Insuring teen drivers is very pricy because they are inexperienced, and the risk of accidents is higher when they are behind the wheel.
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Cheap Auto Insurance for Teens
So how can you find cheap insurance for your teen who can’t wait to get driving?
How much is the average teen insurance rate?
On average, insurance companies charge teen drivers approximately $4,866 a year, or around $405 monthly. That’s four times what an average driver pays for an auto insurance premium.
Dear 16-year-old, if you are reading this article, I’m happy to inform you that you and anyone of your friends who have the same age as you can get their auto insurance policy of approximately $2,823 per year if you purchase auto insurance from GEICO, which is the cheapest overall.
State Farm, Progressive, and Nationwide were over $3,000 per year.
Other factors that affect your teen’s auto insurance rate
Besides your age, which has a significant impact on your insurance rate, the following factor are considered when calculating your car insurance premium.
Vehicle:
The model of the car you want to buy insurance for influences your insurance rates. For example, sports cars have high insurance rates, because naturally, it costs more to repair or replace.
Also, if your car has built-in security features like anti-theft devices, you may qualify for a discount on your car insurance.
Gender:
The sex of a driver is a variable in how insurance companies determine car insurance rates. Statistically, women get into fewer or less severe accidents than men, and young male drivers pay more insurance than young female drivers.
Mileage:
The more you drive your car, the higher the chances of having an accident. So, you have to pay more for your insurance and vice versa.
Location:
Your car insurance may cost more if you live somewhere that the chances of vandalism, accident, or theft are higher, like in urban areas, especially in Alberta’s two most dense and busiest cities, Calgary and Edmonton.
The climate of the place you live (like if the risk of hail and ice storms is high or not), how much car repair costs in the area you live in, and how much auto insurance fraud occurs affect your insurance.
Parking Spot:
Where you park your vehicle impacts your insurance fee too. For example, if you park your car in your garage, the chances of vandalism, theft, or any other harm to your car decreases; therefore, your insurance fee lowers.
Your Marital Status:
Whether you’re married or not impacts your insurance fee. Research has proved that marriage drivers file fewer auto claims; therefore, insurance companies lower the married driver’s fee.
What is the best teen car insurance?
The best car insurance company that offers auto insurance o teens at affordable rates is Allstate. Surprising, huh? Usually, Allstate offers high rates, but not to youngsters. Allstate also offers incredible discounts to teen students living away from home.
Who offers the best student discount?
Are you looking for a good student discount? State Farm offers four student-related discounts that can help them lower costs. State Farm also has driving behavior programs that reward with discounts.
Looking for Accident Forgiveness?
Accidents happen to everyone, even the safest drivers or safest students. If you had an accident, your insurance rates might rise as much as 30%.
Not if you have Nationwide’s Accident Forgiveness as part of your teen car insurance policy!! You can avoid the rise in your rates, but only for the first at-fault automobile accident.
Military student
Are you from a military family? USAA specializes in insuring drivers in the military. USAA managed to hold the cheapest rates for teens and their parents.
Some companies you want to consider or check if you are a teen driver
Allstate and GEICO are the cheapest options even for families who wish to add a teen to their car insurance policy. But of course, there are other options like State Farm, Progressive, and Nationwide.
1.GEICO
The Government Employees Insurance Company, known as GEICO, is an American auto insurance company located in Chevy Chase, Maryland. GEICO was founded 85 years ago in 1936, and it is the second-largest auto insurer company in the United States.
GEICO is ranked second in the United States for customer and claims satisfaction. GEICO offers the most affordable rates for 17 and 18-year-old drivers.
2.Allstate
Allstate Insurance is an American-based insurance company founded in 1931. Its headquarters are located in Northfield Township, Illinois, near Northbrook.
It has the most expensive policies among all other companies; in fact, the average cost of a policy from Allstate is above the average insurance cost in the U.S.
However, J.D. Power Auto Insurance Study showed that Allstate has the highest customer satisfaction.Besides auto insurance, customers can also purchase other types of insurance from Allstate, such as renters insurance, homeowners insurance, and life insurance. Allstate is highly recommended to 16-year-old drivers.
Allstate Car Insurance Reviews
3.State Farm
State Farm is the auto insurance provider in the United States with 100 years of service. It was founded in 1922, and its headquarters is located in Bloomington, Illinois.
After GEICO State Farm has the cheapest rates and is the best choice for students, State Farm has a program for drivers under 25 called Steer Clear; the program includes courses, mentoring, and practice driving hours to help students who drive discounts on their premiums.
19-year-olds who drive, go check State Farm’s website and take a quote right now because I know you don’t want to miss out on those prices.
4.Progressive
The Progressive Corporation is an American insurance company founded on March 10, 1937. It is headquartered in Mayfield Village, Ohio, USA.
With about 84 services, Progressive insurance provides insurance with reasonable prices and a combination of unique programs and discounts that can get you the most affordable policy.
This company insures vehicles, motorcycles, boats, trailers, RVs, PWC, commercial vehicles, and home, life, pet, and other insurance solutions through select companies.
Progressive Exotic Car Insurance
5. USAA
United Services Automobile Association (USAA) is a San Antonio-based organization for insurance, banking, investing, and advice founded in 1922 headquartered in San Antonio, Texas. USAA was founded 100 years ago in San Antonio by 25 U.S. army officers for mutual auto insurance.
USAA calls its customers members and only provides insurance for U.S. Military Members. The quote is:
“We offer benefits, products, and discounts for U.S. military members and their spouses, as well as children of USAA members. We are committed to providing our members with exceptional service.”
