Looking for the Best Car Insurance for Young Drivers and Teens? Here Are Our Top Picks

August 18, 2020Car Tips and Tricks
Blake Shaw

Bostonian and residential moving and packing expert. Blake Shaw enjoys bar-hopping, music, and writing insightful content.

Did you know that teenagers are more prone to speeding while on the road? Maybe the carelessness and inexperience is the reason why teens pay some of the highest auto coverages imaginable. However, picking the best car insurance for young drivers will give you some great saving options and provide you with excellent customer care and claim satisfaction rates, no matter if you are the rookie driver or a parent of one.

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To help you pick the most suitable option, we broke down some of the essential attributes every insurer should have, from availability and digital experience to discount rates. These are some of the top-rated companies on the market, and it is up to you which one you’ll pick.

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Go Over the Basic Terms Before Choosing Best Car Insurance for Young Drivers

When you are learning how to handle yourself behind the wheel, you will most certainly learn how to beat driving anxiety and how to overcome stress. The next step is more about documents and less about steering the wheel. By learning car insurance terms, you will be able to understand your future policy more clearly:

  • At-fault accident – after the accident that you caused partially or completely, another person is paid out for their injuries, if you get sued. This way, you don’t have to take additional loans to cover the damage.
  • Declarations page – this might be the most important part of your contract, and it includes all of your information, limits, and coverages.
  • Deductible – prearranged sum insurer takes away from your settlement for the crash and all-inclusive claims. For example, if your repairs cost $6,000 and your deductible is $600, you will get a check for $5,400
  • Limit and state-required minimum – the first one is the maximum amount of money given for an accident, while others are minimum coverages required by the state for their residents to carry.
  • Underwriting – is a process of evaluating how low or high risk you are, based on factors like the type of car, credit, history, location, and age.

Long before you embark on a stress-free road trip, like in some of the best car movies, or before starting to look for new coverage providers, go over the glossary. When you know what it all means, it will be easy to figure out if you are truly protected.

person signing documents
From loans to deductibles, it is important for you to know what is what before signing the document.

Use Online Calculators to Compare Average Prices of Coverage

Are you thinking about how much insurance coverage costs? Firstly, companies look into your driving profile before forming the rates, and age and gender play a major in that process. Data from the website CarInsurance shows that, on average, a 16-year-old will have to pay approximately $2,660 for an annual premium. Those teens that are 19 pay around $1,350, while 24 year olds spend about $730 a year. If you are looking for a new premium, use online calculators, and compare average prices in many companies.

How Does Your Identity Affect the Rate

To the insurer, you are a collection of age, gender, credit score, homeownership, marriage status, and the car you are driving. All of these will determine what type of client you are. Simply put, if the insurer, based on your information, decides you are a risky client, you will have to pay more.

How Does the Location Affect Your Coverage Costs

Did you know that the coverages are regulated by the state and priced based on ZIP codes? This means that if the location you are in requires that your basic minimum is high, you will face higher costs. Additionally, if there are a high number of accidents in your area, your rates might be higher than average because it is seen as potentially dangerous.

Auto Make and Model Will Also Affect the Prices

When you are insured, the company assumes a part of the financial responsibility for your four-wheeler. That’s why if you inherited a family car like Kia Sedona, you would pay less than if your first vehicle came off the list of top-rated SUVs. This is due to the fact that luxury autos require more expensive parts.

girls on the road trip
Personal preference will be crucial in picking the right insurer.

Best Auto Insurance Companies for Young Drivers Offer Discounts

It is a competitive market, and companies offer discounts in order to attract those who acquired their licenses not so long ago. Take advantage of that fact, and find the firm that will give you discounts that will fit your driving habits.

Types of Discounts You Can Get

Most companies have similar discount strategies, but just to be sure, when you settle on the insurer, check what exactly they are offering. The most common types of discounts are:

  • Multiple vehicles deduction – maybe your parents bought you a used car and kept the family one for themselves. If that’s the case, you can all get a discount if you all sign a contract with the same firm.
  • Good student discount – as a younger adult or a teen, you can pay less if you have a 3.0 GPA.
  • Driver safety training reduction – you can get this one if you take a training course, where you go over traffic rules and regulations.
Woman holding money
Look for a firm that offers a couple of ways for you to save money.

Erie Generally Provides the Best Auto Insurance for Young Drivers

Erie is a company that’s been around in the insurance business since 1925. It is known for its excellent client service and speedy claim settlements. With more than 13,000 agents, Erie is dedicated to helping you, and not only that, youth under the age of 21 still living with parents may be eligible for an additional 20% price reduction.

Erie Availability Leaves Something to Be Desired

Unfortunately, Erie is not a countrywide carrier; it covers specific regions. It is primarily based in the Midwest and Northeast. If you are in Ohio, Kentucky, Illinois, West Virginia, and Virginia, or Pennsylvania and Tennessee, you are in luck. However, just to be sure, visit the Erie website and enter your zip code.

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Erie is a top-rated firm, and it can be a great choice

USAA Is Young Driver Car Insurance Provider Excellent for Military Families

If you are a part of a military family, USAA is an excellent choice when it comes to insurers. They give low premiums and have exceptional customer service. It is available all across the US, but it is limited to military personnel and their families. If you are under 25 or under 21 with a completed training course, you will get more competitive prices. Furthermore, B average high school and college students can get lower fees.

