How Much Does Teenage Car Insurance Average Cost Per Month?

Published on August 1, 2025 | Prices Last Reviewed for Freshness: November 2025
Written by Alec Pow - Economic & Pricing Investigator | Content Reviewed by Jordan Lee, Licensed Insurance Producer

Educational content; not financial advice. Insurance pricing varies by underwriting, coverage limits, deductibles, and region; confirm details with a licensed insurer.

Teen car insurance remains one of the highest premium categories in personal auto coverage because a new driver creates measurable risk for the policy. Insurers label teens as high-risk due to limited experience, higher accident frequency, and costly claims. The focus here is simple: how much it costs per month in 2025 and what drives those rates.

You’ll see national average figures, a breakdown by age and gender, full vs. minimum coverage comparisons, and specific discount tactics that can trim the bill. Costs sting, but smart moves, adding a teen to a parent’s plan, choosing the right vehicle, stacking good student and telematics deals can pull the monthly price back into a livable range.

Article Insights

• $563–$638/month for a standalone 16-year-old; $300–$360/month on a parent’s policy.
• Each year without claims trims 10–15% off the rate.
• Male teens pay $50–$100/month more than females on average.
• Full coverage jumps a teen from ~$150/month liability to $400+/month.
• Stacked discounts (student, telematics, multi-car) can cut 10–40%.
• Michigan peaks near $700/month; Hawaii averages $210/month.
• Shop quotes at every renewal to keep the premium

How Much Does Teenage Car Insurance Average Cost Per Month?

The national average cost for a teenage car insurance on a standalone policy lands between $563–$638/month. When the same teen driver is added to a parent’s plan, the typical monthly cost drops to $300–$360/month. Each year of age shaves about 10–15% off the rate until 19, assuming a clean record and no claims.

Male teens usually carry a surcharge of $50–$100/month compared with females due to higher risk profiles and violation frequency. State laws, ZIP codes, and mileage usage swing the final quote wide open; places like New York, Michigan, and Florida sit at the top of the price range. Our test quotes showed one carrier’s premum—sorry, premium—dropping by nearly $70/month after a full year of incident-free driving (give or take a few dollars).

According to Insuranceopedia, the national average for full coverage stands at $319 per month (or $3,770 per year), though this can vary significantly by state and whether the teen has an individual policy or is added to a parent’s plan. Minimum coverage for teens is much less expensive, averaging about $125 per month.

Some sources report even higher costs for the youngest drivers. For example, Insurance.com finds that a 16-year-old managing their own full coverage policy faces an average premium of $596 per month, while being added to a parent’s policy lowers the average to $359 per month. For state minimum coverage, the average rate for a 16-year-old alone is $176 per month. By age 18, the national annual average falls to $5,249, close to $437 per month.

Further reinforcing this, the Zebra teen driving report describes the cost for a sixteen-year-old at nearly $7,658 annually (about $638 per month), with rates decreasing as the driver ages and gains experience.

Regional averages show some variability. Bankrate finds the monthly average for all US drivers is $223 for full coverage, which is well below teen rates. LendingTree reports that adding a teen to a parent’s full coverage plan costs an average of $226 per month, while a teen on their own policy pays about $578 per month for full coverage. The most common range for teens nationwide is $230 to $457 per month for full coverage, as noted by MoneyGeek.

MarketWatch provides similarly high averages, stating teen car insurance typically costs $242 per month for minimum coverage and $487 per month for full coverage. For 17-year-olds, CarInsurance.com pegs the average cost at $496 per month for full coverage on a standalone policy.

Full coverage vs. minimum liability

Minimum liability coverage satisfies state-required limits and pays others when your teen causes damage. Full coverage layers collision and comprehensive on top, protecting the teen’s own vehicle. That upgrade can double or even triple the monthly premium. A 17-year-old carrying only liability might pay ~$150/month; the same driver with full coverage can face $400+/month. Lenders on financed cars demand full coverage, so the choice isn’t always optional. Deductible size and policy limits adjust the base premium: a lower deductible boosts the rate, while higher limits on property damage and bodily injury also lift the price. Insurers rate each claim type differently, so a glass repair under comprehensive moves the needle less than a collision file. Pick the coverage type that matches the car’s value and the family’s risk tolerance.

Cost breakdown

Our table groups average monthly premiums for male and female drivers aged 16 through 19. These rates assume a clean record, standard limits, and mid-tier deductibles.

Table 1. Average Monthly Cost by Age & Gender (2025)

Insurers price males higher because longitudinal crash data shows more severe incidents among young men. The gap narrows by 19 as both sexes build mileage without incidents. Some carriers start blending gender rate differences sooner if telematics scorecards prove cautious habits. Keep mileage usage low, maintain a spotless driving record, and the renewal fee often softens after the first 6–12 months.

