Teen drivers have the highest auto insurance rates of any demographic: A family adding a 16-year-old to their full-coverage policy could expect to see their premiums more than double, from an average of $2,671 a year to as much as $5,910.
The picture is even grimmer for a young person getting their own insurance: A standalone full-coverage policy averages $7,611 a year for an 18-year-old male.
We've picked the best car insurance for teen and young adult drivers, based on price, coverage, customer service and other criteria. (See our methodology for more information on how we made our selections.)
Best car insurance for teens
Best for affordability: Travelers
- Lower rates
- Discount for hybrids/EVs
- Not available in all states
- Some discounts not available in every state
- Below-average customer satisfaction scores
Who's this for? Travelers has some of the lowest sample rates for both families with teen motorists and drivers under 25 on their own policy. It also offers discounts to students who maintain a B average, who complete an approved driver's ed course and who leave their car behind when they go to college.
Standout benefits: Travelers offers both accident and minor violation forgiveness, as well as a decreasing deductible that rewards safe driving.
Good student discount: Not disclosed
Best for accident forgiveness: Progressive
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Who's this for? Progressive has three tiers of accident forgiveness, a godsend for parents of new drivers. From your first policy term, your rate won't go up after a claim of less than or equal to $500. After five years accident- and violation-free, even larger claims won't increase your premium. You can also purchase supplemental coverage and have one additional accident forgiven each policy term.
Standout benefits: If you have collision coverage and your pet is injured in an accident with you, their veterinary bills can be covered.
Good student discount: Starts at 5%
Best for young drivers on their own insurance: Auto-Owners
- Accident forgiveness is an add-on
- High customer satisfaction scores from J.D. Power
- Covers modified cars and vehicles converted for the disabled
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed with an agent
Who's this for? Auto-Owners has some of the lowest premiums we found for drivers 18 to 25 on their own insurance.
Standout benefits: Auto-Owners offers optional accident forgiveness for drivers with no at-fault claims or major violations in the last 36 months. Your collision deductible is waived if you're involved in an accident with another vehicle insured by Auto-Owners.
Good student discount: Up to 20%
Best for customer satisfaction: State Farm
State Farm Auto Insurance
Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
Discounts
More than a dozen discounts, including for safe driving, bundling and good students. Drive Safe & Save program offers up to 30% off for lower mileage and safe driving habits.
Availability
State Farm liability car insurance is available nationwide except for Massachusetts and Rhode Island.
Terms apply.
Read our State Farm auto insurance review.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires 9 years accident-free
- Have to work with an agent to buy a policy..
Who's this for? State Farm pairs lower-than-average rates for teens and young drivers with consistently high scores on J.D. Power customer satisfaction surveys.
Standout benefits: Bringing your car to a State Farm-approved garage will ensure a guaranteed completion date, eliminate the need to file a claim and provide a limited lifetime warranty on repairs. Cars financed by State Farm Bank are eligible for the Payoff Protector® plan, the company's version of gap insurance.
Good student discount: Up to 25%
Best for families with multiple cars: Geico
- 16 discounts are available to lower premiums
- Easily purchase and manage policy online
- Policy add-ons can include roadside assistance and mechanical breakdown insurance
- No gap insurance
- Few branches for in-person services
- Ranks below average for customer service and claims on J.D. Power surveys
Who's this for? Geico offers a generous 25% discount for insuring more than one vehicle, which can be helpful if your teen has her own ride. If the car is less than three model years old, you may also be eligible for a 15% new-car discount.
Standout benefits: Drivers who let Geico track their driving habits can earn up to 25% with the DriveEasy app.
Good student discount: Up to 15%
Best for military families: USAA
- Cheapest insurer for liability policies
- Stellar customer satisfaction scores
- Available in all 50 states
- Limited to military families and veterans
- No physical branches
- Customer service not available 24/7
- Safe-driver discount not available in every state
Who's this for? USAA is only available to current and retired U.S. service members and their families, but it has some of the lowest rates for parents with teen drivers. It's also a good choice for high-risk drivers with tickets or at-fault accidents on their record.