Excellent Digital Experience

USAA provides its customers with excellent digital experience. The website allows visitors to get a free quote, manage money, and research all the options. You can also file claims online via emails or messages. Additionally, with the smartphone app, you will be able to pay bills online.

Best cars for families
USAA has a goal to help military families.

Progressive Is an Excellent Company for Teens That Are Good Drivers

Progressive has been insuring Americans since 1937, and the firm has grown into a household name. It works in all 50 states, and besides basic coverages, it offers roadside assistance and deductible savings bank. Moreover, Progressive is famous for many reductions for younger people:

  • Teen reductions for all the parents who have kids under the age of 18
  • Good students option where you have to maintain a B average to get a discount.
  • Online Sign Up reduction, which gives you 7% off the price just for signing up online.

Overall Verdict on Progressive Is Very Positive

When you check out the Progressive website, you will see there are some great ways to compare costs and find the perfect premium that won’t leave you broke. The website is easy to navigate, and you will get all the information you need in just a few moments. As a younger person, you should take advantage of many reduction options and save up to 30%. Overall, for a teen looking for an affordable way to insure the vehicle, not much can go wrong with Progressive.

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If your personal decision is to pick Progressive, you won't make a mistake.

Nationwide Offers Auto Insurance for Young Drivers With Great Accident Forgiveness Policies

According to Texas A&M Transportation Institute, teens don’t consider driving at 5 to 10 mph above the speed limit a dangerous behavior. That being said, accidents are bound to happen. With the right insurer, you don’t have to worry about paying for car repairs. Nationwide to the rescue. Nationwide offers some of the best accident forgiveness programs in the country. Not only that, there is a generous forgiveness option, but if you are a safe traffic participant, you will get a sizable deduction of your bill.

Before Picking the Best Car Insurance for Young Drivers, Check Out Discount Options

Hiring Nationwide can be good for your budget because it has highly competitive rates, especially when it comes to youngsters. Go online and thoroughly check Nationwide offers such as:

  • SmartRide where usage and habits of the person behind the wheel are tracked
  • Good Student reduction for all of those students that maintain a B average
  • Defense Driving program is for people who finish a qualifying safety course
  • Multi-auto offer where families get price reductions
a stressed man
With Nationwide, some mistakes are forgiven.

Geico Is a Company With Some of the Best Car Insurance for First Time Drivers

Are you a parent of a first-time driver? If so, consider buying a policy at Geico, because it can be the most affordable option. The company offers satisfactory rates, and is praised for its positive customer service. Geico online tools let clients buy and manage policies on their own, without actually talking to an agent. Tools are user friendly and easy to use. The app will allow you to pay bills and file claims and chat with virtual assistant Kate.

You Can Customize Your Quote

Depending on the state you are living in, there will be laws and limits regarding coverages policies must carry, but besides that, you can still customize your premium at Geico. Choose how much your deductible should be, how much bodily injury coverage you will have, and tailor a policy to fit your needs and budget.

a car insurance policy
Geico is an excellent firm for first-timers.

Looking for the Best Car Insurance for Millennials ? Try Plymouth Rock

Statistics show that Millenials, on average, pay almost 44% more for Plymouth Rock policies than baby boomers. What makes Millennials choose this company? Plymouth Rock gives to its clients’ tons of perks, like a door to door valet claim services and quick claim settlements. There is almost 95% of claim satisfaction according to the surveys.

There Are More Than a Few Ways You Can Save Money With Plymouth Rock

Plymouth Rock offers its clients plenty of customized coverages and saving options. Agents can help you determine which of many discount ratings you can use:

  • Anti-theft option
  • eDocuments
  • Good students and away at school options
  • Training packages
  • Safety pledge
  • Paid in full
white car on the beach
Plymouth Rock gives millennials exactly what they need.

Metromile Is Great First Time Insurance for Young Drivers Who Don’t Travel a Lot

Statistics from the AAA Foundation for Traffic Safety show that around 71% of Americans between the age of 16 and 19 drive at least occasionally. That’s why if you are working from home, and prefer walking instead of being behind the wheel, you should hire Metromile. The firm has low-cost pay per mile charges. With Metromile, you will be expected to pay a base plus a few cents for each mile you travel.

Why Metromile Might Be Good for You

Not only that, Metromile clients save around $740 per year, but they get to customize their coverages before getting a quote. Additionally, the app you can download on your phone can tell you where you parked your four-wheeler, and it is used when cars get stolen. Furthermore, it can also run diagnostics and get in touch with a mechanic if you need one.

Truck on the road during the fall
If you are not on the road too often, consider hiring Metromile.

Buy a Car and Enjoy a Safe Ride

Getting the first license is the start of a beautiful friendship between a vehicle and its proud owner. But before you hit the road, you will need a four-wheeler, and the perfect one might be in another state. No matter if you have bought a car online, or got one from a dealer in another state, consider hiring a professional shipping company to transport it to your home. When a vehicle is transported to the desired location via open careers or enclosed trailers, all you have to do is get an insurance policy and enjoy the safe ride.

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