Best Car Insurance Companies for Teenagers (2025)

Car insurance for teen drivers costs more than coverage for any other age group. Nationally, teen car insurance averages $353 per month for full coverage and $199 monthly for liability-only insurance, Insurify data shows. By comparison, the national monthly averages for drivers of all ages are $184 and $104, respectively.

Insurers charge more to cover teenagers because young drivers have a greater risk of getting into an accident.1 But teen drivers can lower their rates by taking approved driver safety courses, choosing a lower-value car with safety features, and staying on their parents’ insurance policy. It’s also important for teen drivers and their parents to compare rates from multiple auto insurance companies.

Cheapest car insurance for teenagers

Overall, COUNTRY Financial offers the cheapest rates for teen drivers, with full-coverage rates as low as $70 per month and $39 per month for minimum-coverage policies. But the insurer offers auto coverage in just 19 states, so it won’t work for everyone. National insurers Auto-Owners and GEICO offer the best combination of wide availability and the cheapest rates for teens.

The following table illustrates average monthly rates from top insurers for teen drivers buying their own insurance policies.

Best car insurance companies for teenagers

To determine which car insurance companies are the best for teens, Insurify’s data team considered three main factors: cost, safety, and availability. To start, we looked at which insurance companies charge the least for teen drivers. All these insurers offer discounts for teens or young adult drivers, and many discounts encourage good grades and driving behavior.

We also included auto insurance companies that provide resources to help teens develop better driving habits and offer discounts to teens who pursue driving education. Finally, we considered the number of states an insurer operates in. Regional insurers typically offer the same coverages and discounts as national companies and may have lower rates. But their limited availability means they won’t be a good fit for every family.

Here’s a closer look at some of the best car insurance companies for teenagers and what parents need to know about each option.

GEICO: Best for low rates and national availability

COUNTRY Financial: Best for lowest rates overall

Hugo: Best for on-demand coverage

USAA: Best for military families

Metromile: Best for low-mileage teen drivers

State Farm: Best for building better driving skills

How much coverage do teen drivers need?

All states except New Hampshire require drivers to have a minimum amount of liability car insurance — so you’ll definitely need to buy at least that much. Liability car insurance pays for injuries and property damage to other parties in an accident you cause.

You can check with an insurance agent or your state’s motor vehicles department to find out your state’s minimum requirements.

If you lease or finance your vehicle, you’ll also need to buy full-coverage car insurance, which includes liability, comprehensive coverage, and collision coverage. Lenders and leasing companies require full coverage because it protects their investment in your vehicle. For example, if you cause an accident that totals your car, your insurance company will pay your lender the actual cash value of your vehicle.

And, because the actual cash value of your vehicle might be less than what you still owe on your auto loan, gap insurance can be a good idea. Gap insurance can pay any difference between what your auto insurer pays and your loan or lease balance.

Adding a teen to a parent’s policy vs. their own policy

Most teens start out driving on their parents’ car insurance policies. It’s illegal for anyone younger than 18 to buy an insurance policy without the written consent of a parent or guardian, so it’s typically easier to add a teen to an existing policy. And it’s generally cheaper for a teenager to stay on a parent’s policy than to buy their own.

Adding a teen to an adult’s policy will increase the premium, but not as much as the teen would pay for a policy of their own. Teen drivers on their parents’ policies can benefit from the adults’ good driving history, good credit, and lower risk profile.

The following table illustrates the cost differences for teen drivers on their own policy vs. being added to a parent’s policy. Adults with no teen on their policy pay the least in the table, and their rates increase when they add a teen. But the difference between their policy costs with a teen driver and without one is just $139 — $45 less per month than the teen would pay for their own, independent policy.

How to get cheaper car insurance for teenagers

Teen drivers and their parents can take steps to reduce their car insurance costs, including:

• Compare rates from multiple insurers. Insurance rates can vary between companies. Comparing multiple quotes is the best way to find the coverage you need at a price you can afford.

• Learn to drive safely. Many insurers offer discounts for teen (and adult) drivers who complete approved driver-safety courses.

• Lean into discounts. Most insurance companies offer multiple discounts that can help families with teen drivers save, such as good student discounts, multi-vehicle discounts, bundling (home and auto) discounts, and more.

• Choose the right vehicle. The year, make, model, and safety features of your vehicle affect car insurance rates. Pick a lower-value, reliable, and safe vehicle for your teen driver. Be sure your insurer assigns your teen to the least expensive car on your policy.

• Consider adjusting your deductibles. If you have full-coverage car insurance, raising your collision and comprehensive deductibles will reduce your monthly premium. Just be sure you can afford to cover the deductible amount out of pocket in case of an at-fault accident.

Car insurance discounts for teenagers

Many different auto insurance discounts are available for teenagers and their families. The following table shows some examples of discounts popular auto insurers offer.

How age affects car insurance rates

Age is a significant factor in determining auto insurance premiums. Companies consider younger drivers riskier to insure due to their lack of experience on the road, tendency to be easily distracted, and higher accident frequency — all factors that increase their likelihood of filing a claim.

As young drivers mature and gain experience, their car insurance rates tend to fall. Rates start to climb again around age 70, when age-related issues like vision and mobility challenges can put drivers at higher risk of accidents.