Teenagers may feel like they have limited options for car insurance. Fortunately, there are plenty of strategies teen drivers can use to save money on car insurance. Today, we’re highlighting some of the best car insurance options for teen drivers, including the specific companies known for offering competitive rates to new teen drivers.
American Family Insurance
American Family Insurance is seen as one of the best car insurance options for teen drivers. One of the reasons American Family Insurance is popular among teen drivers is its Teen Safe Driver Program. This program allows teen drivers to get discounts of up to 10% after recording 3,000 driving hours or spending one year using the American Family Insurance app. The app records your driving habits, and American Family Insurance uses this information to provide you with customized rates. If you’re a good driver, you can save up to 10%.
Erie Insurance is another popular car insurance company for teen drivers. The “catch” is that it’s only available to drivers in certain states and regions. If you live in Illinois, Indiana, New York, Maryland, Ohio, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, or Wisconsin, then you may want to compare Erie Insurance plans for teen drivers. One of the most popular discounts for teen drivers with Erie Insurance is the 20% discount for drivers living at home under age 21. You can also get discounts for taking a defensive driving course, for spending more than one year with Erie, and for earning safe driving awards.
State Farm is one of America’s largest and best-known insurance companies, so it makes sense they would offer competitive prices on car insurance to teen drivers. State Farm is worth a look for teen drivers based on one amazing discount: teen drivers with good grades can earn discounts of up to 25% until they reach age 25. In some states, State Farm also offers a program called “Steer Clear and Drive Safe & Save”. This program rewards young drivers for driving safely.
GEICO offers competitive pricing for new teen drivers. It’s particularly popular with teen drivers who are buying car insurance through their family plan. Thanks to GEICO’s Family Pricing Program, teen drivers who buy a policy under their parents’ GEICO policy can get more affordable rates than buying a policy on their own. Your parents need to be GEICO customers to qualify, but you can save a lot of money with GEICO’s Family Pricing Program.
Nationwide, like GEICO, offers a family plan that can significantly reduce the cost of teen driver car insurance, making them one of the best insurance companies for new drivers. If your parents have a car insurance policy with Nationwide and a safe driving record, then you may qualify for cheaper car insurance prices. In fact, many of the discounts available to your parents may also apply to you.
Progressive offers multi-car insurance discounts that can significantly reduce the cost of car insurance for new teen drivers. This is similar to the family insurance plans offered by GEICO and Nationwide: drivers who insure multiple vehicles with the same household can pay lower insurance prices.
If you’re a new teen driver living away from home, then Allstate is worth a look. Allstate provides discounts to teen drivers living at least 100 miles away from home (assuming you’re leaving your car at home). You can also get a discount by completing a driver’s ed program.
Conclusion: Compare and Research Today to Save Big
New teen drivers are the highest risk group to insure. Teen drivers inevitably pay more for car insurance than older, more experienced drivers. However, if you spend time researching and comparing car insurance today, then you can easily discover some of the best auto insurance options for teen drivers.