When you’re shopping for the right car insurance for a 16-year-old, it’s a good idea to get quotes from multiple providers to be sure you’re getting the best rates. Here are some of the best and cheapest car insurance companies for teen drivers, based on our industry research.
#1 State Farm: Best Overall Provider
Average full-coverage rate for 16-year-olds: $6,289 per year, $524 per month
We named State Farm the best overall provider for U.S. drivers, and the company’s coverage is often affordable for teen drivers. We think a policy from State Farm has a lot to offer 16-year-old drivers, including:
- Usage-based savings program (Drive Safe & Save® app)
- Good student discount
- Student away at school discount
- Steer Clear® driving refresher course for drivers under 25 years old
If you’re a 16-year-old driver, this usage-based program is a good way to make up for your lack of driving experience, because the data collected by the Drive Safe & Save app won’t work against you.
Learn more in our State Farm insurance review.
#2 Auto-Owners: Affordable For Teens
Average full-coverage rate for 16-year-olds: $4,656 per year, $388 per month
Auto-Owners Insurance is a highly rated provider that’s offered coverage to drivers for over 100 years. The company has a solid industry reputation with an A+ rating and accreditation from the Better Business Bureau (BBB). Based on quotes we received from Auto-Owners, the company can offer coverage for teen drivers for nearly half the cost of the national average.
Good student discounts and safe driving discounts offered by Auto-Owners give teens incentive to practice good driving habits and stay safe on the road. Coverage perks like multi-policy discounts and roadside assistance give parents a break at the bank and peace of mind while their teens are on the road.
#3 Erie Insurance: Great Coverage
Average full-coverage rate for 16-year-olds: $5,163 per year, $430 per month
Erie Insurance is known for great coverage selection, and the company also offers below-average rates for teen drivers. Benefits like roadside assistance and accident forgiveness help protect teens in the event of trouble on the road, while new car replacement coverage can help parents rest easy about turning over the keys to a new car.
Erie offers a convenient online quotes process and friendly, locally based agents in the areas the company serves. Learn more about their coverage options and costs in our in-depth Erie insurance review.
#4 Geico: High Number Of Discounts
Average rate for 16-year-olds: $5,745 per year, $479 per month
Geico is one of the most well-known names in the car insurance industry, and for good reason. While the company may not offer the cheapest car insurance rates for 16-year-old drivers, it does offer usage-based coverage and discount opportunities for young drivers who practice safe driving and maintain good grades. Geico also offers bundling discounts for parents who want to save money on individual policies.
Learn more about rates and coverage in our Geico insurance review.