How Much Is Car Insurance For Teens – The average monthly cost of auto insurance for 17-year-olds is $489, totaling $5,864 per year. Car insurance costs less for a 17-year-old than for a 16-year-old new to the road, but it is still more expensive than what most drivers pay for insurance.
On average, COUNTRY Financial has the cheapest auto insurance rates for 17-year-olds, while State Farm has the cheapest national provider for 17-year-old drivers. Both companies offer car insurance for 17-year-olds that costs thousands of dollars less per year than average.
How Much Is Car Insurance For Teens
The average cost of car insurance for a 17-year-old is $489 per month. We found that due to inexperience compared to older adults, 17-year-olds pay $4,212 more per year than older drivers (30, 35, and 45).
Teen Drivers Special Considerations [infographic]
17 year olds can still get affordable car insurance. We found that COUNTRY Financial has the lowest average auto insurance rates for 17-year-old drivers. Because COUNTRY doesn’t operate everywhere, State Farm offers the cheapest rates for 17-year-olds among the major auto insurance companies.
The cost difference between the company with the cheapest and most expensive auto insurance rates for 17-year-olds is $921 per month. This means that by not comparing the cost of coverage before purchasing it, you risk paying thousands of dollars more for coverage each year than you would otherwise.
While car insurance is usually very expensive for 17-year-olds, it is actually more expensive for 16-year-old drivers because they are new to the road. We found that insurance costs 13% less for 17-year-olds than for drivers just a year younger.
As drivers age and gain driving experience, car insurance costs decrease. That’s why car insurance for 18-year-olds costs on average 16% less than for 17-year-olds. When a driver turns 25, average costs drop 67% compared to average costs for 17-year-olds.
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In fact, age 25 is often considered the tipping point when young drivers move out of the highest risk age category, and rates typically drop around this time.
Insurance costs for 17-year-olds (and other young drivers) are higher due to their lack of driving experience. Compared to someone who has had a driver’s license for almost ten years or more, a 17-year-old has only one year or less of driving experience.
This is why teenagers are more likely to get into accidents and file costly claims than older drivers. Luckily, as you gain driving experience, your rates will decrease. Each year before you turn 25, the cost of your insurance coverage can drop significantly (as long as you keep your driving record clean).
It is much cheaper for a 17 year old driver to join his family’s policy than to get his own insurance. We found that adding a young driver to an existing auto insurance policy costs $187 less per month than if they had their own coverage.
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The average cost of auto insurance for a 17-year-old added to their parent or guardian’s policy is $302 per month or $3,625 per year.
Car insurance for 17-year-old male drivers is more expensive than for female drivers. On average, 17-year-old boys pay $64 more per month (or $765 per year) than girls the same age.
Car insurance companies use a lot of data to calculate your chances of being in a car accident, and car insurance for teens is more expensive than for girls due to more claims involving male drivers. But some states do not allow gender differences in insurance costs, including:
While car insurance costs 17-year-old male drivers $64 more per month than female drivers, the difference varies by company. The cheapest company for male drivers compared to female drivers is a COUNTRY where the difference between the pay of male and female drivers is only $19 per month.
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On average, insurance costs $489 per month for 17-year-olds, but rates depend on where you live as well as other factors. The average cost of auto insurance in the cheapest state is $9,925 cheaper per year than in the most expensive state.
Hawaii is the cheapest state for car insurance for 17-year-olds. On average, young drivers pay $117 a month for insurance in Hawaii, where setting rates based on age is illegal. In Louisiana, where rates are already among the highest in the U.S., auto insurance costs for 17-year-olds are $944 per month, or more than $11,000 per year.
Rating How we evaluate: “Ratings are determined by our editorial team. Our methodology considers many factors, including prices, financial ratings, customer service and other specific product characteristics.
THE NATION has the lowest rates for 17-year-old drivers of any company, although they are only available in 19 states.
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COUNTRY Financial offers the cheapest average rates for drivers 17 and older. NATIONALLY, car insurance costs $253 a month less than the average, or $3,036 a year. However, because COUNTRY only offers coverage in 19 states, not everyone will be able to take advantage of its low rates.
Those living in states where COUNTRY operates can find coverage options as well as affordable prices for 17-year-olds. Drivers can add the following additional forms of insurance to their policy:
COUNTRY also offers discounts to young drivers, such as savings on passing the Short Driver Safety Test, maintaining a high GPA, and taking a defensive driving course.
Although COUNTRY has the cheapest car insurance for 17-year-olds, it is the most affordable company in just three states: Alabama, Nevada and Oregon. State Farm actually has the cheapest car insurance for 17-year-olds in 10 states, more than any provider.
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USAA is also the cheapest car insurance for 17-year-olds in several states. But this is only available to military personnel and their families, so for many drivers it is not an option.
Although the cost of car insurance for 17-year-olds is higher than average, there are still ways for young drivers to save on car insurance. If your rates are too high while you are shopping for coverage, or if you are paying too much for your current policy, you should:
The best way to ensure you’re getting the best rate is to compare quotes from top insurance companies in your area and shop again when your policy nears its end. This way, you can be sure to get the lowest price based on your driving experience, age, and location.
COUNTRY Financial offers the cheapest car insurance for 17-year-olds, but it only offers coverage in 19 states. State Farm is the cheapest company to offer nationwide coverage.
The Best Car And Insurance For Your Teen Driver
Car insurance costs for 17-year-old girls are cheaper than for boys of the same age. Female drivers pay $64 less each month than their male counterparts, although this can vary by company.
For teen drivers with a clean driving record, their rates will decline each year until they are 25, when they grow out of the highest risk group. And if you continue to drive safely, you’ll qualify for no-claims and no-accident discounts that can help you save even more money.
Found auto insurance costs for 17-year-old drivers using rates provided by Quadrant Information Services for every zip code in the 50 states plus Washington, D.C. for a 2017 Toyota Camry LE with 10,000 miles per year. These rates represent average costs for youth aged 16 and 18 and are based on full coverage with the following coverage limits:
To determine the cost of adding a 17-year-old driver to an existing policy, we calculated the average cost of adding a 16-year-old driver to a family policy and then applied the percentage difference between 16- and 17-year-old drivers. old. -Old drivers in this picture.
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Rachel Brennan is the magazine’s senior editor and licensed auto insurance expert. His work has also appeared in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders and AutoInsurance.com.
Andrew Hurst is a senior editor and licensed auto insurance expert at . His work has also appeared in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin and Property Casualty 360.
Maria Philindras is a financial advisor, a licensed life and health insurance agent in California, and a member of the Dow Jones Financial Review Board. Affiliate Content: This content was created by a Dow Jones Business Associate, researched and written independently. Links in this article may earn us a commission. To learn more
The cheapest car insurance for 17-year-olds can be found at Erie Insurance for $261 per month or $3,137 per year for a full coverage auto insurance policy.
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Author: Daniel Robinson, Contributor: Daniel Robinson Writer Daniel is a writer on the Guide Team and writes for numerous automotive news sites and marketing companies in the US, UK and Australia, specializing in the topics of car finance and care. Daniel is the team’s expert guide on auto insurance, loans, warranty options, auto repair shops and more.
Editor: Rashawn Mitchner, Editor: Rashawn Mitchner Editor-in-Chief Rashawn Mitchner is a guide team editor with over 10 years of personal experience.
