Best cheap car insurance for teens and young drivers in 2026

What is the best car insurance company for teen drivers?

Auto-Owners is the best car insurance company for teens overall, with average rates of $5,858 a year and the lowest NAIC complaint index of any carrier in our ranking at 0.44, but it is a regional carrier not available in all states. Travelers is the best among national car insurance companies, with average rates of $6,597 a year, an AM Best rating of A++ (Superior), and a low NAIC complaint ratio of 0.63. Erie, also a regional carrier, landed in the No. 2 spot overall, and GEICO is the second-best-rated national carrier.

The table below highlights how top insurance companies stack up as an option for teen drivers.

Best car insurance companies for teens and young drivers in 2026
Company	NAIC complaint ratio**	AM Best rating	Insurance.com survey score	Average annual premium	Overall score
Auto-Owners	0.44	A+	4.3	$5,858	4.51
Erie Insurance	0.77	A	4.5	$4,601	4.5
Travelers	0.63	A++	4.37	$6,597	4.47
GEICO	0.60	A++	4.27	$6,507	4.45
Auto Club Group (AAA)	0.68	A	4.39	$5,946	4.35
State Farm	0.87	A+	4.38	$7,981	4.16
Amica	0.59	A+	4.19	$8,541	4.14
Nationwide	0.64	A	4.41	$8,661	4.11
Progressive	0.60	A+	4.15	$9,823	3.98
American Family	0.67	A	4.27	$10,001	3.9
Allstate	1.20	A+	4.35	$9,659	3.84
CSAA Insurance (AAA)	1.02	A	4.37	$9,833	3.82
Auto Club Enterprises (AAA)	1.29	A+	4.48	$10,438	3.78
Mercury Insurance	1.07	A	4.46	$11,668	3.65
Farmers	1.24	A	4.3	$12,511	3.43

USAA*	1.16	A++	4.55	$5,528	4.44

Read our methodology

*USAA offers insurance only to military members, veterans and their families

** The NAIC complaint ratio is a ratio of the number of complaints to the carrier's market share, with a benchmark of 1.0. Scores below that benchmark are considered low.

Auto-Owners: Best overall and best regional carrier

Auto-Owners landed at the top of the ranking for the best teen car insurers with the lowest NAIC complaint ratio of any company at 0.44, and low average rates of $5,858 a year, third-lowest of all carriers, including USAA. The carrier operates in 24 states, so it's not available everywhere, and operates only through independent agents.

Erie Insurance: Best for cheap car insurance for young drivers

Erie Insurance, a regional carrier that primarily serves states in the Northeast and Great Lakes regions, has the lowest rates among all carriers we surveyed. It also earned second place overall thanks to a high survey score of 4.5 out of 5 and a low complaint volume.

Travelers: Best national carrier for teens and young drivers

Travelers' low average rates for teen drivers make it the best national insurer for teens, and it also has the best AM Best rating available, A++, and a low NAIC complaint ratio of 0.62. Travelers earned a score of 4.37 out of 5 on Insurance.com's annual survey of customers.

People ask

Can a teenager get their own car insurance policy?

Yes, teenagers who are 18 or 19 can get their own insurance policy, but minors (under 18) can't, because minors can't legally sign a contract. However, they may be able to get a policy if a parent or guardian co-signs. In most cases, adding a teen driver to a parent's policy is the cheapest and simpler option.

What company has the cheapest car insurance for teens?

Among national carriers, GEICO has the cheapest teen car insurance rates among national carriers at $5,907 a year. USAA is cheaper if you are an eligible military family.

In addition to shopping around, seeking out discounts for good students and driver education courses can help you lock in affordable rates. Compare rates for teen drivers from national carriers below.

Company	Average annual rate, female 16-19	Average annual rate, male 16-19	Average annual rate, combined
GEICO	$6,176	$6,841	$6,507
Travelers	$6,089	$7,108	$6,597
State Farm	$7,329	$8,634	$7,981
Nationwide	$8,052	$9,270	$8,661
Allstate	$9,283	$10,030	$9,659
Progressive	$9,377	$10,266	$9,823
Farmers	$11,984	$13,020	$12,511
USAA*	$5,373	$5,684	$5,528

Read our methodology

*USAA is only available to military members, veterans and their families.

What is the cheapest way to get car insurance for a teenager?

The cheapest way to get car insurance for a teenager is to add them to a parent’s insurance policy. Teens under 18 can't legally sign their own insurance contract, and even when co-signing is possible, or for teens 18 and over, a standalone teen policy is significantly more expensive than being added to a parent's policy.

