Compare the best auto insurance providers for young and inexperienced drivers.

Many variables are considered by auto insurance providers when determining the insurance rates. However, one of the most important factors considered by most insurers is the driver's age, with teenagers and young adults under the age of 25 paying some of the highest premiums across the board. According to statistics, young drivers are more likely to be involved in an accident than older, more seasoned drivers; they also prefer to drive older, less stable vehicles with less safety features. As a result, when choosing an insurance company for your young driver, consider a number of factors. We combed through carriers' plans, taking into account average premiums, young driver discounts, crash forgiveness programs, and other factors, to compile a list of the best auto insurance providers for teen and young adult drivers (or families with the same). Based on our results, we have made the following decisions: Below are auto insurance deals from our promotional partners, followed by our comprehensive list of the best car insurance providers for teenagers that we've discovered

Teenage Best Car Insurance Company of May 2021

1. Erie insurance is the best overall choice for new drivers.

Erie Insurance, named after its hometown in Pennsylvania, has been providing auto, homeowners, and other insurances since 1925. The business is well-known for its excellent claim settlement record and overall client support. In reality, in its 2019 U.S. Auto Claims Satisfaction Report, J.D. Power ranked Erie as one of the top five insurance companies in the nation. 1 Erie receives an 8 out of 10 rating from the National Association of Insurance Commissioners for auto claims satisfaction and customer service.

Select More Than 2 Insurance Companies for Best Rates In Your Location:

Availability

Unfortunately, Erie is not a national carrier; rather, it is a regional insurer located mainly in the Northeast and Midwest. Its goods are sold in the following states: Kentucky, Maryland , New York Illinois, Indiana, North Carolina, District of Columbia Ohio, Tennessee, Virginia, West Virginia, Wisconsin and Pennsylvania. You can check coverage in your area by going to the Erie Insurance website and entering your zip code.

Coverage Option

Erie Insurance provides all of the state-required auto insurance coverage in the areas it covers. Furthermore, it provides:

• Pet insurance for injuries sustained in a car accident

• Personal property compensation for objects damaged, destroyed, or lost in a car accident.

• Windshield and window glass security

• Coverage for roadside assistance and rental cars

• Services provided by locksmiths

You may also add Erie Auto Plus to your policy for an additional $30 per year. This package includes decreasing and waived deductibles, a $10,000 death insurance, and other enhanced benefits.

Among the many promotions are those that would directly cater to parents of teen drivers or young drivers who are paying for their own insurance policy. Among these offers are:

• Discounts of up to 20% are available for unmarried drivers under the age of 21 who live with their parents.

• Driving Training Discounts are available for drivers under the age of 21 who complete an approved training course.

• Erie Rate Lock, which holds rates consistent year after year regardless of injuries.

• Discounts of up to 25% on multi-car and multi-policy purchases

Digital Experience

Erie Insurance has a great website for a smaller insurance provider that helps consumers to do a lot with their policies. You can use the website to get a car insurance quote, locate a nearby Erie Insurance provider, pay your bill, file a claim, and more. Erie has recently added a mobile app for Android devices. You can monitor your billing, track claims, and do other things from there.

Customer Satisfaction

Despite being a regional car insurance provider, Erie Insurance is serious about customer loyalty. During the 2020 Auto Insurance Study, J.D. Power ranked Erie second in the mid-Atlantic region and third in the North Central region. Erie has an A+ ranking with the Better Business Bureau and a rating of 8 out of 10 from The National Association of Insurance Commissioners for auto claims quality and customer service (NAIC).5 AM Best rates the company's financial strength as A+.

Our Opinion on Erie Insurance

In the insurance industry, Erie Insurance has a long history and an outstanding reputation. Furthermore, Erie has some of the highest insurance rates for young drivers, with premiums that are almost 40% lower than the national average. Of course, premiums vary greatly, but the majority of young drivers save at least 25%. The most obvious disadvantage of Erie Insurance is its restricted supply. Furthermore, Erie Insurance does not encourage consumers to file claims online; instead, they must contact their local agent or call the corporate service center's toll-free number. Customers, on the other hand, seem to be pleased with the insurance claims process as a whole, even though it seems to others to be a little antiquated.

2. Ideal for students in college – Allstate

Some college students can drive to campus every day from home, while others may leave their cars parked for weeks at a time while living on campus. Regardless of your college background, Allstate will leave you in good hands as you work for the degree.

Availability

Allstate is the third-largest car insurance provider in the United States, with plans available in all 50 states. With over 15,000 Allstate agents around the country, you're bound to locate an Allstate agent near you. Allstate wants you to enroll via one of its local agents, but if you prefer a fully online experience, you can look into Insurance, an Allstate subsidiary.

