Best car insurance for 17-year-olds

The average cost of car insurance for 17-year-old drivers is $5,855 per year. Erie has the lowest rates for 17-year-old drivers at $2,904 per year and Farmers has the highest rates at $9,204 per year.

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Car insurance companies know that insuring teen drivers is a risky investment. Since 17-year-old drivers only have one year of experience driving, at best, they pay significantly more than older, more-experienced drivers do for their car insurance

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Teens can’t completely avoid paying higher rates, but there are several ways for young drivers to save money on their car insurance.

Key takeaways

  • Comparing quotes from multiple companies is the best way to save money on car insurance for a teenager, whether they are being added to a family policy or getting their own coverage.

  • The cheapest rates we found for 17-year-old drivers were through Erie at $2,904 per year and the most expensive rates we found were through Farmers at $9,204 per year, which is a difference of $6,300.

  • One of the best ways to keep insurance rates low for a 17-year-old driver is to add them to their parent’s policy.

  • A good student discount could save teen drivers 10% to 15% on their insurance costs.

How much does car insurance cost for a 17-year-old?

Comparing quotes from multiple companies is the best way to save money on car insurance for a teenager, whether they are being added to a family policy or getting their own coverage. The chart below shows the average rates for a 17-year-old driver at ten of the top insurance companies in the U.S.:

CompanyCost for 17-year-old driver
Erie$2,904
State Farm$3,422
American Family$3,856
GEICO$3,809
USAA$3,691
Nationwide$5,242
Travelers$5,651
Allstate$6,983
Progressive$8,725
Farmers$9,204

There can be a significant difference in price between companies, which means shopping around to find the best price can save you thousands of dollars each year.

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Car insurance costs for 17-year-olds by gender

Car insurance companies base rates on a number of factors. Age is a big part of setting your rates, but your ZIP code, the type of car you drive, and your gender also impact your rates, sometimes by hundreds or thousands of dollars each year.

The chart below shows the average rates for a 17-year-old driver by gender at ten of the top insurance companies in the U.S.:

Company17-year-old female driver17-year-old male driver
Allstate$6,615$7,352
American Family$3,691$4,021
Erie$2,531$3,276
Farmers$8,923$9,484
GEICO$3,626$3,993
Nationwide$4,763$5,720
Progressive$8,308$9,143
State Farm$3,070$3,775
Travelers$5,047$6,255
USAA$3,537$3,826

Some companies have a relatively small rate difference between genders while other companies have a difference of $1,000 or more, so it is important to compare quotes to make sure you are getting the best rate.

How to save money on car insurance for 17-year-old drivers

While rates for 17-year-old drivers are going to be on the high side, there are still ways to save money on car insurance.

1. Compare quotes

Comparing quotes is the easiest way to save money on car insurance. The cheapest rates we found for 17-year-old drivers were through Erie at $2,904 per year and the most expensive rates we found were through Farmers at $9,204 per year, which is a difference of $6,300.

There are also hundreds of other insurance companies around the country, including smaller companies that only insure drivers in a handful of states, that may offer more competitive rates. Working with an expert at Policygenius to compare quotes can save you thousands of dollars each year on insurance for a 17-year-old driver.

2. Earn a good student discount

Many insurance companies offer a discount for full-time students who maintain good grades, typically of 10% to 15%. Each company has their own definition of “good” grades, so check with your insurance company to see if you qualify.

3. Choose your car wisely

The type of car you drive can have a big impact on your insurance rates. Choosing a car that is cheap to repair or replace if you file a claim can save you money on your insurance, while choosing an older car you can afford to replace out-of-pocket gives you the option of buying liability only coverage.

4. Stay on family coverage

One of the best ways to keep insurance rates low for a 17-year-old driver is to add them to their parent’s policy. Being added to family coverage gives teens access to bundling discounts and multi-car discounts they would not get on their own policy.

Why is insurance so expensive for a 17-year-old?

17-year-olds have expensive insurance rates because insurance companies are more likely to have to pay out claims for teen drivers.

Teen drivers have very little experience behind the wheel, which means they are at an increased risk of accidents. In fact, the risk of being in an accident is higher among 16-to-19-year-old drivers than any other age group. Teens in this age group are almost three times as likely to be in a fatal crash than drivers over the age of 20. [1]

Frequently asked questions

What is the average cost of car insurance for a teenager?

It varies by exact age, but the average car insurance rate for 17-year-old drivers is $5,855 per year.

How old do you have to be for insurance rates to drop?

Teen drivers with a clean driving record should see their rates drop each year. In fact, most drivers with a clean driving record will see their rates go down over time until they reach their mid-sixties, at which point rates based on age start increasing.

Can car safety features help keep teen car insurance costs low?

There are many companies that offer discounts for car safety features. Rearview cameras, lane departure warnings, and other features designed to help prevent accidents could help save money on car insurance for drivers of any age, including teen drivers.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states, plus Washington, D.C. 

For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by the state or insurer.

Rates for overall average rate and cheapest companies determined using drivers aged 16 and 18 averaged together to find the rates for 17-year-old drivers. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles per year.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of insurance costs. Your actual quotes may differ.