Cheap Auto Insurance for Teens in 2025
Geico, State Farm, and Auto-Owners have the cheapest auto insurance for teens, with rates starting at just $153 per month. Geico offers the lowest rates overall for teen drivers, and students living away at school may qualify for up to 25% off through its student-away discount.
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Updated September 2025
Geico, State Farm, and Auto-Owners offer the cheapest auto insurance for teens. Geico is the top pick overall with rates starting at just $153 per month, plus strong savings of up to 25% for students living away at college.
State Farm follows with generous discounts, including up to 35% off for good students and added savings through usage-based insurance (UBI).
Top 10 Companies: Cheapest Auto Insurance for Teens| Company | Rank | Monthly Rates | Good Student | Student Away | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | $153 | 15% | 25% | Geico |
 | #2 | $178 | 35% | 20% | State Farm |
 | #3 | $223 | 20% | 20% | Auto-Owners |
 | #4 | $239 | 18% | 20% | Nationwide |
 | #5 | $253 | 20% | 25% | American Family |
 | #6 | $318 | 22% | 20% | Allstate |
 | #7 | $387 | 15% | 20% | Farmers |
 | #8 | $398 | 12% | 25% | Liberty Mutual |
 | #9 | $400 | 10% | 10% | Progressive |
 | #10 | $443 | 8% | 10% | Travelers |
Auto-Owners stands out for teens who need full coverage, offering low premiums and a 20% good student discount.
Compare teen auto insurance companies based on driving records and coverage level to find the best cheap car insurance rates.
- Geico has the cheapest auto insurance for teens, starting at $153 a month
- Teen car insurance costs more since they are more likely to get in accidents
- Teens can save with discounts of up to 35% off for good grades
Enter your ZIP code into our free quote tool to instantly compare cheap teen auto insurance quotes from various companies near you.
Compare Teen Auto Insurance Rates
When comparing teen auto insurance rates, Geico offers the lowest monthly rate for minimum coverage at $153 and also leads in full coverage value at just $362, making it the most budget-friendly option overall.
State Farm follows with minimum coverage at $178 a month and full coverage at $405 monthly. Auto-Owners is another top choice for families needing more protection, with monthly full coverage rates of $519.
Teen Auto Insurance Monthly Rates by Coverage Level| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $318 | $740 |
| $253 | $591 |
| $223 | $519 |
| $387 | $897 |
| $153 | $362 |
| $398 | $893 |
| $239 | $552 |
| $400 | $944 |
| $178 | $405 |
| $443 | $1,056 |
Teens with good grades can get lower rates if they qualify for State Farm’s good student discount, which can save them up to 25%.
These three providers consistently rank among the top with the most affordable low-cost auto insurance for teens. Compare State Farm vs. Farmers, Geico, Progressive, and Allstate auto insurance for more quotes and to find the best car insurance for drivers under 25.
Cost of Teen Auto Insurance Based on Driver Demographics
Teen car insurance rates generally decrease with age and are consistently higher for men than for women, since men are statistically more likely to file claims.
At age 16, male drivers pay the most at $323 a month, compared to $292 a month for female drivers. By age 19, monthly rates drop, showing a steady decline as driving experience increases.
If you’re a young driver under 19, get multiple auto insurance quotes online to compare companies and take advantage of age-based discounts for the lowest rates on cheap car insurance for new drivers under 21.
No matter how much coverage you need, simply enter your ZIP code to compare teenage car insurance quotes instantly and find the cheapest insurance available.
Cost of Teen Auto Insurance Based on Driving History
Insurance companies already consider teen car insurance high-risk, so a DUI conviction can double or even triple rates.
Geico remains the cheapest teen auto insurance company with a DUI at $227 per month, which is an $80 increase to monthly premiums.
