Best Car Insurance Companies for Teens

What Types of Coverage Are There?

Although there are some exceptions, most car insurance companies offer:

Bodily Injury and Property Damage Liability to cover the other party's medical care and damages when you are the at-fault driver

Collision Coverage to cover your own vehicle’s damage regardless of fault

Comprehensive Coverage to pay for non-accident related damages

Personal Injury Protection/Medical Payments to cover your medical expenses in case of an accident

Uninsured Motorist Coverage to cover your damages and medical expenses when the at-fault driver doesn’t have accurate coverage

Guaranteed Asset Protection (GAP) Coverage to cover the gap between your car's lease or loan and the determined value in the case of a total loss

How Much Coverage Do You Need?

Given the depressing odds of their being in an accident, when it comes to young drivers, the more coverage the better, especially if your teen or college student is driving a fairly new car that is under a lease or loan. However, most states only require limited coverages, so you can sometimes save money by only insuring a car and its driver for the mandated protection and amount.

Can Teen Drivers Join Their Parent's Insurance?

Yes, they can. Nearly all insurance companies allow you to add drivers to existing policies; in fact, to be covered, a driver must be enumerated in the policy (insurance factors not only the vehicles on the policy but the listed drivers for each car). This means that you must have your teen on your policy before filing any claim that involves them. Coverage can't apply retroactively.

Always shop around for rates before automatically adding your newly licensed teen driver to your car insurance. Your current carrier should always be your first stop, given breaks companies often offer for multi drivers and loyal customers. With that being said, some companies charge more to add a young driver than others do, and it never hurts to know what other options other insurers may offer—for bargaining with your carrier if nothing else.

The Bottom Line 

Although young drivers are often some of the most expensive to insure, you can find ways to save money by choosing companies with low rates, student discounts, and good accident forgiveness policies. While we highly recommend the five insurance providers on this list, it's always worth shopping around to compare rates before you make a long-term commitment to one company.

Methodology

When selecting the best car insurance companies for young drivers, we not only considered each company’s financial strength and ratings with companies like J.D. Power and the Better Business Bureau, we also looked at rate comparisons and discount offerings listed on insurance provider websites and in independent reviews.