Car Insurance for Teens and Young Drivers: Costs, Options and Discounts
Car insurance for teens averages $10,387 a year at age 16 and falls to $5,718 by age 19, according to Insurance.com rate data updated in May 2026. Adding a teen to a parent's policy usually costs far less than a separate policy, and good student and driver training discounts lower the price further.
Covr is a quote app, not an insurer: you share your ZIP code and phone number, and partner insurance companies contact you with offers for every driver on the policy, including teens. This guide covers what to know before you compare those offers.
Last reviewed: October 9, 2026 · Covr editorial team
At a glance
- Cost by age: car insurance runs about $10,387 a year at 16, $8,613 at 17, $7,497 at 18 and $5,718 at 19, per Insurance.com's May 2026 averages.
- Cheapest setup: adding a teen to a parent's policy, which Forbes Advisor data cited by Progressive puts at about $2,735 a year.
- Own policy: minors under 18 cannot sign an insurance contract on their own, so most teens start on a parent's plan.
- Biggest discounts: good student (usually a B average), driver training, student away at school and safe-driving apps.
- Coverage: state-minimum liability is the legal floor; a lender requires collision and comprehensive on a financed car.
- Price trend: premiums drop sharply by age 20 and keep falling for drivers with a clean record.
How Much Car Insurance for Teens Costs by Age
Car insurance for teens costs the most at 16 and gets cheaper with every year of driving, from $10,387 a year at 16 to $5,174 at 20 in Insurance.com's 2026 averages.
| Driver age | Average annual premium | Monthly equivalent* |
|---|---|---|
| 16 | $10,387 | about $866 |
| 17 | $8,613 | about $718 |
| 18 | $7,497 | about $625 |
| 19 | $5,718 | about $477 |
| 20 | $5,174 | about $431 |
*Annual averages from Insurance.com rate data (updated May 20, 2026); monthly equivalents are Covr's division of each annual figure by 12, not quotes.
Car Insurance for a 16-Year-Old
A 16-year-old driver pays the highest car insurance premium of any age group, about $10,387 a year on average according to Insurance.com, or roughly $866 a month. The figure reflects a driver with no record at all, so the household's choice of policy and car matters more at 16 than at any later age.
That price falls by about $1,774 a year at 17, based on the same Insurance.com averages.
Car Insurance for a 17-Year-Old
Car insurance for a 17-year-old driver averages $8,613 a year in the same Insurance.com data, about 17% less than at 16. Car insurance for most 17-year-olds sits on a parent's or guardian's policy, because most are still minors.
Car Insurance for an 18-Year-Old
Car insurance for an 18-year-old driver averages $7,497 a year, roughly $625 a month, per Insurance.com. Eighteen is also the age at which a young driver can legally sign their own auto policy, though a separate policy usually costs more than staying on a family plan.
Car Insurance for a 19-Year-Old
Car insurance for a 19-year-old driver averages $5,718 a year, or about $477 a month, in Insurance.com's figures, almost half the price of a 16-year-old's coverage. Insurance.com reports that rates drop significantly again by age 20, to $5,174 a year.
This is also the age range in which many young drivers start college or move out, which changes how they are insured.
Do Teen Girls and Boys Pay Different Rates?
Teen auto insurance rates are usually higher for young male drivers than for young female drivers. At GEICO, for example, Insurance.com lists an average of $6,176 a year for female drivers aged 16 to 19 and $6,841 for male drivers, and the same gap appears at every national insurer in its data. The size of the gap differs by insurer, so compare quotes for your own teen.
Why Car Insurance for Young Drivers Costs More
Car insurance for young drivers costs more than for any other age group because young drivers have little driving experience and higher accident rates, so insurers treat teens and drivers under 25 as higher risk. Young drivers can still keep car insurance affordable by staying on a family policy, driving a conventional car and claiming good student and driver training discounts.
The crash data explain the price: the crash rate per 100 million miles driven for drivers aged 16 to 17 is more than double that of drivers aged 20 to 30, AAA reports, citing AAA Foundation for Traffic Safety research.
Car insurance companies price a policy on expected claims, and the claim risk of a new driver is high. Insurance.com notes that 16-year-olds crash at twice the rate of 18- and 19-year-olds. AAA says 20% of teen drivers have an accident in their first year of driving. AAA links that risk to a lack of driving experience and risk-taking behaviors. Insurers also weigh the vehicle, the ZIP code, the coverage chosen and annual mileage, so 2 teens of the same age can get very different quotes.
The risk gap between ages is the reason teen car insurance premiums fall so steeply. Each year of clean driving gives an insurer more evidence, and that evidence shows up as a lower price at renewal.
