The Best Auto Insurance For Teen Drivers

Allstate is hard to beat when it comes to offering the best coverage, resources, discounts, and rates for teen drivers. While the average annual rate for its teen driver auto policy isn’t the cheapest–at $2,411.74* it’s on par with other popular companies. Here are the reasons we ranked it number one in our guide.

Auto Discounts Just For Teens

• teenSMART Discount offers up to 10% off if your kid completes and passes the safe driving education program.
• Distant Student Discount offer up to 35% off for teens who are at least 100 miles from home while they’re at school.
• Good Student Discount is something most carriers offer, but Allstate offers one of the highest discount rates for students 25 and younger who have good grades: up to 20%off.

Teen Driver Resources

• The Lines, Allstate’s online drama for teens, focuses on their experiences behind the wheel.

Teen-Friendly Mobile Apps

• Star Driver is an app that teens and parents can both use during the learning process to make it easier and more productive.  Focusing on platforms that teens are comfortable using allows Allstate to reach this demographic better than through other media outlets.

Bonus Features

• Accident Forgiveness is a beneficial policy perk since your rates won’t change after your first accident. And as we know statistically, teens get into more accidents than any other age group, so this could be beneficial coverage to have.
• Allstate Rewards is a unique program that gives you gift cards, merchandise, and more in return for your safe driving record. The only catch is you have to install their surveillance device, Drivewise^®, but it might be a good idea to keep tabs on your teen that way too.
• Safe Driving Bonus^® Checks are a reward for safe driving. Twice a year, you’ll get a check for responsible driving and $100 off your deductible every year you drive claims-free ($500 maximum).
• Resources for teen driving are available which cover topics about teen driving that you can pass along to your kids.

USAA insurance is just for military members and their immediate families, but it does have great rates and features for teen drivers. While not the cheapest, its annual average premium of $2,523.98* is competitive with other popular choices. Here is what we love most:

Auto Discounts for Teens

• Driver Training discounts are available if your 21 or younger kid completes a course.
• Good Student Discount
• Family discounts reward you for your customer loyalty. Get up to 10%, off your premium if you and your teen have an auto policy with USAA.

Teen Driver Resource:

• The Teen Driver Program: USAA has an app, Automatic License+ which will coach your teens when they start learning to drive. A driving education program–your teen will learn safe driving habits in their first 100 hours behind the wheel. Feel safe handing over the keys when you have this app installed on your teen driver’s phone.

Bonus Features

• Roadside Assistance can be purchased for as little as $2 a month to cover mishaps your teen may have—like running out of gas or getting locked out of the car.
• Accident Forgiveness. This doesn’t come standard, but you can add this on to protect you and your teen from rate spikes after an accident.

With a number of discounts and programs designed to help teen drivers, it’s a company worth considering if you’ll be adding a young driver to your policy in the near future. At an average annual rate of $2,727.82* it falls in the middle for cost compared to the other companies on this guide. Here is what makes State Farm a top contender:

Auto Discounts For Teens

• Steer Clear Safe Driver Education can give your teen up to 15% off his/her auto insurance policy if they complete the course.
• Good Student Discount. If your teen maintains good grades, he/she can get up to 25% off their car insurance. That’s one of the highest discounts across all carriers in this category.
• Away At School Student Discount is available for students who are far away from home while at school.
• Driver Training Discount. Save if your kid who is 21 or younger completes a drivers education program.
• Accident-Free Discount. You’ll have to wait for this discount, but you can save if your teen drives accident free for three years.
• Drive Safe & Save is a monitoring device you can install in your car and receive discounts for if it reports safe driving. It isn’t designed for any specific age group, but you can get an initial 5% discount for signing up and up to 50% off for safe driving. Plus, it’ll help you monitor your teen’s driving.

Teen Driver Resources and Mobile Capabilities

Steer Clear^® Safe Driver education program teaches your teen how to be a better drive on the road through videos and a handy app. It’s mobile app that supports the program includes driving tips and behaviors, helpful videos, and a find an agent tool.

Bonus Feature

The State Farm Resource Center. Tap into the knowledge of the company with its resource center which has tons of articles about driving and insurance topics.

Farmers has a lot of customizable options that allow you to save on your teen driver’s auto insurance coverage and help them become the best driver they can be. With an average annual cost of $2,535.95*, Farmers is on par with the other companies listed here.