Teen Auto Insurance Monthly Rates by Driving Record| Insurance Company | Clean Record | One Accident | One DUI | One Ticket |
|---|---|---|---|---|
| $318 | $387 | $408 | $368 |
| $253 | $314 | $336 | $301 |
| $223 | $276 | $294 | $259 |
| $387 | $467 | $494 | $445 |
| $153 | $202 | $227 | $188 |
| $398 | $479 | $511 | $456 |
| $239 | $295 | $318 | $278 |
| $400 | $488 | $519 | $463 |
| $178 | $234 | $251 | $216 |
| $443 | $524 | $553 | $497 |
State Farm also have competitive rates at $251 a month, while Auto-Owners offers a stable option at $294 a month with minimal rate hikes compared to competitors like Progressive or Liberty Mutual, which charge over $500 per month.
Read More: State Farm vs. Progressive Auto Insurance
Insurance Rate Increase: Adding a Teen Driver to Your Policy
Adding a teen driver to an auto insurance policy causes a major rate increase across all providers, with monthly premiums jumping by over 130% in most cases.
Among the top companies, Geico remains the most budget-friendly option, increasing from $90 to $210 per month, a 133% rise, which is still lower than competitors like Allstate and Farmers, both of which exceed $240 per month after adding a teen.
Before & After Adding a Teen Driver: Auto Insurance Monthly Rates| Company | Without Teen | With Teen | Increase |
|---|---|---|---|
| $110 | $265 | 141% |
| $95 | $225 | 137% |
| $85 | $205 | 141% |
| $102 | $245 | 140% |
| $90 | $210 | 133% |
| $115 | $270 | 135% |
| $88 | $208 | 136% |
| $96 | $230 | 140% |
| $92 | $215 | 134% |
| $98 | $240 | 145% |
State Farm and Nationwide also show moderate increases, reaching $215 and $208 respectively, but Geico stands out for keeping the overall monthly premium more affordable while still offering strong teen-focused discounts.
This makes Geico the best option for families looking to manage the cost of auto insurance when covering a teen on their own policy.
Read More: What to Do If You Can’t Afford Your Auto Insurance
Cost of Teen Auto Insurance by State
Auto insurance rates for teens vary widely by state, influenced by local laws, accident risk, and insurance market conditions. One key factor remains consistent: teens who buy their own policy pay far more than those added to a parent’s plan.
Without access to bundling and multi-vehicle insurance discounts, standalone teen drivers face steeper premiums and fewer opportunities to reduce costs.
They also often settle for minimum coverage just to keep their policy affordable—but that can leave them vulnerable to high out-of-pocket expenses after an accident. States with higher claims rates, dense traffic, or strict coverage rules generally have the highest teen rates. Use the map above to explore average monthly teen rates across the U.S.
Choosing the right provider and coverage level based on your state can help manage costs, but adding your teen to an existing family policy is usually the most effective way to save. Check out our guide on how to buy auto insurance.
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How Teenagers Can Save Money on Car Insurance
Several top companies offer teen-focused auto insurance discounts that help families save, such as good student and safe driver discounts.
For example, Geico, American Family, and Liberty Mutual stand out for offering 25% off for both anti-theft and multi-policy discounts.
Top Auto Insurance Discounts for Teens| Company | Anti- Theft | Good Student | Claims- Free | Safe Driver | Low Mileage |
|---|---|---|---|---|---|
| 10% | 35% | 10% | 18% | 30% |
| 25% | 25% | 15% | 18% | 20% |
| 12% | 20% | 10% | 8% | 30% |
| 10% | 20% | 9% | 20% | 10% |
| 25% | 15% | 12% | 15% | 30% |
| 35% | 20% | 8% | 20% | 30% |
| 5% | 40% | 14% | 12% | 40% |
| 25% | 30% | 10% | 10% | 30% |
| 15% | 25% | 11% | 20% | 30% |
| 15% | 8% | 13% | 17% | 20% |
Geico and Liberty Mutual also include a 30% low-mileage discount. This discount helps families cut costs when insuring a teen who doesn’t drive often.