Adding a Teen to a Parent's Policy vs. Their Own Policy
Insurance for teen drivers is usually cheapest when the teen is added to a parent's car insurance policy, because the teen driver shares the household's multi-car and bundle discounts and the parents' driving history.
| Option | Who can use it | Typical cost |
|---|---|---|
| Added to a parent's policy | Any licensed teen in the household (some insurers from the permit stage) | About $2,735 a year added, per Forbes Advisor data cited by Progressive |
| Own policy | Drivers 18 and older; minors only with a parent co-signer | About $10,387 a year at 16 and $7,497 at 18, per Insurance.com |
How Much Adding a Teen Driver Costs
Adding a teen driver to an existing auto policy costs about $2,735 a year on average, according to Forbes Advisor analysis cited by Progressive. Other sources land lower or higher: USAA puts the increase at about $1,400 a year, NerdWallet estimates an extra $186 a month on a policy with 2 adults, and Insurance.com finds a range from $2,893 a year at State Farm to $4,921 at Farmers for a female teen. Even the top of that range is less than half of the $10,387 average for a 16-year-old's own policy.
Can a Teenager Get Their Own Car Insurance Policy?
A teenager can get their own car insurance policy at 18 or 19, but minors under 18 cannot legally sign an insurance contract, Insurance.com explains; a parent or guardian may be able to co-sign. GEICO likewise notes that a teen typically cannot buy an individual policy until 18 but can be added to a parent's car insurance policy once licensed.
When a Young Driver Should Move to Their Own Policy
A young driver can stay on a parent's auto policy while living in the parent's home, AAA says, and needs a separate policy after moving out. Insurers such as GEICO let a young driver carry over the discounts and driving experience earned on the family policy when switching to an individual plan, so both policies can be quoted side by side.
How to Add a Teen Driver to Your Policy
Adding a child to your car insurance takes 5 steps and can usually be done by phone, online or in the insurer's app:
- Collect the teen's legal name, date of birth and driver's license or permit number.
- Note the VIN of the car the teen will drive most often.
- Contact your insurer when the teen gets a permit or license, whichever your insurer requires.
- Decide which car the teen is assigned to and which coverages that car carries.
- Ask for every teen discount: good student, driver training, new teen driver and safe-driving app programs.
Planning the car insurance change before the call helps with the budget. At the $2,735 average add-on cost from Forbes Advisor data cited by Progressive, adding a teen raises the household bill by about $228 a month, by Covr's division of the annual figure.
Do You Have to Add a Teen to Your Policy?
Licensed drivers in your household who regularly use your vehicles are generally required to be listed on your auto policy, Liberty Mutual says. GEICO warns that failing to add a teen who lives with you could lead to a denied claim if the teen is involved in an accident.
Teens With a Learner's Permit
Car insurance rules for permit holders differ by insurer. GEICO notes that some states and insurers allow teens as young as 15 to be added when they receive a learner's permit, that some insurers require notice at the permit stage, and that others wait until the teen is licensed. GEICO advises checking with your insurer to determine when to add your teen, ideally before the first practice drive.
What Coverage a Teen Driver Needs
Liability coverage is required in most states at limits set by state law, and it is the minimum a teen driver's policy must carry; California's minimum, for example, is 30/60/15, as Mercury Insurance lists it, and your state department of insurance publishes the exact limits for your state.
Beyond the minimum, the right car insurance coverage depends on the car. A lender or lessor requires collision and comprehensive coverage on a financed or leased car, and Liberty Mutual recommends higher liability limits for inexperienced drivers because state minimums may not cover a serious crash. On an older car worth little, GEICO notes that dropping collision and comprehensive coverage can save money, because those coverages pay only up to the car's actual cash value.
| Coverage | What it pays for | When a teen's car needs it |
|---|---|---|
| Liability | Injuries and damage the teen causes to others | Required in most states at state-set limits |
| Collision | Repairs to the teen's car after a crash | Required by a lender or lessor; optional on a paid-off car |
| Comprehensive | Theft, weather, fire and vandalism damage | Required by a lender or lessor; optional on a paid-off car |
| Uninsured motorist / medical | Injuries caused by an uninsured driver; medical bills | Required in some states; optional elsewhere |
Source: coverage descriptions from AAA, Liberty Mutual and GEICO teen insurance pages, reviewed October 9, 2026. The driver insurance guide explains each coverage type in detail.
