Cheapest Car Insurance for 17-Year-Olds (2024)

On average, 17-year-old drivers can expect to pay $240 per month for car insurance, according to Compare.com data. Generally, teens and young drivers are more expensive to insure because they’re at a higher risk of causing a car accident.

Fortunately, teen drivers can save money on auto insurance by having a parent add them to their policy and taking advantage of discounts. We’ll cover everything you need to know about insuring a 17-year-old driver in the sections below, including the best companies to consider, tips to save on your car insurance premiums, and more.

Key Takeaways:

• USAA, State Farm, and Allstate are some of the best car insurance companies for teens.
• It costs less to add a 17-year-old driver to an existing policy than to have their own.
• Wisconsin, New Hampshire, and Hawaii are the cheapest states to insure a teen driver.

Cheapest Car Insurance for 17-Year-Olds

Because car insurance rates are higher for teen drivers, it’s important to shop around and compare car insurance rates. When calculating auto insurance rates, most insurers use the same criteria, but each company evaluates each rating factor slightly differently.

Let’s take a look at the five cheapest auto insurance companies for 17-year-old drivers, and how much you can save per year with each.

USAA offers the cheapest average rates for 17-year-olds, with an average monthly premium of $114, according to our research. That’s probably because USAA offers discounts specifically aimed at young drivers — like a good student discount and driver’s education discount.

State Farm and Allstate — the next two cheapest insurers — also offer discounts aimed at helping young drivers save money, but their average rates are more than 20% more expensive than USAA’s.

Still, these nationwide averages aren’t necessarily a good indicator of what you or your 17-year-old driver will pay. Auto insurance companies base rates on more than a dozen factors, including address, driving record, gender, and more.

The best way to find the cheapest car insurance rates for your unique insurance profile is to compare quotes from as many companies as possible.

The Best Cheap Car Insurance Companies for 17-Year-Old Drivers

Age is just one factor insurers consider when evaluating you for a car insurance policy. Insurance companies also look at your ZIP code, driving record, gender, and the type of vehicle you’re driving. For example, a 17-year-old female driver will pay slightly less for auto insurance than a 17-year-old male driver, all else being equal.

Because so many different factors determine your insurance premiums, there isn’t one insurance company that will work best for everyone. Still, it’s helpful to know which companies the majority of teen drivers have had a good experience with.

Let’s take a closer look at the three best car insurance companies for 17-year-olds, based on our research. We made these selections based on each insurer’s average rates, customer service records, and their available coverages and discounts.

Best overall value: USAA

Average premium: $114 per month

Compare.com rating: 4.91 out of 5

USAA provides the best overall value for 17-year-old drivers thanks to its low average monthly rates and abundance of discounts. Teen drivers can earn a discount for receiving good grades, taking a driver training course, and demonstrating safe driving behaviors. And once teens are ready for their own policy, they can receive a 10% legacy discount.

But it’s worth noting that policies are only available to military members and their families, so not every 17-year-old will qualify for coverage.

Pros:

• Cheapest average rates
• Wide variety of available teen-specific discounts
• High J.D. Power customer satisfaction ratings

Cons:

• Only available to veterans, military members, and their families
• Gap insurance not available
• No local insurance agents

Best telematics program: State Farm

Average premium: $139 per month

Compare.com rating: 4.9 out of 5

Teen drivers can save up to 30% on car insurance by signing up for State Farm’s Drive Safe & Save telematics program. After signing up, download the mobile app onto your smartphone, and start tracking your driving habits. You’ll receive a discount just for enrolling, and depending on your driving habits, your insurer will adjust your discount every six months when the policy renews.

Pros:

• Affordable monthly rates for teens
• Excellent telematics program
• High J.D. Power ratings

Cons:

• Must sign up through an agent
• Gap insurance not available
• Accident forgiveness not available

Best for discounts: Allstate

Average premium: $178 per month

Compare.com rating: 4.93 out of 5

Allstate offers many discounts for teen drivers, including a good student discount and a student away at school discount. New drivers can also sign up for the teenSMART program, which provides feedback based on your overall driving skills. And accident forgiveness will prevent your rates from increasing after your first accident, even if you’re at fault.

Pros:

• High J.D. Power ratings
• Accident forgiveness available
• Many available discounts for teens

Cons:

• Middle-of-the-road rates for teens
• D+ grade from CRASH Network
• Limited coverage options in some states

When You Should Add Your Teen to Your Insurance Policy

Many parents wonder whether they should add a 17-year-old driver to their existing auto insurance plan or have them take out their own policy. Some parents want teens to have their own policy because if they get in an accident, parents won’t be responsible for the damages they cause.

But if you’re planning to pay for your teen’s auto insurance, adding them to your policy will be cheaper than purchasing a stand-alone policy under their name. The following table shows the average rates to add a teen driver from six of America’s largest insurers.

On average, it costs around 35% more to add a 17-year-old to your existing auto insurance policy, regardless of insurer. State Farm and GEICO offer the cheapest average rates overall, at $258 and $268 per month, respectively.

