Tag: policyholder

Teens lack experience and maturity behind the wheel, making them a higher risk for having car accidents. This elevated risk drives up auto insurance premiums for teen drivers. That’s why it’s important to secure an insurance policy with strong coverage that protects your teen as well as your family’s finances at an affordable price.

To help families find the best car insurance for teen drivers, Yahoo Finance compared 20 major auto insurers. Our analysis focused on key factors, including the average cost for teen drivers, available teen-driver discounts, coverage options, claims handling, and the digital experience. After reviewing in-depth data, our editors identified some of the best auto insurance providers that can help teen drivers and their families get the coverage they need at a cost that won’t overwhelm their budget.

The Hartford’s budget-friendly teen-driver pricing, teen-focused discounts, helpful coverage offerings, and terrific digital experience make it our top choice for teen drivers. Parents will see additional savings if they’re AARP members. The Hartford’s national reach and online quoting make it easy to shop and compare.

The Hartford pros and cons

Pros

• Cheapest rates for teenage drivers among the insurers we analyzed

• Offers discounts for driver’s education, good students, and students away at school

• Offers roadside assistance, accident forgiveness, and a disappearing deductible

• The Hartford’s mobile app received a 4.7 (out of 5) average rating by users

Cons

• Its UBI program, TrueLane, can increase rates for risky driving behavior

• Doesn’t offer a pay-per-mile plan or OEM parts coverage

• Average cost for teen driver: $236 per month (lowest in our analysis)

• Availability: 50 states and D.C.

• Crash Network grade for claims handling: C+

• Coverage offerings: 13 options

• Available discounts: 11 types (three specific to teens or young drivers)

• Digital experience score: 4.7 (out of 5)

Learn more: The Hartford auto insurance review

American Family is a strong contender for families with a teen driver due to its solid coverage options, teen-tailored discounts, and second-lowest rates for teen drivers among the 20 auto insurers we analyzed. We also found it a top pick for drivers after an accident or ticket, both situations that may occur as a teen driver gains experience behind the wheel. If the teen buys their own policy, a generational discount is available if a parent is already an American Family customer.

American Family pros and cons

Pros

• Second-lowest rates for teen drivers in our analysis

• Offers roadside assistance, accident forgiveness, and diminishing deductible

• Youth discounts include good student, student away, and young volunteer

Cons

• Its mobile app’s average score of 3.95 (out of 5) is lower than most competitors

• Limited availability in the U.S.

• Its UBI program, DriveMyWay, can raise rates on riskier drivers

• Average cost for teen drivers: $239 per month (second-cheapest)

• Availability: 19 states (mostly located in the Midwest and the West)

• Crash Network grade for claims handling: C+

• Coverage offerings: 11 options

• Available discounts: 17 types (four specific for teens or young drivers)

• Digital experience score: 3.95 (out of 5)

Learn more: American Family auto insurance review

Farmers offers reasonable teen-driver pricing and teen-focused discounts to help families save even more on car insurance costs. Notable discounts include a youthful driver discount for those under 25 who are the child (or grandchild) of a policyholder who has been with Farmers for at least a year, and a shared family car discount for drivers 20 or younger in a household that has more drivers than vehicles. Farmers also offers a wide variety of coverage options so you can customize your policy to fit the family’s needs.

Farmers pros and cons

Pros

• Teen prices are lower than average

• Good student and distant student discounts are available

• Offers accident forgiveness, diminishing deductible, and roadside assistance

• Average mobile app score of 4.75 (out of 5)

Cons

• Doesn’t offer a discount for a teen driver education course

• Their claims handling score is only average

• Riskier drivers can see higher rates with its UBI program, Signal

• Average cost for teen drivers: $284 per month

• Availability: 50 states and D.C.

• Crash Network grade for claims handling: C-

• Coverage offerings: 17 options

• Available discounts: 19 types (four specific to teens or young adults)

• Digital experience score: 4.75 (out of 5)

Learn more: Farmers auto insurance review

Safeco may not have the lowest prices, but its discounts can help bring down the cost of car insurance for teens. Beyond the usual discounts for young drivers, Safeco offers a discount just for new teen drivers if their parents have had a Safeco policy for at least a year. It also offers a decent range of coverage, including helpful options to novice drivers, such as accident forgiveness, diminishing deductible, and roadside assistance. As part of their loyalty program, you get small claim forgiveness for claims under $750.

