Guide to the cheapest car insurance for 17-year-olds

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Teenagers usually pay the most expensive rates for car insurance. In fact, a 17-year-old driver could pay $9,000 a year for coverage. But there are cheaper rates available. American Family, for instance, offers these teens policies at about $4,800 a year.

Seventeen-year-old drivers generally pay high car insurance premiums because they lack experience on the road. Data from the CDC shows that the risk of car accidents is higher among teens between the ages of 16 and 19 than any other age group.

Our recommendation for cheap insurance for 17-year-olds

Teen drivers pay the highest car insurance rates on average compared to any other age group. Because 17-year-old drivers are newly licensed and lack experience behind the wheel, car insurance providers charge much higher rates.

Remember – most 17-year-olds will need to be insured on a parent’s policy, as drivers cannot purchase their own car insurance policy until they reach the age of majority in their state. 

Although teens can’t avoid expensive car insurance premiums, we suggest shoppers look into various ways to lower insurance costs. Most insurance providers offer discounts for young drivers, including savings for being a good student or taking a driver’s education course. Shopping around and comparing quotes from several insurance companies can help teens find the most affordable policy. 

What is the cheapest insurance for a 17-year-old?

According to our rate data, USAA is the cheapest car insurance company for 17-year-olds. USAA’s average car insurance premium is $4,494 per year or $374 per month. However, USAA only offers car insurance to military community members and their families. If you don’t qualify for USAA insurance, American Family is a good alternative. 

If you’re shopping for car insurance for a teenager, it’s important to know that 17-year-old drivers can’t purchase their own insurance policy. Because car insurance is a legally binding contract, policyholders must reach the age of majority in their state to get car insurance. Because of that, many 17-year-olds must be insured on a parent’s policy. 

In the table below, you can see how much car insurance costs for a 17-year-old monthly and annually from some of the top car insurance providers.

Best companies for cheap car insurance for 17-year-olds

When shopping for car insurance, it’s a good idea to compare several different providers. The right car insurance company for one teen might not be the best option for another. Insure’s best companies for teens are based upon the 2024 Best Auto Insurance Companies ranking.

See the best car insurance for 17-year-olds in the table below.

How much is car insurance for 17-year-old males vs. 17-year-old females?

The average cost of car insurance for 17-year-olds depends on gender. Young males generally pay higher rates for car insurance than young females. However, the average premium for males and females depends on the insurer that underwrites the policy. 

In the table below, you can see the average car insurance rates for a 17-year-old male.

The average car insurance rates for a 17-year-old female are shown in the table below.

How much does car insurance cost for a 17-year-old per month?

Car insurance for 17-year-old males costs $522 per month; the same full coverage policy costs $468 per month for females.

How much can teens save on insurance when added to a parent’s policy?

There are a variety of factors that can impact the cost of car insurance for 17-year-old drivers, including location. In the table below, we’ve included the average annual cost of car insurance for 17-year-old males and females on a parent’s policy in all 50 states. 

See how much you can save with a parent policy vs. a teen-only policy.

Why are teenage car insurance rates so expensive?

“Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute. 

These factors make 17-year-olds much riskier to insure than older adults. Insurance companies charge high-risk drivers more for coverage to offset the potential risk of a claim settlement.

Which states are the most expensive for 17-year-olds?

One of the biggest factors that can affect the cost of auto insurance for 17-year-olds is location. Where you live can have a major impact on your premium. Based on our recent data analysis, 17-year-olds in Louisiana pay the highest car insurance rates.

The table below shows the 10 most expensive states for full coverage car insurance for 17-year-olds on a parent’s policy.

Which states have the cheapest car insurance for 17-year-olds?

The cheapest state for car insurance for 17-year-olds is Hawaii, where the average annual premium is $1,636 annually. Other cheap states include North Carolina, Iowa and Maine. 

In the table below, we’ve highlighted the 10 cheapest states for full coverage car insurance for 17-year-olds on a parent’s policy.

How to get cheap car insurance rates for 17-year-old drivers

These tips can help you get the cheapest car insurance for 17-year-olds:

• Select higher deductibles: Some types of car insurance require a deductible, which you pay out-of-pocket when you file a claim. Choosing higher deductibles will lower your monthly premium. 
• Avoid violations and claims: Drivers with a clean history with no recent accidents, tickets, or claims typically pay the lowest rates for car insurance. Maintaining a good driving record will help you get the cheapest rate.
• Bundle policies: For parents adding a teen driver to their policy, bundling two or more policies can help you save. Many companies offer a generous discount if you bundle auto and home insurance or auto and renters insurance.
• Shop around and compare quotes: The first car insurance quote you get might not be the cheapest. Shop around and compare quotes from at least three providers to make sure you’re getting the best deal. 
• Look for discounts: Car insurance discounts can help you get a cheaper premium. Some insurers offer discounts aimed at teen drivers specifically.

Which discounts are available for 17-year-olds?

Most car insurance providers offer discounts, and many insurers offer discounts aimed at young drivers. Here are some of the most common discounts for 17-year-olds:

• Good student discount: Full-time students in high school and college can often qualify for a good student discount if they maintain a minimum GPA (usually a “B” average or better).
• Driver training course discount: Depending on the insurer, young drivers can earn a discount if they complete an approved driver training course or driver’s education course.
• Telematics program discount: Most major insurance companies offer a telematics-based driver rewards program, which tracks your driving habits, like brake force and speed. When drivers demonstrate safe habits, they can earn a discount.

What our expert says

Q. Why is teen car insurance so high?

Mark FriedlanderDirector of corporate communications for the Insurance Information Institute.

“Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups.”

Resources & Methodology

Methodology

Insure.com editors in 2024 collected rates from Quadrant Information Services for 17-year-old drivers with a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible on a Honda Accord LX. We analyzed 53,409,632 quotes, 34,588 ZIP codes and 170 insurance companies nationwide.

Elizabeth Rivelli

Contributing Researcher

 

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Elizabeth Rivelli is a freelance writer who covers various insurance topics. Her areas of expertise are life insurance, car insurance, property insurance and health insurance. Elizabeth’s byline has appeared in dozens of online publications, including Investopedia, CNET and Bankrate. She has also written for several insurance carriers.