It’s no secret that teens pay some of the highest rates for car insurance. Not only do insurance companies consider them inexperienced drivers who are prone to speed and be distracted behind the wheel, but they’re also a high-risk age group for accidents and fatalities.
A leading cause of death for teens 15 to 18 years old is traffic crashes, with 861 teen driver fatalities in 2021, according to the National Highway Traffic Safety Administration (NHTSA).
On average, teens pay $5,914 annually for car insurance — $4,006 more than the national average annual premium of $1,908, according to CarInsurance.com’s data analysis. However, there are cheaper rates for car insurance for teens than the average. The key to finding affordable car insurance is to shop around.
“Getting at least three quotes for the same auto insurance coverage before purchasing one is wise,” says Laura Adams, MBA, an award-winning author, podcaster, and founder of The Money Stack. “Also ask for quotes with different deductibles. Raising comprehensive and collision deductibles lowers your rate if you can afford to pay them.”
Learn more about average rates for car insurance for teens, including how much you could anticipate paying annually and monthly, the cheapest rates available and what different states charge for teen car insurance.
- Auto-Owners offers the cheapest rates for full coverage car insurance for teens at $3,750 annually.
- Hawaii and North Carolina are the most affordable states for teen car insurance at $1,639 and $3,909 annually, respectively.
- Louisiana and Nevada are the most expensive states for teen car insurance at $8,968 and $7,904 annually, respectively.
Our take: Car insurance shopping for teens
Average rates for car insurance for teens are pricey, but not necessarily as the national annual average of $5,914.
You must know what type of coverage you need and what you can afford. This can help you find the best option when you’re shopping. It’s also important to not just consider the cheapest option and discuss how to get the coverage you need and potential discounts to help you save.
Check out our detailed guide on how to shop for car insurance for teens
Average car insurance rate for teens
While the national average rate for car insurance for teens is $5,914, that doesn’t mean you can’t find more affordable premiums.
Finding a great price for teen car insurance is likely one of your top goals. Before you start shopping for the cheapest car insurance rates for teens, it’s a good idea to do your research on what coverage limits you may need, understand your budget and think through what it may mean in a bigger picture sense if you go for a cheaper rate over higher coverage limits.
As you prepare to rate shop for coverage, there are several questions to consider. Have you thought about what happens to your vehicle if a tree falls on it? Or if it’s stolen or broken into? Do you have medical coverage or would you need specific coverage for car-related medical treatment? Could you afford another vehicle if yours was an uncovered total loss?
To help you find rate reductions, it may help to ask insurance companies about potential car insurance discounts and what savings are possible when adding a teen to a pre-existing policy.
How much does car insurance cost for teens in each state?
Various factors contribute to car insurance rates for teens state by state. In general, crime, population, medical care, claims and litigation, car repairs, weather trends and state requirements impact average annual premiums.
The most affordable states for annual average teen car insurance rates are:
- Hawaii – $1,639
- North Carolina – $3,909
- New Hampshire – $4,374
- Maine – $4,401
- Iowa – $4,715
The most expensive states are:
- Louisiana – $8,968
- Nevada – $7,904
- Delaware – $7,896
- Florida – $7,818
- Arizona – $7,592
While Hawaii tops the list of cheap teen car insurance rates, it’s important to remember that different ZIP codes, area demographics and the vehicle you drive impact how much you pay for car insurance.
| State | Annual Full Coverage Rate |
|---|---|
| Alabama | $6,387 |
| Alaska | $5,554 |
| Arizona | $7,592 |
| Arkansas | $6,978 |
| California | $6,237 |
| Colorado | $5,977 |
| Connecticut | $7,415 |
| Delaware | $7,896 |
| Florida | $7,818 |
| Georgia | $6,770 |
| Hawaii | $1,639 |
| Idaho | $5,128 |
| Illinois | $4,999 |
| Indiana | $4,993 |
| Iowa | $4,715 |
| Kansas | $6,271 |
| Kentucky | $7,279 |
| Louisiana | $8,968 |
| Maine | $4,401 |
| Maryland | $5,740 |
| Massachusetts | $5,417 |
| Michigan | $6,127 |
| Minnesota | $5,757 |
| Mississippi | $6,549 |
| Missouri | $6,325 |
| Montana | $6,912 |
| Nebraska | $6,032 |
| Nevada | $7,904 |
| New Hampshire | $4,374 |
| New Jersey | $6,941 |
| New Mexico | $6,714 |
| New York | $5,712 |
| North Carolina | $3,909 |
| North Dakota | $5,894 |
| Ohio | $4,935 |
| Oklahoma | $7,264 |
| Oregon | $6,054 |
| Pennsylvania | $5,595 |
| Rhode Island | $7,523 |
| South Carolina | $6,428 |
| South Dakota | $6,821 |
| Tennessee | $6,231 |
| Texas | $4,889 |
| Utah | $6,890 |
| Vermont | $4,902 |
| Virginia | $4,790 |
| Washington | $5,525 |
| Washington, D.C. | $6,378 |
| West Virginia | $6,916 |
| Wisconsin | $6,165 |
| Wyoming | $5,783 |
Cheapest car insurance rates for teens
On average, rates for state minimums start at $980 for teen car insurance through USAA. It’s important to note that state minimum liability car insurance may not offer you all the protections your teen may need. This type of insurance covers the other driver’s property and bodily injuries up to a specific limit. After that point, you may need to pay out of pocket for the remaining costs and your own vehicle replacement.
