Car insurance for a 17-year-old

How much is car insurance for a 17-year-old?

The average car insurance rate for a 17-year-old who has his or her own policy is $5,836 per year, on average, for full coverage.

Your particular rate will depend on where you live, the type of car you drive, the level of coverage, among other factors. To give you an idea of what to expect to pay for coverage, we provide average annual car insurance rates for 17-year-olds, by state and gender, in the charts below.

The rates for a separate teen policy are based on having the following coverage limits for a year on a 2017 Honda Accord, along with any other state required coverages, and a deductible of $500: 

• $100,000 for injury liability for one person
• $300,000 for all injuries in one accident
• $100,000 for property damage

As the table below shows, adding a teen to a parents’ policy is much cheaper than buying separate coverage under the teen’s name. While there is a huge savings between adding a teen and the teen having his or own policy, the cost to add the teen is generally significant.

For the cost to add a teen, CarInsurance.com compared rates in 10 zip codes in each state. The family profile we used owned a 2017 Honda Accord driven by a 45-year old man buying full coverage. Then we added a 17-year old teen to the policy

Car insurance for a 17-year-old girl

Car insurance for a 17-year-old boy

Cheap car insurance for a 17-year-old

Each state has minimum car insurance requirements that you must have to drive legally. This level of coverage is typically the cheapest, but it also provides limited protection. In most states, buying just the required coverage means your insurance will pay for others’ injuries and car damage, but not for your own injuries or car repairs. You’ll see in the charts below how much minimum coverage costs, on average, per year in each state, for a teen buying his or her own policy, as well as how that compares to the cost when added to a parent's policy.

Cheap car insurance for a 17-year-old girl

Cheap car insurance for a 17-year-old boy

*CarInsurance.com commissioned Quadrant Information Services to run auto insurance rates for a 2017 Honda Accord LX for 10 ZIP codes in each state using up to six large carriers -- Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm. (In cases where one of the insurers doesn't return a rate, another major carrier in that state is substituted.)

Teen driver safety

The reason why car insurance for a 17-year-old is so expensive is that newer drivers are more apt to get into accidents. Accidents lead to claims, which means costs to insurance companies.

Teen drivers get into fewer fatal accidents than when their parents were teens. Driving safety experts say a primary reason for this improvement is Graduated Driving License (GDL) laws.

States have varying levels of GDL laws. These include learner's permit, minimum hours of supervised driving and restrictions on passengers and hours a teen can drive. There are also bans on texting and using a cell phone.

When a driver turns 17, he or she will age out of some GDL laws. However, many states still restrict drivers until they're 18 and even 21.

For 17-year-old olds, restrictions include passenger and nighttime limits for unsupervised driving. GDL laws vary by state, so it's best to check your state's GDL laws.

Though teen driver statistics have improved since the 20th century, the National Highway Traffic Safety Administration reported that teen-involved fatal accidents are on the rise this decade. There were 2,082 teen-involved fatal accidents in 2016, which was an increase over 1,886 in 2015.

One common issue with teen drivers is distracted driving. The National Highway Traffic Safety Administration (NHTSA) said about 30 percent of teens say they've texted while driving. Plus, a teen's risk of an accident increases six-fold when dialing a phone number, the NHTSA said.

There are many other types of distracted driving, including fiddling with the radio, eating while driving and chatting with friends.

You might not be able to drive in the vehicle with your teen at all times, but there's a way to influence your child when you're not around. That's being a role model. Don't text while driving, don't get distracted while driving, follow the rules of the road and don't get sucked into road rage. Your child is watching you and will pick up on your habits.

Lead by example and your teen will have a better shot of driving safely

Can a 17-year-old own and insure a car?

Yes. Most states allow a 17-year-old to own and insure a car, but there's a crucial qualifier: a parent or legal guardian must co-sign for both the vehicle's title and the insurance policy.

"In general, minors cannot enter into a contract, so they cannot sign for auto insurance by themselves. Depending on state laws, a teen may not be able to buy a car either, since that is a sales contract, without an adult signing on as well," says Penny Gusner, the consumer analyst for CarInsurance.com, who is available to answer your car insurance questions.

Adding a teen to parents' policy is usually more affordable

Parents frequently take the easier -- and less costly -- approach of putting a teen on their existing policy. It's usually cheaper than getting a separate policy because the cost of a policy takes into account the experience and driving record of the policyholder.

A 17-year-old doesn't have a proven track record on the highway, which means higher rates when an insurer crunches the numbers.