Cheapest Car Insurance for Teens by Company
GEICO is the cheapest national insurer for teen drivers at $6,507 a year on average, according to Insurance.com's 2026 analysis of drivers aged 16 to 19, followed closely by Travelers at $6,597.
| Insurer | Female, 16–19 | Male, 16–19 | Average |
|---|---|---|---|
| GEICO | $6,176 | $6,841 | $6,507 |
| Travelers | $6,089 | $7,108 | $6,597 |
| State Farm | $7,329 | $8,634 | $7,981 |
| Nationwide | $8,052 | $9,270 | $8,661 |
| Allstate | $9,283 | $10,030 | $9,659 |
| Progressive | $9,377 | $10,266 | $9,823 |
| Farmers | $11,984 | $13,020 | $12,511 |
Source: Insurance.com average annual rates for national carriers, 2026. Averages for a single driver can differ by thousands of dollars from these figures, so compare quotes for your own household.
Regional Insurers and USAA
Regional car insurance companies often beat the national insurers for young drivers. Insurance.com found Erie to be the cheapest of all carriers it surveyed at $4,601 a year and Auto-Owners at $5,858, while USAA averaged $5,528 but sells only to military members, veterans and their families. U.S. News reports a similar order with different figures: Erie $4,431, Auto-Owners $4,826, USAA $4,993, GEICO $5,087 and Travelers $6,439. Auto-Owners operates in 24 states through independent agents, so neither regional company is available everywhere.
How to Check an Insurer's Complaint Record
An auto insurance company's price is only half the decision. The NAIC complaint ratio compares an insurer's complaints with its market share against a benchmark of 1.0; Insurance.com reports Auto-Owners at 0.44 and Travelers at 0.63, both well below average. Look up each finalist on the NAIC or your state department of insurance site before you buy.
Car Insurance Discounts for Teens and Young Drivers
Teen driver discounts can cut a young driver's premium by up to 25% for good grades alone, State Farm says, and several discounts can stack on one policy.
| Discount | Usual requirement | Example from the insurer |
|---|---|---|
| Good student | B average or better | Up to 25% (State Farm); students 16–25 (Liberty Mutual) |
| Driver training | Completing a driver training course | Offered by AAA |
| Student away | Student lives 100+ miles from home | Offered by AAA |
| New teen driver | Adding a newly licensed teen | Offered by Liberty Mutual |
| Safe-driving app | Enrolling and driving safely | Up to 15% to start with GEICO DriveEasy |
| Multi-car / bundle | Insuring several cars or policies together | Offered by GEICO |
Good Student Discount
A good student discount on car insurance usually requires a B average or better, as GEICO and Nationwide describe it. Liberty Mutual offers it to full-time students aged 16 to 25 with at least a B average, so the discount can last through college.
Driver Training Discount
A driver training discount lowers the auto insurance premium for teens who complete an approved driver education or training course. AAA says a young driver who finishes its course may qualify for an auto insurance discount, and Insurance.com lists driver education among the main ways to lower a teen's rate.
Safe-Driving Apps (Telematics)
Safe-driving car insurance programs track speed, braking and phone use through an app and price the policy on actual driving. GEICO says DriveEasy can give up to 15% for enrolling and more than 15% after the monitoring period, and that 75% of the 260,000+ teen drivers enrolled received a discount at renewal. GEICO adds that rates vary with the driving habits the app logs. Liberty Mutual says its RightTrack program could save up to 30%.
Best Cars to Insure for Young Drivers
The best cars to insure for young drivers are conventional, safe and modestly priced, because car insurance costs less on conventional vehicles than on high-performance cars, GEICO says.
Safety features also lower auto insurance costs. AAA notes that a car with advanced safety equipment such as airbags and collision detection may lower the price, and Allstate says a high crashworthiness rating and anti-theft devices can lead to lower rates or discounts. Insurance.com adds that newer, more valuable cars cost more to insure, so a reliable used car with good safety ratings is usually the cheaper choice for a teen.
The car choice also changes which insurance coverage makes sense. A paid-off older car can carry state-minimum liability only, which 2026 national estimates put at about $648 a year for an average driver, against $2,508 for full coverage in the U.S. News September 2026 analysis; those are all-ages averages, and a teen pays more for either level.
How to Lower Car Insurance for Young Drivers
Cheap car insurance for young drivers comes from combining several moves rather than one trick:
- Stay on a family policy as long as the young driver lives at home.
- Compare quotes from several companies, including regional ones, with the same limits and deductibles; in Insurance.com's teen data, Erie's $4,601 average is $7,910 a year less than Farmers' $12,511, by Covr's subtraction.
- Claim every discount listed above and ask about any others the company offers.
- Raise the deductible on collision and comprehensive to an amount you could pay from savings.
- Pay for the year upfront, which AAA says may cost less than monthly payments.
- Keep a clean record, since tickets and at-fault crashes raise rates at renewal.
Usage-based or pay-per-mile car insurance can also help a young driver who rarely drives, Allstate notes, though it is not available everywhere.
Best Car Insurance for Drivers Under 25
The best car insurance for drivers under 25 pairs a low base rate with discounts that last until 25: drivers aged 20 to 25 pay about $280 a month on average, according to The Zebra, and Liberty Mutual's good student discount runs to age 25.