Safeco pros and cons

Pros

• Safeco’s mobile app earned a high mark of 4.75 (out of 5)

• Offers accident forgiveness, diminishing deductible, and roadside assistance

• Good student, driver’s education, distant student, plus new teen driver discounts are available

• Has a claims-free cash back program at each renewal

Cons

• Low grade of D+ for its claims handling

• Teen driver prices are slightly above average

• If found to be a risky driver, its UBI program, RightTrack, can raise your rates

• Average cost for teen drivers: $315 per month

• Availability: Licensed in all states and D.C.

• Crash Network grade for claims handling: D+

• Coverage offerings: 13 options

• Available discounts: 6 types (four specific for teens or young adults)

• Digital experience score: 4.75 (out of 5)

Learn more: Safeco auto insurance review

Travelers is a solid option for families seeking a competitive lineup of discounts and customizable coverage. Its teen rates are a few dollars above average, but Travelers offers discounts to students with good grades, teens who have completed a driver education course, and students away at school more than 100 miles from home without a car. Travelers offers a Premier Responsible Driver Plan that includes accident forgiveness, minor violation forgiveness, a decreasing deductible, and a total loss deductible waiver.

Travelers pros and cons

Pros

• Offers accident forgiveness, minor violation forgiveness, and a decreasing deductible

• Offers student away, good student, and driver training discounts

• Roadside assistance and trip interruption coverage

• Average mobile app score of 4.65 (out of 5)

Cons

• Teen driver ratings are a little above average

• Received only an average grade (C) for its claims handling

• Risky drivers may see a rate hike, instead of a discount, with Travelers’ UBI program, IntelliDrive

• Average cost for teen drivers: $299 per month

• Availability: 50 states

• Crash Network grade for claims handling: C

• Coverage offerings: 14 options

• Available discounts: 14 types (three specific to teens or young adults)

• Digital experience score: 4.65 (out of 5)

Learn more: Travelers auto insurance review

We evaluated 20 major insurance companies to determine which were best for teen drivers. The top spot went to The Hartford, which earned 5 stars (out of 5). The runner-up was American Family (4.9 stars), which also ranked as the top company on our overall best car insurance list.

See the star ratings for all the insurers we analyzed for our best car insurance for teens rankings.

Car insurance companies offer a variety of discounts to help you lower your overall premium. Families with teen drivers can receive discounts tailored to young drivers. The specifics of the discount vary by insurer, but here are the basics for the three main teen-centered discounts:

• Driver education/training discount: Teens who complete an approved driver training course may qualify for a discount. This discount encourages novice drivers to hone their skills, reducing their risk of accidents.

• Good student discount: For full-time students under 25 who maintain good grades. Insurers typically require a B average or higher. Academic success is seen as a sign of responsibility, which insurers correlate with safer driving.

• Student away discount: For families with a student who lives 100 miles or more away from home and doesn’t have regular access to the household vehicles. With the student having limited access to household vehicles, their overall risk to insurers is lower.

Some auto insurers offer other discounts for teens or their families. Here are some we have found, though availability can vary by state:

• AAA: New young driver discount for when a driver under 20 is added to an existing policy.

• Allstate: Discount for completing the teenSMART driver safety program.

• American Family: Young volunteer discount for drivers under 25 who complete 40 hours of volunteer work per year. Generational discount for young adults starting their own policy, and a parent is an American Family policyholder.

• Farm Bureau: Drivers under 25 who complete a Farm Bureau Young Driver Safety program are eligible for a discount.

• Farmers: Youthful driver discount for adding a driver under 25 who lives in the household and is the child or grandchild of a Farmers policyholder. Also, a shared family car discount is available for a driver aged 20 or younger when there are more drivers than vehicles in the household.

• Liberty Mutual: Their new teen driver discount is available when you add a teen driver to your policy.

• Progressive: Teen driver discount for adding a driver 18 or younger to a Progressive policy that has been active for at least a year.

• Safeco: New teen discount for Safeco policyholders of at least one year who add a teen driver to their policy.