Coverage

As one of the country's largest auto insurance companies, it's no surprise that Allstate provides everything you might expect and more in terms of coverage. Allstate provides roadside assistance with towing coverage, sound system protection for damaged or stolen after-market devices, and rental car reimbursement in addition to all of the standard car insurance coverage forms. If you choose to drive over the border, Allstate also provides rideshare insurance, classic car coverage, and Mexican travel insurance.

Discounts

Obviously, Allstate has a comprehensive list of discounts. However, because of the many ways that college students can save with Allstate, we chose them as the "best for college students."

• A 20% Smart Student Discount is available to students who maintain a B average.

• A 20% Resident Student Discount is available for students who attend college at least 100 miles away from home and do not have a vehicle.

• The Milewise Program, which bases premiums on the amount of miles driven per month

Digital Experience

Although it might not be as flashy as some other company websites, Allstate's website does contain a number of tools and services for consumers. The website is chock-full of blog posts that provide advice on everything from coverage options to relocating and more. Furthermore, before moving to Allstate, prospective customers can receive a quote, contact a local representative, and read about product offers.

Customers can also get a mobile app from Allstate. You can pay your bill, monitor your policies, check the status of a petition, and request roadside assistance all from your smartphone using the app. Clients can also use the driving functionality of the app to track their driving habits, which can be helpful for parents who want to control their teens' driving habits.

Customer Satisfaction

Although Allstate has some decent prices and discounts, the business doesn't seem to stand out as well in terms of customer loyalty as others. During J.D. Power's 2020 Insurance Shopping Report, Allstate was listed in the centre among major national insurers. Having said that, Allstate has an A+ ranking with both the Better Business Bureau and AM Best.

Our opinion on Allstate

Because of its discounts and vast availability, Allstate is an excellent option for many families. In addition to its vast network of local agents, the organisation has a fantastic mobile app and a plethora of online resources. However, several sources say that in many parts of the world Allstate has poor satisfaction scores. In addition, the firm has marginally higher average premiums than the other competitors on this list and is known for cost increases.

3. Best Student Discount – State Farm

State Farm has expanded over the last century to become one of the largest insurance firms in the nation, insuring more cars and homes than any other insurer with 83 million policies in the United States. State Farm has earned the highest score from both AM Best and the Better Business Bureau. Its network of local agents takes pride in offering the best customer service possible.

Availability

State Farm is available nationwide in all 50 states and the District of Columbia. Unlike some companies that work only out of a corporate headquarters— In this digital era more often — State Farm has a decentralised model that works more like a network of local agents.

Coverage

State Farm offers all the needed and desired coverage for any driver nationwide. Additional coverage options include:

• Lyft and Uber drivers can get rideshare insurance.

• Roadside help in an emergency

• Reimbursement for rental car and travel expenses

Discounts

State Farm appears to favour young drivers, especially students. It provides the following breaks:

• Strong Student Discount of 25% for high school and college students who maintain good grades

• Student Away Discount is available to families of a college student who uses the car only while they are at home.

• Anyone who completes an accredited driver safety course is eligible for a defensive driving discount.

Furthermore, State Farm gives a 15% Steer Clear discount to drivers under the age of 25 who maintain a clean driving record with no traffic violations for three consecutive years.

Digital Experience

State Farm's digital experience lags behind that of some of the other car insurance firms on this list. However, the company is improving its website and mobile app offerings. Indeed, the company also provides exclusive mobile applications for its Steer Clear programme and the Drive Safe & Save programme, both of which monitor driving actions. These apps, in particular, appeal to young drivers and their parents because they allow teens to assess their driving habits and learn where they can change in the future.

Customer Satisfaction

Many car insurance customers adore State Farm because it is one of the few national car insurance providers that continues to rely solely on local agents to provide excellent customer service. But don't accept our term — in J.D. Power's latest satisfaction report, please consider State Farm #5. State Farm also has an independent consumer review site, a 4-star (out of five) rating on Consumer Affairs.

Our Opinion On State Farm

State Farm is a venerable and trusted insurance company that is one of the oldest in the United States. It provides a variety of discounts for young drivers, especially students, whether they live at home or are away at school. Although State Farm offers highly competitive auto insurance rates, most reviews and rating sites state that State Farm's customer service is at best mediocre. Furthermore, while State Farm provides services online, such as quote requests and claim filing, the company prefers that you work with one of the company's local agents—a disadvantage for do-it-yourselfers.

4. Best for Good Drivers – Progressive Insurance

Progressive Insurance has become a household name, particularly in the last decade, thanks in large part to its witty advertisements featuring perky agent Flo and, more recently, her nerdy sidekick Jamie. Behind the laughs, however, is a strong business that is particularly concerned with safe drivers.

Availability

Progressive insurance is available in all 50 states and the District of Columbia. However, unlike State Farm, it does not operate through a proprietary network of agents. While some local independent insurance brokers sell Progressive as well as the offerings of other carriers, the majority of Progressive consumers administer their policies electronically.