However, if you drive more than 7,500 miles per year, you may not qualify for it. Browse our guide on the best low-mileage auto insurance discounts.
While discounts can help reduce teen driver insurance costs, there are several other strategies that don’t rely on promotional savings.
Families can still secure cheap auto insurance for teens by making smart decisions around coverage, vehicles, and policy management.
- Choose a Modest Vehicle: Teens with sports cars pay the most, so insure a used, safe, and low-horsepower car to get cheaper teen auto insurance rates.
- Stay on a Parent’s Policy: Keeping teens on a parent’s auto policy is usually cheaper than purchasing a separate policy.
- Raise the Deductible: Opting for a higher insurance deductible can lower monthly premiums, especially for full coverage.
- Limit Optional Coverage: For older or low-value cars, dropping collision or comprehensive coverage can reduce costs.
- Compare Rates Often: Shopping around each year helps ensure you’re getting the lowest rate as your teen gains experience.
By adjusting coverage, managing how the policy is structured, and being strategic about the vehicle, families can find cheap car insurance for new drivers without relying solely on discounts.
Check out more details about the best car insurance discounts you can’t miss to get cheaper car insurance today.
Save Money With Usage-Based Auto Insurance for New Drivers
In addition to low-mileage savings, usage-based insurance (UBI) programs offer another way for teens to earn major discounts by driving safely.
Usage-based insurance uses mobile apps or in-vehicle devices to track driving behavior and reward cautious habits such as smooth braking and safe speeds.
Top Usage-Based Auto Insurance (UBI) Programs| Company | Program | Savings | System |
|---|---|---|---|
| Drivewise® | 40% | Mobile App |
| KnowYourDrive | 20% | Mobile App |
| TrueRide® | 30% | Mobile App |
 | YourTurn® | 30% | Mobile App |
| RightTrack® | 30% | Plug-in Device |
| SmartRide® | 40% | Mobile App or Plug-in |
| Snapshot® | 30% | Mobile App |
| Drive Safe & Save™ | 30% | Mobile App or Plug-in |
 | TrueLane® | 25% | Mobile App |
| IntelliDrive® | 30% | Mobile App |
Nationwide and Allstate offer the highest UBI savings of up to 40%, rewarding teens who adopt cautious driving early on. Progressive, State Farm, Auto-Owners, and Liberty Mutual also provide up to 30% off.
However, some programs, like Progressive Snapshot, may raise your rates if you exhibit poor driving habits, like excessive speeding or hard braking.
UBI programs can help lower costs and teach safer driving, making them a good choice for families who want cheap auto insurance for teens and rewards for safe driving.
See how much you could save with usage-based insurance in just 2 minutes by entering your ZIP code into our free quote comparison tool.
Best Car Insurance Coverage Options for Teens
Teen drivers face higher risks and insurance costs, so it’s important to understand which coverage types offer the best protection without breaking the budget.
Generally, it’s best for teen drivers to carry full coverage insurance for complete protection, especially if they’re driving a newer car.
- Liability Coverage: Required for all teen drivers, this covers injuries and damage they may cause to others.
- Collision Coverage: Collision auto insurance helps pay for repairs to a teen’s vehicle after an at-fault accident.
- Comprehensive Coverage: Comprehensive auto insurance covers non-crash events like theft, vandalism, or storm damage, which are common risks for parked teen vehicles.
- Uninsured/Underinsured Motorist: Protects teens if they’re hit by a driver who has little or no insurance.
- Personal Injury Protection: Personal injury protection (PIP) helps cover medical costs for teen drivers and their passengers after an accident.
Besides choosing the right coverage, think about your teen’s driving record, the kind of car they drive, and how often they use it, since these affect the cost. Usage-based insurance programs and bundling with family policies can also influence which company is the most cost-effective.