Beyond that, Gusner says a 17-year-old won't get the same car insurance discounts as a parent, including multi-vehicle, multi-policy and loyalty discounts. But even with those discounts, adding a 17-year-old driver to a policy still means a significant hike in rates.

Another benefit of sharing a policy is that the teen is covered if he borrows your car on occasion, and the parents are covered if they drive the teen's car.

When it makes sense for a teen to have a separate policy

There are times when it's better for your teenagers to get her own car insurance policy.

For instance, teens involved in accidents or ticketed for moving violations. They may be better off getting their own policy. That's because sharing a policy with their parents would raise rates on the family coverage.

If you're 17 and have a poor driving record, consider buying an older car -- they're cheaper to insure -- and getting a separate policy with only high liability protection.

Do you need insurance to drive with a learner's permit?

Most states require that you have at least minimum liability insurance to drive. Liability insurance is what covers damages a driver may cause to people or property in an accident.

This also applies to a 17-year-old, who must show that its owner's policy currently covers the vehicle.

What's the best insurance for teen drivers?

Liability protection is the first step when you insure a 17-year-old.

Gusner says it may be a mistake to think state-mandated minimum coverage is enough. State minimums are usually not enough. Medical bills and costs tied to property damage can start high and quickly go higher, depending on the injuries to those involved.

You don't want to be liable for out-of-pocket payments so make sure your basic liability coverage protects your assets. Besides raising your liability amount, Gusner suggests purchasing an umbrella policy, which raises liability protection after you reach those basic limits. An umbrella with $1 million or more of protection may be reasonable.

If you're financing your vehicle, comprehensive insurance and collision coverage are required. If you own your car outright, you can opt out if you want, but that means you're not covered for theft, damage to your vehicle from an accident or from hail, fire, floods and vandalism.

The cost for comprehensive and collision insurance, on average, per year is $436, according to the Insurance Information Institute. The average yearly rate for comprehensive is $139, and collision costs $297.

If you opt for comprehensive and collision, consider higher deductibles to lower your rate. Of course, you'd then have to pay for minor repairs following an accident.

Auto insurance discounts for 17-year-olds

Car insurance discounts are one way to keep down your costs. The good news is that teens are eligible for discounts.

Car insurance discounts for teens vary by state and company, but here are some of the more common ones:

• Driver's Ed: You may be able to get a 5 percent discount if your teenager completes a driver education course. Taking the class may be required, under state law, as a step toward getting a license.
• Good student: A discount up to 15 percent may be available for drivers who maintain a 3.0 or "B" average in the classroom.
• A driving contract between parents and teen: Insurers may give up to a 5 percent discount to teens who sign a contract with their parents specifying driving rules, such as limiting hours on the road and the numbers of passengers.

What are the best cars for 17-year-olds?

Safety, of course, is the top priority for all drivers. Besides protecting your teen, your insurance company may show its appreciation for buying a safer car by trimming your rate.

The Insurance Institute for Highway Safety (IIHS) offers some basics when looking for a vehicle:

• Big horsepower is not a good idea. "Vehicles with more powerful engines can tempt (young drivers) to test the limits," says the IIHS.
• Try to get Electronic Stability Control (ESC). The IIHS says this feature, which helps maintain control on curves and slippery roads, is about as good at reducing risks as safety belts.
• Always consider cars with top safety reviews from the IIHS and National Highway Traffic Safety Administration.

CarInsurance.com is another valuable resource. It provides guidance, including a rundown of the top cars for teens under $15,000 with high safety ratings.

Shop around for car insurance

Adding a teen to your policy will increase the cost of your policy. There's no way around that.

If you're a teen buying a policy, you will face much higher rates than your parents.

The best way to combat this is to shop around. Compare car insurance quotes from multiple insurance companies.

Each insurer uses its own method for calculating what you pay, so prices for the same policy can vary significantly.

"The teen's policy premium could be lower from one insurer to another," Gusner says.

You can take a little financial solace in knowing that the high cost of insuring a young driver fades over time. Average car insurance rates by age show that premiums begin to significantly decrease when drivers turn 26.

Check out the other teen driver pages on CarInsurance.com:

• Car insurance for a 16-year-old
• Car insurance for an 18-year-old
• Car insurance for a 19-year-old

Car insurance for teens is more than any other age group. However, going accident-free and avoiding traffic tickets, a teen will see his or her car insurance rates decline each year.