Standout benefits: USAA is one of the few companies offering pay-per-mile insurance, which it claims can save infrequent drivers more than 50% over a traditional policy.
Good student discount: Up to 10%
How to save on car insurance with teen drivers
While rates for teens and young adults will always be higher, there are ways to keep costs down.
1. Keep them on your policy
You have to be 18 to buy your own car insurance, but even a 20-year-old living at home will cost hundreds less to be insured under the parents' policy than to pay for their own.
If you want to teach your kids responsibility, have them contribute toward the premium you pay.
2. Look for student discounts
Insurance companies often offer discounts teens can qualify for, including a rate reduction for earning a B average or for completing an approved defensive driver course. Discounts may have different age and eligibility requirements depending on the insurer and the state you live in.
3. Keep their car at home
Some companies offer a discount to college students who attend school at least 100 miles from home and leave their vehicles behind. Only driving when you're home visiting also lowers your chances of getting into an accident or receiving a speeding ticket, which will keep premiums down.
4. See if your insurer has a safe-driving program
Many providers offer discounts for good driving via mobile apps or plug-in devices that track braking, acceleration and other driving behavior in real time. They can also detect when you were driving and if you were fiddling with your phone. (Nationwide's SmartRide program can save you up to 40%, for example.) These usage-based insurance programs can also help ensure your young driver is exhibiting responsible driving habits.
How to add a teen driver to your car insurance policy
Typically, you can add a teen (or any new driver) to your policy by calling your insurance agent or going to the company's website, app, phone line or a physical branch.
Since prices vary so widely, though, it might be worth comparing the rate from your current carrier with those of two or three competitors. Make sure you request the same coverage limits and deductibles.
To get a quote, you'll be asked for information about all drivers on the policy and details about the car(s) they'll be using. If you're including a teen driver, you'll need to provide their date of birth, grade point average and the date they earned their learner's permit or license.
Car insurance FAQs
Does age affect how much you pay for car insurance?
Car insurance companies can factor age into premium costs in every state except Hawaii and Massachusetts. (Insurers in Massachusetts are allowed to consider how many years someone has been driving.)
Why is car insurance so high for young drivers?
Because teens have had fewer years behind the wheel, insurers believe they pose a greater risk: According to the CDC, drivers 16 to 19 are more likely to cause an accident than any other age demographic.
At what age does car insurance get cheaper?
While rates vary significantly depending on various factors, they tend to decrease starting at age 25. Adult drivers will continue to pay less until they reach their 60s or 70s, at which point they are considered risky drivers again and their premiums increase.
How long can a young driver remain on their parents' car insurance?
A driver of any age can remain on a parent's policy as long as they live at the same address, whether or not they drive their own car.
Should my 18-year-old be on my policy or have their own car insurance?
It's a personal decision, but keeping a teen on your policy is usually much less expensive. An 18-year-old with their own full-coverage policy can expect to pay anywhere from 30% to 50% more per month for premiums than if they were added to their parent's full-coverage policy, according to Experian.
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Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points across over a dozen insurers. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
Our methodology
CNBC Select analyzed more than two dozen top insurance companies to identify the best for teens and young drivers, based on affordability, availability, coverage options, discounts and online experience.
We also incorporated customer satisfaction ratings from the J.D. Power, the Better Business Bureau and the National Association of Insurance Commissioners' complaint index.
Sample premiums were determined by adding a 16-year-old to their 40-year-old parents' full coverage policy for a 2023 Toyota Camry driven 12,000 miles a year with the following coverage:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
Average rates were taken from Bankrate's analysis of January 2026 data from Quadrant Information Services.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, the best auto insurance companies for young drivers are:
- For affordability: Travelers
- For accident forgiveness: Progressive
- For young drivers on their own insurance: Auto-Owners
- For customer satisfaction: State Farm
- For families with multiple cars: Geico
- For military families and veterans: USAA
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