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5 Best Car Insurance For Teens And Young Drivers

Jodie Price

By Jodie Price | Updated September 15, 2025

Finding the best car insurance for teens and young drivers doesn’t have to be overwhelming. While rates are often higher for new drivers, companies in this list offer competitive pricing, strong coverage, and perks such as accident forgiveness and good student discounts. By comparing these top providers, you can secure affordable protection that meets your needs and gives you peace of mind.

  • Erie

    Known for its affordability and reliability, “Best Overall for Teens and Young Adults,” Erie offers strong value for families with young drivers. Parents pay an average of $3,520 annually when adding a 16-year-old and $3,091 for an 18-year-old. With a low complaint level, Erie stands out for both cost savings and customer satisfaction.

    Our Expert Take

    Erie stands out as the top choice for its low-cost rates for teens and young adults, whether they’re added to a parent’s policy or purchasing their own. The company also earns strong marks from collision experts for its claims handling and maintains a low complaint level.

    According to analysis, Erie offers the most affordable rates for parents adding a 16- to 19-year-old to their policy and has the lowest rates for 17-year-olds purchasing their own coverage, regardless of driving history. It also delivers competitive rates for drivers ages 21 and 25 buying their own policies.

    In a survey of 3,000 car insurance policyholders, Erie customers were highly likely to recommend the company to friends or family and were extremely satisfied with their purchase. Another survey of policyholders who had filed claims found that Erie customers were extremely satisfied with the overall claims process.

    Pros & Cons

    Pros:

    • Low cost for adding teen drivers compared to many competitors
    • Strong customer satisfaction in claims handling and communication
    • Multiple discounts for students, safe driving, and bundling
    • Accident forgiveness available in some policies

    Cons:

    • Limited availability in certain states
    • Fewer digital features than some larger insurers
    • Must work with an agent to get a quote in most areas
    • No rideshare coverage in some markets

    States Available In

    Erie operates in a smaller number of states compared to nationwide insurers. You can find coverage in states such as Pennsylvania, Ohio, Maryland, Virginia, West Virginia, Illinois, Indiana, Kentucky, Tennessee, Wisconsin, North Carolina, and a few others.

    If you live outside Erie’s service area, you will need to choose another insurer. This limited footprint can be a drawback if you plan to move to a state where Erie does not operate.

    Because Erie sells policies through local agents, availability can vary by city or county even within covered states. You should confirm with an agent to see if Erie offers policies in your exact location.

  • USAA

    Tailored for military members and their families, “Best for Young Drivers in a Military Family,” USAA offers competitive rates and strong service. Parents pay an average of $4,002 per year for a 16-year-old and $2,729 for an 18-year-old. With a low complaint level, USAA delivers both affordability and dependable coverage.

    Our Expert Take

    USAA is well-regarded for offering some of the lowest rates for young drivers purchasing their own policies, as well as competitive rates for parents adding a teen or young adult to an existing plan. Rates remain reasonable for young drivers, even for those with an accident, speeding ticket, or lower credit scores.

    The company is an excellent choice for young drivers in military families, as eligibility is limited to active military members, veterans, and their immediate family members. USAA does not provide policies to the general public, making it a more exclusive option for those who qualify.

    In a survey of 3,000 car insurance policyholders, USAA customers were extremely likely to recommend the company to friends or family and expressed high satisfaction with their purchase. Another survey of 3,000 policyholders who had filed a claim found that USAA customers were generally satisfied with the overall claims process.

    Pros & Cons

    Pros:

    • Often the cheapest option for teen drivers with military eligibility
    • High marks for claims satisfaction and customer service
    • Multiple discounts for students, safe driving, and bundling policies
    • Strong digital tools for account management and claims

    Cons:

    • Not available to the general public; military affiliation required
    • Limited in-person office availability compared to some competitors
    • May not always be the cheapest in every state or situation
    • Fewer optional coverages than some large insurers

    States Available In

    You can get USAA auto insurance in all 50 states and Washington, D.C., as long as you meet eligibility requirements. This nationwide availability makes it easier if you or your family move frequently due to military assignments.

