Car insurance can get expensive for 17-year-olds, but there are ways to rein in your costs. In most cases, 17-year-olds get a lower price when added to a parent's car insurance than on their own. However, there are times when a 17-year-old is better off with their own policy. Here’s what you need to know to get the best price with either option.
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How much does car insurance cost for 17-year-olds?
The average cost of car insurance for a 17-year-old driver is $467 a month for their own policy and $321 a month when added to a parent’s policy.
Insurance companies charge high rates to teens of any age, because teens are considered to be among the riskiest drivers to insure. This is largely due to teen crash rates, which are considerably higher than those for most drivers aged 20 and up.
The average cost of standalone car insurance for a 17-year-old is 73% higher than it is for an individual in their mid-30s.
Compare car insurance rates from top companies near you
Cheapest car insurance companies for 17-year-olds
Erie Insurance offers the cheapest car insurance to 17-year-olds, charging rates that average $170 a month nationwide. The next-best rates are available from USAA, $256 a month, and State Farm, $342 a month.
Erie is available in 12 states plus the District of Columbia. USAA is only available to current and former members of the military and their families.
| Company | Monthly rate |
|---|---|
| Erie | $170 |
| USAA* | $256 |
| State Farm | $342 |
| American Family | $357 |
| The Hanover | $362 |
| Mercury | $390 |
| GEICO | $454 |
| Auto-Owners | $519 |
| CSAA | $528 |
| Allstate | $531 |
| Rates are based on non-binding estimates for 17-year-old drivers with a clean driving record. Your rates may vary. *Only available to current/former military members and their families. | |
Insurance companies analyze several factors in addition to your age to determine your rate. The most important factors include:
- Your driving record
- Your vehicle’s value and safety record
- Your ZIP code
- Your credit (except in states that ban credit scoring)
- Any discounts you may be eligible to receive
Since insurance companies weigh each factor differently and offer different discounts, you may qualify for a significantly lower rate with one than you do with others. This is why it’s best to compare quotes from multiple companies when you shop.
Average car insurance cost for 17-year-olds by state
Among states, the average cost of car insurance for 17-year-olds ranges from $126 a month in Hawaii to $963 a month in Connecticut.
Car insurance rates for all age groups vary widely by state for a number of reasons.
Each state has its own set of auto insurance requirements for drivers and regulations for companies. Meanwhile, insurance companies typically charge more in areas with high crash rates, crime rates and/or medical and car repair costs than they do in places where they spend less on accidents and car theft.
| State | Monthly rate |
|---|---|
| Alabama | $618 |
| Alaska | $371 |
| Arizona | $648 |
| Arkansas | $460 |
| California | $396 |
| Colorado | $632 |
| Connecticut | $963 |
| Delaware | $723 |
| Florida | $882 |
| Georgia | $547 |
| Hawaii | $126 |
| Idaho | $260 |
| Illinois | $447 |
| Indiana | $240 |
| Iowa | $283 |
| Kansas | $436 |
| Kentucky | $667 |
| Louisiana | $767 |
| Maine | $245 |
| Maryland | $514 |
| Massachusetts | $440 |
| Michigan | $730 |
| Minnesota | $415 |
| Mississippi | $420 |
| Missouri | $360 |
| Montana | $318 |
| Nebraska | $356 |
| Nevada | $741 |
| New Hampshire | $413 |
| New Jersey | $656 |
| New Mexico | $423 |
| New York | $846 |
| North Carolina | $152 |
| North Dakota | $292 |
| Ohio | $298 |
| Oklahoma | $430 |
| Oregon | $485 |
| Pennsylvania | $569 |
| Rhode Island | $805 |
| South Carolina | $556 |
| South Dakota | $275 |
| Tennessee | $352 |
| Texas | $455 |
| Utah | $503 |
| Vermont | $230 |
| Virginia | $329 |
| Washington | $389 |
| Washington DC | $479 |
| West Virginia | $313 |
| Wisconsin | $320 |
| Wyoming | $255 |
| Rates are based on non-binding estimates for 17-year-old drivers with a clean record. Your rates may vary. | |
Car Insurance rates for 17-year-old men vs. women
When it comes to gender, 17-year-old women pay 12% less than 17-year-old men for car insurance. Female teens have lower crash rates than their male peers, and this translates into lower car insurance rates.
The gap between car insurance rates for 17-year-old men and women ranges from 22% with State Farm to 9% with GEICO.
California, Hawaii, Massachusetts, North Carolina and Pennsylvania prohibit insurance companies from using gender as a rate factor. In these states, 17-year-old men pay the same for car insurance as 17-year-old women with the same rate qualifications.
| Company | Monthly rate females | Monthly rate males | Difference |
|---|---|---|---|
| Erie | $157 | $183 | 17% |
| USAA* | $239 | $274 | 15% |
| State Farm | $308 | $377 | 22% |
| American Family | $333 | $380 | 14% |
| GEICO | $433 | $474 | 9% |
| Auto-Owners | $473 | $565 | 20% |
| Allstate | $506 | $557 | 10% |
| National average | $442 | $493 | 12% |
| Rates are based on non-binding estimates for 17-year-old drivers with a clean driving record. Your rates may vary. *Only available to current/former military members and their families. | |||
Individual car insurance vs. getting on a parent’s policy
The average cost of adding a 17-year-old to their parents’ car insurance is $322 a month, which is 31% less than the cost of an individual policy for the teen.