Auto Discounts For Teens*

• Good Student Discount
• Distant Student Discount
• Teen Driver Discounts are available for drivers 19 and younger.
• Youthful Driver Discount You may get a cheaper rate if you have drivers under 25 years old on your policy.
  

*These discounts are based on Alabama auto discounts and may vary by state.

Teen Driver Resources and Bonus Features

• E.S. Program (You’re Essential To Safety^®) is available to parents and their teens to educate both about safe driving practices.
• Farmers Inner Circle is a resource center that provides a lot of information about driving topics.
• No fault, no foul.  If you aren’t at-fault in an accident, your rates won’t go up.

• Accident forgiveness is an option you have to add and it isn’t available in all states, but it can protect you if your teen gets into an accident.
• No rate hikes for small claims/fender benders.
• Incident forgiveness will pardon the policyholder from a rate hike if you get a speeding ticket, but no claim is filed.

American Family car insurance is geared toward adults and teens alike. The company offers discounts, specialized training programs, and peace of mind to parents of young drivers. We like American Family for more than just its cost–about average compared to other companies at $2,574.01 a year. Here are the features that make it a reliable provider for teen drivers.

Auto Discounts Teens Can Benefit From

• Away At School Discount allows you to save on your kid’s (25 and younger) auto policy if they’re 100 miles or further away at school.
• Good Student Discount allows students under 25 to save on their auto insurance policies by maintaining good grades.
• Teen Safe Driver Program By installing a device in your car, you can track how your teen is driving. If they drive safely, they can receive a discount plus a $25 MasterCard gift card.
• Young Volunteer. If your 24 and younger kid does 40 hours of community service a year, they may be able to get a discount.
• Generational Discounts are available if you have a policy with American Family before your teen gets coverage.

Teen Driver Resources and Bonus Features

• Teen Safe Driver Program includes a variety of articles and stats your teen can read up on. It’s also a great tool for parents.  It includes videos to help get the conversation started around safe driving, as well as a pledge you and your teen driver can take to be committed to safe driving.

• Accident Forgiveness is an option you can add to your policy to cover the first hiccup in your teen’s driving history.

While Nationwide doesn’t the amount of offerings specifically designed for teens like our other top companies do, its general protocol for accident forgiveness and Vanishing Deductible® make it a solid choice for drivers who may get into an accident or two while learning. A bit more expensive, its average annual rate come in at $2,617.78.* Things to consider:

Auto Discounts Teens Can Benefit From

• Good Student Discount
• Accident-Free Discount. This discount takes five years of spotless driving to cash in on, but you can get up to 10% off your premium after driving claims free for that long.
• Nationwide Family Plan^® Discount. Save up to 25% off when you add a teen driver to your Nationwide account.
• Accident Prevention Course Discount. While Nationwide only lists courses for those 55 and older, you can talk to an agent about what safe driving courses can count toward a discount for your teen’s auto insurance.

Teen Driver Resources

• Resource Center. There is a whole section dedicated to teen drivers and it’s full of helpful tips, articles, and educational tools. It covers what affects decision making, practice driving recommendations, and tips for avoiding distracted driving behaviors. It’s great for parents too because it offers advice through in-depth articles on how to be a coach to your teen driver.
  
• Roadside Assistance. You’ll get a $100 credit to put toward the cost of having someone help you if you lock yourself out of your car.
• Vanishing Deductible. You can get $100 off your deductible each year you drive claims-free—up to $500. That means if you have a responsible teen driver, you can save money if you ever get in an accident down the road.

The Take-Away

Your auto insurance policy decision is ultimately up to you. We’re just here to give you all the information you need to make the best decision. When you’re ready to choose an auto insurance provider, remember that it’s wise to call around to at least three different companies so that you get the best rate and coverage possible. You can get insurance quotes in about 7-15 minutes, and in the long run, an hour of your time could save you a lot of money on your teen’s auto insurance rates. If you still have questions, talk to an experienced insurance agent.

Our Methodology
We looked at nationally known companies that offer a variety of discounts and programs targeted towards teens specifically–not based on price. Our Cheapest Auto Insurance for Teens Guide ranks companies by affordability for teens.

*Disclaimer: All of the rates seen here were based on drivers who were 16-19 years old. Cheaper rates may be available from other companies not researched.