    Coverage terms and rates can vary by state, so your premium in one location may differ significantly from another. USAA adjusts pricing based on local regulations, accident rates, and repair costs.

    Even with these differences, the company’s broad geographic reach ensures you can maintain continuous coverage without switching insurers when relocating.

  • Nationwide

    Known for its affordability and reliability, “Best for Adding a Teen to Parents’ Policy,” Nationwide offers competitive rates and low complaints. Parents pay an average of $2,993 annually for a 16-year-old and $2,785 for an 18-year-old. With a low complaint level, it’s a strong option for families seeking cost-effective teen driver coverage.

    Our Expert Take

    Nationwide earns praise for offering the best overall average rate when adding a teen driver to a parent’s policy, which costs more than $1,600 below the national average and nearly $4,000 less than the priciest competitor. Its rates for teens and young adults buying their own coverage are also competitive, staying well under national averages.

    The company provides valuable add-on options, such as accident forgiveness, which can be particularly beneficial for new drivers. However, its digital experience could be improved, as some customers may encounter difficulties getting a quote or purchasing a policy online.

    In a survey of 3,000 policyholders, Nationwide customers were generally likely to recommend the company and reported being very satisfied with their purchase. Among those who had filed an auto insurance claim, satisfaction with the claims process was also high.

    Pros & Cons

    Pros

    • Competitive rates for teens added to a parent’s policy
    • Multiple discounts, including good student and multi-policy
    • Accident forgiveness available in many states
    • Vanishing deductible program rewards safe driving
    • 24/7 claims reporting and online account management

    Cons

    • Standalone teen driver policies can be more expensive
    • Not available in all states
    • Some reports of slower claims resolution in busy seasons
    • Limited local agent availability in certain rural areas

    States Available In

    Nationwide offers auto insurance in most U.S. States, though availability can vary, so it’s important to confirm coverage in your state before applying. The company is present in major markets like California, Texas, Florida, and New York, as well as many Midwestern and Southern states. It also operates in parts of the Northeast and Pacific Northwest.

    Certain states have unique regulations that can impact available discounts or coverage features. For instance, accident forgiveness may not be an option in every location, making it essential to review your state’s specific policy terms before making a decision.

    If you reside in a state where Nationwide doesn’t provide auto coverage, the company may still offer other insurance products. However, for auto insurance, especially for teen drivers, you would need to explore alternative providers.

  • Travelers

    With its affordability and strong customer satisfaction, “Great Rates for Young Adults Buying Their Own Policy,” Travelers is a solid choice for families. The average cost is $4,885 per year for parents with a 16-year-old and $3,840 for an 18-year-old. Its very low complaint level adds to its appeal for reliable coverage.

    Our Expert Take

    Travelers offers competitive rates for young adults purchasing their own policy, ranking as the second most affordable option for drivers aged 20 to 25. While USAA is cheaper, its coverage is limited to the military community, giving Travelers broader appeal for the general public.

    The company provides solid rates for both drivers with clean records and those with past issues like speeding tickets, accidents, or DUIs. While costs for teens purchasing their own policy or being added to a parent’s plan may be higher than some competitors, they are still below the national average.

    In a survey of 3,000 car insurance policyholders, Travelers customers were generally satisfied with pricing, customer service, and claims handling. Many reported they would recommend Travelers to a friend or family member, and those who filed a claim were very satisfied with the process.

    Pros & Cons

    Pros:

    • Multiple discounts for students and safe driving habits
    • Strong reputation for claims service and reliability
    • Flexible coverage options, including accident forgiveness
    • Bundling options with home or renters insurance

    Cons:

    • Rates may be higher than some regional carriers
    • Mobile app features are less advanced than some competitors
    • IntelliDrive monitoring may not appeal to all drivers
    • Not available in every state

    States Available In

    Travelers operates in most U.S. states, giving you wide access to its policies and discounts. It is available in nearly every region, including the Northeast, Midwest, South, and much of the West.