In addition to adding the teen driver to your policy, some other strategies for finding the cheapest rates include:

Shop around: Every insurance company has slightly different rates. Getting quotes from multiple insurance companies will help you find the lowest rates for a teen driver. Don't forget to check smaller insurers.
Seek out discounts: Many insurers offer discounts for good grades, taking a driver education course, and proving safe driving habits through a telematics app.
Buy a cheaper car. Insurance rates are higher for newer, more valuable cars. Find a car with good safety features but without a high price tag to get lower rates.
Raise deductibles. If you have to carry full coverage insurance, carrying higher deductibles will mean lower rates; just make sure you can afford to pay it if there's a claim.

Best car insurance for teens: What real customers say

In the Insurance.com annual survey of insurance customers, Allstate ranked first for teen and young driver satisfaction at 71%, followed by USAA and American Family.

Auto-Owners and Mercury landed at the bottom of the list. Here are all of the companies in the survey and how real customers felt about each for teens and young drivers.

Company	Percent of customers who were satisfied
Allstate	71%
USAA	68%
American Family	68%
Liberty Mutual	67%
CSAA Insurance Group (AAA NorCal/NV/UT)	67%
Nationwide	63%
Auto Club Enterprises (AAA SoCal)	59%
Auto Club Group (AAA Midwest/South)	57%
GEICO	55%
State Farm	53%
Amica	53%
Safeco	47%
Hartford	42%
Farmers	42%
Erie	41%
Travelers	39%
Progressive	39%
Auto-Owners	29%
Mercury	20%

Read our methodology

*USAA only offers insurance to military members, veterans and their families.

How much is car insurance for teens? Rates at 16, 17, 18 and 19 years old

Car insurance costs drop as teen drivers age, from an average of $10,387 a year at 16 to $5,174 a year by age 20. Sixteen-year-olds pay the highest rates because their crash rate is two times higher than that of 18- and 19-year-olds. The average car insurance rates for teenagers shown below reflect that risk.

16-year-old - $10,387
17-year-old - $8,613
18-year-old - $7,497
19-year-old - $5,718
20-year-old - $5,174

Car insurance rates drop significantly by age 20. Rates continue to decrease with age until about age 65.

People ask

How much is insurance for a 17-year-old monthly?

The average cost of a full coverage policy for a 17-year-old is $496 a month, but that may be much lower if you choose liability-only insurance or purchase a cheaper car.

How much does it cost to add a teenager to a car insurance policy?

Adding a teen driver to a parent's policy costs between $2,893 at State Farm for a female teen and $4,921 a year a Farmers for the same driver, depending on the insurance company and the driver, based on Insurance.com data.

The cost of adding a teen to your insurance policy will vary based on your unique situation and their age. In general, adding a male teen driver to your insurance policy costs more than adding a female teen driver.

The table shows the average cost of car insurance from top insurance companies when adding a teenager to an existing car insurance policy.

Average cost of adding a teen driver to a parent's policy
Company	Parents' average premium	Average with a teen female	Average with a teen male
Allstate	$4,275	$8,797	$9,373
Farmers	$4,099	$8,450	$9,016
GEICO	$2,748	$5,931	$6,535
Nationwide	$2,932	$5,864	$6,199
Progressive	$2,566	$6,958	$7,448
State Farm	$3,050	$6,476	$7,634
Travelers	$2,164	$4,733	$5,390
USAA	$1,574	$4,805	$5,062

Read our methodology

How to save on car insurance for teenagers

The most effective ways to lower teen car insurance rates are raising your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim., choosing a lower-value car with a high safety rating, delaying licensing until rates go down, asking about discounts and shopping around.

Raise your deductible. An easy way to lower car insurance premiums is to raise your deductible. However, weigh this against young drivers being more likely to get into accidents. You have to pay the deductible amount when you get into an at-fault accident. Increasing your deductible from $500 to $1,000 will reduce your annual premium by approximately $400. You can also drop comprehensive and collision coverage if the car isn't financed or worth much. Use our auto insurance coverage calculator to figure out how much coverage you need.
Choose the right car. A car with a high safety rating will be cheaper to insure. Use our list of car models to find the cheapest cars to insure.
Delay getting a license. This isn't a popular option for an eager teen driver, but it's worth considering. If you compare the average rates for a 16-year-old and a 19-year-old, an older teen driver is significantly cheaper to insure. However, the insurer still charges higher rates for the first few years a driver is licensed.
Ask about discounts. There are both teen-specific discounts (good student) and discounts any driver can take advantage of (paperless billing) that can lower your insurance rates.
Shop around. Rates vary widely by carrier, so compare as many quotes as possible to find the best price.

