpinnings like pay-per-mile insurance and usage-based insurance.
It has great prices for teen families and a 5.0 Forbes advisor rating.
USAA is top notch when it comes to customer service. It boasts of extremely high claims satisfaction among customers and superior car insurance rates for parents.
It’s very well priced for teen families and has a 4.5 Forbes advisor rating.
american family insurance
American Family Insurance offers amazing customer service with compelling rates on insurance policies.
This family insurance has a low level of complaints and offers a teen safe driver program that includes a mobile app that monitors a teen’s risky driving actions.
Geico insurance offers one of the best and most affordable options for parents looking to add a teenager to their policy.
They also offer excellent customer service, a very competitive average cost for teen drivers, and a Geico mobile app that offers amazing augmented reality features.
It has a 4.0 rating on the Forbes advisor.
Allstate Insurance The company offers some very excellent technological fundamentals as well as excellent customer service. They also offer usage-based and pay-per-mile insurance options.
Allstate insurance also offers discounts if the teen completes Teen SMART, which is a computer-based driver improvement program with videos, simulations and activities.
Allstate Insurance has a Forbes advisor rating of 3.5.
Erie insurance offers very low cost teen auto insurance policies.
They offer very competitive auto insurance policies for families. And if you’re an Erie insurance member, you’d get a discount by having your teen complete Teen SMART, a computer-based driving improvement challenge with videos, simulations and activities.
Erie Insurance currently has a 3.5 rating on the Forbes advisor.
Farmers’ insurance is known for its fancy pricing and technological underpinnings. Notably, they don’t have the best customer reviews based on popular opinion.
But then farmer insurance offers strong tech advantages, like digital ID cards and virtual car insurance claims.
Farmers’ insurance is rated 3.5 by Forbes advisors and that is why it is currently on our list.
Progressive Insurance is known for its high customer claim satisfaction and technology collusion with over 80% of customers having satisfied claims.
It is average priced for teenage families and is ranked 3.5 on the Forbes advisory.
state farm insurance
State Farm Insurance is known for its above-average teen family prices, incredible customer service, and great technology fundamentals. This insurance offers technological conveniences such as digital ID cards and virtual car insurance claims.
They also offer a program called Steer Clear that aims to help teens learn to drive better through the mobile app, which also includes a discount if you complete the program.
Travelers insurance is known to provide a solid option with good ratings on price for teen families, customer happiness, and tech fundamentals.
It also boasts a high level of claim satisfaction, as well as having a 3.5 rating on the Forbes advisor.
Liberty mutual insurance offers the best when it comes to additional coverage.
It offers some less common coverage options, like new car replacement, gap insurance, and accident forgiveness.
Iowa Bureau of Agriculture
Although the name has Iowa, it is actually an office that sells insurance in Nebraska and some other states.
They offer amazing auto insurance, as well as roadside assistance, average replacement cost, and a telematics program known as Driveology.
They also offer many more discounts to teen drivers which are usually much more expensive.
Auto owner insurance is known for its exceptional coverage options as well as its easy and effective claims process with few complaints.
It offers Gap insurance, as well as add-ons like accident forgiveness and a declining deductible.
Amica insurance is known for its low average minimum coverage premium and high claims with an amazing customer claim score. It is one of the best options in terms of cheap coverage and solid service.
It has some great tech twists including the ability to file auto claims through an online account, its online chat feature, or through its easy-to-use mobile app.
Although only available in the Pacific Northwest, PEMCO insurance offers you all of your drivers’ unique needs.
They also support various discounts, such as savings on insuring both your car and home, as well as having certain vehicle safety features.
Plus, if you’re a University of Washington student, you also get discounts as either an alumni or a current student.
What is the cheapest way to insure a teen driver?
The simple answer is to add them to your own insurance policy, this is because getting a teenager their own insurance premium is too expensive compared to attaching them to your own policy.
How much does car insurance typically cost for a teenager?
Teen car insurance costs quite a lot at around $3711 per month on average.
Is it cheaper to be on your parents’ car insurance?
It’s much cheaper to stay on your parent’s policy than it is to get a teenager’s car insurance. Drop personal insurance until you are at least age 25 or older.
How much does insurance cost for a 19 year old?
The average cost of insurance varies for men and women and is also based on whether you have a full coverage premium or a minimum coverage premium. If you are a 19-year-old male, an average full coverage premium would cost about $4,487, while a minimum coverage premium would cost $1,332. For women, a premium for full coverage costs about $3,807, while a premium for minimal coverage costs $1,176.
From the article above, you can gain insight into the world of teen car insurance, as well as be guided as you go in deciding which car insurance company you would choose and which one best suits your needs.