Car Insurance for 17-Year-Olds | Bankrate (2024)

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Updated Sep 04, 2024

How much is car insurance for a 17-year-old?

The average cost of a car insurance policy for two adults with a 17-year-old driver and one vehicle is $4,692 per year for a full coverage policy. Without the teen driver, the same policy could be purchased for an average price of $2,204 a year — 53 percent less than the family with a teen.

Car insurance companies generally consider teens a higher risk to insure because they have less experience behind the wheel and may be more likely to engage in risky behaviors such as texting while driving. Data from the Centers for Disease Control and Prevention shows that teen drivers between the ages of 16 and 19 are involved in more accidents than any other age group. This can translate into an increased number of claims against the policy. To mitigate this increased risk, your insurer is likely to charge more for your teen driver.

Families in Massachusetts and Hawaii may see some relief, as insurers in those states aren't allowed to consider age as a car insurance rating factor, although carriers in Massachusetts can consider the number of years you've been licensed for.

Average car insurance costs for 17-year-olds

Understanding the average cost to add a 17-year-old to your policy might help you better prepare your finances for when your teen starts driving. The table below illustrates the average annual full coverage premium for 17-year-olds compared to the average premium for their parents before adding a teen driver:

These rates are for good drivers with a clean motor vehicle record (MVR), meaning no at-fault accidents or moving violations. Drivers with incidents like these on their MVR will usually have a higher car insurance rate. Additionally, other individual rating factors impact your car insurance premium, like the make and model of your vehicle, credit history, number of miles driven annually and auto claim history.

Average car insurance cost for 17-year-olds by state

As we noted above, your location is another factor, along with age, that impacts your insurance rate. Rates differ from state to state and even from ZIP code to ZIP code. Insurers look at accident rates for each region and are likely to increase their premiums for those who live in areas that have a higher incidence of accidents.

The table below shows the annual full and minimum coverage premium rate for a family with a 17-year-old driver in each state. Note that the average rates for Hawaii and Massachusetts are considerably lower. That's because these two states do not allow insurers to consider age when determining premiums. In addition, Michigan prohibits the use of ZIP codes, while in California, the use of ZIP codes to determine rates is limited.

Best car insurance companies for 17-year-olds

Choosing a company with coverage and discount options tailored to the needs of 17-year-old drivers can be important. We chose these companies based on a review of their average rates, coverage offerings, discounts and third-party scores.

Based on our research, the following companies might be worth your consideration as you search for the best 17-year-old car insurance policy:

Cheapest car insurance for 17-year-olds

No one wants to pay more for their car insurance coverage than is necessary, and that includes the parents of teen drivers. Finding affordable insurance may be a high priority for many families. Using data from Quadrant Information Services, Bankrate's insurance editorial team reviewed average premium rates from a broad range of the insurance companies that are writing the most policies in the U.S. to find the best rates for teen drivers.

While price was our primary metric here, we also took a careful look at other aspects worth considering, such as the quality of each insurer's customer service, available discounts and range of coverage options. The insurers in the table below are rated highly across the board and may be good choices if you are looking for robust coverage for your family that includes a teen.

How to save on car insurance when insuring a 17-year-old

Although the price of insuring a teenage driver can be unnerving, there are numerous ways to save money. Most insurance companies offer car insurance discounts for students to help offset the premium increase you will likely experience after adding your 17-year-old driver.

Shop around and compare quotes

Insurance pricing is risk-based, but every insurance company follows a different set of calculations to estimate a given driver’s potential risk. In order to insure a high-risk driver like a 17-year-old, comparison shopping can help to identify the carriers whose risk calculations and rates are the best fit. Comparing rates from at least three to five different companies may help you find cheaper insurance without reducing coverage.

Talk to your teen about safe driving habits

The high cost of car insurance for teens is partly a result of the high incidence of unsafe driving habits — like distracted driving or texting and driving — among young drivers. Helping your teen avoid or reduce these behaviors might not directly bring your insurance costs down, but it’s an essential way to reduce your risk of a premium increase as a result of violations or accidents.

Reduce mileage on your vehicles

Reduced mileage means a lower chance of accidents, which some insurers may reward with discounts. If you’re able to significantly lower your annual mileage — such as if you work from home or can take public transportation — some insurance companies may offer unique low-mileage insurance programs with low rates.

Look for discounts

Many insurers offer discounts to young drivers that may help lower their high average rates. Often, these are focused on students. Some insurers, for example, offer a discount to students who carry a certain grade point average — usually a B or above. This discount is available to both high school and college students and is available at companies including State Farm, Nationwide and Progressive. The amount varies from company to company but is often a 10 percent discount. Another common student discount is one that reduces your premium rate if your teen is attending college more than 100 miles from home and has left their car at home. Ask your insurance agent about other discounts you and your teen may be eligible for, such as a discount for completing an accredited driver education course.

Methodology

Bankrate utilizes Quadrant Information Services to analyze September 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $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

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 17-40 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Teens: Rates were determined by adding a 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Cost & ratings50%

• Coverage & savings30%

• Support20%

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.