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The best car insurance companies for the entire driving population aren't necessarily the best companies for teens. Why? Because teens have unique coverage needs, and they're usually some of the most — scratch that, often the most — expensive people to insure. So when you're looking for car insurance for teens and young adults, you're probably hoping to find the cheapest rates.
Adding a new, young driver to your insurance can bump up your rate significantly, and opening a new policy for a teen or student is often even worse. But the best car insurance for teens and other young drivers provide low rates compared to most companies, and definitely national averages, with extra perks like special discounts for this group and programs to help them drive smarter.
In my research, Auto-Owners, USAA, Progressive, GEICO, State Farm, and Erie insurance stood out as the most practical and affordable options for teens.
Methodology
When compiling this list of the best car insurance for teens and other young drivers, I considered a number of different factors that would impact not only prices but also the customer experience for this demographic. This included:
- Rates: I started by narrowing down the list to insurers with the most competitive rates for teen drivers, as this is the most important factor for most people. The companies here offer some of the cheapest car insurance for teens.
- Discounts: Next, I researched discounts available for teens and students, giving preference to companies offering rate reductions for teens on auto insurance policies.
- Coverage: I also factored in coverage options and chose companies offering more than standard policies, with specialty coverage and add-ons, when possible.
- Customer service: I weighed the quality of service and overall customer experience for the companies I considered, and I only chose companies with largely positive histories of claims and service satisfaction.
In some cases, I excluded insurers with very limited availability, coverage, etc., in the interest of providing options that will appeal to the most people. I did not consider all available car insurance companies but did include more than three dozen in my analysis, capturing data for the most popular insurers by market share. Here are the companies I most strongly recommend.
| Company name | Best for | Average monthly full coverage cost | Average monthly liability-only cost |
| Auto-Owners | Cheapest car insurance for teens | $112 | $52 |
| Erie | Best for support from agents | $157 | $85 |
| USAA | Best for military families | $168 | $79 |
| GEICO | Best for college students | $183 | $84 |
| State Farm | Best for safe driving | $212 | $98 |
| Progressive | Best for discounts | $273 | $176 |
Auto-Owners
Auto-Owners should be one of the first car insurance companies you consider if you need to cover a teen because it offers some of the lowest average rates for this demographic. For both liability-only and full-coverage insurance, Auto-Owners often ranks as the cheapest insurer for this group.
This company also performs very well with watchdog agencies dedicated to the (important) work of sniffing out the good insurance companies from the bad. In addition to a low NAIC index, it's been deemed reliable, stable, and trustworthy by AM Best and the BBB.
However, not everyone will be able to purchase coverage with Auto-Owners. The company only issues auto insurance policies in 26 states, which is probably one of the only reasons it isn't more popular. That, and the fact you can't get a quote online.
- Very low rates compared to other car insurance companies
- Offers many specialty coverage options and add-ons
- Over 40,000 local agents
- Only offers car insurance in 26 states
- Can't get a quote online
- Fewer discounts than some insurers
Learn more in our Auto-Owners Insurance review.
USAA
I always feel good about recommending USAA auto insurance to people who can qualify. It provides more than fair car insurance rates, even for people with teens or drivers in their 20s on their policies. The company's marks are above average everywhere it matters, from customer and claims satisfaction to financial stability, and the discounts it offers are appealing.
This insurer would be a good choice for conscientious teens fresh out of driver's training and committed to staying safe on the road. You can save as much as 30% on your premium through the USAA SafePilot program, provided your teen makes only good decisions behind the wheel. Plus, USAA offers a Driver Training discount, which I don't see from many other insurers.
- Very low rates compared to other car insurance companies
- Unique discounts with high maximum savings
- Family-oriented customer experience
- Only people affiliated with the military can qualify for coverage
- Not the lowest full-coverage rates for teens
Learn more in our USAA car insurance review.
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Progressive
I like Progressive for teen car insurance because the company offers relatively low rates for teens and young adults, in addition to a few types of discounts.
The insurer has a good student discount starting at 5% for students under 23 with B averages, plus a distant student discount for students 22 years old or younger who attend school at least 100 miles from home and aren't driving on campus. While both of these are fairly standard, Progressive also throwns in a teen driver discount for drivers 18 years old or younger.
Progressive's rates aren't the lowest, but it's possible to save money on car insurance compared to national average rates. I'll note that the potential savings are better for full coverage, though, and recommend other options here (like the two I've covered so far) for liability-only insurance.
- Offers many specialty coverage options and add-ons
- Multiple discounts that might apply to teens and young adults
- Available in all 50 states
- Can find lower rates with some competitors
- Lower claims satisfaction ratings than some companies
Learn more in our Progressive auto insurance review.