Are there discounts for teen drivers?

Yes, there are discounts for teen drivers that can significantly lower teen car insurance costs. The most valuable are the good student discount, for a B average or higher (average savings of 16%), the student away from home discount for college students at school more than 100 miles away (average savings of 18%) and usage-based discounts for monitoring driving habits (average savings of 6%).

Good student discount. Good grades tell insurance companies you have a responsible kid. The required grade is usually a "B" average (3.0 grade point average) or higher. Typically, the student must be under the age of 25. This discount averages 16%.
Defensive driving discount. You can take extra driver education or a defensive driving course. This means exceeding the minimum state-mandated driver's education and training. In most states, teen drivers can save around 5% on their premiums by taking a state-approved driver improvement class. Online classes are a convenient option but check with your carrier first to make sure it will lead to a discount.
Student away from home discount. Most car insurance companies offer a student away-from-home discount for students who are away at college. This discount averages 18%.
Good driver discount. Keep a clean record to get lower rates. This may not be available to newly licensed teens.
Low-mileage discounts. Pay-as-you-drive or pay-per-mile insurance can also reduce rates. Most car insurance companies offer discounts if you allow a telematics device to be placed in your vehicle so they can monitor your driving habits. This is considered "pay-as-you-drive." This can provide a discount of around 6%. With pay-per-mile, you'll pay for the distance you drive, rather than an average. Both discounts are great for teens or families that don't drive very often.
Look for unrelated discounts. Review discounts unrelated to teens, like a multiple vehicle discount and a home and auto bundle discount for additional savings.

Car insurance for college students

College students whose school is more than 100 miles away may qualify for a student away from home discount, sometimes called a resident student discount, which saves an average of 18%. College students also qualify for the good student discount, with savings averaging 16%, for maintaining a B average (3.0 GPA) or better.

Do you need insurance when you have a learner's permit?

Yes, a driver with a learner's permit needs insurance, and can be covered by an existing policy on the car they'll drive while learning. You should notify your insurance company as soon as a driver in your household gets a permit, but you won't see a rate increase until the driver is fully licensed. Use this time to research coverage options and discounts so you are prepared when the new driver is issued a license.

Can you exclude a teen driver from your insurance?

Yes, you can request a named exclusion for a teen driver, but doing so means your teen can't drive your car at all, and any accidents caused by the teen are not covered by your policy. Not all insurers or states allow named exclusionsItems that are specifically denied coverage under the terms of an insurance policy. For example, most auto insurance policies exclude coverage for normal wear and tear, drag racing and intentional acts., so confirm availability with your insurer.

IMPORTANT: Failing to list your teen on your policy does not exclude them from coverage and may be considered fraud. Insurance companies require that all licensed drivers in the household be listed on the policy unless an exclusion has been requested, or you can show that the driver has their own insurance.

Teenage car insurance: The bottom line

In nearly every case, adding your teen to your existing policy is the cheapest and simplest option, but the insurer matters as much as the rate. Before choosing a carrier, read reviews, check NAIC complaint ratios and J.D. Power's insurance company ratings to ensure the company will be there for you when you need it. Travelers offers the best combination of low rates and high satisfaction ratings for teen drivers.

Methodology

Unless otherwise indicated, averages are based on our full coverage data set. This data set is based on:

Bodily injury liability of $100,000 per person and $300,000 per incident
Property damage liability of $100,000 per incident
Comprehensive and collision deductibles of $500
40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

Additional rate data is drawn based on:

Teen drivers aged 16-19
A teen driver on a parent's policy

Survey respondents were asked to name their auto insurer and then grade it in several categories, including insurance for teenage drivers. The overall survey score is represented in the rankings, and we have also presented the survey score for teen drivers separately.

Learn more about our data and methodology.

FAQ: Car insurance for teens and young drivers

How much is GEICO car insurance for a 17-year-old?

The average cost of GEICO car insurance for a 17-year-old is $6,482 a year, or $540 a month.

How much is teenage car insurance per month?

Teen car insurance costs $866 a month on average at 16 years old, dropping to $477 a month for a 19-year-old, based on a full coverage policy. Rates vary by carrier; at 16, GEICO rates are $653 a month, $213 cheaper.

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