When compared to State Farm's already cheap rates, those of regional insurers like Erie and Country Financial, for example, would have been even more competitive. Going with a local insurance company is an additional, cost-saving choice. According to a study conducted by Value Penguin evaluating hundreds of insurance quotations from several jurisdictions, adding a teenage driver to a policy owned by their parents can result in savings of up to 62% on average. If you're 18 years old, have a spotless driving record, and buy your car insurance, you can expect to pay an annual premium of $4,917 for additional insurance.

What Is The Average Cost Of Teen Driver Insurance?

It is more cost-effective to include a young driver on a family's existing auto insurance policy than to buy them their own. Be prepared for price shock if you decide to insure your young driver on their coverage. Our research shows that a male driver aged 17 will spend an average of $5,503.09 annually for auto insurance, while a female driver of the same age can expect to pay $4,859.73. The premiums for your child could go up even further, depending on your insurance provider.

USAA offers the most affordable auto insurance for 17-year-old drivers, with average annual premiums of $3,055.20 for female drivers and $3,308.73 for male drivers. On the other end of the scale, the average annual premium for a female driver aged 17 with Progressive is $7,753.78, and for a male driver aged 17 with Progressive, it is $8,504.98. As a result, young drivers and their parents would benefit from shopping around for the best car insurance prices available.

Why Do Teens Need Auto Insurance?

It's the law, to put it. Most states require drivers to carry auto insurance, which pays for both parties' medical bills in case of an accident. To drive legally in your state, you must have a minimum level and kind of vehicle insurance coverage, as specified by your state's regulations. If you or the other motorist are hurt in an accident, medical bills, repairs to damaged vehicles, and other expenses will all be covered by insurance. Theft, vandalism, and damage from natural disasters like floods and fires are all covered by a comprehensive auto insurance policy. Please include all the coverage your state mandates for the vehicle you're purchasing in your policy so your adolescent can drive it.

Why Is Teen Auto Insurance So Costly?

Managing risk is at the heart of auto insurance. By calculating the probabilities of an accident you might cause or other damage to your vehicle, your insurance provider can customize your policy and the amount you pay for it. If your teen is behind the wheel, your automobile is more likely to be in an accident than when driven by any other age group. When you realize how much your rates would increase because of adding your kid to your auto insurance coverage, you may feel unfairly targeted, especially picked on. However, that is not the case.

Conclusion

This holds regardless of whether or not you already know you should add your child to your insurance plan. To find out which companies provide the least expensive coverage for new drivers, Money Geek searched through a large number of insurance quotations. We've also included recommendations for the best auto insurance companies that focus on the specific needs of adolescent drivers, as some businesses are better at customizing coverage to those criteria than others. If regional insurers like Erie and Country Financial could provide rates even lower than State Farm's current low rates, the market would become even more competitive for consumers. Choosing a provider in your area, such as an insurance agency, might help you save money on your premiums.