Coverage

Progressive, like most other auto insurance providers, has all of the standard liability and collision/comprehensive coverages, as well as uninsured motorist coverage and personal injury prevention. Progressive also provides the following:

• GAP coverage

• Assistance on the Road

• Coverage for custom parts and aftermarket additions

• Coverage for ridesharing services

• Deductible Savings Bank, which reduces the deductible amounts the longer you go without being involved in an accident.

• Mexico Auto Insurance is available for those who choose to drive their vehicle across the border.

Discounts

Although several businesses reward safe drivers, Progressive provides one of the industry's best discounts. Those that go three years without having any injuries or breaches will save up to 30% on their annual premiums. Most other companies only give a 10%–20% discount. Furthermore, Progressive provides the following discounts to young drivers:

• Teen Discount is applicable to parents who insure a driver under the age of 18.

• Students in high school and college who hold a B average are eligible for the Good Student Discount.

• Families with a child away at college will take advantage of the Distant Student Discount.

• Online Quote Discount, which offers a 4% discount simply for quoting the insurance online.

• Customers who pay six months' worth of premiums in advance receive a paid-in-full discount.

Digital Experience

Progressive has one of the best digital experiences of any of the major car insurance firms on this list. The Progressive website has a number of helpful features that can assist drivers in saving money, such as the Name Your Price Tool and side-by-side Comparison Tool. Furthermore, Progressive's mobile app allows consumers to get 24/7 roadside assistance, file a petition, make payments or policy changes, and even get digital ID cards with a few swipes.

Customer Satisfaction

When it comes to customer loyalty, Progressive ranks in the centre of most large auto insurance providers. J.D. Power, for example, ranked Progressive in the bottom half (17th out of 25th) of insurers in its 2019 Auto Claims Satisfaction Report. Furthermore, the Better Business Bureau gives Progressive an A+ grade, but consumer feedback on the BBB website is mixed.

Our Opinion on Progressive Insurance

Given that Progressive has some excellent tools for comparing prices and finding coverage that matches your budget, it's ironic that many consumers and independent review sites find the company's rates to be, on average, higher than those of some of the other companies on our list. Of course, that doesn't include any other discounts your young driver might be eligible for, especially the enticing 30 percent off if they're a good driver. Unfortunately, J.D. Power's most recent ratings indicate that policyholders are dissatisfied with claim payouts, so keep that in mind if you're thinking of going with Progressive.

5. Best for Forgiving Accidents- Nation wide

As we mentioned in the introduction, young drivers are among the most likely to be involved in a car accident. In reality, the CDC reports that teenage drivers are nearly three times more likely than their older counterparts to be involved in a fatal accident. Many insurance providers significantly raise the cost of your insurance after an accident, particularly if you and your family are found to be at fault. Nationwide Insurance has one of the best injury forgiveness plans in the industry, which is why it's on our list of the best insurance options for young drivers.

Availability

Nationwide Insurance offers policies in the majority of states. To paraphrase the company's catchphrase, Nationwide is not "on your side" in Alaska, Massachusetts, Hawaii, or Louisiana.

Coverage

Nationwide provides all of the personal and auto coverages needed for your teen driver. Nationwide Insurance also provides the following specialised coverages:

• Roadside Assistance is available at all times of the day and night.

• Policies With No Deductibles

• Waivers with Total Loss Deductible

Then there's the Accident Forgiveness scheme. Most insurance providers do not extend accident forgiveness to additional drivers on a contract, and others do not sell it to drivers under the age of 18. Nationwide provides both services. Given how many teenagers are added to their parents' insurance policies and how their premiums can skyrocket by up to 30 percent after their first at-fault event, Nationwide's coverage can provide substantial savings.

Discounts

Nationwide is highly competitive with all of the other insurance firms on this list when it comes to discounts. Nationwide provides the following benefits to young drivers in particular:

• Drivers may use the SmartRide programme to monitor their usage and driving habits.

• Students in high school and college who hold a B average are eligible for the Good Student Discount.

• Defensive driving discounts are available to those who complete a qualifying driver safety course.

• Multi-car and multi-policy benefits are available to families who combine their insurance coverages.

Digital Experience

Nationwide's website and mobile app, like that of most other major auto insurance companies, make it easier to manage your car insurance policy. Nationwide's website has some excellent tools, as well as a consumer portal from which you can pay bills, track policies, and access documents from the comfort of your own home. You can track your policy, file a claim, request for roadside assistance, and even access your insurance ID cards if you don't have them in your glove box using Nationwide's mobile app.

Customer Satisfaction

Nationwide claims to be "on your side," but according to consumer satisfaction ratings, it depends on who you ask. The Better Business Bureau has given the company an A+ grade. However, in J.D. Power's 2019 Auto Claims Satisfaction Report, it ranked in the centre (10th overall). According to our report, while the majority of customers are pleased with their overall experience with Nationwide, those who file claims believe the wait time is excessive. Although this can be aggravating in the short term, it is not a deal-breaker.

