Seventeen-year-old drivers may have a year of driving experience, but they are still fairly inexperienced. As such, your premiums may be lower than when you first got licensed, but your average car insurance costs are still a bit higher than average. bankrate can show you why 17-year-olds pay higher rates, how rates vary by location and carrier, and how you can find a lower premium.
how much does car insurance cost for a 17 year old?
The average cost of auto insurance with two adult drivers, one 17-year-old, and one vehicle is $3,580 per year for full coverage. Before adding the teen, the average comprehensive coverage premium for a married couple with a vehicle was $1,668 per year, which means the 17-year-old driver caused a 115% increase in premium, which equates to almost $160 per month more in auto insurance costs.
Reading: How much car insurance cost for a 17 year old
Even the best auto insurance companies view teens as a higher risk due to their inexperience and charge higher premiums. According to the Centers for Disease Control, teen drivers ages 16 to 19 are at higher risk for car accidents than any other age group. Since teen drivers are more likely to cause accidents, insurance companies charge more to cover them.
average cost of auto insurance for 17 year olds
In addition to age, gender is often a factor in determining auto insurance rates. In general, men pay more for car insurance because men are more likely to be risky drivers, with driving habits such as speeding and not wearing seat belts. for this reason, men are generally considered higher risk and are charged accordingly, usually regardless of age. however, state insurance regulations prohibit auto insurance companies in california, hawaii, massachusetts, michigan, north carolina, and pennsylvania from using gender as a qualifying factor when setting premiums.
The following table illustrates the average annual full coverage premium for 17-year-olds compared to the average premium for their parents before adding a teen driver:
*rate reflects the total average annual premium for a 17 year old driver added to a married parent’s policy
These rates are for good drivers with a clean motor vehicle record (MVR) and do not reflect whether a driver is at fault for accidents or traffic violations. Drivers with incidents like these on their MVR will generally have a higher auto insurance rate. In addition, other individual qualifying factors affect your auto insurance premium, such as the make and model of your vehicle, the number of miles driven annually, and auto claim history.
average cost of auto insurance for 17 year olds by state
Each state has its own laws about insurance coverage, causing rates to vary based on your location. Each geographic area of the country also has its own statistics related to the volume and severity of car accidents, the cost of car repairs, and the likelihood of weather-related damage.
The following table illustrates the average annual premium for full coverage auto insurance for men and women age 17 by state. insurance companies cannot use gender to determine auto premiums in six states. In most states, your premium will also likely vary based on the city and even the specific ZIP code you live in; some cities are more expensive for parents of teenage drivers. Michigan prohibits the use of ZIP codes as a rating factor, and the use of ZIP codes in insurance rates is limited in California.
*hawaii and massachusetts do not allow insurers to factor age or gender into rates. therefore, these data are not available in these two states.
**These states do not allow insurers to rate consumers differently based on gender.
best car insurance companies for 17 year olds
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It can be important to choose a company with coverage and discount options tailored to the needs of 17-year-old drivers. We choose 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 car insurance for 17-year-olds:
all states
allstate’s average premium for 17-year-olds may be the highest on our list and higher than the national average for 17-year-olds, but the company has a lot going for it. The DriveWise program can help your teen learn safe driving habits and allow you to monitor her driving patterns, all while saving you money. smart students might also get a discount. Perhaps the most attractive feature of all is the teensmart security program. This program is specifically geared toward teen drivers and addresses the driving behaviors that account for the vast majority of teen crashes. the program has a participation fee, but customers in all states get a discounted rate.
more information: allstate insurance review
love
While amica’s average 17-year-old rate isn’t the cheapest on our list, it is cheaper than the national average. Amica might be a good option for parents of young drivers because it offers family discounts, like its legacy discount and good student discount. amica also offers discounts for safety features installed in its vehicles, such as forward collision warning and electronic stability control. For qualified members, these discounts could add up to even more savings.
more information: amica insurance review
series
erie offers competitive rates for teen drivers and many types of coverage and discounts tailored to this age group. For example, the carrier’s rental and on-the-road package can give you peace of mind knowing that your 17-year-old driver will be taken care of during a roadside emergency. In addition, with the erie rate lock feature, policyholders lock in their rates and only experience a change if they make certain adjustments to their policy, such as changing their address or adding a vehicle. erie also offers a discount to single drivers under the age of 21 who live with their parents in all states where it offers auto coverage (except north carolina). Erie is only available in 12 states and Washington, D.C., so it may not be an option for drivers in many parts of the country. however, the company has an a+ (superior) financial strength rating from am best.
