Marcus Marion, CMA™ Finding the most suitable car insurance companies can be challenging for young drivers. The naivety and lack of experience in picking the right coverage while avoiding breaking the bank don’t seem helpful either. That means a little help getting the proper acquaintance can go a long way.
Being the newest mojo behind the wheel, teen drivers require insurance to protect them more than it is a fundamental requirement by law. The national cost of car insurance is $2,150 annually, which is pretty high, so it’s only natural to consider the cheapest options.
Most teens stay on their parent’s car insurance policies because it’s seemingly much more affordable than covering the costs of a separate one. However, if you own a vehicle under your name, you must get individual car insurance coverage.
Importantly, acquiring this insurance can be costly and a long process. Nonetheless, that typically would depend on the company you want to get your car insurance coverage from.
This article looks into the most affordable yet proficient car insurance coverage providers for young teens without compromising quality and deliverables.
1. Nationwide: Best Overall Coverage
Nationwide offers proficient coverage options and is one the best car insurance for young drivers looking for a cheaper insurance coverage alternative.
With unlimited discounts and customization possibilities, it’s possible to save more money with Nationwide. Enticingly, this company utilizes the latest smart technology to ensure better service delivery to every young driver.
The company understands that the coverage needs of drivers in different age cohorts can vary. Therefore, the company ensures that it tailors its coverage with SmartRide and SmartMiles to track driving in real-time and minimize coverage costs depending on the duration of your drive. The five primary coverage and options that Nationwide offers include:
- Underinsured and uninsured motorists
- Liability
- Rental car reimbursement
- Collisions
- Comprehensive
Much better, Nationwide offers a host of discounts, including a 10% Good Student automatic discount, which can soar to up to 40% on other specific kinds of coverage. However, this discount only applies to drivers between 16 and 24 with at least a B average.
Young drivers can also get a Safe Driver discount for safe driving over five years and a one-time discount for signing up for any automatic payments. Other discounts include Young Volunteer and Away at School, which cut the premium costs.
It’s worth noting that Nationwide may not be available in every state, including Alaska, Louisiana, Hawaii, and Massachusetts.
2. American Family: Best for Family Coverage
If you’re extending coverage from your parent’s insurance, you might want to try American Family.
As a trusted car insurance provider for every age cohort, it tailors its coverage to teens and young drivers.
The insurance firm has a high approval rating among its users and uses a modern tracking app—the MyAmFam mobile app—that monitors young drivers’ driving patterns and habits. American Family offers the following coverage options:
- Uninsured and underinsured motorist coverage
- Collision
- Liability coverage
- Rental car reimbursement
- Comprehensive coverage
The company also offers numerous discounts that help minimize coverage costs, including a 10% discount on young drivers who safely drive at least 3,000 miles as the app tracks them. Moreover, you can capitalize on Good Student, Away at School, Multi-Product, and Young Volunteer discounts to offset the premium charges.
You can get your American Family insurance in every state as it’s available nationwide.
3. StateFarm: Best Personal Coverage
StateFarm targets the younger demographic more than adults and tailors its services to accommodate every young driver comprehensively.
The company offers services at a more personalized level and leverages help from its extensive network of local agents, reaching about 19,000. The good thing is that this insurance provider is way more affordable than most alternative providers and can be a perfect investment for parents who prioritize their children’s safety.
Much better is that this car insurance company has an extensive range of coverage options, including the following:
- Comprehensive
- Collision
- Rental
- Rideshare
- Emergency and road service
- Uninsured/underinsured
- Medical payments
- Liability coverage
As one of the top picks for car insurance, the State firm exemplifies excellence and has been around for 100 years, delivering top-quality services. Whether looking for a classic antique, sports car, commercial, electric and hybrid, or rental car coverage, this company has your back.
The best part is that you can still acquire discounts to offset your premium charges, including a Good Student discount and a policy discount from its Away at School package.
The company also has its hand on smart technology and deploys a telematics program that monitors driving habits through its Steer Clear program. Besides monitoring, the program offers education lessons at affordable car insurance rates for young drivers.
4. USAA: Best for Affordability and Military Families
It’s apparent that qualifying for USAA insurance coverage isn’t always a breeze, but it’s one of the most affordable car insurance for young drivers.
The strictest requirement is to be a military member or come from one to qualify for this coverage, which rules virtually most young drivers out. Besides standard coverage, young drivers can get coverage in the following areas:
- Roadside assistance
- Classic car insurance
- Rental reimbursement
- Rideshare insurance
- Accident forgiveness
Like other teenage driver car insurance companies, USAA has gone smart with its SafePilot program available in 47 states, except for Delaware, New Jersey, and California.