GEICO
GEICO is known for being one of the biggest car insurance companies with some of the lowest rates, and that rings true for teens, too. In particular, it's the best car insurance for college students on this list.
Like Progressive, the insurer offers a few discount options to teen drivers, including a good student discount, a good driver discount for people who haven't been in an accident in the last five years, and a unique discount for membership in certain organizations. It lists alumni associations with colleges and universities as an example for the latter, so getting a policy with this insurer before you graduate and sticking with it could lead to savings.
Plus, especially for being the third-largest insurance company in the U.S., GEICO cleans up with customer service and satisfaction ratings.
- Low rates compared to other car insurance companies
- Offers many discounts, including unique ones
- Available in all 50 states
- Poor ratings on review platforms like WalletHub and Trustpilot
- Fewer local agents than other companies
Learn more in our GEICO car insurance review.
Average rate:
State Farm
A close rival to GEICO in the rates department, State Farm is the largest car insurance company in the country by market share and a force to be reckoned with for its broad coverage and discounts. I also feel it's the best option on this list for teen drivers who drive safely.
Steer Clear is a safe-driving program only available to drivers under the age of 25 who haven't had an incident in the past three years. In additon to offering potential savings on your policy, it's designed to teach responsible and accident-avoidant driving habits through courses, practice, a program with a certificate, and mentoring from friends and family.
All you have to do to qualify for the Steer Clear discount is complete the four requirements within six months of signing up.
Editor's note
I want to mention that BBB grade, because it does stand out. However, I wouldn't give this score too much weight — the company has been given this grade because it hasn't responded to customer complaints filed through the Better Business Bureau, but this isn't reason enough to draw conclusions about bad service. In fact, many real customers report the opposite.- Low rates compared to other car insurance companies
- Safe-driving program specifically for young adults
- Available in all 50 states
- Teens pay a good deal more than other drivers with this company
- Poor grade with the Better Business Bureau
Learn more in our State Farm review.
Erie
Erie stands out from the insurers on this list — and car insurance companies in general — because it operates exclusively through independent agents. If you've never worked with one of these agents, one of the key potential advantages is personalized support and more of a relationship-oriented experience, which might include helping you find savings.
You'd be working with a local agent with regional expertise, and they wouldn't be employed by Erie. You would work with that agent each time you needed to update your policy or make a claim. Erie has some of the highest claims satisfaction ratings of any car insurer.
I'd suggest Erie if this type of hands-on, all-in support is something you value, although it's worth noting that this is more an advantage of independent agents than it is an advantage of Erie, specifically. Even though Erie has some of the most competitive average rates for the teen driver demographic, it has the significant disadvantage of only being available to people in 12 states.
- Well-above-average customer service and claims satisfaction
- Lower premiums than many companies for most demographics
- Extensive coverage and policy options
- Only offers car insurance in 12 states and Washington, D.C.
- Can't open a policy online
- Must work with an agent to file claims
Learn more in our Erie car insurance review
How to save money on car insurance for young drivers
Young drivers are considered riskier to insure, which is why monthly premiums can be higher the younger you are. Fortunately, there are several ways teens and young drivers can save on auto insurance. Try these tips to lower your car insurance annual premiums if you pay to insure a teen.
- Stay on shared policy for as long as possible: Most insurance companies allow young drivers to stay on their parents or guardians insurance plan until the age of 25. Exceptions to this rule might include marriage or living at a different permanent address.
- Exclude which cars your teen has access to: Some companies might allow you to exclude your young driver from certain cars. If so, don't add them as drivers to your newer or pricier vehicles. Instead, have them drive the car that is most affordable.
- Choose a company that offers a usage-based insurance plan: This is especially useful if you don't drive much.
- Keep up your grades: Many companies offer a good student discount if you have a B average or higher.
- Try telematics programs: Drivers with a clean driving record typically have lower rates on their car insurance policies. Additionally, many insurance companies will offer you a discount for using their telematic devices or apps, which monitor driving behavior in real-time.
Bottom line
Teen drivers are in the unfortunate situation of being faced with some of the highest car insurance rates of any group, no matter where you purchase coverage. But the companies on this list are a good place to start if you're looking for the best auto insurance for teens.
Auto-Owners, USAA, Progressive, and the others I've included here are better than most insurers for young drivers, not only because they provide lower premiums, on average, but also because they offer other features and benefits like student discounts and safe-driving programs.
Always remember to compare quotes from multiple car insurance companies when changing your policy or switching insurers, and it doesn't hurt to have conversations with your teen now about the costs — and advantages — of car insurance and strategies for purchasing it.
Average rate:
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