5 Cheap Car Insurance Companies for New and Young Drivers
The cost of adding a child to a parent’s auto insurance policy may increase the anxiety parents already experience when their teen gets behind the wheel.
Due to newly licensed drivers’ significant danger to insurance companies, teenage drivers frequently face exorbitant auto insurance rates. According to Forbes, the average increase for adding a young driver to a parent policy is $2,121, typically twice the premium paid.
Even with the high costs associated with teen drivers, shopping around can significantly reduce costs. It rates major insurance providers according to cost, the volume of complaints, and collision repair to assist parents in finding the best affordable auto insurance for teenagers.
1. Nationwide Insurance
In comparison to the other businesses looked at, Forbes analysis revealed that Nationwide had the lowest average cost to add a teen driver. Parents of teenage drivers may request a quote from Nationwide as the company’s complaint rate is extremely low. The average price to add a teen driver is $651, and the number of complaints is relatively low.
Pros
- Excellent pricing when adding a teen driver to a parent’s policy.
- A discount will be given if the adolescent completes a defensive driving course.
- If your teen maintains a solid GPA, you can earn more savings.
- Parents who purchase Nationwide insurance could include accident forgiveness to protect themselves from the chance of a rate increase following an accident if they were at fault.
Cons
- Nationwide receives a C rating for accident repairs because collision experts don’t think the company’s claims procedure is particularly noteworthy.
2. American Family
Among the businesses looked at, American Family has a respectable rate for adding a teen driver. It receives extremely few complaints, which indicates that customers are happy with it. The average cost to add a young driver is $1,694, and there are very few complaints.
Pros
- It provides accident forgiveness, which parents may add to the insurance to avoid a rate increase if you or their teen is in an accident. Furthermore, you are permitted to keep your excellent driver discounts.
- The Kid Safe Driver Program from American Family allows parents to monitor how and where their teen is driving. The price is also reduced when 3,000 miles have been traveled or a year has passed since joining the program.
- If your child keeps up good grades (at least a 3.0 average) in school, they are eligible for a good student discount.
Cons
- Only 19 states, including Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin, offer American Family auto insurance to drivers.
- Experts in the area gave the American Family’s handling of claims a C rating, describing it as at most adequate.
3. State Farm
Good prices and few complaints are the key factors. State Farm had the second-lowest cost for adding a teen to your policy among the businesses examined. Additionally, State Farm has received few complaints from authorities. The average cost to add a young driver is $1,003, and there are few complaints.
Pros
- Excellent prices for parents who add a teen driver to their auto insurance coverage.
- The Steer Clear program from State Farm assists teen and young drivers in improving their driving through training modules that hone safe driving techniques through films, mock scenarios, and quizzes. Once finished, you’re entitled to a discount.
- State Farm provides a driver training discount if your adolescent completes an approved driving education course.
Cons
- State Farm’s claims process received a C letter grade among accident experts, but it might be better.
4. Geico Car Insurance
Geico boasts low prices for adding a juvenile driver to your coverage and few complaints overall. The average cost to add a young driver is $1,958, and there are few complaints.
Pros
- Parents have the option to add accident forgiveness, which will waive the first at-fault accident’s standard premium increase.
- The Geico app, which combines augmented reality and aids in finding your parked car and cheap petrol nearby, may be appealing to young drivers.
- It offers a reduction if your teen completes a driver’s education course.
- Students who earn good grades are eligible for discounts of up to 15%.
Cons
- Although still reasonable, the rates for our top picks are the highest.
- It only received a C- from crash pros for their claims handling methods.
5. USAA Car Insurance
USAA has one of the better scores for accident repair claims and reasonable pricing for adding teenagers to your policy. Be aware that only people who are affiliated with the military are eligible to join USAA. The average cost of adding a young driver is $1,746, and there aren’t many complaints.
Pros
- In most areas, teens who have completed even a basic driver education course are entitled to a discount.
- Getting good marks at school is rewarded with a discount on car insurance.
- The SafePilot program from USAA tracks drivers’ behaviors, which can assist in identifying areas where your teen needs to grow. Additionally, drivers who perform well can receive a further discount.
- Teens in accidents may also benefit from the SafePilot app. It has an accident detection system that checks in on the driver to see whether they’re alright, helps them call 911 if necessary, and provides alternatives for filing an insurance claim right away.
Cons
- Only veterans, active military personnel, and their families are eligible for USAA policies.
- USAA’s grade for collision repair was C+. Although this is marginally superior to our previous choices, it is still not great.
Wrapping Up
When searching for the most affordable vehicle insurance, parents should be aware that adding a teen to their coverage is typically more expensive than adding the teen to their parent’s policy. However, if you’re unsure, ask your insurance agent to obtain quotations for both possibilities or search online for quotes to compare the overall cost of two different policies. Checking the least expensive option has no drawbacks because quotes are free.
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