Understanding the average cost of car insurance for 17-year-old drivers and what impacts premium prices is the first step. Find out more about the best auto insurance for 17-year-olds (and your budget) below.
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What is the Best Auto Insurance for 17-Year-Olds?
The right auto insurance policy for a 17-year-old is the one that meets their and their parents’ needs without breaking the bank. The right policy should:
- Provide the right level of coverage to pay for potential damages that might be caused to other vehicles in an accident
- Ensure the teen or family can pay off any debt owed on the car if it’s totaled in an accident
- Not be so expensive that it puts serious financial strain on the teen or the household
Typically, a 17-year-old cannot purchase an auto insurance policy in his or her name—you usually have to be the age of majority in your state to do that. For this reason, parents or adult guardians must purchase policies for teens or add them to their own policies—whether the teen is involved in paying for their own insurance or not.
What Factors Impact Car Insurance Costs for 17-Year-Old Drivers?
A person’s age plays a big role in how much their car insurance costs. But the price for insurance for teen drivers is also impacted by all the factors that impact the costs for people of all ages. Check out the table below to learn more about factors other than age that can drive car insurance prices up or down.
|Factor||What is it?||Impact to price|
|Coverage type||Liability coverage is mandated in most states, but you can also choose to add additional coverage such as comp and collision.||Liability-only policies are cheaper than full-coverage policies.|
|Coverage amount||You can get liability coverage in various amounts.||The more coverage you get, the more expensive premiums tend to be.|
|Deductible amount||Many insurance companies let you pick a deductible amount for claims. Common options are $500 or $1,000, but you may have options that are less or more than those.||The lower the deductible you select, the more your premiums tend to be.|
|Driver gender||The gender of the driver being insured can impact cost.||Male teen drivers tend to pay more for auto insurance premiums than female teen drivers.|
|Vehicle type||This refers to the make and model as well as the value of the vehicle.||Cars that present more risk, such as those that are geared toward fast driving, drive up insurance costs. Costs for full coverage also tend to be more for vehicles that have higher values.|
|State||Car insurance varies by state.||Florida, Louisiana, California, New York, and Nevada have some of the highest average car insurance rates. Maine, Virginia, Ohio, and Idaho have some of the lowest car insurance rates.|
|Discounts||Many car insurance companies offer discounts to help save money.||Teen drivers may save with multivehicle, good student, and defensive driver course discounts.|
How Much is Car Insurance for 17-Year-Olds?
The average cost of full coverage car insurance for a 17-year-old ranges from around $485 to just over $700 a month. Liability-only car insurance costs between $200 and $300 on average for 17-year-old drivers.
Car Insurance Costs for 17-Year-Old Males VS. 17-Year-Old Females
Auto insurance for 17-year-old males is typically more expensive than auto insurance for 17-year-old females. Females of this age pay around $70 less per month on average for car insurance.
What is the Cheapest Insurance for 17-Year-Olds?
For 17-year-old drivers, the cheapest car insurance tends to be through companies including Erie Insurance, USAA, and Geico.
|Company||Average monthly premium, full-coverage policy for 17-year-old drivers|
For most teen drivers, the least expensive option for car insurance is to be added to a parent or guardian’s insurance policy. Families can save around 50% by doing this rather than purchasing an individual policy for the teen and their car.
Why Do Insurance Companies Charge More for Teen Drivers?
Insurance companies base auto insurance prices on risk factors. The more risk the company takes on in insuring someone, the more it charges.
Teen drivers are considered a bigger risk than older drivers, partly due to accident statistics. The Centers for Disease Control and Prevention, for example, indicates that teen drivers are 300% more likely to be involved in a fatal accident than their older counterparts.
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