What is the Best Car Insurance Plan for Teens?

For teens, getting that driver's license and their first set of wheels can be an exciting time. For parents, it’s a bit of a mixed bag. There’s the relief of no longer having to get your kid from here to there for various school and community activities. But, there is also a concern for their safety and the best car for teens to drive. And beyond that, there is the financial stress that comes along with insuring a teenage driver. 

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The truth is that car insurance for teens doesn’t come for cheap. These young drivers haven’t yet had the opportunity to build up that safe driving history. For that reason, their insurance premiums might be a bit higher than what you were anticipating.

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In this article, we’ll share the considerations specific to insuring teens and our perspective on the best car insurance options for your teenager.

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Factors to Consider When Choosing Car Insurance for Teens

Car insurance is required by most states in the U.S. In fact, New Hampshire and Virginia are the only outliers. So, unless you live in one of those states and plan to skip out on coverage, you need to be prepared for an increased premium any time you add a new driver to your policy. 

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That said, there are some factors to take into consideration. 

• Affordability: Look for plans that offer competitive rates. If you have multiple policies with the same provider, consider bundling options to save money.
• Coverage Options: Make sure the plan includes liability, collision, and comprehensive coverage to protect against various scenarios.
• Discounts: Many insurance companies offer discounts for good grades, safe driving courses, and vehicles with certain safety features.
• Safety Features: Cars with anti-lock brakes, airbags, and electronic stability control can reduce the risk of accidents and lower premiums.
• Driver Education Programs: Enrolling your teen in driver education programs can demonstrate a commitment to safe driving. And, it may make your teen eligible for further discounts.
• Customer Service and Claim Handling: Choose an insurance provider with a strong reputation for handling claims efficiently and offering excellent customer support.

So, what insurance companies offer the best options? Here are some of our top choices.

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Option # 1: State Farm 

State Farm is a well-known car insurance provider that offers comprehensive plans for teen drivers. Its competitive rates and range of discounts make it a popular choice for families.

Key Features and Benefits:

• Competitive Rates: State Farm provides affordable insurance options for teen drivers.
• Good Student Discount: Teens maintaining good grades can save up to 25% on their premiums.
• Steer Clear® Safe Driver Program: This program offers driving-focused training, encouraging young drivers to practice safe driving habits. Parents can also monitor and guide their progress.
• Student Away at College Program: Families can save if a covered vehicle's operator is a student under 25 who only uses the car during school vacations and holidays.

Pros and Cons:

Pros:

• Extensive network of local agents, providing personalized service and support.
• Multiple discount programs that can significantly reduce premiums.

Cons:

• Rates may be higher in some regions, depending on local factors and risk assessments.

Option # 2: Geico 

Geico offers a range of car insurance plans for teens, known for their affordability and extensive discount options. Their user-friendly mobile app and innovative programs make managing policies and saving on premiums easier.

Key Features and Benefits:

• Affordable Rates: Geico provides cost-effective insurance options for teen drivers.
• Good Student Discount: Teens maintaining a "B" average or better can save up to 15% on certain coverages.
• Driver's Education Discount: Discounts available for completing driver's education courses.
• DriveEasy Program: This program tracks driving habits and rewards safe driving. All eligible drivers must enroll and are eligible for a discount of up to 10% simply for monitoring their driving. Safe driving habits can lead to discounts exceeding 10%.
• Good Driver Discount: Available to drivers who have not been in an accident within the last five years. Teens can save up to 22% on most coverages.
• User-Friendly Mobile App: Geico’s mobile app allows for easy policy management, claims filing, and accessing insurance ID cards.

Pros and Cons:

Pros:

• Nationwide coverage, providing extensive reach and reliability.
• Multiple discount opportunities that can significantly reduce premiums.

Cons:

• Limited in-person support, which may be a drawback for those preferring face-to-face interactions.

Option # 3: Allstate

Allstate offers comprehensive car insurance plans for teens, focusing on safety and providing multiple discount opportunities. Their personalized service and educational programs make them a strong contender for families with new drivers.

Key Features and Benefits:

• Multiple Discounts: Allstate provides various discounts, including the Smart Student Discount for maintaining good grades and safe driving.
• Allstate Rewards: This program rewards safe driving with points that can be redeemed for savings on merchandise, travel, and more.
• TeenSMART Driver Education Program: Teens can become TeenSMART certified, earning additional discounts. The program focuses on improving driving skills and safety awareness.
• Smart Student Discount: Available if your student driver under 25 meets Allstate’s grade requirements or if your student driver under 21 keeps their car at school 100+ miles from home.

Pros and Cons:

Pros:

• Personalized service from local agents, ensuring tailored advice and support.
• A variety of educational programs and rewards promoting safe driving habits.

Cons:

• Rates may be higher for high-risk drivers, potentially increasing overall costs.

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Option # 4: Progressive

Last but far from least, Progressive offers tailored car insurance plans for teens, with a focus on affordability and rewarding safe driving. Their competitive rates and discount programs make them a strong option for families with young drivers.

Key Features and Benefits:

• Rates Drop with Age: At Progressive, rates drop by an average of 9% when a driver turns 19 and another 6% at 21. As your teenager gains experience and avoids tickets and accidents, the cost of their insurance should continue to decrease.
• Competitive Rates: Progressive provides affordable insurance options for teen drivers.
• Good Student Discount: Teens with a B average or better can earn about a 10% discount in most states.
• Multi-Car Discount: If your teenager has their own vehicle, you'll receive another discount for having more than one vehicle on your policy.
• Teen Driver Discount: If your child driver is 18 years old or younger and you have been consistently insured for at least 12 months, Progressive adds a discount.
• Snapshot Program: This program rewards safe driving habits with discounts. The mobile app can also track and reveal if your teen was driving distracted, helping to promote safer driving practices.

Pros and Cons:

Pros:

• Flexible payment plans, making it easier to manage premiums.
• Multiple discounts available, encouraging safe driving and academic excellence.

Cons:

• Rates can vary significantly based on driving history, which may affect overall costs.

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RateWorks Can Help You Save Money on Auto Refinancing

Another great way to save money on your teen’s car is to refinance the existing loan. You may qualify for a lower interest rate, or you can choose to spread out those remaining payments, which may make it easier to cover those car insurance premiums.

To get started, get a free quote today.