Teenage car insurance average cost calculator

How to use the teen car insurance calculator

The teen car insurance calculator is a useful tool designed to give parents and teen drivers an estimate of what car insurance will cost based on a few key factors. Follow the steps below to get an accurate idea of your potential premium.

1. Select your state. Choose your state from the dropdown menu.
   Why it matters: State laws for minimum coverage, as well as risk factors in that state, affect car insurance rates.
2. Choose the teen driver’s age. Choose your teen driver's age.
   Why it matters: The average cost of car insurance by age varies; the older your teen, the lower the rates will be.
3. Select gender. Choose the gender of the teen driver.
   Why it matters: Statistically, male teen drivers tend to have higher accident rates, which can affect premiums.
4. Select coverage type. Choose the level of coverage. Our calculator offers these options:
   State minimum – the legal minimum in your state
   Liability only – 50/100/50 liability coverage
   Full coverage – 100/100/300 liability with $500 comprehensive and collision deductibles
   Why it matters: The amount of coverage you select with impacts how much you pay for insurance.
5. Review the estimated annual premium. After inputting the above, the calculator instantly shows you the estimated annual insurance cost based on your inputs.

How does this calculator help you?

• Highlights ways to save money with discounts or better decisions
• Gives a baseline idea of what to expect as your car insurance premiums
• Helps you plan ahead financially
• Shows the cost difference between coverage levels and policy types

Teenage car insurance: Average cost per month

On average, these are the cheapest car insurance companies for teens at various ages: At 16, Nationwide has the cheapest rates at $6,094, while at age 19, Travelers is cheapest at $3,476 a year.

Car insurance costs vary from teen to teen and company to company. The best way to get the lowest rate is to shop around and compare quotes for your individual situation.

How much does it cost to add a teenage driver to your insurance?

According to our analysis of rates, it costs an average of $4,303 nationwide to insure a teen driver on a parent’s policy. Costs vary by age. Here’s how much you can expect to spend by state and company.

There is no way around it: Adding a teen driver to your insurance policy will likely cause your insurance rates to spike.

Estimating teenage car insurance cost: Things to know

Even before your teen begins to drive, it’s helpful to call your insurance agent or company representative to get an estimate of how much the insurance will cost. 

You should shop around and gather a number of quotes for insuring your teen. Each insurance company has its own method of pricing policies for teens, and it is likely that some insurers will charge more than others.

Because teens are inexperienced, they are at higher risk of getting into an accident. In a worst-case scenario, they could be responsible for a serious collision. That means you might want to consider increasing your liability insurance limits. 

Although this will make your policy more expensive, it could protect you from financial ruin should you be sued for hundreds of thousands of dollars — or more — in damages. 

Wherever you purchase a policy, costs are likely to be highest when your teen first starts to drive. As the teen grows older and gets more experience behind the wheel, costs should come down as long as the teen avoids accidents and driving infractions. 

Teen car insurance discounts

Teen drivers can get some of the same discounts as adults, and some discounts are aimed specifically at teens, like the good student discount, which saves an average of 14%. Take a look at some of the ways to save below.

How to save on teen car insurance

Although insuring a teen is likely to be expensive, there are things you can do to trim the cost. 

• Good student discount. Generally, students who earn good grades — such as a “B” average — might qualify for a good-student discount. 
• Driver training. Some insurers also offer a price break to teens who take an approved driver training course. 
• Student away from home. When your teen goes to college, you might earn a discount if the school is located far from your home – typically at least 100 miles — and they don’t bring their car with them to campus. 
• A higher deductible. Another way to cut car insurance costs is to raise your deductible. This should lower your premium costs. However, remember that if you file a claim, you will have to pay the deductible in full before your insurance coverage will kick in to pick up the rest of the bill. 

“Some insurance companies offer discounts for teens who complete a safe driving course, and some also offer good student discounts,” She-Tom says.

“Enrolling in an auto telematics program can also help you to stay in control of your car insurance costs. Auto telematics programs use smartphone app technology to provide feedback on driving habits. Not only will it help build awareness of driving habits, it may help teens become safer drivers,” she says.