Author: David Krug

There is only one state in the United States that doesn’t require car insurance, and that is New Hampshire. If you live in any of the other 49 states, you’re going to want to get the best full coverage car insurance possible. And if you do end up driving through New Hampshire, because of their laws, you’ll be glad to have the added protection against uninsured motorists that full coverage car insurance gives you. This type of car insurance is the only kind that covers your own interests as well as the other driver’s. Full coverage car insurance usually includes PIP, collision, comprehensive, bodily injury, proper damage and uninsured motorist coverage. You can get the best and the cheapest full coverage car insurance with the help of the following information.

Cheapest Full Coverage Car Insurance

While full coverage car insurance is the best to get, it is not always cheap. With prices so high everywhere else, it’s essential to cut costs where you can. This is why it’s so important to shop around and get the cheapest full coverage car insurance that you possibly can. On average, this level of auto insurance costs $2,058 on average, per year. That comes out to over $171 per month. And, if you’re making a car payment in addition, that amounts to a hefty sum of money you’re paying out each month, not including gas and maintenance on your vehicle.

No matter what, though, you should find a way to pay for full coverage, or comprehensive coverage, as it is sometimes called. Comprehensive coverage offers valuable protection for you, your passengers and, of course, for your vehicle. This level of auto insurance can even help protect your personal assets in the event that an auto accident does happen. You will still have to pay your deductible if you have an accident, but the coverage and protection is unparalleled. Frankly, you’ll be glad that you opted for comprehensive coverage, should anything happen. The following will help you to make an informed decision about which auto insurance company will best suit your needs.

Which Companies Have the Cheapest Full Coverage Car Insurance?

There are so many car insurance companies, but only a few of them offer the kind of rates that might be considered as the cheapest full coverage car insurance rates. The good thing is that car insurance companies are highly competitive with each other. The differences between car insurance premiums can differ in the hundreds of dollars. So it definitely pays to shop around as a consumer.

Now, it’s important to remember, as you shop for the cheapest full coverage car insurance, that rates vary from company to company. But don’t forget that they also vary from customer to customer. Auto insurance companies run a very complex algorithm to determine risk factors for their insured customers and anyone looking to get a rate quote. Each insurance company has their own proprietary algorithm. So there are factors that will determine what rate you are offered at any one company.

The factors that come into play include things like:

• Your age
• Your sex
• Your marital status
• Where you reside
• Your recent driving record
• Your grades (if you are in school)
• History of moving violations
• The age, make and model of your vehicle
• Safety features (or lack thereof) on your vehicle

There may be more factors, but these are the most common. You can do little to alter the factors above, except for maintaining a good driving record and avoiding moving violations. But the main thing you can do to ensure that you are not overpaying for car insurance is to shop around from the companies on this list.

The companies that have the cheapest full coverage car insurance are:

• GEICO, which comes in at an average of $941 annually
• State Farm, which comes in at an average of $1,114 annually
• USAA, which comes in at an average of $817 annually

Now, if you don’t like those car insurance companies for some reason, or you don’t qualify for military insurance, or if you are just looking for additional choices, there are more cheap full coverage car insurance companies on the list. They are:

• Progressive, which comes in at an average of $1,226 annually
• Allstate, which comes in at an average of $1,231 annually
• Nationwide, which comes in at an average of $1,276 annually
• Erie Insurance, which comes in at an average of $1,380 annually
• Travelers, which comes in at an average of $1,415 annually
• Farmers, which comes in at an average of $1,459 annually
• Met Life, which comes in at an average of $1,613 annually

The Best Car Insurance Companies For Full Coverage

As well as looking for good rates, you should also choose a car insurance company that is solid. After all, you need to rely on that company should anything happen to your vehicle. Things to consider when choosing the best car insurance company for full coverage include:

Do you have a teen driver in the family? If so, consider a car insurance company that offers discounts for good grades or for taking a defensive driving course.

Do you have multiple insurance needs? Consider a car insurance company that discounts rates if you carry multiple policies with them, such as your home insurance or multiple vehicles.

How long has the insurance company been in business? Older companies will have a reliable track record and are more trustworthy than a “new kid” on the block.

