UPDATED: Mar 13, 2020
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Teenagers pay high rates for car insurance. Fortunately, it doesn’t have to be that way. By choosing the right car insurance company, you can pay cheap prices for car insurance even as a teenager.
Which companies provide the cheapest car insurance for teenagers? What’s your best option for teenage driver car insurance? Today, we’re listing the top 10 cheapest car insurance companies for teen drivers.
If you are a teen and are looking for the best auto insurance rates, your best bet is to go down this list and get quotes from each company, starting with Erie at number 1. To simplify the process, consider using the 4AutoInsuranceQuote.com quote comparison tool at the top of this page. Using the tool, we’ll help you compare rates from some of the top insurance companies in the United States so that you can choose the policy that is most suitable and affordable for your needs.
Some of the cheapest car insurance companies for teen drivers lie outside of the “Big Five”. Erie, however, tends to be one of the most affordable car insurance companies for teen drivers across the country. According to a report by our friends at ValuePenguin.com, Erie was the cheapest car insurance company in the country for teen drivers. In virtually every state where Erie offers insurance, Erie was the best choice for teenage drivers. The only drawback to Erie is that they’re not available in every state. They’re typically only available in the midwest, northeast, and parts of the south. You can view covered states here.
2) The Cincinnati
The Cincinnati Insurance Company, or Cincinnati Financial, is an Ohio-based car insurance company that provides relatively cheap rates for teenage drivers. The insurance company is comparatively small, serving just 1% of the domestic insurance market, which ranks it as the 20th largest insurance company in the United States. However, teenaged drivers in areas covered by The Cincinnati may pay some of the lowest insurance rates in the country. According to the Value Penguin study linked above, The Cincinnati charges an average annual insurance premium of $2,969 to teenage drivers. The only insurance company with cheaper average rates for teenagers was Erie, which charges teen drivers an average of $2,411 per year.
Chubb is a Zurich, Switzerland-based company originally founded in New York City. Today, the company provides auto insurance to teenage drivers (and adult drivers) across the United States. The main drawback with Chubb is its coverage area: the company has a presence across the eastern United States but is unavailable in other parts of the country. Fortunately, other insurance companies on our list provide similarly cheap rates for teenage drivers without regional restrictions.
4) Grange Insurance Association
You’ll notice that “Grange Insurance” is listed twice here. That’s because there are two different Grange Insurance entities in the United States. Both Grange Insurance companies offer comparatively cheap rates to teenage drivers. Grange Insurance Association is an ideal alternative to Erie, The Cincinnati, and other cheap insurance companies – especially if you live in the western United States. Today, Grange Insurance Association operates in California, Wyoming, Colorado, Washington, and Oregon. Some reports online suggest that Grange offers discounts of up to 75% to teenage drivers when compared to other insurance companies. If they’re available in your area, it’s worth requesting a car insurance quote.
The insurance companies listed above are all smaller, regional insurance companies. They serve specific parts of the United States, but they’re not available to teenage drivers in all corners of the country. Out of the largest nationwide insurers, Nationwide seems to provide the consistently cheapest rates to teenage drivers – although prices can vary widely across the country. In some states, Nationwide will beat the rate provided by Erie and other regional providers. In other states, teenage drivers can get cheaper insurance through State Farm. Overall, it’s a great idea to request a quote from Nationwide if you’re comparing quotes between larger insurance companies.
COUNTRY Financial is a group of American insurance companies offering a range of insurance products – including car insurance for teenage drivers. The Illinois-based company was founded in 1925 to provide fire and lightning insurance to farmers. Today, the company offers financial products in 19 states – mostly across the midwest. In the 2016 J.D. Power Property Claims Satisfaction study, Country was ranked third among all property insurance companies in the United States. If they’re available in your state, then it’s worth requesting a quote for a teenage driver, as they’re known for providing comparatively cheap rates on car insurance for teenage drivers.
7) State Farm
Out of the big five insurance companies, Nationwide and State Farm seem to provide the most competitive rates for teenage drivers. State Farm will be the cheaper choice in some states, while Nationwide will be the cheaper choice in others. That’s why it’s important to request a car insurance quote from both.
8) Grange Insurance
Up above, we mentioned that Grange Insurance has two different entities, including Grange Insurance Association and Grange Insurance. Grange Insurance Association offers affordable rates to drivers in California, Wyoming, Colorado, Washington, and Oregon. Grange Insurance, on the other hand, operates in the south and midwest, where the company offers relatively cheap insurance policies to new teenage drivers.
GEICO is another big five insurance company known for offering comparatively cheap car insurance to teenage drivers. Some lists place GEICO at the top, declaring it the cheapest car insurance company for teenage drivers. This may be true in some states (particularly in California, Delaware, Kansas, New Mexico, and Vermont, according to this Value Penguin study). However, it’s not true in all states. If you’re dedicated to finding the cheapest car insurance for a teenage driver, make sure you get quotes from all companies on this list – and make sure you get a quote from nationwide providers like GEICO, State Farm, and Nationwide. The more time you spend searching, the more money you can save on car insurance for teenage drivers.
Allied was ranked as the cheapest car insurance company for teenage drivers in two states, including North Dakota and Nevada. It was also ranked as the second cheapest company for teenage drivers in New Mexico, and the third cheapest for drivers in Arizona, Kansas, and Minnesota. Whether you’re within these states or elsewhere, Allied may offer the best rates on your teenage auto insurance policy.
Other Ways to Save Money on Car Insurance for Teenage Drivers
Finding affordable car insurance as a teenage driver can be difficult. Fortunately, there are plenty of ways to save money on your policy. Here are some of our most popular cost-saving strategies:
- Get Added to your Parents’ Policy: A teenage car insurance policy typically costs $2,500 to $4,500 per year. Getting added to your parents plan, meanwhile, might only cost $1,200 to $2,000 per year. Contact your parents’ insurance policy to compare the price difference.
- Drop Comprehensive and Collision Coverage: You’re not required to have comprehensive and collision coverage on your insurance policy. Drop comprehensive and collision coverage and watch your policy drop significantly in price. This works particularly well on older vehicles, since the cost of repairing the vehicle after a collision may not be worth it.
- Get Good Grades: Many insurance companies offer a small discount for teenagers or college students that maintain good grades. If you’re getting good grades and have the transcripts to prove it, then talk to your insurance company.
- Take a Driver Training Course: Many insurance companies also offer discounts to teenage drivers who take a driver training course. By taking a course, you’re significantly less likely to be involved in a collision, which makes you a less risky driver in the eyes of the insurance company.
Final Word On Finding Cheap Auto Insurance As A Teen…
Ultimately, teenagers are always going to pay more for car insurance. Their inexperience and other factors make them some of the riskiest drivers on the road. Request a quote from the cheapest car insurance companies for teenage drivers listed above to enjoy affordable rates on your teenage car insurance policy.