more information: erie insurance review
nationally
In addition to its affordable rates, the lowest on our list, it is one of the best insurance companies for 17 year old drivers nationwide for its coverage options and available discounts. Nationwide offers special auto coverage options, like accident forgiveness, that help you avoid rate increases after your first at-fault accident. In addition, full-time high school and college students between the ages of 16 and 24 who maintain at least a B-grade average are eligible for a discount on their premium. nationally has a lower than average j.d. claim satisfaction score. however, power, which means existing customers may be less than satisfied with the carrier’s claims process.
more information: national insurance review
state farm
For teens whose parents prefer to have all their policies in one place, State Farm might be a good option. the company offers a wide range of insurance and financial products, sold and managed by an exclusive network of more than 19,000 local agents. Teens could save money with State Farm by being good students, taking a driver’s education course and participating in the company’s Steer Clear safe driving program that tracks the driving habits of young drivers. One drawback is that the insurer has an overall complaint rate above the National Association of Insurance Commissioners (NAIC) average, indicating that the NAIC receives more state farm complaints from policyholders than average.
See also: Why Your Motorcycle Insurance is So Expensive
more information: state review of agricultural insurance
cheapest car insurance for 17 year olds
Because car insurance can be expensive for 17-year-old drivers, finding a cheap car insurance company can also be important. Bankrate analyzed average premium data from the largest insurance companies by market share in the US. uu. to find the cheapest companies for teen drivers. Because price isn’t the only important factor, we also researched these providers’ coverage offerings and discounts to make sure they were right for teen drivers. Although average rates for teens are still higher than for other age groups, choosing a company with low average rates can go a long way toward keeping your costs down.
Although the average rates offered by these companies are lower than the average premium for a 17-year-old driver, remember that the premium you’ll pay for your teen driver will depend on several individual qualifying factors. The car they drive, as well as the types of coverage, limits and deductibles you choose, will affect your premium. Additionally, 17-year-old drivers who demonstrate good driving habits will generally pay lower premiums; If your child has had a ticket or an accident in his first year of driving, he is likely to pay a higher amount for car insurance.
how to save on car insurance when insuring a 17 year old
While the price of insuring a teen driver can be daunting, there are plenty of ways to save money. Most insurance companies offer student car insurance discounts to help offset the premium increase you’ll likely experience after adding your 17-year-old driver.
good discounts for students
Most insurance providers offer discounts to students who can maintain good grades in school. Every auto insurance company has their qualifications, so check with your company to see if your 17-year-old qualifies. Some of the top companies that offer good student discounts include Allstate, Geico, and Nationwide, to name a few.
mileage reduction or mileage tracking discounts
Many insurance companies offer reduced rates for drivers who drive less than a certain number of miles per year. This can be an ideal solution to reduce premiums for teens, who may only drive to and from school. Your carrier may also offer pay-per-mile telematics programs, which will track your teen’s mileage and adjust your premium based on the actual number of miles your teen has driven.
discounts for safe driving
One of the easiest ways to lower your auto insurance premium is to maintain a good driving record. Many insurance companies will apply a safe driving discount when drivers have avoided accidents and traffic violations for a certain number of years, which varies by company. some carriers offer discounts for tracking your driving patterns through a mobile app or plug-in device in usage-based insurance programs.
how to get the best car insurance for a 17 year old
Because teen drivers are seen as a higher risk, they tend to be expensive to insure. however, by getting quotes from multiple companies, teaching your teen safe driving habits, and taking advantage of available discounts, you may be able to find an insurance policy that works for you and your family.
frequently asked questions
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what is the best car insurance company?
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do I need to adjust my coverage when adding a teen driver?
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Do I have to add my teenager to my car insurance?
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what kind of car should a 17-year-old drive?
methodology
bankrate uses quadrant information services to analyze rates for all zip codes and carriers in all 50 states and washington, d.c. rates are weighted based on the population density of each geographic region. Rates quoted are based on the additional cost of a 17-year-old male and female teen driver added to their 40-year-old parent’s policy (with a clean driving record, good credit, and the following total 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 liability per person
- $300,000 uninsured motorist bodily injury per accident
- $500 deductible per collision
- $500 comprehensive deductible
To determine the minimum coverage limits, Bankrate used a minimum coverage that meets each state’s requirements. our sample drivers own a 2020 toyota camry, commute five days a week, and drive 12,000 miles a year.
These are sample frequencies and should be used for comparison purposes only. their quotes may be different.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Age: Age is not a contributing qualifying factor in Hawaii and Massachusetts due to state regulations.
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