Despite the high cost for teen drivers, shopping can make a big difference. To help parents find the best cheap car insurance for teens, we evaluated the major insurance companies based on price, claim level, and collision repair. For those who have been in the company for at least three years (but in some cases it is lifted), the company will forgive the first guilty accident. Erie Insurance offers a price freeze that would freeze your rates year after year, unless you change the policies by adding another car or driver. Geico offers competitive car insurance rates for young drivers with a few years of experience. The company also offers a long list of discounts, including student discounts, that can help you lower your premium. When it comes to auto insurance rates for young drivers, gender plays a role. Our analysis of the rates of the top five insurers shows that, on average, young male drivers have higher auto insurance rates than young female drivers of all ages. In a separate rate analysis for 2020, NerdWallet looked at the 5 cheapest auto insurance policies for 25-year-old drivers with different credit histories and histories in each state.
Nevertheless, it is not impossible to find cheap car insurance for young drivers. The best way to find lower prices is to look around and compare auto insurance quotes with at least three auto insurers. Use the table below to see the cheapest car insurance for young drivers for a comprehensive coverage policy in your state. This table excludes USAA, which often has the cheapest fares on average, but is only available to military personnel and their families. Hawaii is the cheapest state for the minimum required auto insurance with an average annual rate of $362. North Carolina and Iowa have the cheapest annual rates on average. See below how your condition fares for full and minimum coverage rates for 20-year-old drivers. Location can make a big difference when it comes to your auto insurance rates, especially because each state has different regulations and requirements. Progressive`s robust mobile app offers options to pay your bill, view your policy information, request changes, request roadside assistance, file and track a claim, and create a new quote.
The company`s website is also robust, with an online portal for customers and plenty of information about Progressive`s products. Teen auto insurance rates are notoriously high because of the considerable risk new drivers pose to insurance companies. We analyzed the rates of 78 auto insurance companies nationally and found that the average increase for adding a teen driver to a parental policy is $2,121, which typically doubles the premium paid. Multi-policy discount if you have tenant or homeowner insurance. For those who have had a policy with the company for at least a year, there`s a new teen rewards discount that can save up to 27% when a teen is added to a policy. Prices for young drivers may be higher than in most other age groups, but there is always room to find ways to save. Follow these tips to reduce your rates: Young drivers or those between the ages of 20 and 25 are less experienced and are considered a risk by insurers. In fact, drivers in their early twenties are more likely to have a crash than older adults, according to the National Highway Traffic Safety Administration. Location is another critical factor in determining auto insurance premiums. Each state has different insurance laws, including different minimum coverage requirements, which can affect the rates set by each auto insurance company. Also, the risk of an accident can vary depending on the location, including your state, city, or even your zip code. The insurer also has Steer Clear and Drive Safe and Save programs that fall into the latter discount category, and the latter can save you up to 30% on your auto insurance costs.
Both programs can be completed via an app, Drive Safe and Save can be completed via OnStar. These factors contribute to making it the cheapest option for those with student drivers. The good news for men is that this difference in rate decreases with age. As you can see below, auto insurance rates for 20-year-old men are, on average, $255 more per year than a female driver. However, prices for 25-year-old men are, on average, only $40 more per year than their female counterparts. Statistically, younger drivers are more likely to have car accidents and generally more serious crashes.