Having a family can be expensive. That’s why we did the research to find the companies with the cheapest car insurance for teen drivers and their families. Here are the best companies for you and your young drivers based on average premiums and discounts.

If you’re curious about companies with the best insurance for teen drivers based on other incentives like safety programs, check out our guide for teens.

USAA Top Insurance | Obrella.com
USAA
103*PER
MONTH

Coming in to top our list of the most affordable insurance company for families who have a teen driver on their policy is USAA. More info...

#2
Geico
139.60*PER
MONTH

GEICO is one of the biggest auto insurance providers in the country.  And with annual premiums, for a one-car family, being on average $1.675.21*, it's the 2nd cheapest for families with teen drivers. More info...

#3
Travelers
139.69*PER
MONTH

Being only a dollar more expensive a year than GEICO, we've given Travelers the bronze medal for most affordable car insurance for families with teen drivers. More info...

#4
State Farm
142*PER
MONTH

State Farm is the largest provider of auto insurance coverage for drivers across the country–it's also the fourth most affordable if you have teen drivers on your policy. More info...

#1 - USAA

Car insurance for teens doesn’t have to be expensive. Coming in to top our list of the most affordable insurance company for families who have a teen driver on their policy is USAA.  With annual premiums roughly 37% cheaper than the average of the cheapest 15 companies, customers on average pay only $1,239.93 a year.  It also provides tailored discounts for your teens, regardless if they are just learning or have been on the road for a year or two. To top it off even more, it scores high in customer service–making it a great fit.

  • Driver Training Discounts. Your kids who are 21 or younger can take a course to receive a discount on his/her auto insurance.
  • Good Student Discount. If your teen gets good grades, you’ll get a discount on auto insurance.
  • Family Discounts. Get up to 10% off for loyalty to USAA.
  • Multi-Vehicle
  • Accident Forgiveness

The one catch is that USAA’s auto insurance is only available to military members and their immediate families, so it may not be an option for you.


#2 - Geico

GEICO is one of the biggest car insurance companies in the country.  And with annual premiums, for a one-car family, being on average $1.675.21, it’s the 2nd cheapest for families with teen drivers.  Since the number one spot in our top 15 sells exclusively to military members, GEICO is the most affordable teen car insurance option for the majority of families.

Originally created to provide insurance to government and military workers, GEICO offers additional saving options you can take advantage of if you fall into this category. See how GEICO can save you and your family on auto insurance with teen and adult driver discounts.

  • Drivers Ed Discount. You can save on your teen’s insurance if they take driver’s ed.
  • Good Student Discount. If your teen maintains good grades, he or she can get up to 15% off their policy.
  • Defensive Driving Discount. Get a discount for taking a driving safety course.
  • Clean Driving Record Discount. You can get up to 26% off for safe driving
  • Military Discount. If you’re in the military, there’s a discount that can give you up to 15% off your policy.
  • Emergency Military Deployment Discount. If you need to go on duty, you’ll get up to 25% off your auto insurance.
  • Federal Employee Discount. You’ll get up to 8% off if you work for the government.
  • Multi-Car If you have more than one car on your policy, you can get up to 25% off.

#3 - Travelers

Being only a dollar more expensive then GEICO, we’ve given Travelers the bronze medal for most affordable car insurance for families with teen drivers.  Depending on where you live, your driving record, and age of your teens though it may be the cheapest option.  Find out if thats the case in our full review of its auto insurance coverage.

In its 150 years in business, Travelers Insurance has been a trusted provider of all types of insurance.  And thanks to a number of discounts it offers specifically for teens, it’s icing on the cake that it’s also one of the cheapest options for families with teen drivers when it comes to auto insurance.

Car Insurance Discounts For Teens

  • Safe Driving Discounts. You can get up to 23% off for having a clean driving record.
  • New Car Discount. If you get your teen a new car or just have a new one in the family, you can get up to 10% off.
  • Multi-Car Discount. Save up to 8% for insuring more than one car.
  • Driver Training Discount. Get up to 8% off if you or your teen take safety classes.
  • Homeownership Discount. If you own a home, you can get up to 5% off auto insurance with Travelers.
  • Student Away At School Discount. If your teen is away at school, save up to 7% on your auto insurance.
  • Good Student Discount. If your teens get good grades, you can get up to 8% off their auto insurance.
  • IntelliDrive® Discount. Get up to 30% off with the installation of Travelers’ driving monitoring device.

#4 - State Farm

State Farm is the largest provider of auto insurance coverage for drivers across the country–it’s also the fourth most affordable if you have teen drivers on your policy.  According to our research, its average rates are $1,710.99, but you can save even more with the variety of discounts its designed specifically for teen drivers and incentives for adults too. Here are a number of its discounts for every member of the driving family.

  • Steer Clear®. If your teen completes this safe driver training, he/she can get up to 15% off.
  • Good Student Discount. State Farm gives a huge discount to teens that maintain good grades. They can get up to 25% off their policy for being a good student.
  • Away At School Student Discount. If your teen is away at school but still insured, this can take some money off your auto policy.
  • Driver Training Discount. Teens who are 21 or younger can save if they do a driver training program.
  • Accident-Free Discount. After three years of driving accident-free, you can save on your auto premium.
  • Drive Safe & SaveTM is a telematics device that reports on your driving. You’ll get a 5% discount just for opting in and up to 50% off your policy if you prove to be a safe driver. It’ll also help you keep tabs on how your teen is driving.
  • Defensive Driving. You can take a course as an adult to get a discount on your policy.
  • Multi-Car Discount. Get up to 20% off for insuring multiple cars.

Top 10 Cheapest Auto Providers For Families With Teen Drivers

The list doesn’t stop there. We were able to find the top 10 cheapest car insurance companies for families with teen drivers. See for yourself who rounds out numbers five through 10:

 Average Annual Rate
USAA $1,239.33
GEICO $1,675.21
Travelers $1,676.33
State Farm $1,710.99
Safeco $1,728.67
American National Financial $1,903.92
MetLife $1,943.86
Progressive $2,050.31
Esurance $2,187.51

Your auto insurance policy decision is ultimately up to you. We’re just here to give you all the information you need to make the best decision. When you’re ready to purchase a car insurance policy, remember that it’s wise to call around to at least three different carriers so that you get the best rate and coverage possible. Quote processes are usually only 7-15 minutes, and in the long run, an hour of your time could save you a lot of money on your teen’s auto insurance policy!

Fact-Checker
To come up with these average premiums for families with teen drivers, we looked at companies that provide rates for families who had at least one teen driver on their policy. While some companies had different numbers when it came to how many cars and teens were insured, we evened the playing field by bringing it down to one. These numbers were pulled from state department of insurance’s across the country.

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