    Certain states may offer varying discount structures or different program options. For example, telematics-based savings may not be offered in all locations.

    Before you apply, check your state’s specific coverage options and eligibility requirements. This ensures you understand the exact benefits and limitations where you live.

  • Geico

    With competitive pricing and solid service, “Great for Teens Buying Their Own Policies,” Geico offers an average cost of $4,739 per year for parents with a 16-year-old and $4,041 for an 18-year-old. Its low complaint level further enhances its reliability for families seeking dependable teen driver coverage.

    Our Expert Take

    Geico is known for offering consistently affordable rates to teens purchasing their own policies. Its rates are over $1,700 lower than the national average for drivers ages 16 to 19 and $6,000 cheaper than the most expensive company in the analysis. Geico also offers competitive pricing for young adults ages 20 to 25 buying their own auto policy.

    While its pricing is attractive, Geico has a more limited range of coverage options compared to some competitors. It offers accident forgiveness, but options are limited. Shoppers should verify that the plans meet their specific needs.

    In a survey of 3,000 car insurance policyholders, Geico customers expressed high satisfaction with their purchases and customer service. Many reported that they would recommend Geico to friends or family, and those who filed claims were very satisfied with the claims process.

    Pros & Cons

    Pros:

    • Below-average cost for adding a teen driver compared to national averages
    • Strong digital tools for managing policies and filing claims
    • DriveEasy usage-based program rewards safe driving
    • Wide range of discounts, including good student and multi-vehicle

    Cons:

    • Not the lowest rates available for young drivers
    • Premiums can rise significantly after accidents or violations
    • Limited local agent presence in some areas
    • DriveEasy savings vary and may not be substantial for all drivers

    States Available In

    You can buy Geico auto insurance in all 50 states and Washington, D.C. This nationwide availability means you can keep the same insurer if you or your teen moves to another state.

    Geico’s coverage options and discounts are generally consistent across states, though some features, like DriveEasy, may not be offered everywhere. State-specific rules, minimum coverage limits, and pricing factors will still affect your final rate.

    Because Geico operates in every state, you can compare quotes easily without worrying about availability. This flexibility is helpful if your household has drivers in different states or if your teen will go to college far from home.

Frequently Asked Questions

What factors should be considered when choosing car insurance for drivers under 25?

You should look at coverage limits, deductibles, and whether the policy includes features like accident forgiveness. Check the insurer’s reputation for claims service and customer support. Also, compare available discounts, such as good student or safe driving discounts, which can make a noticeable difference in cost.

What are the average monthly insurance costs for teenage drivers?

Teen drivers often pay $250 to $500 per month for full coverage, depending on the state and insurer. Costs are usually lower if you stay on a parent’s policy instead of getting your own. Adding safety features to your car may also reduce monthly premiums.

How does the cost of car insurance change for new drivers under 21?

Drivers under 21 have some of the highest insurance rates, but premiums decrease as they gain experience and maintain a clean record. The drop in cost becomes more noticeable after age 21, and rates often improve further by age 25.

What steps can a 17-year-old take to reduce their car insurance premiums?

Maintain good grades to qualify for a good student discount. Complete a driver’s education course and avoid traffic violations to build a safe driving history. Consider choosing a car with strong safety ratings and anti-theft features to qualify for an anti-theft discount.

Are there specific discounts that young drivers should look for when selecting car insurance?

Yes. Look for good student discounts, safe driving discounts, and anti-theft discounts. Some companies also offer accident forgiveness for first-time incidents, which can prevent a large rate increase after a minor accident. Bundling auto insurance with other policies, like renters insurance, may also lower your premium.