Choose coverage based on your teen’s driving habits and car value, and always ask about good student and student-away discounts.
Jimmy McMillan Licensed Insurance Agent
Choosing the right car insurance company for teens means balancing cost with coverage, reliability, and teen-friendly features. Geico, State Farm, and Auto-Owners have cheap auto insurance for teens, but compare monthly rates around you and check which local providers offer the most value for your teen’s driving needs.
10 Cheapest Auto Insurance Companies for Teens
Geico, State Farm, and Auto-Owners top the list of companies offering cheap auto insurance for teens, combining low rates with valuable features. Explore the pros and cons below to see which provider offers the best fit for your family.
Learn More: How to Compare Auto Insurance Companies
#1 – Geico: Top Overall Pick
Pros
- Lowest Monthly Rates: The cost of Geico insurance for a teenage driver starts at just $153 per month. Read everything you need to know about Geico.
- Top Student-Away Discount: Geico’s 25% student-away discount helps reduce costs for teens who attend school more than 100 miles from home.
- High Low-Mileage Discount: Geico includes up to a 30% discount for low-mileage drivers, which supports cheap auto insurance for teens who drive less frequently.
Cons
- Limited Good Student Discount: Geico offers a 15% good student discount, which is lower than the top competitors for teens seeking academic savings.
- No In-Vehicle UBI Option: Geico only offers mobile-based usage tracking, which may limit accuracy for families focused on usage-based savings for teens.
#2 – State Farm: Cheapest for Good Students
Pros
- Highest Good Student Discount: Teens can save up to 35% with State Farm’s academic achievement discount, the best among all providers.
- Affordable Monthly Rate: State Farm offers cheap auto insurance for teens at just $178 a month for minimum coverage.
- Drive Safe & Save Program: Teens can earn additional savings through usage-based driving via mobile app or in-vehicle devices. Learn more in our State Farm review.
Cons
- Limited Tech Features: State Farm’s app lacks some real-time driving feedback features that benefit teens learning safe habits.
- Average Student-Away Discount: The 20% student-away discount is lower than Geico or American Family, limiting savings for teens living at school.
#3 – Auto-Owners: Cheapest for Full Coverage
Pros
- Low Full Coverage Rates: Auto-Owners offers cheap auto insurance for teens needing full coverage, with rates starting at $223 a month.
- Strong Good Student Discount: Teens can qualify for a 20% discount by maintaining good grades, making it an affordable choice for students.
- TrueRide UBI App: Auto-Owners rewards safe teen driving with up to 30% off through its easy-to-use TrueRide mobile tracking program. Get full details in our Auto-Owners review.
Cons
- Limited Availability: Auto-Owners isn’t available in all states, which may restrict access to cheap auto insurance for teens in certain regions.
- Few Online Tools: The company lacks online quoting and digital tools, making it harder for teens and parents to manage policies efficiently.
#4 – Nationwide: Cheapest for Low-Mileage Drivers
Pros
- Top Low-Mileage Discount: Nationwide offers up to 40% off for low-mileage use. Find more discounts in our Nationwide auto insurance review.
- Competitive Base Rate: The minimum coverage rate of $239 a month supports affordable premiums for teens without major violations.
- SmartRide Flexibility: Teens can opt for either mobile or in-vehicle UBI tracking to earn up to 40% in safe driving savings.
Cons
- Below-Average Student Discount: Nationwide only offers an 18% good student discount, which is lower than competitors like State Farm.
- Limited App Functionality: The mobile app for SmartRide lacks real-time coaching, which can reduce its usefulness for new teen drivers.
#5 – American Family: Cheapest for College Students
Pros
- Top Student-Away Discount: American Family offers a 25% discount for teens attending college far from home, tied for the best in the market.
- Fair Monthly Rate: Minimum coverage for teens starts at $253 a month, balanced with solid discount offerings for families.