Loss risk is high

Claims history, traffic citations, and night driving stack against teen risk profiles. Actuarial tables flag teens for distracted driving, speeding tickets, and higher accident severity. One fender-bender or a single speeding citation can spike a renewal by 20–40%.

Some families delay full licensing, keeping a permit holder status that doesn’t trigger a full policy fee until solo driving begins. FICO scores (in some states), vehicle type, ZIP code, and annual miles add granularity to the premium rate. Insurers ingest DMV records, crash data, and even garaging addresses to model the expected claim file frequency. The math isn’t personal; it’s pure risk math.

You might also like our articles about the cost of Business Liability Insurance, Shelter Mutual Insurance, or COBRA Insurance.

Parent’s policy vs. a standalone plan

Standalone teen insurance sits in the $563–$638/month band. Adding that same driver to a parent’s policy often lands between $250–$350/month. Most carriers mandate that all licensed household drivers be disclosed and rated on the family auto plan. Shared limits, one deductible, and a single renewal date keep admin fees in check.

The flip side: a teen-caused claim can lift the entire family’s rate for several terms. Separate policies isolate risk, yet they rarely beat the combined price. Parents who carry multi-car and home-bundle discounts deepen the savings gap compared with a solo teen plan.

Vehicle choice affects teen insurance cost

A modest sedan or compact—Toyota Corolla, Honda Accord, Subaru Impreza—typically costs less to insure than a sporty Ford Mustang, Chevy Camaro, or a new Tesla Model 3. Replacement value, repair cost, safety ratings, and theft rates all shape the premium rate.

Older cars with strong safety gear (airbags, anti-lock brakes, backup cameras) often score discounts. High-performance engines invite higher liability coverage needs and pricier collision exposure. Insurers also watch usage: a low-mileage commuter car priced below $15,000 will often beat a high-output coupe on every quote estimate. Pair the right vehicle type with a realistic deductible amount to balance risk and monthly price.

Best discounts for teen drivers

The good student discount (GPA 3.0 or better) can strip 10–20% from a teen premium. Certified driver’s ed courses knock off another slice. Telematics or usage-based apps from GEICO, State Farm, Progressive, and others reward gentle braking, daylight driving, and low mileage usage; stacked correctly, total cuts reach 10–40%. Multi-car and home-auto bundling help the parent policy further. Renewal loyalty perks appear after safe periods; always ask before the new term length starts. Behavior-based rewards are growing; Root and Branch even offer base rates that slide down with verified safe habits.

Expert insights

• Mark Friedlander, Director of Corporate Communications at the Insurance Information Institute, stresses that “adding a teen to an existing family policy is almost always the least expensive route.”
• Douglas Heller, Director of Insurance at the Consumer Federation of America, notes that “shopping multiple quotes every 6 months keeps rates honest, especially after a teen’s first clean year.”
• Penny Gusner, Senior Insurance Analyst at Insure.com, advises parents to “raise deductibles only if you can cover them in cash; otherwise the short-term premium drop isn’t worth the claim shock.”
• Michelle Megna, Managing Editor at The Zebra, points out that “usage-based plans are the quickest path to savings for a low-mile teen driver.”

Comparison by state

State statutes and claim environments push premium rates up or down. Michigan’s no-fault system keeps 16–19-year-old averages near $700/month. Florida and New York also sit among the highest. Hawaii hovers near $210/month thanks to strict rating-factor limits.

Texas, California, and Ohio show mid-pack price bands, but carrier choice matters: USAA often wins for military families in Texas, GEICO prices aggressively in California, and State Farm undercuts in parts of the Midwest. Always cross-check at least three quotes in your region; ZIP code swings can exceed $50/month within the same state.

Answers to Common Questions

Can a teen get coverage without a parent?

Yes. A standalone policy is allowed, but expect $563–$638/month or more. Landlords or lenders may still require proof of insurance.

Do telematics apps really cut the bill?

Yes. Verified safe patterns often trim 10–30% off the monthly premium. Low miles and smooth braking move the score.

Can I cancel mid-term without losing money?

You can cancel, yet carriers often keep a short-rate or pro-rata fee. Read the term language before you sign.

How often do teen rates refresh?

Most policies renew every 6–12 months. Clean records and no new claims typically lead to a small drop at each renewal.

Does the car’s value change the required coverage?

A financed high-value vehicle needs full coverage. A paid-off older sedan can run on liability-only if the owner accepts the risk.