The program monitors driver habits and also has a crash-detection suite that helps to trigger prompt 911 calls if the driver doesn’t respond immediately and the propensity to make quick claims on the scene.
The company offers many discounts, including a 10% premium reduction. Still, you’re in for a treat with a 30% discount on renewals, which the company awards through its SafePilot app.
USAA offers discounts, including the Bundle and Save, Claims-Free, and Protective Devices credit, which can help you save your money.
5. Travelers Insurance: Best for Tech-Savvy Drivers
Being the mainstay in insurance coverage nationwide, Travelers Insurance has established a glossy reputation as car insurance tailored to young drivers.
Its coverage is available in Washington D.C and the country’s 43 states and offers one of the cheapest prices, almost serving as travel insurance.
But despite having the most lenient eligibility requirements, you should ensure that you stay clear of its stated violations that could increase your rates.
But despite having the most lenient eligibility requirements, you should ensure that you stay clear of its stated violations that could increase your rates.
The following are the coverage and options that Travelers offer.
- Roadside assistance
- Rental car
- Accident forgiveness
- Minor violation forgiveness
- Rideshare coverage in Illinois and Colorado
- New car replacement coverage
- Collision
- Comprehensive
- Personal injury
- Underinsured and uninsured motorists
- MedPay
- Property damage
- Bodily injury
As a suitable car insurance for new drivers, this company offers numerous discounts for young drivers. You can enjoy specific price cuts, including Good Student and Student Away at School discounts.
Moreover, the company provides discounts for completing an approved driver education class, Early quote, Automatic payment, or after purchasing a car that’s, at maximum, three model years.
Along with life insurance for millennials, you’re sure to guarantee safety in every dimension.
Travelers Insurance is among the few first-time driver car insurance companies that have adopted technology and deployed its IntelliDrive®, which tracks new drivers’ habits over 90 days, including braking, acceleration, distraction, and speed.
However, this application doesn’t work in California, Hawaii, Alaska, Michigan, New York, Louisiana, Rhode Island, and West Virginia.
6. Progressive Insurance
Progressive is one of the most proficient comprehensive car insurances for young drivers that sets itself apart from its competition by offering low premium rates for high-risk drivers.
Thanks to its extensive range of approximately 38,000 independent agents, this company’s services are readily available to anyone. Still, Progressive Insurance also offers most of its services online, making it a viable alternative to some of the young driver car insurance companies available.
Progressive Insurance coverage and options include the following.
- Liability
- Collision
- Rideshare
- Rental car reimbursement
- Roadside share
- MedPay
- Personal Injury Protection
- Uninsured and underinsured motorist
This cheap car insurance for young drivers isn’t only fair to its pricing but is also a perfect fit for tech-savvy drivers.
The company deploys its Progressive Snapshot® to track driver behavior to reward safe driving with discounted rates. However, there are still more discounts that drivers can leverage, including Teen Driver and Multi-Policy discounts.
Additional discounts that this student car insurance includes include multi-car, continuous insurance, paperless, and pay-in-full discounts.
7. Allstate: Best for Good Students
This car insurance company for teens is incredibly adept at encouraging safe driving habits. Emphasizes this commitment by providing bonuses to responsible drivers through its Safe Driving Bonus Program.
Besides, you can earn a bonus package for doing well in school through its reward program, enabling you to secure lower car insurance rates. Allstate offers the following coverage and options.
- Collision
- MedPay
- Underinsured and uninsured
- Sound system insurance
- Rental reimbursement
- Classic car insurance
- Personal injury protection
- Bodily injury insurance
- Rideshare
- Mexico and Canada car insurance
The company also offers two usage-based programs—Drivewise® and Milewise®—that reward drivers with premium price cuts.
However, these discounts run from Auto-Pay, New Car, Distant Student, and Teen Driver Education to Good Student. Other deals include Responsible Payer, Multi-policy, and Anti-theft discounts.
Allstate still offers other insurance add-ons, including Extended Vehicle Care, that cover mechanical breakdowns and vehicle protection products. Moreover, you can enjoy the company’s Safe Driving Bonus and Accident Forgiveness.
Summary
Getting the most suitable insurance covers isn’t always a walk in the park for young drivers. As much as you’re spoilt for choice with so many options, it helps to pick one that understands and tailors to your needs.
Moreover, an insurance company’s reputation shouldn’t be the sole determiner of excellent insurance coverage, so a little due diligence can go a long way.
While shuffling around picking a car insurance company, please consider one that offers the most affordable premium pricing, extensive coverage, and tons of bonuses for a return value worth the best bang for your buck.
