Best Cheap Car Insurance for Teens and Students in 2022- Kelley Blue Book (2024)

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Best Cheap Car Insurance for Teens and Students in 2022- Kelley Blue Book? ›

Best Cheap Car Insurance for Teens

The cheapest car insurance rate is $38 a month from Geico according to our research team's cost analysis of national average prices for minimum coverage. The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.

Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.

Generally, it is cheaper for younger drivers, particularly those under 25, to stay on their parents' car insurance policy. The average cost of car insurance for teen drivers is significantly higher than the average for American drivers as a whole. By staying on a parents' plan, young drivers can enjoy lower rates.

Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.

State enrolled nurses also benefit from lower premiums, and groups such as magistrates and teachers also tend to pay less than average. Historically, women were deemed to be safer drivers than men and paid less for car insurance for women as a consequence.

The Insurance Institute for Highway Safety reports that teen drivers are four times more likely to get into a car crash than drivers 20 and older. As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.

In general, car insurance companies charge male drivers more for coverage because they're more likely to get into accidents. But while most states allow insurers to consider gender when setting rates, your age, location, insurance provider and driving record usually make a bigger difference.

If you buy directly from a Progressive company, your car insurance price reflects the cost of staffing and maintaining the sales centers, and a larger portion of our marketing costs.

What is the greatest threat to 17 year old drivers? ›

SPEEDING. Speeding is a critical safety issue for teen drivers. In 2022, it was a factor in 30% of the passenger vehicle teen drivers (15-18 years old) involved in fatal crashes.

For one thing, you might wonder if it is cheaper to get your own auto insurance policy, but the truth is, it's most likely not. Unless you are over the age of 25 and have a perfect driving record, it will be cheaper for you to just stay on your parents' policy. Your rate is based entirely on risk.

Can a 26-year-old be on their parents' car insurance? Unlike health insurance, there is no age limit when it comes to car insurance. As long as your parents' home is your permanent residence, you can remain on their insurance as a listed driver.

Some insurers allow you to include family members who don't live with you, like adult children, parents, or siblings if you provide a strong case for it. Some insurers also allow domestic partners and significant others who don't live with you to be added to your policy if they meet specific criteria.

So it's important to understand insurance groups – after all, there are 50 of them in total. Cars in group 1 are the least risky from an underwriter's perspective and the cheapest to insure. Those in group 50 are the riskiest and most expensive – usually higher performance models and luxury SUVs.

Cheapest Full-coverage Car Insurance Comparison

According to our rate estimates, Nationwide offers the cheapest full-coverage car insurance at an average rate of $119 per month for a single 35-year-old with a clean driving record and good credit. USAA is also another cheap option, at $126 per month.

Currently, the largest car insurance company in America is State Farm. Major auto insurance companies offer financial stability and a variety of coverage plans. To find cheap car insurance rates, you'll need to compare quotes from various providers.