The Cheapest Car Insurance for 17-Year-Olds Can Be Found With Erie Insurance for $261 per Month or $3,137 per Year for a Full-Coverage Car Insurance Policy
Discover if you are overpaying for car insurance below
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The Cheapest Car Insurance for 17-Year-Olds Can Be Found With Erie Insurance for $261 per Month or $3,137 per Year for a Full-Coverage Car Insurance Policy
Discover if you are overpaying for car insurance below
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Car insurance is expensive for teens, but some companies offer better rates on average than others. We at the MarketWatch Guides Team have compared the cheapest car insurance companies for a variety of drivers across the country. Learn how to get affordable coverage for a 17-year-old here.
According to our rate estimates, 17-year-olds pay an average of $5,612 per year or $468 per month for individual full-coverage car insurance policies. This is about three times the national average for middle-aged drivers, which is $1,730 per year. Car insurance for 17-year-olds is expensive because young drivers have less experience and are more likely to get into an accident.
Even the best car insurance for 17-year-olds is going to be more expensive than car insurance for other age groups. This is because teen drivers are statistically more likely to get into car accidents than older drivers.
Seventeen-year-olds have less driving experience than older drivers, so car insurance companies see them as high-risk drivers. And that’s not without reason. According to the AAA Foundation for Traffic Safety, 16-year-old and 17-year-old drivers were about 4.5 times more likely to get into an accident as drivers in their 30s, 40s and 50s in 2015.
Age Group | Crashes per 100 Million Miles Driven |
---|---|
16-17 | 1,432 |
18-19 | 730 |
20-24 | 572 |
25-29 | 526 |
30-39 | 328 |
40-49 | 314 |
50-59 | 315 |
60-69 | 241 |
70-79 | 301 |
80+ | 432 |
The likelihood of an at-fault accident is a huge factor in how much car insurance costs.
Not all car insurance companies charge the same amount for 17-year-old drivers. That’s because no two insurance providers are the same, and they all have different methods for calculating insurance premium costs.
Several factors influence car insurance quotes for 17-year-olds, including their age, location, driving history and credit score. The sections below show the cheapest car insurance companies for 17-year-old drivers.
Our estimates show Erie Insurance is the cheapest regional provider with average rates of $3,137 per year or $261 per month. USAA is the cheapest national provider with average rates of $3,398 per year or $283 per month.
Below are 11 popular car insurance companies ranked by full-coverage insurance cost for 17-year-olds with their own policy.
Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
---|---|---|
Erie Insurance | $261 | $3,137 |
Auto-Owners | $267 | $3,207 |
USAA | $283 | $3,398 |
Geico | $304 | $3,646 |
State Farm | $309 | $3,714 |
American Family | $351 | $4,210 |
Nationwide | $353 | $4,238 |
Travelers | $440 | $5,277 |
Market Average | $468 | $5,612 |
Allstate | $567 | $6,804 |
Farmers | $718 | $8,613 |
Progressive | $788 | $9,457 |
*Car insurance estimates are based on full-coverage policies with $50,000 bodily injury per person, $100,000 bodily injury per accident and $50,000 property damage per accident plus a $500 deductible for collision coverage and comprehensive coverage.
The cheapest provider in one state isn’t necessarily the cheapest in another. State laws vary and companies can evaluate risk differently between states. Below, you’ll find the provider with the cheapest average annual rate estimate for 17-year-old drivers in each state.
State | Car Insurance Company | Annual Cost Estimate |
---|---|---|
Alabama | USAA | $2,804 |
Alaska | USAA | $2,761 |
Arizona | Geico | $2,592 |
Arkansas | Southern Farm Bureau | $2,905 |
California | USAA | $3,520 |
Colorado | Southern Farm Bureau | $2,775 |
Connecticut | Geico | $2,731 |
Delaware | State Farm | $3,402 |
District of Columbia | Erie Insurance | $2,962 |
Florida | Geico | $3,831 |
Georgia | USAA | $2,849 |
Hawaii | USAA | $1,006 |
Idaho | State Farm | $1,813 |
Illinois | Country Financial | $2,534 |
Indiana | Indiana Farmers Mutual Insurance | $1,954 |
Iowa | State Farm | $2,169 |
Kansas | Nationwide | $2,753 |
Kentucky | Geico | $2,881 |
Louisiana | USAA | $3,919 |
Maine | Auto-Owners | $1,289 |
Maryland | USAA | $2,891 |
Massachusetts | Geico | $6,296 |
Michigan | Auto-Owners | $4,776 |
Minnesota | State Farm | $2,726 |
Mississippi | USAA | $2,389 |
Missouri | USAA | $1,943 |
Montana | QBE Insurance | $2,719 |
Nebraska | Farmers Mutual of Nebraska | $2,812 |
Nevada | Geico | $3,373 |
New Hampshire | MMG Insurance | $1,902 |
New Jersey | Geico | $2,777 |
New Mexico | USAA | $2,362 |
New York | Geico | $4,364 |
North Carolina | Nationwide | $1,931 |
North Dakota | North Star Insurance | $2,515 |
Ohio | Erie Insurance | $2,136 |
Oklahoma | American Farmers & Ranchers | $2,544 |
Oregon | Country Financial | $2,456 |
Pennsylvania | Travelers | $2,929 |
Rhode Island | Geico | $3,928 |
South Carolina | American National | $1,843 |
South Dakota | State Farm | $3,020 |
Tennessee | Erie Insurance | $2,706 |
Texas | Redpoint County Mutual | $1,656 |
Utah | Geico | $3,356 |
Vermont | Auto-Owners | $1,518 |
Virginia | Virginia Farm Bureau | $2,760 |
Washington | USAA | $3,459 |
West Virginia | State Farm | $2,582 |
Wisconsin | State Farm | $2,687 |
Wyoming | American National | $2,089 |
The cheapest states for 17-year-old policyholders include Hawaii, Iowa, North Carolina and Ohio.
