Car insurance for 17-year-olds in the USA typically costs between $350 and $600 per month, depending on the state, driving record, type of coverage, and whether the teen is on their own policy or part of a parent’s plan. While rates can feel overwhelming, there are smart ways to reduce the cost without giving up essential protection.
In this guide, we’ll cover:
- The average monthly and yearly cost for 17-year-olds
- Factors that affect car insurance rates at this age
- Tips to reduce the cost of coverage
- The best cars to insure for teens
- Whether to choose individual or family policies
- Common questions from teens and parents
Let’s break down the numbers and help you make a smart decision.
Why Is Car Insurance So Expensive for 17-Year-Olds?
Car insurance companies use risk to determine prices. Teen drivers, especially at age 17, are considered high-risk because they have:
- Little driving experience
- Higher accident rates
- More likelihood of traffic violations
- Less time managing responsibilities like maintenance or insurance
According to the CDC, teen drivers aged 16 to 19 are nearly three times more likely than drivers aged 20 or older to be in a fatal crash per mile driven. Insurers factor in this increased risk when calculating premiums.
Average Car Insurance Cost for a 17-Year-Old
The cost of car insurance varies by provider, state, and the specific teen’s profile. Below is a general estimate based on nationwide data.
When on a parent’s policy:
- Monthly cost: $150 to $300
- Yearly cost: $1,800 to $3,600
When on their own policy:
- Monthly cost: $350 to $600+
- Yearly cost: $4,200 to $7,200
Sample Monthly Premiums by State
| State | Parent’s Policy | Own Policy |
| California | $280 | $540 |
| Texas | $260 | $500 |
| Florida | $300 | $580 |
| Ohio | $180 | $400 |
| New York | $290 | $600 |
Source: 2024 data from Quadrant Information Services
What Affects Insurance Rates for 17-Year-Olds?
Many factors affect the cost of car insurance at this age:
1. Driving Record
Tickets, accidents, or DUIs will raise rates immediately even for first-time offenders.
2. Type of Coverage
Full coverage (liability + collision + comprehensive) costs more than liability-only, but it offers better protection.
3. Location
Rates vary based on:
- State insurance laws
- Urban vs. rural areas
- Local crime and accident rates
4. Vehicle Type
Expensive or unsafe cars cost more to insure. Older, reliable sedans are cheaper.
5. Policy Type
Being on a parent’s plan is often cheaper than a standalone policy.
6. Gender
Some states allow gender as a pricing factor. Males tend to pay more than females at 17.
Best Ways to Lower Car Insurance Costs for 17-Year-Olds
Although rates are high, you can take action to bring down the cost. Here’s how:
1. Stay on a Parent’s Policy
This is often the most affordable option. Adding a 17-year-old to a parent’s policy can save up to 60% compared to getting their own.
2. Good Student Discount
Insurers often offer 10% to 25% discounts for students with a GPA of 3.0 or higher.
3. Take a Driver Safety Course
Certified defensive driving courses can lead to lower premiums and safer habits.
4. Choose a Safe Vehicle
Cars that are:
- Older (but in good condition)
- Have high safety ratings
- Don’t attract theft
Cost less to insure.
Top Picks for Teens:
- Honda Accord
- Toyota Corolla
- Subaru Impreza
- Hyundai Elantra
5. Enroll in Telematics Programs
Apps or devices track your driving habits. Safe driving can earn discounts up to 30%.
Programs include:
- Allstate Drivewise
- Progressive Snapshot
- State Farm Drive Safe & Save
6. Limit Driving Miles
Low-mileage drivers (under 7,500 miles/year) may qualify for a lower rate or a pay-per-mile plan.
7. Raise the Deductible
If you can afford a higher deductible, it can reduce your monthly premium.
Liability-Only vs. Full Coverage for 17-Year-Olds
Liability-Only:
- Covers others’ injuries and property damage
- Cheaper monthly payments
- Risky if your car is valuable or financed
Full Coverage:
- Covers your car in accidents, theft, fire, vandalism, and natural disasters
- Better protection but more expensive
Which one to choose?
If the car is worth less than $2,000, liability-only may be enough. If it’s newer or financed, go with full coverage.
Should a 17-Year-Old Have Their Own Policy?
In most cases, no. It’s more affordable to stay on a parent’s policy unless:
- The parent has poor driving history
- The teen lives alone or owns the vehicle outright
- Legal or DMV requirements say otherwise
Car Insurance Discounts for 17-Year-Olds
| Discount Type | Potential Savings |
| Good Student | 10–25% |
| Defensive Driving Course | 5–15% |
| Telematics Program | Up to 30% |
| Multi-Policy | 10–20% |
| Low Mileage | 5–10% |
| Student Away at School | Varies |
Ask your provider about stacking discounts to save even more.
Compare Car Insurance Companies for Teens
| Company | Best Feature | Teen Program |
| GEICO | Budget-friendly rates | Good Student Discount |
| State Farm | Strong local support | Steer Clear® |
| Progressive | Customizable coverage | Snapshot® |
| Allstate | Family bundles | Drivewise® |
| Nationwide | Safe-driving rewards | SmartRide® |
Frequently Asked Questions
Usually between $350 and $600 per month, depending on state and vehicle type.
Yes. It can reduce the cost by up to 60% compared to an individual policy.
Most do, but requirements vary. Ask your provider for specific eligibility rules.
Expect rates to increase by 20% to 30%. Safe driving is key to keeping costs low.
Yes. In fact, full coverage is recommended if the vehicle is new, financed, or valuable.
Final Thoughts
Car insurance for 17-year-olds is expensive, but understanding the reasons and exploring all your options can help reduce the cost. Stay on a parent’s policy when possible, take advantage of discounts, and compare quotes often. Safe driving and smart choices today can save hundreds or even thousands over time.
Looking for the best rate? At Alias Insurance, we help families compare quotes from top insurers across the USA in just minutes. Get started now and find the right coverage for your teen at the right price.