- KnowYourDrive Program: Teens can earn up to 20% off for safe driving habits tracked via the mobile app. See the list of discounts in our American Family Insurance review.
Cons
- Moderate Good Student Discount: Offers a 20% good student discount, which is average compared to top providers like State Farm.
- Coverage Not Nationwide: Availability is limited in some states, which may restrict access to cheap auto insurance for teens in certain areas.
#6 – Allstate: Cheapest With Usage-Based Insurance
Pros
- High UBI Savings: Teens can save up to 40% with Allstate’s Drivewise program, making it a great fit for safe teen drivers.
- Strong Academic Discount: Offers a 22% good student discount, helping families cut costs on cheap auto insurance for teens (Learn More: Allstate Auto Insurance Review).
- Bundling Benefits: Teens with families who bundle policies (auto + renters/home) can unlock up to 25% in combined savings.
Cons
- Higher Starting Rate: Allstate’s minimum coverage for teens begins at $318 a month, which is higher than the average among top providers.
- Driving Record Sensitivity: Premiums rise quickly with tickets or accidents, making it less forgiving for teens with infractions.
#7 – Farmers: Cheapest for Safe Drivers
Pros
- Strong Safe Driver Discount: Farmers rewards teens who maintain clean records with up to 20% off, promoting good habits.
- Multiple Discount Options: Offers good student (15%) and student-away (20%) discounts, helping teens reduce high premiums. Our Farmers Insurance review details the options.
- Solid Customer Support: Farmers’ strong agent network benefits families seeking personal guidance on cheap auto insurance for teens.
Cons
- High Monthly Rate: Farmers’ minimum coverage for teens averages $387 a month, one of the highest among the top 10 companies.
- Low-Mileage Discount: Only 10% off for low-mileage use, limiting benefits for teens who don’t drive often.
#8 – Liberty Mutual: Cheapest With Anti-Theft Devices
Pros
- Leading Anti-Theft Discount: Teens can get up to 35% off with Liberty Mutual’s anti-theft discounts, ideal for newer vehicles.
- Student-Away Advantage: This provider offers a 25% student-away discount, which is tied for the highest among all providers with cheap auto insurance for teens.
- Solid Low-Mileage Savings: Teens who drive less can save up to 30%, helping bring down the minimum coverage rate. Discover more in our Liberty Mutual review.
Cons
- Lower Academic Discount: Only 12% off for good students, which is below average compared to competitors like State Farm or Allstate.
- Above-Average Base Rate: Starting at $398 a month, Liberty Mutual’s rates are among the highest for teens seeking basic coverage.
#9 – Progressive: Cheapest With Flexible Coverage
Pros
- Flexible Coverage Options: Progressive provides many policy add-ons, ideal for customizing cheap auto insurance for teens.
- Strong Low-Mileage Discount: Offers 30% off for teens who drive less, which helps offset its $400 a month minimum coverage rate.
- Snapshot App Savings: The Progressive Snapshot UBI program offers up to 30% off for teens with safe driving habits. Learn how to qualify in our Progressive auto insurance review.
Cons
- Low Academic Discounts: Progressive only gives 10% off for both good student and student-away discounts, among the lowest in the top 10.
- Steep DUI Penalties: Premiums increase sharply for teens with DUIs, making Progressive less ideal for high-risk drivers.
#10 – Travelers: Cheapest for City Drivers
Pros
- IntelliDrive UBI Program: Travelers helps teens save up to 30% through its mobile-based IntelliDrive program that monitors braking and speed.
- Unique Claim-Free Discount: Offers 13% off for staying claim-free, adding value for families managing cheap auto insurance for teens.
- Strong Student-Away Option: Teens attending school far from home can still cut back on high premiums. Browse more discounts in our Travelers auto insurance review.
Cons
- Highest Monthly Rate: Travelers’ minimum coverage for teens starts at $443 a month, the most expensive option among the top 10.
- Limited Teen-Specific Discounts: Offers only 8% off for good students, the lowest in the group.
