Auto Insurance For Young Drivers

For a teen getting their driver’s license is a milestone. For a teen’s parents it’s another pain in the neck. Protection of a new inexperienced driver on the road can be difficult to choose, not to mention high prices.

There are many options to find car insurance for teens and young drivers and we’re here to help you choose the best one. Here’s our guide with some simple steps.

1. Together Or Separately

Car insurance is obligatory in 48 states according to the Insurance Information Institute. The student-driver is covered by their parent’s policy as a household member. After obtaining his/her driver’s license, a student would need to be listed as an operator on the policy.

So, first of all you need to decide if you want your kid to be listed on your insurance or better get a separate one. The first one is safer and easier to manage, the last is cheaper in the short term as your own auto insurance premium won't go up.

2. Rules Are Everything

Though parents can’t always be with their teens, they still can lay some ground rules for safe driving such as:

Discuss when, where, how and with whom a teen can drive
Limit the number of passengers in the car
Establish a curfew
Insist your driver (and passengers) wear seat belts constantly
Limit teen driving during high-risk times, like Friday or Saturday nights
Set driving-area limits
Prohibit driving under any kind of influence —or riding with friends who are influenced.
Highlight driving dangers: talking and texting on a cell phone, eating and drinking, focusing on passengers, reading maps and other materials, etc.

3. Types Of Insurance

Choose the key car insurance benefits for you and make sure to watch out for them when speaking to an insurance agent. Comparing car insurance policy you should ideally pick comprehensive car insurance but you’ll have some more options:

Third-party: Third-party car insurance only covers you for the cost of damage you cause to another person (the third party), their vehicle or their property – your vehicle won’t be protected
Third-party, fire and theft: Third-party, fire and theft works similarly, but your vehicle will be insured against theft or damage caused by fire and explosions
Fully comprehensive: Fully comprehensive type offers the maximum level of protection for your vehicle, and it’s also the cheapest available policy, making it a win-win.

4. Ways To Economize

Most insurance companies agree that covering a brand new driver is a high risk and in this respect, car insurance rate premiums grow up by around 130 to 140% and can rise an additional 20 to 40% if that young driver has a car accident or gets a speeding ticket. These rates remain in force until a driver turns 20.

Thankfully, there are some tips to cut down your expenses. The most evident is, of course, being a safe driver. Using an efficient vehicle can help you here, for instance, Honda Civics, Toyota Priuses and Nissan Rogues.

For teens many good students discounts are also available. Students with higher grades are usually more responsible and better drivers. If your young driver earns a B average or better at school, you may qualify for a good student discount on Nationwide teen car insurance.

5. Choose Wisely

Nowadays many insurance companies offer good conditions for a teen’s driver’s license. According to Investopedia, the best car insurance companies for teens of May 2021 are the following:

Best Overall for New Drivers: Erie Insurance
Best for College Students: Allstate
Best Student Discounts: State Farm
Best for Good Drivers: Progressive Insurance
Best for Accident Forgiveness: Nationwide
Best For Military Families: USAA

Let us compare and contrast these 6 companies by availability, coverage options, discounts and digital experience.

Erie Insurance

Availability	Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and the District of Columbia. To verify coverage in your area, you can visit the Erie Insurance website and enter your zip code.
Coverage Options	Erie Insurance offers all of the state-required auto insurance coverage. Additionally, it offers: Pet Insurance (for injuries during an auto accident) Personal item coverage for items damaged, destroyed, or lost in an auto accident Glass coverage for windows, windshield Roadside assistance/rental car coverage Locksmith services
Discounts	Youthful Driver Discounts of up to 20% for unmarried drivers younger than 21 who live with their parents Driving Training Discounts for drivers younger than 21 who complete an accredited training course Erie Rate Lock, which keeps premiums the same every year regardless of accidents Multi-car and multi-policy discounts of up to 25%
Digital Experience	Website and smartphone app

Allstate

Availability	Allstate is the third largest auto insurance company in the country and offers policies in all 50 states.
Coverage Options	In addition to all the traditional car insurance coverage types, Allstate also offers roadside assistance with towing coverage, sound system insurance for damaged or stolen after-market systems, and rental car reimbursement. Additionally, Allstate offers rideshare insurance, classic car coverage, and Mexican travel insurance if you plan to drive across the border.
Discounts	A Smart Student Discount of 20% for those who maintain a B average A Resident Student Discount of 20% for students who attend college at least 100 miles from home and don't have a car with them The Milewise Program that bases premiums on the number of miles you drive per month
Digital Experience	Website and smartphone app

State Farm

Availability	State Farm is available nationwide in all 50 states and the District of Columbia.
Coverage Options	State Farm offers all the needed and desired coverage for any driver nationwide. Additional coverage options include: Rideshare insurance for Lyft and Uber drivers Emergency roadside assistance Rental car & travel expense reimbursement
Discounts	Good Student Discount of 25% for those in high school and college who maintain good grades Student Away Discount for families with a college student who uses the car only when at home Defensive Driving Discount for anyone who completes an approved driver safety course
Digital Experience	State Farm's digital experience lags behind a bit. However, the company is making strides both in its website and smartphone app offerings.

Progressive

Availability	Progressive provides insurance in all 50 states and the District of Columbia.
Coverage Options	Progressive offers all of the basic liability and collision/comprehensive coverages, plus things like uninsured motorist coverage and personal injury protection. Additionally, Progressive offers the following: GAP Coverage Roadside Assistance Custom Parts Coverage for aftermarket additions Rideshare Coverage Deductible Savings Bank, which drops your deductible amounts the longer you go without an accident Mexico Car Insurance for those taking their car across the border
Discounts	Those who go three years without any accidents or violations can earn upwards of 30% off their annual premiums. Additionally, Progressive offers the following discounts for young drivers: Teen Discount available to parents who are insuring a driver younger than 18 Good Student Discount for high school and college students who maintain a B average Distant Student Discount available to families with a child who is away for college Online Quote Discount, which provides a 4% discount just for quoting your insurance online Paid In Full Discount for customers who pay six months worth of premiums in advance
Digital Experience	Website and smartphone app

Nationwide

Availability	Nationwide Insurance sells policies in most states except Alaska, Massachusetts, Hawaii and Louisiana
Coverage Options	Nationwide offers all of the personal and auto coverages you would need for your young driver. Additionally, Nationwide Insurance offers the following specialty coverages: 24/7 Roadside Assistance Vanishing Deductible Policies Total Loss Deductible Waivers Accident Forgiveness plan
Discounts	For young drivers, in particular, Nationwide offers: SmartRide Program that tracks usage and driving habits for drivers Good Student Discount for high school and college students who maintain a B average Defensive Driving Discount for those who complete a qualifying driver safety class Multi-car and multi-policy discounts for families who bundle insurance coverages
Digital Experience	Website and smartphone app

USAA

Availability	Although USAA is offered across the United States, enrollment is limited to military families.
Coverage Options	In addition to the required minimum car insurance coverage, USAA offers rideshare coverage for Lyft and Uber drivers, 24/7 roadside assistance, and towing coverage.
Discounts	When it comes to perks that pertain to young drivers specifically, though, USAA offers the following: Family Discounts for people under 25 A Driver Training Discount for people under 21 who complete a training course Good Student Discounts for high school and college students who maintain a B average
Digital Experience	Website and smartphone app

The best coverage for you is the one that fits your needs, addresses your concerns, and makes sense for your situation. Don’t stop searching for the best one, choose wisely and stay safe!