State | Annual Cost Estimate | Monthly Cost Estimate |
---|---|---|
Hawaii | $1,951 | $163 |
Iowa | $3,077 | $256 |
North Carolina | $3,089 | $257 |
Ohio | $3,172 | $264 |
Vermont | $3,221 | $268 |
Maine | $3,342 | $279 |
Indiana | $3,589 | $299 |
Virginia | $3,720 | $310 |
Idaho | $3,808 | $317 |
Minnesota | $4,003 | $334 |
*Hawaii doesn’t allow age to directly affect car insurance prices.
While 17-year-olds pay an average of $5,612 per year for auto insurance policies nationally, some pay twice that in certain states. The average cost of car insurance is highest in Connecticut, Michigan and Florida.
State | Monthly Cost Estimate | Annual Cost Estimate |
---|---|---|
Connecticut | $961 | $11,527 |
Michigan | $960 | $11,518 |
Florida | $832 | $9,986 |
Louisiana | $784 | $9,413 |
Massachusetts | $693 | $8,318 |
Delaware | $669 | $8,026 |
Nevada | $650 | $7,800 |
Rhode Island | $644 | $7,726 |
New York | $601 | $7,217 |
New Jersey | $583 | $6,996 |
Our top picks for car insurance for 17-year-olds all offer lower rates than the national average as well as various discounts that apply to young drivers.
Car Insurance Company | Overall Rating | Our Award |
---|---|---|
1. State Farm | 9.4 | Best Customer Experience |
2. Erie Insurance | 9.4 | Best for Basic Insurance Coverage |
3. Geico | 9.1 | Best for Budget-Conscious Drivers |
4. USAA | 9.2 | Best for Military Members |
5. Auto-Owners | 8.9 | Best for Young Drivers |
*The overall rating applies to a standard driving profile while the ranking order applies to 17-year-old drivers.
*Cost data taken from 2022 information
There are several factors beyond age that influence the cost of an auto insurance policy — some of which are in your control. You can get quotes from different providers and find low rates in the following ways.
The type and level of coverage you want will definitely influence your car insurance rates. Most states only require liability coverage, which pays for other vehicles and other people’s medical bills when you cause an accident. This is the cheapest option.
But if you have an auto loan, you’ll need full coverage, which includes collision and comprehensive coverage. These cover damage to your car when you cause an accident or run into an object. You can set your policy limits to manage the cost.
Raising your deductible can lower your car insurance payment. However, you’ll have to pay more out of pocket if you get into an accident, so don’t make the deductible unreasonably high.
Car insurance for teens is already expensive, which is why it’s important to keep a clean driving record. A good driving history allows you to qualify for safe driver discounts.
By far, the best way to save money on teen car insurance is to add the young driver to a parent’s policy. Having a separate policy will almost always be more expensive, even if you shop from the best providers.
Seventeen-year-olds can get certain discounts that other drivers might not have access to. Discounts like the ones below can help alleviate the stress of paying higher rates for insurance.
You can also look for accident forgiveness as an add-on. Accident forgiveness keeps your rates the same if you get into one at-fault accident. Some companies only offer this option after a few years of coverage, though.
Seventeen-year-olds with good driving records can find lower-than-average rates from providers like Erie, Auto-Owners, USAA, Geico and State Farm. We recommend comparing at least three car insurance quotes when you shop.
Below are frequently asked questions about cheap car insurance for 17-year-old drivers.
Based on our research, Erie Insurance provides the cheapest car insurance for 17-year-olds at $261 per month or $3,137 per year for a full-coverage policy. Auto-Owners and USAA can also be affordable options.
Our cost estimates show that 17-year-old drivers in CT can find affordable coverage in the state for $228 per month or $2,731 per year from Geico.
There are many cheap cars for 17-year-olds to insure, from compact cars to sedans and midsize SUVs. In general, sports and luxury cars tend to be more expensive to insure, so avoid those. Also, insurance is less expensive if you own a car outright and don’t have to carry full coverage.
Car insurance for a base-model Dodge Charger only costs slightly more than a standard vehicle, even for a 17-year-old. However, upgrading to higher performance models like the Scat Pack with 485 horsepower or the SRT Hellcat with 650 horsepower will increase your risk level in the eyes of insurance companies and cost more.
Yes, 17-year-olds can pay monthly for car insurance. All major providers offer monthly payment arrangements. Some give slight discounts for paying for the entire six months or year up front, while others don’t.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
Our credentials:
*Data accurate at time of publication.
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