Which Car Insurance Company is Cheapest For New and Teen Drivers?
We looked at over 200 cities and 103 companies to see which one was the most affordable for young drivers based on a sample 17 year old male driver. Like in our findings for the overall cheapest company, the cheapest for young drivers was also Erie Insurance. We found Erie on average to be about 3.2x less expensive than the national average.
Interestingly, none of the “Big Five” car insurance companies, State Farm, GEICO, Allstate, Progressive and Farmers are in the top five. Overall we found these companies to not be the most economical option for a young driver to pick as their first car insurer. Of the five above, Nationwide is the largest, being available in nearly every state with the exception of a small few. In the table below you can see the 15 cheapest insurance companies for young drivers, and their rates for our sample driver.
||Grange Insurance Association
Some Notable Companies by Region
Unfortunately, not every cheap company is available in every state. Some car insurance providers are more prominent in certain parts of the country, where they may be most affordable. Other companies may actually be more expensive in certain areas and should be avoided.
Best for Teenagers in the North East and Near Mid-West: Erie
Erie is the overall cheapest insurer for teen drivers. In every state we found Erie, it always beat the state average, and was frequently the first or second most affordable company overall. In Ohio and New York for example, the average price for Erie was nearly 3x under those states’ average.The main issue with Erie however, is that it is only located in nine states (Illinois, Indiana, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin). If you live in any of those states though, Erie should be your first choice for affordable insurance.
Best Auto Insurance for Teens in the West: Grange Insurance Association
For those in the West, Grange Insurance Association (not to be confused with Grange Insurance which operates in the south and mid-west), is a great alternative to Erie, The Cincinnati and Chubb which are all located in the east. Grange operates in California, Wyoming, Colorado, Washington and Oregon. In Oregon, rates from Grange were about 75% less expensive than the state average. For those looking for car insurance in California, Unitrin is also another cheap alternative.
Best Insurers for Teens Nationally: Nationwide & State Farm
In many states, State Farm beat the cost average, and in some cases like Utah, by as much as 2x. The ubiquity of State Farm makes its a viable option for people in an area not served by the more affordable companies we show above. Another benefit of State Farm is its highly touted customer service track record. Backed by one of the largest agent networks in the country, State Farm is regarded as the best for customer service amongst the large insurers. As we discuss here, forming a bond with an agent, especially at a young age, can actually end up saving you a good deal of money in the long run.
Nationwide is one of the most affordable large companies we found, being available in 46 of the 50 states, making it just a tad short of the “Big Five” in terms of availability. In states like North Carolina and Pennsylvania, Nationwide turned out to be the most affordable provider, even beating out the overall cheapest in Erie. There are several other states where Nationwide was the second or third least expensive provider as well.
Most Affordable Auto Insurers for Teens in Each State
The cheapest insurance in your state may not actually reflect the cheapest overall insurers we list above. While Erie and The Cincinnati are usually the first or second least expensive in the states they are available, there are also states like Arizona where the cheapest company is Ameriprise–a company that does not even appear in the top fifteen cheapest overall. Take a look below to see what is the best option in your state. Read more