• State Farm: Teens may earn a discount by completing State Farm’s Steer Clear driver training program.

Learn more: Car insurance discounts: 17 ways to save

Teen auto insurance costs vary by insurer, making comparison shopping essential to find the lowest rates. For insurers in our evaluation, the average monthly premium for a full coverage policy with a teen driver is $296, according to data from the auto insurance marketplace Savvy Insurance Solutions.

Learn more: Cheapest car insurance for teens

There are common rating factors that car insurance companies use to determine rates for teenagers. Costs vary among insurers because each company weighs these risks differently.

Here are the common factors car insurance providers use when calculating rates:

Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save.

When you have teen drivers on your policy, it’s not the time to skimp on coverage and limits. Drivers ages 16 to 19 have an accident rate nearly four times that of drivers age 20 or older, according to the Insurance Institute for Highway Safety. Because teen drivers are at high risk of being in an accident, it’s recommended that you carry a full coverage car insurance policy with higher liability limits.

A full-coverage policy includes state-required coverages, such as liability insurance, as well as comprehensive and collision coverage.

Liability insurance pays for bodily injury or property damage you cause others in an accident, up to your limits. States have minimum liability limits, but it’s wise to choose higher limits that are less likely to be exceeded. Limits of 100/300/100, which stands for $100,000 of bodily injury liability per person, $300,000 of bodily injury liability per accident, and $100,000 of property damage liability per accident, are considered decent.

Liability insurance doesn’t cover your car; for that, you need collision and comprehensive coverage. Collision coverage pays for repairs or replacement of your vehicle after an auto accident. Comprehensive coverage pays for damage caused by severe weather, fire, vandalism, theft, hitting an animal, or falling objects. Collision and comprehensive coverage come with a deductible, an amount that is deducted from a claim payout.

States may require other coverages that cover medical expenses if you are injured in an accident, such as personal injury protection, medical payments, or uninsured motorist coverage.

You can also add on other coverage types to tailor your auto policy to your specific needs. Here are three coverage types that may be especially helpful if you have a teen driver:

• Accident forgiveness: Forgives one accident, meaning your rates won’t increase after your first accident claim.

• Diminishing deductible: Lowers your collision deductible amount over time for safe driving. For instance, an insurer will lower your deductible by $100 for each year you maintain a clean driving record. For example, a $1,000 deductible could be reduced to $500 after five years.

• Roadside assistance: This add-on typically includes services like towing a disabled vehicle, changing a flat tire, jump-starting a dead battery, and lockout assistance.

Learn more: Most common types of car insurance explained

Here are tips for finding the best teen auto insurance.

Having a teen on your policy means the odds of them having an accident are high, so it’s smart to choose higher liability limits. Include collision and comprehensive coverage if you want protection for your car. And, consider add-on coverage options that could help you save in the long run, such as accident forgiveness.

Once you know what coverage and limits you want, shop around with at least three companies to see who is offering the coverage you want at a price you can afford. Comparing car insurance quotes is the best way to find the lowest rates.

Some discounts are automatically applied as you fill out a quote form, but others you have to ask about. For example, you usually have to speak to an agent to get a good student discount or student away discount. Asking an agent if you’re eligible for discounts not already applied can help you find more ways to reduce your auto insurance premium.

Take time at least once a year to evaluate your car insurance needs and make sure your policy’s coverages and limits still fit them. If you make changes during the year, such as buying a car, make sure to adjust your policy accordingly. You may also want to shop around again and switch car insurance companies if it makes sense for your finances.

Learn more: Does buying car insurance online save you money?

The Hartford received 5 stars and was ranked the best car insurance company for teens in Yahoo Finance’s analysis of 20 auto insurers. American Family was a close second, earning 4.9 stars. To determine which company is best for your situation, identify your needs and comparison shop with multiple auto insurers.

The Hartford offers the cheapest insurance for teen drivers with a cost of $236 per month, according to Yahoo Finance’s analysis. American Family came in second at $239 per month. To find the cheapest car insurance for your teen driver, you’ll want to shop around since rates vary based on your family’s specific information, such as location, vehicle, and coverage choices.