They’re also the only insurers that cost less than $300 per month after adding a teen driver to your policy. That’s likely thanks to the large number of discounts both insurers offer.

Cheapest Car Insurance for 17-Year-Olds by State

What you pay for car insurance can vary substantially based on where you live. For example, you’ll have to pay more for car insurance if you live in a state with higher rates of vandalism, insurance fraud, high-dollar claims, or severe weather.

The table below shows what you can expect to pay to insure 17-year-old drivers in every state, as well as which insurers are the cheapest for these drivers.

On average, Wisconsin, New Hampshire, and Hawaii are the three cheapest states to insure a 17-year-old driver. Wisconsin ranks as the fourth-cheapest state for all drivers to buy auto insurance, which could be why teen drivers also pay less. But drivers in Vermont and Iowa can find even cheaper rates from the right company. Both states’ cheapest companies offer 17-year-olds policies for less than $37 per month.

Overall, USAA and State Farm tend to be the cheapest in most states — the two large insurers offer the cheapest average rates for 17-year-olds in a combined 22 states.

How to Get Cheap Car Insurance for a 17-Year-Old

Insuring a 17-year-old driver can be intimidating for many parents. Not only is driving a big step for any teenager, but insuring a teen driver can be expensive. Here are four tips on finding cheap car insurance for a 17-year-old.

Buy a safe vehicle

The type of car your teen drives will play a big role in how much you pay for auto insurance. When you’re shopping around for cars, look for a used vehicle that includes safety features like anti-theft devices and anti-lock braking systems. This can help lower your premiums since many insurance companies offer discounts for safety features included in your vehicle.

Before buying a car for your teen driver, it’s a good idea to get separate car insurance quotes on any vehicles you’re considering purchasing. Rates can vary substantially among various car models, so this information can help you budget accordingly.

Take advantage of discounts

Look for insurance companies that offer discounts for teenage drivers. For example, many insurance companies offer a “good student discount” to teens who maintain good grades in school. For example, State Farm offers a discount of up to 25% if your teen gets good grades.

Your teen driver may also be eligible for a discount for enrolling in a safe driving course. If they don’t drive very often, you could take advantage of a low-mileage discount, as well. And if you add your teen driver and their car to your policy, you could earn a multi-vehicle discount.

Consider telematics

Enrolling your teenage driver in a telematics program is another way to save on car insurance costs. When you enroll in these programs, you’ll either install a device in your child’s car or have them download an app onto their phone.

The program monitors their driving habits, and, if they display good driving habits, they could earn a discount when their policy renews. Even if they don’t score big savings, many programs share tips to help them improve and learn to drive more safely. But some insurers will increase their rates if they display poor driving behaviors, so do your research before choosing.

Compare quotes from multiple insurers

Finally, it’s important to shop around and compare quotes from different insurance companies. Insurance premiums can vary widely among insurers, so it’s a good idea to get a quote from at least three different companies.

When you compare quotes, don’t just look at the price alone — it’s also important to consider what you receive with each policy. For example, one insurance policy may cost more but may offer coverages that make it worth it, like gap insurance and accident forgiveness.

FAQs About Insuring a 17-Year-Old

Teen drivers pay some of the highest rates for car insurance, but you still have other ways to save. Here’s some additional information about insuring a 17-year-old driver.

Which company has the cheapest car insurance for 17-year-olds?

On average, USAA, State Farm, and GEICO are the cheapest insurers for 17-year-olds, according to Compare.com data. This is probably because each of these companies offers a variety of discounts designed to help teens save on car insurance.

What’s the cheapest car to insure for teens?

The Toyota Prius, Honda Civic, and Toyota Corolla are good options for teen drivers, according to Kelley Blue Book (KBB).

Parents should look for vehicles with advanced safety and driver-assist features like anti-lock brakes, traction control, and forward collision warning. It’s also important to consider a vehicle’s crash test ratings.

Do 17-year-olds have to have full-coverage car insurance?

No. Authorities only require licensed drivers to meet their state’s minimum liability coverage requirements.

That said, it’s a good idea to purchase full-coverage car insurance for teens because it’ll give them the most protection if they cause a crash, which they’re more likely to do than any other group, according to the Insurance Infomation Institute (Triple-I).

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Rating Methodology:

Compare.com’s mission is to help our readers make more informed decisions when it comes to their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers.

The score you see referenced in this article is based on several factors, including:

• Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
• Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
• Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
• Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
• Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best financial strength rating, BBB accreditation, and other related factors.

Sources:

1. Insurance Information Institute, “What determines the cost of my auto insurance?” Accessed April 1, 2024.
2. J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed April 1, 2024.
3. Crash Network, “2022 Insurer Report Card,” Accessed April 1, 2024.
4. Insurance Information Institute, “What determines the price of an auto insurance policy?” Accessed April 1, 2024.
5. Wisconsin Association for Justice, “Study: Wisconsin is the 4th cheapest in the country for car insurance,” Accessed April 1, 2024.
6. Kelley Blue Book, “Best Cars for Teens,” Accessed April 1, 2024.