How Much Are Average Car Insurance Rates for a 17-Year-Old?

Last Updated on May 16, 2020

When your teen starts driving, it’s very important that you have a robust insurance policy to cover them in the event of an accident. However, insurance rates for young drivers tend to be higher than for older drivers. This is because younger drivers have less experience and are more likely to get into an accident. As your child approaches driving age, it is important to be aware of the likely increase in your insurance rates and plan for it. Here are the average rates for 17-year-old drivers, as well as tips to help you find the right policy for your 17-year-old.

How Much Are Average Car Insurance Rates for a 17-Year-Old?

Average Car Insurance Rates for 17-Year-Olds

The cost of car insurance for a 17-year-old is much cheaper when the child is added to a parent’s plan instead of purchasing their own plan. According to CarInsurance.com, the average yearly cost of car insurance for a 17-year-old on their own plan is $5,836 for full coverage. However, it typically costs between $1,000 and $3,000 to add a teen to a parent’s policy. The cost of insurance varies by state. In states with high volumes of traffic, car insurance is typically higher, because the likelihood of getting in an accident is statistically greater. Car insurance rates are also slightly higher for men than they are for women. Statistically, men drive more often and are also more likely to get in accidents and get tickets. Because the statistical risk is higher, your car insurance will likely be slightly more expensive if you’re insurance a 17-year-old boy instead of a girl.

As stated above, the average yearly cost of car insurance for a 17-year-old on their own full-coverage plan is $5,836. Below is the breakdown by state.

StateAverage Annual Premiums
Alabama$6,776
Alaska$4,676
Arkansas$7,583
Arizona$7,103
California$6,750
Colorado$7,627
Connecticut$9,072
Delaware$9,168
Florida$7,632
Georgia$6,953
Hawaii$1,751
Iowa$4,348
Idaho$5,489
Illinois$5,792
Indiana$5,116
Kansas$5,858
Kentucky$8,756
Louisiana$8,774
Massachusetts$5,430
Maryland$6,472
Maine$3,754
Michigan$12,527
Minnesota$5,406
Missouri$6,504
Mississippi$6,093
Montana$6,733
North Carolina$3,461
North Dakota$6,205
Nebraska$5,789
New Hampshire$3,679
New Jersey$6,203
New Mexico$6,280
Nevada$9,726
New York$5,746
Ohio$5,038
Oklahoma$6,610
Oregon$6,162
Pennsylvania$5,078
Rhode Island$7,827
South Carolina$5,191
South Dakota$6,457
Tennessee$7,049
Texas$4,606
Utah$6,584
Virginia$3,924
Vermont$4,048
Washington$6,003
Washington, D.C.$7,862
Wisconsin$5,607
West Virginia$6,098
Wyoming$5,304

Ways to Save Money with a Teen Driver

Having a teen driver on your policy can make things significantly more expensive. However, with some advance planning, there are things you can do to save money. Here are some tips to help you and your teen save money on car insurance.

  • Shop around extensively before committing to a policy. Once you start getting car insurance quotes from multiple insurers, you’ll notice that quotes can vary wildly between companies. This is because every company has its own unique formula for calculating car insurance prices. It’s also important to remember that car insurance companies want your business and will fight for it. If you make it clear that you are shopping around, they may be slightly more lenient with their quotes.
  • Ask about discounts for students. Many insurance companies offer discounts for students in both high school and college who achieve a certain grade point average. You should also ask about discounts for having a student away at college – if your 17-year-old is planning on leaving home in a few years, this is an important thing to consider. If your child is going to be getting their own policy instead of being on yours, they may also be able to earn a legacy discount for sticking with the same company you use. Compare discounts from different companies to see who can help you save the most. While one company may give you a higher quote than another, added discounts can bring the price down for a better deal.
  • Consider having your teen drive a slightly older car. Older cars typically don’t cost as much to insure as new cars (plus their monthly payments will be lower in general). Of course, you’ll want to make sure that the car is still safe to drive, even if it’s older. You also shouldn’t skimp on insurance coverage. It can be tempting to buy just the bare minimum, but this can put you in a very difficult financial situation later on if your teen does get into an accident.

Best Car Insurance Companies for 17-Year-Old Drivers

There are some insurance companies that are known for offering great policies to teen drivers. Here are some of the best insurance companies for teen drivers and why they stand out.

  • American Family Insurance: This company has a program called the Teen Safe Driver program to help new drivers earn discounts. Teens can use the AFI app to log their driving, and when they practice safe driving habits, they earn points towards discounts.
  • State Farm: State Farm is generally a reliable car insurance company for families, and they have excellent student discounts for teen drivers. They also have safe driving programs that anyone can use to earn substantial discounts, and they’ll reward young drivers for practicing good driving habits.
  • GEICO: In general, GEICO is known for their very affordable prices. In particular, they offer great prices for teens who stay on their parents’ car insurance plans instead of switching to their own. Their insurance is also available for direct sale online, which makes it easy to purchase a policy and adjust it if you need to.

Unfortunately, auto insurance for 17-year-olds isn’t usually cheap. By making use of the suggestions above, however, you will most likely be able to find an insurance policy that won’t break the bank.

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