Teenage Car Insurance Average Cost Per Month - Erie, USAA, and Geico offer the cheapest insurance rates starting at $170 per month for drivers 21 and older, based on our analysis of thousands of quotes. For the cheapest rates, compare car insurance quotes and take advantage of the young driver discount, as rates for a 21-year-old can range up to $458 per month.
However, rates vary significantly among insurance companies. Erie Insurance, which is available in 13 states, offers the cheapest monthly rate of $170 for a 21-year-old. USAA, which is only available to military members and their families, is the second most affordable at $177 per month.
Teenage Car Insurance Average Cost Per Month
The large difference in rates shows why especially young drivers should compare car insurance quotes from several insurance companies. For example, the difference between the cheapest and most expensive car insurance rates for a 21-year-old driver is $458.
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For 21 years, the average female driver paid $370 per month, while male drivers paid $399 per month. This difference is due to the fact that younger male drivers have more accidents than female drivers.
However, several states – California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania – prohibit insurers from using gender to determine auto insurance rates. Men and women must pay the same price for auto insurance coverage in this state, all else being equal.
The cost of full coverage auto insurance generally decreases with age, and just a few years can have very different rates for young drivers. For example, the average 21-year-old pays $384 per month, which is $232 less than an 18-year-old.
Younger drivers typically pay more for auto insurance than older drivers because insurance companies consider them to be at a higher risk. This is due to the fact that younger drivers have more accidents and file more insurance claims.
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Geico is consistently the most affordable insurer, as they are the cheapest in four out of nine states. Below, we recommend the cheapest car insurance companies for children aged 21 and over in our nine sample countries.
North Carolina is the cheapest state to insure a 21-year-old driver, with monthly rates $234 lower than the overall average. Michigan is by far the most expensive state, as monthly insurance costs six times more than a 21-year-old in North Carolina.
The best strategy for finding cheap auto insurance as a 21-year-old driver – or driver of any age – is to shop around for rates from different insurance companies. Insurance companies charge premiums based on a number of factors, from the type of car you drive to your driving history. The insurance company that offers the best rates may be very different from the one that is best suited for your partner or family member.
When shopping for deals, drivers under 21 and other young drivers, especially teenagers, can save money by sticking with their parents' auto insurance policies or taking advantage of all available discounts.
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Yes, auto insurance rates generally go down after you turn 21. The average rent for a 21-year-old is about 16% less than the price paid by a 20-year-old. Car insurance rates typically drop in your early 20s, with less of a drop in your late 20s.
Our study drew on thousands of ZIP codes in the nine most populous US states. Our sample drivers were a 21-year-old male and female driving a 2015 Honda Civic EX. The drivers were single and had clean driving records.
Our analysis includes 29 insurance companies. However, insurance companies are only included in our average and recommended price lists if their policies are available in at least three of the nine states.
Analytics collects insurance rate data from Quadrant Information Services. The rates used to calculate the average are obtained from publicly available insurance company filings. These averages should be used for comparison purposes only — your own reference may be different.
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To get an insurance quote over the phone, call: (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! Regional insurers are also an affordable option, as companies like Erie and Country Financial can offer lower rates than State Farm.
According to an analysis of thousands of quotes from different states, signing up for a parent's auto insurance can save you a lot of money — 62% on average. Full-coverage auto insurance for drivers 18 and older costs an average of $4,917 per year on self-policing.
We collected thousands of quotes from every zip code in the nation's three largest states, Illinois, Pennsylvania and Georgia, to find the cheapest rates for teens and their parents. Sample drivers included 18-year-old drivers, 50-year-olds without children, and 18-year-old adults with policies.
Factors that help determine the best option include low prices, youth-focused discount options, and ease of obtaining accident waivers. Complete method
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State Farm policies for 18-year-olds cost an average of $3,518 per year, 29% below the national average of $4,917.
While these aren't options for everyone, Country Financial, Erie and USAA are the cheapest insurers overall. Erie covers only 12 states and Washington, DC. is available in, while Country Financial is in 19 states. USAA only offers policies to current and former military members.
Teenagers are almost always charged significantly more because they have less experience behind the wheel and are more prone to risky behavior. A teenage driver pays three times more than a 50-year-old for full coverage.
If you're a parent looking to include your youngster on your policy, Auto Owner is the cheapest option at just $1,832 per year for children ages 50 and 18.
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That's just $501 more than without a teen on the policy, thousands of dollars in savings. Erie, Farm Bureau, and State Farm are cheaper-than-average options for adding a teen to your policy.
Having their teen on their policy saves a family an average of $3,108 per year – a 62% reduction in auto insurance costs – compared to the cost of having the same 18-year-old get their own policy.
Auto Owners is often the cheapest option for parents adding young drivers, in part because the company has a flat rate for drivers under 19. It is the cheapest carrier for 16, 17 and 18 year olds and the second cheapest carrier for 19 year olds after USAA.
However, rates for other companies can fluctuate greatly, depending on the age of the young driver under the policy. For example, it costs $1,395 less per year to add a 19-year-old child to a USAA policy than it does to add a 16-year-old child.
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If you're in a position to buy your own policy as a young driver, State Farm can help keep your costs down. Among the insurance companies widely available, State Farm's average rate of $293 per month is one of the best you can get.
You can lower it even further with things like a good student discount or the Steer Clear program, which allows young drivers to reduce their fares by taking a safety course. The company, however, does not offer accident forgiveness or gap insurance, both of which are necessary to avoid expenses after an accident.
Discounts are a key tool to reduce the high fares paid by teen drivers, and Erie offers a great set for young drivers behind the wheel.
Erie has some of the lowest rates we found, at $3,067 per year for teenage drivers alone and $2,088 for older drivers who include younger drivers in their policies. However, the company offers coverage in only 12 states.
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Young drivers have a tendency to behave more recklessly than their older counterparts, and the car owner's accident apology relieves the first incident. The company offers the ability to pay more for accident forgiveness, which means your rates won't increase after an accident.
Some companies require drivers to be existing customers to receive those benefits. Auto-Owner also offers cheaper-than-average coverage for single teens and the lowest rates we've found for including young drivers on a parent's policy. One of the downsides is that you have to work through an agent and cannot manage your policy online.
There are several key ways that young drivers can lower the cost of their auto insurance and save money.
The first is to qualify for a discount, as most major insurance companies offer discounts that young drivers can take advantage of.
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You can also check if your insurance company offers accident waivers at a reasonable price. It will cost more in the short term, but young drivers are more likely to get into accidents, and if they do the savings will be significant.
Collision insurance is expensive for teenage drivers because this demographic is statistically more likely to be in an accident and file an insurance claim than more experienced drivers.
It is important to remember that if a young driver is at fault in an accident without collision protection, they will have to pay out of pocket for repairs. Unless your car is old and only worth a few thousand dollars, we recommend that you maintain collision insurance.
To help with segmentation, we have assembled a special panel of professionals, covering various areas of expertise.
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