Best car insurance for teens and young drivers in 2021

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If your teen has got a driver’s license and is ready to hit the road, you need to make sure they know that car insurance is mandatory in 48 states. Finding the right policy can be a challenge for any driver, let alone a new one, but we’re here to help you sort out the options for finding the best car insurance for teens and young drivers.

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Most insurers have come to the conclusion that covering a first-time teen driver is at higher risk than experienced drivers with safe driving habits, so prices are often much higher than for older drivers. When a juvenile driver is added to an existing policy, the car insurance rate premium increases to approx. 130 to 140% and an additional one can grow 20 to 40% If that young driver gets into a car accident or gets a speeding ticket. Such rates remain in place until a driver turns 20.

Adding a teen driver to an auto insurance policy can be expensive, but there are ways to lessen the blow to your wallet.

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Thankfully, there are ways to deduct the cost of an insurance premium policy. For example, being a safer driver and using more efficient vehicles (such as honda civicshandjob Toyota Prius And nissan rogue) also cuts costs for teen drivers. There are also discounts on how often you use your car: “Some companies offer discounts to motorists who drive less than the average number of miles per year,” says Janet Ruiz, director of strategic communications. Insurance Information Institute.

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Teens may qualify for an exemption based on learning safe driving habits from the Good Student Discount or Defensive Driving Course, or Undergraduate Driver Licensing program. “For Young Drivers,” says Dan Karr, founder and CEO of well choice, an independent platform for insurance ratings and analysis, “is exempt for taking driver certification courses and maintaining above B average.”

You may also be able to save money if the young driver on your policy is not using their car because they are in college. “If you have a young driver on your policy who is in college without a car, you may also qualify for a lower rate,” says Ruiz. Each insurance carrier offers different discounts based on your coverage options and other factors, so it pays to check which ones apply to you before signing up.

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5 things to do first

  • Decide whether you are going to get a separate auto insurance policy for your teen or if you want your teen to be listed on your insurance. The former is generally considered cheaper in the short term because your own auto insurance premiums will not increase. But the latter option is generally safer: Your own policy will be extended to your teen, with a few changes.
  • Decide which car insurance coverage benefits are important to you, and be sure to take them into account when talking to an insurance agent. For example, many insurers will not offer accident forgiveness to young drivers, but nationwide will.
  • Check out which car insurance discounts your teen may be eligible for. Many companies offer good student discount benefits, as well as discounts for teens who have taken approved safe driving courses.
  • If your teen or young driver needs to complete certain tasks to qualify for a car insurance discount, they should, whether it’s raising their grades or taking a training course.
  • Compare car insurance quotes from several different insurance companies (taking into account discounts), and decide.

Comparison of the Best Car Insurance for Teenagers and New Drivers

company Discounts Available for Teenagers additional benefits

Geico

Driver’s Education, Good Student Discount

Large customer service network, many extra discounts

USAA

Driver Training, Good Student Discount

Award winning service and coverage

nationwide

good student discount

Accident forgiveness, roadside assistance to drivers under the age of 18

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