From an insurance company’s point of view, the elevated risk presented by a 17-year-old is typically offset by the parents’ older age. Young drivers often also benefit from any additional savings the parents receive for things such as having good credit or bundling multiple policies.
The average cost of a single policy for two parents and a 17-year-old child is $596 a month. This amount is 20% less than the average cost of separate policies for the parents and teen, which adds up to $741 a month.
It’s also generally easier to add a 17-year-old to a policy with their parents or guardians than it is for a 17-year-old to get their own car insurance. In most states, you have to be at least 18 to enter into a contract such as car insurance, unless you are emancipated or have a parent or guardian cosign.
However, here are examples of when a 17-year-old may be better off with their own policy:
- If the teen’s parents or guardians don’t drive, they probably don’t have car insurance.
- If the parents own a high-performance car, it may be cheaper to put the teen on their own policy and exclude them on their parents’ policy.
- If a parent has multiple recent violations or accidents, it may be cheaper for the 17-year-old to get their own car insurance.
| Car insurance cost scenario | Monthly rate |
|---|---|
| 17-year-old with own policy | $467 |
| Adding 17-year-old to parents’ policy | $322 |
| Separate policies for parents and 17-year-old | $741 |
| Single policy for two parents and 17-year-old | $596 |
| Rates are based on non-binding estimates for two 50-year-old parents and a 17-year-old child, each with a clean driving record. | |
Car insurance discounts for 17-year-olds
Seventeen-year-olds can often earn a discount on car insurance by maintaining good grades and/or completing an approved driver education course.
Most insurance companies offer a good-student discount to teens who maintain a B average or better. You typically need to provide a copy of your school transcripts to the insurance company to verify your eligibility.
Some insurance companies also offer discounts to 17-year-olds who complete an approved driver’s education or safety course. For example, nearly a dozen companies offer discounts ranging from 5% to 20% to young drivers who complete Adept Driver’s TeenSmart program, which combines online learning with parent-teen driving activities.
Most insurance companies offer a discount to drivers of any age who enroll in their safe-driver program. Most require you to download their app to your smartphone, which allows it to monitor your driving habits.
In addition to a discount for downloading the app, you may qualify for discounts when you renew if you avoid unsafe behaviors such as speeding, hard braking and distracted driving.
Safest cars for 17-year-olds
A 17-year-old looking to save money on insurance should also consider choosing a safe vehicle.
For example, insurance companies generally charge more to drivers of any age with a high-performance car, because these vehicles tempt you to drive at excessive speeds.
The Insurance Institute of Highway Safety (IIHS) recommends that young drivers avoid high-horsepower sports cars, as well as mini cars and small cars, which typically lack adequate crash protection.
IIHS also recommends cars with electronic stability control (ESC) for teens, because ESC substantially reduces the risk of losing control of a vehicle.
Based on a combination of safety ratings and price, a used Ford C-Max Hybrid and new Honda Insight are among the IIHS’s top picks for 17-year-olds and other teens.
| Make and model | Model year | Price |
|---|---|---|
| Ford C-Max Hybrid | 2014‒15 | $8,400 |
| Mazda 3 | 2014 or newer | $8,700 |
| Subaru Legacy | 2013 or newer | $8,300 |
| Subaru Outback | 2013 or newer | $8,800 |
| Toyota Avalon | 2015 or newer | $15,700 |
| Mazda CX-5 | 2014 or newer | $10,200 |
| Honda CR-V | 2015 or newer | $18,100 |
| Nissan Murano | 2015 or newer | $14,700 |
| Honda Insight | New | $26,100 |
| Kia K5 | New | $24,700 |
| Chevrolet Trailblazer | New | $21,900 |
| Hyundai Santa Fe | New | $27,800 |
| Sources: IIHS. Price estimates provided by Kelly Blue Book. | ||
Methodology
Most rates in this article are based on an analysis of hundreds of thousands of auto insurance quotes provided by Quadrant Information Services for 17-year-old drivers in every state and the District of Columbia.
Rates for family policies are based on a review of car insurance quotes for two-parent households in Illinois, New York, Ohio, Texas and Washington state.
Companies that do not publicly disclose their rates through Quadrant Information Services are excluded.
Prices reflect the average of between minimum- and full-coverage car insurance rates quoted by each company.
Minimum-coverage car insurance requirements vary by state. In most states, minimum coverage car insurance includes liability coverage, and many states require uninsured motorist coverage (UM) and/or personal injury protection (PIP).
Full-coverage car insurance includes UM and/or PIP, where required, as well as the following coverages, limits and deductibles:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $100,000 per accident
- Collision: $500 deductible
- Comprehensive: $500 deductible
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