The Cheapest Auto Insurance for Teenage Drivers

Generally, you can just double the costs for teenage auto insurance in comparison to a policy for a mature driver and that is in the best of conditions. The costs can spiral out of control when you don’t pay close attention. That is why young motorists should always try to find the cheapest car insurance companies in their zip codes and look for ways of reducing premiums if they want to avoid the costs doubling again.

Prices can be different as night and day between two vehicle insurers when it is a teenager they are quoting for. The average premiums for motorists who are between 16 to 19 years old are usually around twice higher than the drivers over the age of 25. But some companies can quote twice higher than already very high prices so some people may lose hope of getting affordable rates. Thankfully, there are a few competitive names.

These are the top 5 cheapest car insurance companies for teenage drivers, based on our observations.

  • State Farm
  • American Family
  • Travelers
  • Nationwide

These are the large companies that offer quotes in most states and available to everyone. Also, there are smaller companies with great prices like Grange, Erie, Country Financial, Auto-Owners and local Farm Bureaus that are available in some states but not all. USAA is another name to mention but only available to military families. Progressive can be very competitive if you choose their telematics based programs.

When you are adding a teenage driver to parents’ vehicle insurance policies, Auto-Owners, State Farm and Nationwide are highly competitive companies again, as well as the other above-mentioned smaller and local providers.

These names would change depending on where you live and other particulars like, being in the college or even type of automobile chosen. That is why, people should get at least five quotes when they need auto insurance for youngsters. This is the easiest and fastest way of seeing the current prices and where the companies line up. Also, people can check all the other alternatives like getting full coverage or Liability only and being insured independently or with parents’ policies.

The picture of competitiveness of insurers would change completely when you are looking for a full coverage or Liability only, which is often half the price of full coverage so that may force motorists lean towards buying a cheap car and get Liability only policy if they are budget conscious, look at their options beforehand and plan ahead.

The next point to consider is how teenagers can lower their automobile insurance costs. They may not have driving or credit history to save them money but they have other things going for them. This is true for most people and they should find their strong suits the same way. Here are the easiest and most effective ways of keeping costs under control and qualifying for the highest possible discounts.

It is easier to find cheaper car insurance for teens with pay-as-you-drive policies: Many of them don’t have much time or money to be spending on cruising around and they should turn this into a positive. Large numbers of teenagers are still at school and a few of them are away at colleges and left the car behind with parents. This would mean that they cannot travel many miles in a year anyway. Secondly, they can control the hours they take automobiles out as they are not chasing careers or have a family to look after.

When you don’t travel long distances and in unsociable hours you may be better off with a pay as you drive insurance policy. They come with a small transmitter that is connected to automobiles and deliver information to the company about driving patterns. Since companies can see how they are doing on the roads they are more comfortable to offer lower rates depending on habits.

If they decide not to go down this route they’d better tell the companies or brokers when they are getting quotes that they won’t be using the vehicle much. Fewer miles means lower premiums as well. They may have to keep odometer records as proof but it isn’t hard.

Choosing the right car makes all the difference when you want to get affordable vehicle insurance for teen drivers: They should not put salt on the wound by purchasing an expensive to insure vehicle, unless they are rich enough not to be fazed with sky high premiums. It is best that they choose a modest and safe car for teenagers in order to reduce other risks in play. At early years they may not understand the importance of the vehicle in premium calculations but this is probably the most effective way to keep costs manageable.

Often, parents purchase a reliable but modestly priced second hand auto for them and go for a Liability only policy. Full coverage can be twice more expensive so this strategy would save at least 50% and you can afford to take this route if the automobile isn’t worth a lot of money. With so many people changing cars so often, it may not be hard to get a decent car for a reasonable price.

Shopping around for the most competitive auto insurance quotes for teens is a highly effective and quick way of saving money: They are savvy with the Internet. It is another thing going for them that will help in finding cheaper companies. They should relentlessly shop around until they find the company with the best rates. Make no mistake that you can save as much as fifty percent by just searching hard enough.

Shopping around is another way of looking for the cheapest vehicle insurance companies in your zip code for your circumstances and it works for every risk group of drivers. But it is more effective for high risk motorists who usually face high quotes. The higher the premium you pay the more you can save by finding the best deal.

Going on parents’ car insurance policy for the time being and benefiting from their good and long history may be a good option to consider: Many people start with their parents’ automobiles. This is usually the cheapest option, especially if novice drivers are not home very often. It may serve well in the early years and those are the most expensive and troublesome periods.

However, it won’t work when the parents have terrible records or sporty automobiles. Then, planning ahead and following the other steps will be more influential on the outcome. For example, you may be forced to install a telematics device even though you don’t like the idea.

Good student discounts may help: They are not favored much due to statistically significant risk factors. Concentrating on studies and being successful is seen as a way of showing responsible behavior. They need to prove themselves at school to get student discounts. They need to be at the upper 20% in their class to save around 10%.  It is the same for adults as well that they need to prove they are good drivers before they get savings.