Our Opinion on Nationwide

We suggest Nationwide to everyone who is concerned that their young driver may be involved in an accident. Furthermore, if a family's young driver practices healthy driving patterns, Nationwide's SmartRide Program will save them up to 40%. However, nationwide is not accessible in all states. Furthermore, the Accident Forgiveness scheme isn't available everywhere, so speak with Nationwide about the coverage choices before enrolling.

6. Most Suitable for Military Family – USAA

Because of its low premiums and excellent customer support, USAA auto insurance is unquestionably the best option for active or retired military members and their families. In reality, J.D. Power ranks USAA as the third-best carrier in the nation, and even higher in some regions.

Availability

While USAA is available in the United States, enrollment is restricted to military families. Enrollment is, in practise, restricted to serving, retired, and honourably separated members of the United States military, ROTC and other commissioning programme officer candidates, and adult children of USAA members.

Coverage

USAA provides rideshare coverage for Lyft and Uber drivers, 24/7 roadside assistance, and towing coverage in addition to the mandatory minimum car insurance coverage. The latter two can be particularly useful for young drivers who are vulnerable to accidents.

Discounts

USAA provides substantial discounts to all of its customers. However, when it comes to benefits tailored specifically to young drivers, USAA provides the following:

• Family discounts for those under the age of 25

• A Driver Training Discount is available to those under the age of 21 who complete a training course.

• Good Student Discounts are available to high school and college students with a B score.

Digital Experience

While you would not expect it from a smaller insurance company with a small customer base, USAA provides a great digital interface for its customers. Customers can use the USAA website to get free quotes, review coverage options, and even study insurance and money management advice. You may also file claims online and receive claim status updates via email or text message. Furthermore, the USAA mobile app allows customers to pay their bills, access digital ID cards, and even begin the claims process in a safe manner.

Customer Satisfaction

Despite the fact that USAA only insures a small number of drivers, the company consistently delivers some of the best customer support in the industry. In reality, J.D. Power consistently gives USAA high marks in their annual car insurance surveys. Furthermore, many USAA customers stay with the company for life.

Our Opinion on USAA

USAA has fantastic prices and excellent customer service. For tech-savvy consumers, the business also has a robust website and mobile app. However, since it is only open to military families, USAA has restricted eligibility. Furthermore, since the organisation does not have any local agents, the only choice is to use the website or call USAA's toll-free number, which is available 24 hours a day, seven days a week.

FAQs

What Kinds of Coverage Are Available?

With a few exceptions, most auto insurance companies provide:

• Physical Injuries and Property Damage When you are the at-fault driver, you are obligated to pay for the other party's medical treatment and penalties.

• Collision coverage to cover damage to your own car, regardless of fault.

• Non-accident related liabilities are covered by comprehensive coverage.

• In the event of an accident, Personal Injury Protection/Hospital Payments will cover the medical expenses

• Uninsured Driver Coverage for the losses and medical costs if the at-fault driver lacks adequate coverage.

• Guaranteed Asset Protection (GAP) coverage to compensate the difference between the lease or loan on your vehicle and the determined value in the event of a complete loss.

How much coverage do you require?

Given the depressingly high likelihood of a young driver being involved in an accident, the more publicity the better, particularly if your teen or college student is driving a relatively new car under a lease or loan. However, since most states only need minimal coverages, you can sometimes save money by only insuring a car and its driver for the minimum amount of insurance.

Will Teen Drivers Be Covered by Their Parents' Insurance?

They certainly will. Almost all insurance providers allow you to add drivers to existing policies; in reality, a driver must be identified in the policy to be protected (insurance factors not only the vehicles on the policy but the listed drivers for each car). This means that before filing any lawsuit involving your teen, you must have them listed on your policy. It is not possible to extend coverage retroactively. Before immediately linking your newly licensed teen driver to your car insurance, always shop around for the best deals. Since companies often provide discounts to multi-drivers and loyal customers, your current carrier should be your first stop. With that said, some companies charge more to add a young driver than others, and it never hurts to know what other options some insurers might offer—if nothing else, for negotiating with the carrier.

In Conclusion

While young drivers are often among the most costly to insure, there are ways to save money by selecting companies that provide low rates, student discounts, and strong accident forgiveness plans. Although we strongly suggest the five insurance companies on this list, it's still a good idea to browse around and compare prices before committing to one company for the long term.

How We Selected the Top Car Insurance Companies for Teens

When determining the best auto insurance providers for young drivers, we looked not only at each company's financial strength and scores with companies like J.D. Power and the Better Business Bureau, but also at premium comparisons and discount offerings reported on insurance agency websites and in independent reviews.