Car insurance for young adults keeps getting cheaper each year. At 20, Insurance.com's average is $5,174 a year, about 50% below the 16-year-old average by Covr's calculation.
Car insurance rates for drivers with a clean record start dropping noticeably as they approach their mid-twenties, AAA says, but the amount varies by company, and Liberty Mutual notes there is no single age or timeline that applies to every driver. Insurance.com reports that rates keep decreasing with age until about 65. Insurance.com's age table shows the steepest drop before 20. Drivers under 25 can still use the good student discount with companies that extend it to age 25. That makes grades worth reporting every year, not only in high school.
First-Time Drivers and College Students
First-time drivers of any age face many of the same car insurance pricing rules, and Covr covers them in a separate guide to first-time car insurance. College students living 100 miles or more from home may qualify for a student away discount, AAA says, and their own guide is planned.
Teen Premiums Compared With the National Average
Teen car insurance premiums run far above the typical driver's price: according to Covr's calculation on October 9, 2026, a 16-year-old's average price of $10,387 is about 4.1 times the $2,508 national full-coverage average reported by U.S. News for September 2026.
Teen premiums move closer to the national figure every year. By Covr's calculation, an average 17-year-old pays about 3.4 times the national figure, an 18-year-old about 3.0 times, a 19-year-old about 2.3 times and a 20-year-old about 2.1 times. Average prices fall about 45% between ages 16 and 19.
| Driver age | Average annual price | Multiple of $2,508 national average |
|---|---|---|
| 16 | $10,387 | about 4.1x |
| 17 | $8,613 | about 3.4x |
| 18 | $7,497 | about 3.0x |
| 19 | $5,718 | about 2.3x |
| 20 | $5,174 | about 2.1x |
Method: we divided each Insurance.com age average by the U.S. News national average; both sources may use different driver profiles, so treat the multiples as an approximate guide, not a quote. The national average full-coverage cost and the studies behind it are covered in our cost guide.
Getting Teen Driver Quotes Through Covr
Car insurance quotes for a teen or young driver through Covr come from partner insurers, which quote every driver profile, including teens and drivers under 25, in all 50 states. You enter your ZIP code and phone number, and partner companies contact you by phone with their offers.
Covr does not issue policies or set prices, so the final price comes from the company you choose after it checks each driver's record. Comparing several offers matters most for teens: national carriers' teen averages range from $6,507 at GEICO to $12,511 at Farmers in Insurance.com's 2026 data, a gap of $6,004 a year by Covr's calculation. Ask each partner for a quote with the teen added to the family plan and, if the teen is 18 or older, for a separate plan too. You can read the full process on how Covr works or compare offers on the quotes page. The Covr app on Google Play also stores ID cards and tracks vehicle expenses. Start from the Covr main page to see everything the service offers.
Sources and Methodology
Our methodology: every price, discount and rule on this page was last reviewed by Covr on October 9, 2026 against the source named next to it: Insurance.com rate data by age and by insurer (updated May 20, 2026), U.S. News teen rate rankings and its September 2026 national average, 2026 national estimates for state-minimum coverage, California limits as listed by Mercury Insurance, Forbes Advisor data cited by Progressive, USAA, NerdWallet and The Zebra figures shown in Google search results, AAA and the AAA Foundation for Traffic Safety, and the teen insurance pages of GEICO, Liberty Mutual, State Farm, Nationwide and Allstate. Monthly equivalents and national-average multiples are Covr's own calculations from those figures. Written and fact-checked by the Covr Editorial Team under our editorial policy. This page is general information, not legal or financial advice; your price and protection depend on your state, each driver's profile and the company you choose. Read our editorial policy or contact us with a correction.
Questions About Teen Car Insurance
How much is car insurance for a 16-year-old per month?
Car insurance for a 16-year-old works out to about $866 a month, based on Insurance.com's $10,387 annual average. Adding the teen to a parent's plan usually costs much less.
Does a teenager with a learner's permit need insurance?
A teenager with a learner's permit is handled differently by each insurer. Some companies require notice when a teen gets a permit and others only at licensing, GEICO says, so call the company first.
When does car insurance go down for young drivers?
Car insurance for young drivers drops sharply by age 20 and keeps falling with a clean record, per Insurance.com and AAA. No single age applies to every driver.
How long can a child stay on a parent's car insurance?
A child can stay on a parent's car insurance as long as they live in the parent's home, AAA says. After moving out, the young driver needs a separate plan.
Is car insurance for teens cheaper on an older car?
Car insurance for a teen on an older, conventional car is usually cheaper, because newer and high-performance cars cost more to insure. On an older car, dropping collision and comprehensive can lower the price further.