Does the company have good customer reviews? These days, it’s easy to check for a company’s online reputation. You want to choose one that is easy to work with, that offers timely service by knowledgeable, reasonable staff.

Finally, make sure when comparing rates between companies that you are comparing apples with apples. While you may change coverage amounts later on, for comparison’s sake, every coverage amount should be the same when requesting quotes.

The Best Full Coverage Car Insurance Companies

When it comes to choosing the best full coverage car companies, there are some clear leaders in the pack. Bear in mind that the best full coverage car companies may not be the cheapest. But you will have to weigh the advantages and disadvantages for whichever car insurance company you choose. Here are the picks for the best full coverage car companies:

• GEICO, chosen because it has the cheapest rates and also because it has a very low number of auto insurance complaints. GEICO has a great reputation in the industry, and it has been around since 1936.
• Nationwide, chosen because it offers discounts for low-usage vehicles, and also because it has a long history, being founded back in 1925. If you are an older person who stays at home and doesn’t drive much, you might want to consider Nationwide insurance.
• Travelers, chosen because they offer a lot of flexibility with their policies and allow customers to choose from a range of options to make their auto policy customized.
• USAA, chosen because it is so affordable for military members, veterans and their family members, and because it has accident forgiveness and attractive rates for young drivers and seniors.

The Cheapest Widely-Available Insurer: GEICO

Hands down, the cheapest widely-available auto insurer is GEICO. If your primary concern is budget, then you can’t do any better than GEICO. GEICO offers a whopping 16 possible discounts for rates, and even without the discounts, they come in as the number one cheapest car insurance for full coverage. They have a very straightforward claims process and an extremely low number of complaints from customers. Their approval rating is high, and their online reputation is excellent. GEICO discounts when you bundle multiple insurance policies with them. On top of all this, they have a user-friendly website interface, which offers customers the ability to change coverage amounts without having to call a representative. Their website also allows customers to postpone automated premium withdrawal payments for up to two weeks later. If you do end up having an accident, don’t worry with GEICO, because they have an accident forgiveness program. This company is a great open for those with less than stellar credit, or for anyone who has lapsed auto insurance coverage in the past.

Cheapest Runner Up: State Farm

State Farm is not only the second cheapest car insurance company for full coverage; it’s also the largest insurer in the U.S. Its affordability is one of the reasons why it’s so popular with everyone, but it also has lots of other things going for it. State Farm gets high marks from J.D. Power & Associates for reliability, financial stability, customer service and its low level of customer complaints. Another reason to choose State Farm is the fact that it is so recognizable. State Farm is a well-known brand and known to be a solid industry leader. The company has an accident forgiveness program and even has competitive rates for those with speeding tickets on their record. They are also known for having attractive rates for teen drivers that need to be added to the policy. State Farm has competitive rates for drivers with a previous DUI and is willing to file form SR-22 for those who need it. Although State Farm’s rates are higher for those with bad credit, it does offer a “Drive Safe” program for drivers who are willing to install a monitoring chip to prove they are an especially safe driver. All in all, State Farm is a solid choice for anyone looking to get the best cheap car insurance for full coverage.

Cheapest Full Coverage for Military: USAA

USAA stands for United Service Automobile Association. But what you need to know is that this is the cheapest full coverage for military. If you are an active member of the military or a veteran, you and your immediate family members qualify for USAA auto insurance. Even if you are currently stationed overseas on a ship, your immediate family members at home are eligible to get USAA coverage car insurance. As long as you are either an active member of the military, or have been honorably discharged or separated, you and your immediate family members are eligible. This is your cheapest option for full coverage, second only to GEICO. And, based on the ratings for USAA, this car insurance company may still be your best bet, as long as you meet the criteria.

For example, USAA charges up to $200 less than competitors for drivers who have a speeding ticket on their record. You may not be able to qualify for a good driver discount after a speeding ticket, but at least you won’t pay exorbitant premiums with USAA. Another advantage with USAA is that they have the lowest rates for full coverage for drivers who have caused a previous accident where someone was injured. Termed an “at-fault” accident, this kind of incident could cost you up to $1,500 more with a different car insurance company.

