When shopping for the cheapest car to insure for a teen, you need to consider several factors in addition to the type of vehicle. Some of these factors include the teen’s age, state of residence, and gender.
cheaper cars to insure for teenagers
These are the 10 cheapest cars to insure for teens, including the average annual cost of car insurance:
- mazda mx-5 miata: $2640.
- subaru outback: $2735.
- volkswagen golf gti: $2740.
- mini countryman: $2766.
- volkswagen route: $2769.
- smart fortwo: $2776.
- fiat 500l 19: $2786.
- honda odyssey: $2788.
- subaru legacy: $2792.
- mini pacemaker: $2807.
- 16 year old drivers: Minimum coverage is $2,733 and full coverage is $6,613.
- 17-year-old drivers: Minimum coverage is $2,206 and total coverage is $5,373.
- Drivers 18 and under: Minimum coverage is $1,938 and total coverage is $4,837.
- drivers age 19 and under: minimum coverage is $1,541 and full coverage is $3,716.
- Take a defensive driving course. The insurance company may give your teen a discount for taking the course. Check with the company first, as it may require you to use specific providers. many classes can be completed online.
- get good grades. Most insurance companies reward drivers under the age of 25 if they have a B average in high school or a GPA of at least 3.0 in college.
- drive a sensible vehicle. Teenagers who drive a sports car will pay more for insurance than those who own a late-model sedan. Another option is for the teen to drive a beater and only have liability insurance. Older, more damaged vehicles don’t need comprehensive or collision coverage, since you’ll likely spend more on insurance during the year than the vehicle is worth.
- Going longer between traffic tickets and incidents. It makes sense that the longer you go without filing a claim or having an accident, the cheaper the insurance. keep your teen driving safely and avoid filing small claims.
- Look for discounts. Teens who attend college on campus and not close to home, for example, might qualify for a discount.
These breakdowns come from value penguin and are based on 2021 models.
what are the average insurance rates for teens?
carinsurance.com states that the national average to insure car insurance for a 17-year-old is $5,925. this number is 237 percent more than what adults over 30 pay.
Although the cost of car insurance for teen drivers varies by state, nerdwallet has a list of the average annual costs for full and minimum coverage listed by age:
16 year old drivers are the most expensive to insure because they have the least amount of experience.
Which states are the cheapest and the most expensive?
As mentioned, the price of teen auto insurance coverage varies by state. The cheapest state for full and annual minimum coverage for drivers age 16 is Hawaii because the state doesn’t use age to determine the cost of car insurance.
Aside from Hawaii, North Carolina has one of the lowest average rates for an annual full coverage policy. those who are 17 years old should pay a little less than $2,660. In Iowa, the cheapest minimum coverage rate averages $930 a year.
compare that price to rates in louisiana, which is the most expensive for full-coverage annual policies for 16-year-old drivers. expect to pay more than $11,500 for a full coverage annual policy.
A 17-year-old driver won’t pay as much as a 16-year-old, but the cost of auto insurance will still be high. A 17-year-old driver should pay about $5,370 a year for full coverage and $2,206 a year for minimum coverage.
These 17-year-old drivers are the highest paying drivers in louisiana, with their full coverage rates exceeding $9,255 a year. Michigan is the most expensive for minimum coverage at just under $4,070 a year.
An 18-year-old driver pays on average just over $4,830 annually for comprehensive coverage, and the average annual rate for minimum coverage is $1,940.
Hawaii aside, North Carolina has one of the cheapest average annual full coverage rates at $2,398, while Iowa is the cheapest for minimum coverage at around $812 annually.
The cheapest teens to insure are 19-year-old drivers, because they generally have their license longer and have spent more time behind the wheel. for them, the average price of a full coverage policy is about $3,717 a year, while a minimum coverage rate averages $1,451 a year.
other than hawaii, north carolina is the cheapest for drivers this age. the average full coverage annual policy is $1,490 and for a minimum coverage rate, it is $550. the most expensive for full coverage is louisiana at $6,240 annually. Michigan tops the list for a minimum policy coverage of $2,890 a year.
Does gender play a role in teen car insurance costs?
Although car insurance for female teens is expensive compared to females in their 20s, male teens often have high car insurance rates, even if they have a clean driving record. One reason is that they lack experience and auto insurers can’t set their rates because they don’t have a driving record.
When companies can’t look at a driving record to estimate the likelihood of filing a claim, they use statistics to determine overall risks and set prices.
according to the insurance institute for highway safety (iihs), compared to other groups, adolescent boys tend to cause accidents at higher rates. The IIHS also states that teens ages 16 to 19 are responsible for almost three times as many fatal crashes compared to adults ages 20 and older.
ways to reduce teen insurance
Car insurance rates are generally higher for teens, so companies can cover the larger losses teens are more likely to incur. According to the Centers for Disease Control and Prevention, car crashes are the second leading cause of death among teens, with nearly 2,500 teens losing their lives in car crashes in 2018.
However, teens can take several steps to lower their auto insurance rates:
When looking for the cheapest car to insure your teen, keep in mind that there are other ways to save money on car insurance. With a little research, contacting your insurance company directly, and having your teen practice safe driving habits, your teen’s insurance rates can be dramatically lowered.