How much is car insurance for 17-year-olds?

Getting a driver’s license is an exciting rite of passage for most teens. However, it also comes with costly car insurance rates and scary accident statistics.

While many different factors go into calculating how much car insurance is for 17-year-olds, age and experience are the most significant.

However, young drivers can lower rates by adding discounts, reducing coverage amounts, and staying on their parent’s or guardian’s car insurance policy.

Keep reading to find out how much car insurance is for 17-year-olds and how to get the lowest rates possible.

Why is car insurance for 17-year-old drivers so expensive?

Car insurance companies determine rates based on risk. Simply put, younger drivers are considered riskier drivers, and younger drivers get higher rates. So, why is teenagers’ car insurance so expensive?

Although most states require young drivers to complete a driver’s education course before getting their license, nothing compares to years of experience behind the wheel.

Young drivers lack experience and often engage in risky habits such as speeding and distracted driving. In fact, according to the Centers for Disease Control (CDC), teenagers aged 16-19 are three times as likely to die in a car crash as drivers over the age of 20.

Because teens are more likely to be in an accident, car insurance companies are more likely to pay for property damages and bodily injuries. So, higher rates are charged to cover those claims.

How much is car insurance for 17-year-olds?

We all know that young driver car insurance is costly. However, the actual costs may surprise you. Since teen drivers are more likely to be in an accident, car insurance companies expect to pay accident claims. As a result, higher rates are charged for young drivers.

So, how much is car insurance for a 17-year-old?

This table shows average annual car insurance rates for 17-year-old drivers. For comparison, it shows rates for older drivers as well.

Average Annual Auto Insurance Rates Based on Age, Gender, and Marital Status

On average, female drivers who are 17 years old will pay $630 a month for car insurance. On the other hand, 17-year-old male drivers will pay an average of $750.

Young male drivers are charged more because insurance companies consider them riskier drivers than females. In fact, they are twice as likely to die in a car accident as females.

The good news is that rates and the likelihood of being in a severe accident decrease as age increases. In addition, as you gain more experience behind the wheel, your car insurance rates decrease.

How can 17-year-old drivers save money on car insurance?

Even young drivers can save money on car insurance. Although car insurance rates for 17-year-olds start high, there are ways to lower your rates as much as possible.

First, stay on your parent’s or guardian’s car insurance policy. Although many teens want to be independent, a stand-alone policy for a 17-year-old will cause those already high rates to skyrocket.

Car insurance companies like to see a clean driving record and a history of car insurance. Since young drivers don’t have either, rates will be higher.

Next, add all car insurance discounts that are available to you. While some discounts are aimed at students, such as a good student or distant student discount, you may also be eligible for other types of discounts.

Look for savings such as multi-car, multi-policy, and safety feature discounts in addition to student discounts.

This table shows car insurance discounts offered by top companies. The savings amount is listed if it is known.

Car Insurance Discounts

A less expensive vehicle can also lower rates. Look for the cheapest cars to insure for young drivers that still offer the safety features you want.

Also, consider lowering coverage amounts. Although you will pay more out of pocket for damages, your rates will be lower overall.

In addition, think carefully before filing an accident claim. Your driving record significantly affects car insurance rates, and an accident can make those already high rates even more expensive.

Finally, shop around for coverage. Because every car insurance company uses its own formula to determine rates, each will offer a different rate. Compare coverages, rates, and discounts from multiple companies to find your best deal.

Car Insurance for 17-Year-Olds: The Bottom Line

Car insurance for 17-year-olds is some of the most expensive out there. However, young drivers lack experience and are more likely to be in an accident.

Although rates are expensive, teen drivers can save money on car insurance by staying on their parent’s or guardian’s policy and adding discounts. In addition, carefully consider the vehicle driven by a teen driver and the amount of coverage needed.

Most importantly, shop around for teen car insurance. Compare multiple companies to find the cheapest car insurance for 17-year-olds.