USAA is also understanding about DUI’s.. It has the second cheapest car insurance rate for these drivers, second only to State Farm. Finally, if you suffer from poor credit, USAA has the cheapest rates for you, second only to GEICO.

Who Has the Cheapest Full Coverage Car Insurance?

Full coverage vehicle insurance is more expensive than liability-only car insurance since it provides more protection. The trade-off is a higher cost. Only injury to other drivers is covered by a liability coverage. Full coverage is more expensive since insurance covers liability as well as collision and comprehensive coverage, which protects your automobile from most sorts of accidents. Your lender will normally want comprehensive coverage if you have a car loan or lease.

In terms of who has the cheapest full coverage car insurance, you’re looking at GEICO. When compared to its competitors, GEICO offers the cheapest average rates for skilled drivers and those who are willing to adhere to the laws of the road. Car insurance companies normally give the best rates to drivers who have a recent clean driving record, since they are less likely to submit claims than drivers who have been involved in at-fault accidents, received speeding fines, or have other blemishes on their records. Accident forgiveness insurance is available from GEICO. Accident Forgiveness policy from GEICO ensures that your premiums will not rise after your first at-fault accident. Because the forgiveness program is linked to your vehicle’s coverage, it covers any qualifying driver on your policy. After five years of accident-free driving, GEICO provides complimentary accident forgiveness. GEICO has more vehicle insurance complaints than Allstate and State Farm, but it is still below the national average. GEICO is worth considering if you’re looking for full coverage vehicle insurance because of its consistently cheap rates, low complaint rate and available discounts.

How Much Does Full Coverage Car Insurance Cost Compared To Minimum Coverage?

Even though the best coverage for your vehicle is comprehensive coverage, you may want to compare the cost compared to minimum coverage. Minimum coverage is also commonly called liability car insurance, or collision coverage. Liability coverage only includes damage to the other vehicle. It covers your liability as a driver. It doesn’t include protection for your losses. If you have high-risk drivers in your family, or if you are looking for gap insurance, you may want to consider minimum coverage. However, a better option to save money would be to get a full coverage policy and then opt for a higher deductible. That would bring down your premium.

According to the most recent data, full coverage car insurance costs an average of $2,058 annually. That amounts to just over $171 per month. But if you get minimum coverage, the average cost is about $637 annually. That comes out to about $53 per year. Remember though, that any savings you might enjoy on premiums throughout the year with minimum coverage will be lost if something actually happens and your vehicle is involved in an accident. Damages to your vehicle won’t be covered with minimum insurance.

Do I Need Full Coverage Car Insurance?

The decision to buy full coverage car insurance or minimum coverage is up to you and your vehicle lender if you have one. Unless your vehicle is completely paid off, you will likely be mandated to have full coverage car insurance. So anyone with a lien or lease or loan on their vehicle needs full coverage car insurance.

There are other situations where it makes economic sense to pay a little more for full coverage car insurance. If you can afford it, you should always opt for full coverage insurance. If an accident occurs, your car will almost certainly be damaged in some way, no matter how excellent of a driver you are. Having full coverage insurance will give a large financial safety net, easing some of the pressure of dealing with automotive problems.

Consider your state’s regulations, the worth of your automobile, and your financial condition when considering whether or not to buy comprehensive coverage insurance. A common rule of thumb is that if the cost of full coverage insurance exceeds 10% of the value of your automobile, you should consider dropping it. However, if you can’t afford to pay out-of-pocket to repair or replace your automobile if it’s damaged suddenly, you shouldn’t skip comprehensive coverage.

What Qualifies as Full Coverage Policy?

It’s important to know what qualifies as a full coverage policy, since requirements vary by state. You don’t want to be caught without adequate vehicle insurance, because this could actually cause your premiums to go up.

In addition to the state’s minimal vehicle insurance requirements, full coverage is considered a policy that includes collision and comprehensive coverage. Full coverage, unlike liability insurance, pays the policyholder’s own expenditures, even if they are at fault in an accident.

Collision insurance covers the cost of repairing or replacing your vehicle following an accident. Comprehensive insurance, on the other hand, pays for repairs if your automobile is damaged by something other than a collision, such as vandalism or a natural disaster. If your automobile is leased or financed, you will almost certainly need both.