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How to Find the Best Car Insurance for Teens
Choosing the right provider involves more than just low rates—teens and parents should look for value, safety, and long-term benefits.
Here are some tips to help find the best car insurance for young drivers and secure cheap car insurance for teen drivers that still provides solid protection:
- Compare Multiple Quotes: Rates can vary drastically by insurer, so comparing 3–5 quotes ensures you find the most affordable option for your teen.
- Look for Teen-Specific Discounts: Prioritize companies that offer good student, student-away, and safe driving discounts that can significantly reduce teen premiums.
- Evaluate Usage-Based Insurance Options: Programs like Drivewise® or SmartRide® reward safe habits with savings up to 40%, making them great for cautious teen drivers.
- Review Digital Tools and Claims Reputation: Choose insurers with strong customer service, easy claims processes, and mobile-friendly apps for managing teen policies.
- Add Teens to a Parent’s Policy: Teen drivers usually pay much less when included on a family policy, especially with access to multi-car and bundling discounts.
These tips can help parents and teens confidently select a provider that offers both savings and peace of mind.
To learn more about available savings, read our guide on the best defensive driving insurance discounts. See which companies have the cheapest rates by entering your ZIP code into our free comparison tool.
Frequently Asked Questions
How much is car insurance for teens?
The average cost of teenage car insurance per month ranges from $153 to over $440, depending on the insurer, coverage level, and driving history.
What are the best auto insurance companies for teens?
Geico, State Farm, and Auto-Owners rank as the best providers for teens. Geico leads in affordability, State Farm excels in student discounts, and Auto-Owners offers great value for full coverage needs. Get fast and cheap auto insurance coverage today with our quote comparison tool.
How can teen drivers lower their car insurance costs?
Teen drivers can lower their insurance rates by staying on a parent’s policy, choosing a safe and modest vehicle, maintaining good grades, enrolling in usage-based programs, and avoiding accidents or tickets.
Read More: Best Auto Insurance for Good Drivers
What is the cheapest auto insurance for teens?
Geico offers the cheapest auto insurance for teen drivers, with minimum coverage starting at just $153 per month.
What insurance coverage types are best for teen drivers?
Liability is the legal minimum, but adding collision and comprehensive coverage can protect against at-fault accidents, theft, or weather-related damage. Consider uninsured motorist and PIP/MedPay for added safety.
Should I add my teen to my auto insurance policy?
Yes, adding a teen to a parent’s policy is usually cheaper than buying a separate policy. Most families save hundreds of dollars this way, making teens eligible for bundled discounts.
Are there special auto insurance discounts available just for teens?
Yes, many insurers offer teen-specific discounts such as good student discounts up to 35%, student-away discounts up to 25%, and rewards for completing safe driving or driver’s education programs.
Read More: 26 Hacks to Save Money on Auto Insurance
How do driving records affect teen insurance rates?
Driving records significantly impact rates. Teens with a clean record pay much less than those with accidents, tickets, or DUIs. For example, Geico’s rate rises from $153 to $227 a month after a DUI.
Which companies have the best usage-based insurance for teens?
Nationwide and Allstate offer top usage-based insurance programs for teens, each with up to 40% in savings. These programs monitor driving habits through mobile apps or devices to reward safe driving.
Is it cheaper to insure a teen with a specific type of car?
Yes, insuring a used, low-horsepower, and safe vehicle is much cheaper than covering a new or luxury car. Vehicles with strong safety ratings and low repair costs lead to lower teen premiums.
Read More: Best Auto Insurance for Luxury and Exotic Vehicles
What is the cheapest insurance for a 16-year-old?
When do I add my 16-year-old to my car insurance?
Why is teenage auto insurance so expensive?
How much is car insurance for a 16-year-old per month?
How much is insurance for a 17-year-old monthly?
How often should I compare auto insurance quotes for teen drivers?
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