If you are or know a young person who just got their driver's license and a car, remember that auto insurance is required in 48 states, and most policies will charge more for those who are new to driving . An insurer may conclude that a first-time teen driver is more risky than an experienced driver with safe driving habits.
Auto insurance rate premiums skyrocket by 130-140% when a teen driver is added to an existing policy and can increase an additional 20-40% if that driver is ticketed for excess speed or have a car accident. Fees like these tend to stay in place until a driver turns 20.
However, there are insurers that offer good student discounts, or discounts based on taking a defensive driving course or graduated driver's license programs. Here we will tell you which are the auto insurance with the best rates in the United States and aimed at the youngest sector of motorists.
Best Cheapest Overall Car Insurance for Teens
– Geico
Geico manages to offer the best premiums and most affordable insurance coverage of any major company. The company is already number one when it comes to service, customer, and satisfaction, and you can trust their reputation when adding a new driver to your insurance policy. Let Geico make things simple and straightforward, no matter the task.
Geico's individual policy rates vary from state to state, but it typically ranks among the cheapest options in any state. It also offers discounts that help reduce the cost even more. Full-time students who receive good grades are eligible for up to 15% discount.
Best Affordable Car Insurance for Eligible Teens
– USAA
Most of us aren't eligible for an insurance policy with the United Services Automobile Association, but if you have a military member or veteran in your family, then your teen driver can get great coverage that's even cheaper than Geico's.
USAA saves families potentially hundreds of dollars a year compared to leading insurance providers. It also offers the same discounts as many of its competitors, including benefits for good students and for drivers who have completed driving training courses.
Most people won't be able to get coverage through USAA, but if you think you might be eligible for a policy, it's definitely a good idea to get an auto insurance quote before making a final decision.
The best car insurance for teens who have been in accidents
–Nationwide
Auto insurance is more expensive for teens due to the perception that their inexperience makes them more likely to be involved in accidents. Whether true or not, the fact is that one in five 16-year-old drivers is involved in an accident in their first year behind the wheel.
Nationwide is the insurance company that extends its accident forgiveness plan to drivers under the age of 18, which means that if a teen driver is in an all-too-common traffic accident, their family won't see their rates skyrocket . It also offers roadside assistance to teen drivers in case of vehicle trouble, which should put their parents to sleep a little easier.
The best auto insurance for college students
–Progressive
Saving money is a top priority for college students and their parents. No one wants to spend a lot on a car insurance for young adults, especially when the vehicle in question can only be used rarely. The very thought of spending thousands of dollars a month in insurance costs on a vehicle that is almost always in a parking lot is stressful.
Progressive not only offers everyday low prices, but has also created a number of discounts that apply specifically to college students. In addition to the standard good student discount, Progressive offers discounts to students who are more than 100 miles from home and didn't bring their cars to school, and usage-based auto insurance rates that save money for drivers who they rarely use their cars.
No comments yet