Other forms of insurance, such as personal injury protection, medical payments coverage, and uninsured/underinsured motorist insurance, may also be included under full coverage. In certain states, various forms of insurance are required by law, while in others, they may be voluntary.

What Common Components of Full Coverage Car Insurance Cover?

When people talk about full coverage automobile insurance, they’re usually referring to a package of coverages that assist in safeguarding a vehicle.

State law mandates some coverages (like car liability). Others, like rental reimbursement, are optional, depending upon your circumstances and the insurer. As a result, it comes down to you to choose the policy type and car insurance that suits your needs, while also ensuring that your coverage complies with state regulations and helps you safeguard your vehicle and your assets.

Common components of full coverage car insurance:

• Comprehensive coverage – covers damage to your vehicle and property damaged in a collision
• Collision coverage – covers damage to others’ vehicle and property damaged in a collision
• Medical payments coverage/PIP – covers medical payments needed to treat injuries to you and others involved in a collision. Includes passengers in your vehicle and others’ vehicles.
• Uninsured/underinsured motorists – covers vehicle, property damage and your medical costs, even when the other driver is uninsured or underinsured
• Rental reimbursement coverage – covers vehicle and property damage while driving a rental vehicle.
• Roadside assistance – covers the cost of assistance should your car fail you while driving, including flat tires, overheating, running out of gas, mechanical failure, etc.

Note that some of the above components are optional, and that they each carry maximum payout thresholds, which are generally flexible. Higher thresholds will have higher associated premiums, and vice versa.

How to Decide if You Need Full Coverage

The decision of whether you need full coverage is one that should be taken seriously. The financial ramifications of choosing the wrong type of coverage could be devastating. You need full coverage car insurance if:

• Your vehicle is financed
• You have a teen driver in the household (because the risks are greater)
• You have considerable personal or business assets (because full coverage can help prevent the need for a lawsuit to recover damges)
• You are driving in New Hampshire (where you are more likely to encounter an uninsured motorist)
• You could afford to replace your vehicle out of pocket
• You could not afford to have your vehicle repaired out of pocket
• Your vehicle’s value is at least 10% higher than the annual rate or is less than five years old

Why You Need Full Coverage on a Financed Car

If you have a vehicle that is financed in any way, you most certainly need full coverage. This is true even if the lender does not explicitly require full coverage, which would be extremely rare. The reasons are that without full coverage:

• If your vehicle is damaged or incurs a total loss, you would still have to make the monthly payments until the car is paid off
• Having inadequate car insurance could invalidate the terms of your financing, in which case your lender could conceivably ask for payment in full, upfront.
• Financed cars are generally more valuable, and therefore need more coverage to pay for repairs and/or replacement costs.

How Does Full Coverage Car Insurance Differ From Minimum Car Insurance?

Aside from the difference coverages, which have been discussed early, there are other key differences between full coverage car insurance and minimum car insurance. Typically, minimum car insurance does not offer additional insurance options. You would likely not be able to get gap insurance, roadside assistance, rental vehicle coverage, PIP or even uninsured/underinsured motorist insurance. Another key difference is that the average annual cost of liability-only insurance is much lower than with full coverage. You could save hundreds of dollars per year on premiums. Another difference is that minimum coverage is required in 49 states; the exception is New Hampshire. Full coverage is not required in the U.S., but auto financing companies almost always mandate it.

How do You Negotiate with Insurance Companies for the Cheapest Full Coverage Car Insurance Rate?

Without a state review and confirmation that the change is necessary, the insurer would be legally unable to adjust its rate range. If your insurance charged you a premium that was significantly higher or lower than the quote it provided, the insurance company could actually face fines or even lose its license to operate in your state. The good news is that car insurance rates are often flexible. You cannot technically negotiate down, but there are ways to get a better rate.

