This article aims at bringing to light the cheapest car insurance companies for teens. As you might know, teen car insurance isn’t particularly the cheapest thing to come about but thanks to this you wouldn’t go into the market half prepared.
In this article, I have put together the 15 cheapest car insurance companies for teens, all that’s left for you is to go through each service they offer and states support and pick the one which works best for you. So, without wasting any more time let’s get into it.
How much is car insurance for teens?
Car insurance is generally expensive. It is no different for teens. In fact, when it comes to car insurance, young drivers pay more than their older, more experienced counterparts.
This is mostly because teens 16 to 19 are nearly twice as likely to experience fatal car accidents, according to the Insurance Institute for Highway Safety (IIHS).
Basically, car insurance for teens should cost about $169 per month on average. The price is on the high side because teens are also more likely to get distracted while driving.
Should teens be on their parent’s car insurance policy?
Well, there are no legal implications to a teen staying on their parent’s car insurance policy and added to the fact that it is most at times cheaper than actually getting a separate policy for a teenager.
The teen also enjoys benefits and discounts that their parents qualify for which maybe the teens wouldn’t be able to qualify for on their own.
However, it might be important to note that the addition of a teen to the parents’ policy would incur more charges for the parents to pay off their monthly premium.
Even though there is no law as to when a young driver has to get their own insurance when you start living independently, paying off your own bills and expenses, and driving your own car.
It might just be about time you go ahead and get your own insurance for your car and stay off your parents’ policy.
Teen Car Insurance Requirements
When going about to get your teen car insurance, there are some mandatory types of coverage that are a must-get.
This basically means getting the minimum amount of liability insurance required based on the state you are in.
Liability insurance is basically financial protection for drivers who happens to be the ones at fault in case of a car accident. Liability insurance has two basic types;
- Bodily injury liability coverage
- Property damage liability coverage
The bodily injury liability insurance takes care of medical and other expenses if the policyholder or any other listed driver on the policy injures someone and is deemed to be the cause of the accident.
However, the property damage liability coverage pays for repairs to someone’s vehicle or other properties that might have been destroyed during the course of the accident.
Depending on the state of residence, you might also be required to purchase comprehensive, collision, underinsured/uninsured motorist, and personal injury protection coverage.
15 best cheap car insurance for teens in 2022
Now let’s get to the core of the article which is the 15 best cheap car insurance for teens in 2022.
I have compiled the best list I could find from different sources and I really hope it renders the help that you seek.
Nationwide insurance offers one of the lowest average costs for adding a teen driver.
It also comes with top-notch tech fundamentals such as both pay-per-mile insurance and usage-based insurance.
It has excellent teen family pricing and a 5.0 rating of Forbes advisor.
USAA is top-notch when it comes to customer service. It brags of extremely high claims satisfaction among customers and superior car insurance rates for parents.
It has a very good teen family pricing and 4.5 rating on the Forbes advisor.
American Family insurance
American Family Insurance offers amazing customer service with irresistible rates on insurance policies.
This Family Insurance has a low level of complaints as well as offers a teen safe driver program which 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 who wish to add a teen to their policy.
There also offer great customer service, a very competitive average cost for teen drivers, and a Geico mobile app that offers awesome augmented reality features.
It has a rating of 4.0 on the Forbes advisor.
Allstate insurance company offers some very excellent tech fundamentals as well as amazing customer service. They also offer both usage-based and pay-per-mile insurance options.
Allstate insurance also offers discounts if the teen completes teen SMART, which is a computer-based driving-improvement program with videos, simulations, and activities.
Allstate Insurance is rated 3.5 on the Forbes advisor.
Erie insurance offers very low-cost insurance policies for teen car insurance.
They offer very competitive auto insurance policies for families. And if you are a member of Erie insurance, you would get a discount by having the teen complete teen SMART, a driving improvement stimulation done on a computer with videos, simulations, and activities.
Erie Insurance is rated currently on 3.5 on the Forbes advisor.
Farmers’ insurance is known for its elegant pricing and tech fundamentals. They don’t particularly have the best customer reviews based on popular opinion.
But then farmers’ insurance offers strong tech conveniences such as digital ID cards and virtual car insurance claims.
Farmers’ insurance holds a rank of 3.5 on Forbes advisors and that is why it is currently on our list now.
Progressive insurance is known for its high customer claim satisfaction and technological connivances with over 80% of customers with claims being satisfied.
It has an about average teen family pricing and ranks 3.5 on the Forbes advisor.
State Farm insurance
State Farm insurance is known for its above-average teen family pricing, amazing customer service, and excellent tech fundamentals. This insurance offer tech conveniences such as digital ID cards and virtual car insurance claims.
They also offer a program called Steer Clear which is aimed at helping teens learn better driving through the mobile app which also comes with a discount if you complete the program.
Travelers insurance is known to provide a solid choice with good marks in teen family pricing, customer happiness, and tech fundamentals.
It also brags of a high level of claims satisfaction as well as being rated 3.5 in the Forbes advisor.
Liberty mutual insurance offers the best when it comes to extra coverage.
It offers some less common coverage options like new car replacement, gap insurance, and accident forgiveness.
Iowa farm bureau
Although the name has Iowa in it, it is actually a bureau that sells insurance in Nebraska and some other states.
They offer amazing car insurance as well as roadside assistance, replacement cost average, and a telematics program known as Driveology.
They also offer lots more discounts to teen drivers which usually are much more expensive.
Auto owner’s insurance is known for its exceptional coverage options as well as easy and effective claims process with low complaints.
It offers Gap insurance as well as add-ons like accident forgiveness and diminishing 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 choices in terms of cheap coverage and solid service.
It has great technological connivances which include the ability to file auto claims through an online account, their online chat feature, or through their easy-to-use mobile app.
Even though only available just in the Pacific Northwest, PEMCO insurance offers you all your unique drivers’ needs.
They also support various discounts like savings for insuring both your auto and home as well as having certain vehicle safety features.
Also, if you are a student of the University of Washington, you also get discounts either as an alumnus or a current student.
Frequently asked questions
What is the cheapest way to insure a teenage driver?
The simple answer is by adding them to your own insurance policy, this is because getting a teen their own insurance premium is far too expensive as compared to joining them up to your own policy.
How much is car insurance typically for a teenager?
Car insurance for teens comes at quite a high cost of about $3711 per month on average.
Is it cheaper to be on your parent’s car insurance?
It is way cheaper to stay on your parents’ policy than getting a teen’s car insurance. Leave the personal insurance till you are at least 25 years and older.
How much is insurance for a 19-year-old?
The average cost of insurance varies for males and females and is also based on if you are on a full coverage premium or a minimum coverage premium. If you are a 19-year-old male, a full coverage premium on average would cost about $4,487 while a minimum coverage premium would cost $1,332. For females, a full coverage premium costs about $3,807 while a minimum coverage premium costs $1,176.
From the above article, you can draw some insight into the world of teen car insurance as well as be guided as you move forward to make you decide on which car insurance company you would pick and which of them best suits your needs.