The most common discounts offered to teen drivers include a good student discount (for maintaining a B average or better), a driver education discount (for completing an approved course), and a student away discount (for full-time students far away from home without a car). Ask your agent if these or other discounts are available to help lower the cost of adding a teen to your policy.

Tim Manni edited this article.

To identify the best car insurance companies for teen drivers, Yahoo Finance evaluated 20 insurers across price, teen-specific discounts, claims performance, digital experience, and protective add-ons. Each company was scored using a standardized rubric designed to reflect what matters most to families adding a young driver to a policy.

All factors were converted to a standardized point scale and combined into a composite score for each insurer. Rates and teen-specific discounts carried the most weight, followed by claims performance, app experience, and protective add-on coverage.

1. Teen rates: 40% of score. The average rate estimates are provided by Savvy Insurance Solutions (“Savvy”). Savvy operates a marketplace for home and auto insurance, plus an agency licensed in all 50 states. Estimates are generated using Savvy’s in-house machine learning models based on over 3 million data points, and include more than 15 of the largest insurance companies in Savvy’s nationwide data set. Savvy creates estimates by running models against multiple inputs to the parameters of interest. For instance, the “teen driver” estimates were created by adjusting the policyholder age input into the pricing model while keeping all other variables steady from the baseline for “full coverage.” Full coverage car insurance includes liability insurance, any other state required coverage, plus collision and comprehensive coverage.

2. Teen-focused discounts: 35% of score. Insurers were evaluated on the availability and quality of discounts most relevant to young drivers. Points were awarded for each of the following: good student discount, driver’s education discount, student-away-from-home discount, and usage-based insurance (UBI) programs. For UBI programs, we differentiated between programs that could raise a teen’s premium based on the UBI data versus those that did not. Additional points were awarded for other teen-oriented discounts, such as family multi-car discounts, safe-driving rewards, and new-driver training incentives.

3. Protective, teen-focused add-on coverage: 15% of score. We awarded additional credit to insurers that offer coverage features that can reduce financial risk for families with teen drivers: accident forgiveness, roadside assistance, and diminishing deductibles. Each available add-on contributed incremental points to the insurer’s total.

4. Claims handling performance: 5% of score. We incorporated grades from the 2025 CRASH Network Insurer Report Cards, which reflect feedback from collision-repair professionals about how insurers handle real-world claims. Companies with higher CRASH scores – indicating fairer repair processes and better support for policyholders – received more points.

5. Digital experience: 5% of score. Managing a policy, tracking discounts, and filing a claim often happens through a mobile app. We averaged Apple App Store and Google Play ratings to create an app-experience score. Insurers with highly rated, easy-to-use apps earned more points.

Unless stated otherwise, the estimates above are provided by Savvy Insurance Solutions (“Savvy”). Savvy operates a marketplace for home and auto insurance, plus an agency licensed in all 50 states. Estimates are generated using Savvy’s in-house machine learning models based on over 3 million data points, and include more than 15 of the largest insurance companies in Savvy’s nationwide data set. This includes data from more than 2 million insurance accounts connected through Trellis Connect, an in-house technology allowing consumers to “link” their insurance accounts before searching for insurance, and tens of thousands of policies bound by Savvy’s own agents. It takes into account a myriad of factors to create predictions, such as:

• Policyholder age

• Number of vehicles

• ZIP code

• Vehicle age

• Insurer

• … and more

Savvy creates estimates by running models against multiple inputs to the parameters of interest. For instance, the “teen driver” estimates were created by adjusting the policyholder age input into the pricing model while keeping all other variables steady from the baseline for “full coverage.” The models enable hyper-personalized estimates that take into account a plethora of user attribute permutations (e.g., teen drivers in specific states, teen drivers with new vehicles, teen drivers in specific states with new vehicles) to provide individuals with a unique and tailored experience. The charts above are a subset of the kinds of personalization Savvy can do.

The following are definitions used by Savvy when providing its rate estimates for various types of coverage.

Full coverage car insurance: A policy with comprehensive, collision, and liability coverage.

Average policyholder: A 48-year-old driver who owns a 13-year-old vehicle and lives in an average-income ZIP code.

Senior driver: A 70-year-old policyholder with full coverage car insurance.

Good driver: Drivers across all coverage types, vehicle types, and locations who have no tickets, accidents or DUIs.