Auto-Owners insurance is the most affordable for higher coverage limits – the annual average is $1,169 for 50/100/50 and $3,750 for full coverage. With higher limits, you and your property are protected should an accident occur. See a breakdown of the 2024 annual average car insurance rates, by company, for teens in the table below.
| Company | State Minimum Rate | Annual Liability (50/100/50) | Full Coverage Rate |
|---|---|---|---|
| Auto-Owners | $1,016 | $1,169 | $3,750 |
| USAA | $980 | $1,203 | $3,857 |
| Travelers | $1,440 | $1,736 | $4,552 |
| Geico | $1,124 | $1,444 | $4,672 |
| Nationwide | $1,779 | $2,025 | $4,920 |
| State Farm | $1,481 | $1,777 | $5,159 |
| Progressive | $1,873 | $2,376 | $7,123 |
| Allstate | $2,140 | $2,630 | $7,641 |
| Farmers | $2,965 | $4,014 | $9,668 |
Cheapest monthly car insurance rates for teens
When it comes down to car insurance costs, the biggest question is often, “how much is this going to cost me each month?” Teen car insurance is generally the most expensive coverage out of all the insured groups.
Typically, teens pay higher rates for car insurance through their early 20s, with small decreases in premiums until they hit 25. The most expensive coverage year is typically for 16-year-old drivers, which is why it may be worth considering waiting to start car insurance for a teen until after the age of 17.
When it comes to which company is offering the cheapest monthly car insurance for teens in 2024, Auto-Owners top the list with a full coverage premium of $312 — $181 cheaper than the national average of $493. USAA, Travelers and Geico are also comparably affordable rates for teens.
| Company | Monthly Full Coverage Rate |
|---|---|
| Auto-Owners | $312 |
| USAA | $321 |
| Travelers | $379 |
| Geico | $389 |
| Nationwide | $410 |
| State Farm | $430 |
| Progressive | $594 |
| Allstate | $637 |
| Farmers | $806 |
Cheapest car insurance for teens in each state
The cheapest full-coverage car insurance for teens across the country is in Hawaii at $1,639. This is a 113% decrease from the national average. Some contributing factors that make Hawaii so affordable for teen drivers include a decrease in teen drivers, according to a 2016 report, and the state doesn’t allow insurance agencies to set premiums based on age and gender.
North Carolina also joins the list with an average annual premium of $3,909, an increase of $2,270 over Hawaii’s teen rates. Learn more about teen rates by state in the chart below.
| State | Monthly Full Coverage Rates |
|---|---|
| Alabama | $532 |
| Alaska | $463 |
| Arizona | $633 |
| Arkansas | $582 |
| California | $520 |
| Colorado | $498 |
| Connecticut | $618 |
| Delaware | $658 |
| Florida | $651 |
| Georgia | $564 |
| Hawaii | $137 |
| Idaho | $427 |
| Illinois | $417 |
| Indiana | $416 |
| Iowa | $393 |
| Kansas | $523 |
| Kentucky | $607 |
| Louisiana | $747 |
| Maine | $367 |
| Maryland | $478 |
| Massachusetts | $451 |
| Michigan | $511 |
| Minnesota | $480 |
| Mississippi | $546 |
| Missouri | $527 |
| Montana | $576 |
| Nebraska | $503 |
| Nevada | $659 |
| New Hampshire | $364 |
| New Jersey | $578 |
| New Mexico | $559 |
| New York | $476 |
| North Carolina | $326 |
| North Dakota | $491 |
| Ohio | $411 |
| Oklahoma | $605 |
| Oregon | $505 |
| Pennsylvania | $466 |
| Rhode Island | $627 |
| South Carolina | $536 |
| South Dakota | $568 |
| Tennessee | $519 |
| Texas | $407 |
| Utah | $574 |
| Vermont | $409 |
| Virginia | $399 |
| Washington | $460 |
| Washington, D.C. | $532 |
| West Virginia | $576 |
| Wisconsin | $514 |
| Wyoming | $482 |
Laura Adams
Author, podcaster and founder of The Money StackHow do you shop for car insurance for teens?
“Getting at least three quotes for the same auto insurance coverage before purchasing one is wise. Also ask for quotes with different deductibles. Raising comprehensive and collision deductibles lowers your rate if you can afford to pay them.”
Resources & Methodology
Sources
- First Insurance Company of Hawaii. “7 factors that influence how much you pay for car insurance.” Accessed January 2024.
- Hawaii Business Magazine. “Teens say no to driver’s license.” Accessed January 2024.
- Insurance Information Institute. “What determines the price of an auto policy?” Accessed January 2024.
- National Highway Traffic Safety Administration (NHTSA). “Parents: Talk to your teen driver about safe driving.” Accessed January 2024.
Methodology
CarInsurance.com editors in 2023 collected rates from Quadrant Information Services for a 16- to 19-year-old male driving a Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible. We analyzed 53,409,632 records, 34,588 ZIP codes and 170 insurance companies nationwide.
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Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.