• Look for car insurance companies that offer discounts. Call your insurance representative and get a list of available discounts. See which ones you qualify for, or could qualify for.
• Maintain a good driving record. Avoid moving violations.
• Ensure that you pay premiums on time. Avoid gaps in coverage.
• Pay by automated withdrawal, which will help you avoid nominal monthly “fees.”
• Help your teen driver get credit for having good grades.
• Enroll in driver safety monitoring
• Enroll in a defensive driving course
• Get rates from several companies, as rates vary among car insurance companies

The considerable competition among vehicle insurance companies gives consumers the edge when choosing the best car insurance company for full coverage. Use the information contained here to ensure that you and your family are not overpaying for car insurance, while at the same time getting all the coverage that you need.

Insurance companies view young drivers as risky, for they’re inexperienced, sometimes drive aggressively, and have limited driving records. The risky nature of young drivers makes them expensive for companies to insure, and providers pass the higher costs onto drivers in the form of higher premiums.

Higher premiums naturally incline young drivers and their families to seek out the most affordable insurance policies that are available. While price certainly is a factor, it shouldn’t be the sole consideration at the expense of coverage. Forgoing coverages to save on premiums can have devastating financial consequences in the event of an accident or other incident.

(Auto insurance is required for all drivers who operate motor vehicles on public roads. Even if expensive, driving without it is reckless and can lead to serious consequences. Young need insurance.)

Compare the Best Car Insurance Companies for Young and New Drivers

If you have a young driver or new driver in the household, we’ve compared car insurance policies that are intended for teenage and inexperienced drivers.

Below are the best teenage driver car insurance policies, taking into account cost, coverage and customer service. New drivers who are older should generally find that these ratings are also accurate for their situation.

Use our ratings as guidelines for what companies to request customized quotes from. Different insurance companies weigh factors differently, and requesting customized quotes is the only way to confirm that a particular insurer’s policy meets your driver’s needs and indeed is the best choice.

Best Overall: State Farm’s Young Driver Car Insurance

State Farm has a unique educational program that provides lessons on safe driving — and discounts when young drivers complete those lessons. Help is always available through local agents and the customer service number.

Pros of State Farm’s Auto Insurance for Teen Drivers

• Steer Clear offers young drivers discounts for completing safe driving lessons
• Many other discounts are available for all drivers
• Consistently excellent customer service and claims satisfaction ratings
• 19,000 agents and a 24/7 customer service phone number
• Rideshare driving coverage is available

Cons of State Farm’s Auto Insurance for Teen Drivers

• Premiums can be higher than competitors if drivers don’t qualify for discounts
• Drivers who have tickets or accidents on their record pay especially high premiums
• Personal information is required for a customized insurance quote
• Insurance may have to be purchased through a local agent in certain situations

Average Annual Premium for a 17-Year-Old: $3,055*

State Farm has been insuring drivers young and old for a full century. The insurance provider is known for having policies that have robust coverage, agents that offer excellent service, and programs that make many discounts available.

Teen drivers may find that State Farm has above-average premiums if they don’t qualify for discount programs, and young drivers who have accidents or tickets on their record could see particularly higher rates (more than other insurers charge).

Drivers who qualify for discounts will likely find that State Farm has some of the lowest rates for them, and they can get the discounted rates while also receiving excellent customer service.

Steer Clear is the discount program that allows drivers to save money if they successfully complete (relatively easy) safe-driving lessons. The program is available to drivers 25 years old and younger. Other discount programs include savings for students who are away at school, students with good grades, taking a defensive driving course, bundling insurance policies, and more.

Additionally, State Farm offers optional coverage for rideshare driving. Although brand new teenage drivers are unlikely to need this, the option can let drivers keep their existing policy even if they decide to drive for a ridesharing app while in college.

The customer service that drivers of any age receive from State Farm is top-notch. The company’s 19,000 local agents are available to help new drivers understand auto insurance and set up a policy. There’s also a 24/7 customer service phone in case something happens at night or on the weekend.

Who If’s For: New drivers who are willing to take brief online lessons can get affordable car insurance with State Farm. Policies are also well-suited to younger but experienced drivers who have rideshare gigs, and everyone should at least get a quote from this best-overall insurer.

Best for Student Discounts: Allstate Young Driver Car Insurance

Allstate offers exclusive discounts for young drivers who demonstrate conservative driving habits through telematics, which actively encourages safe driving. Multiple roadside assistance plans are also available for drivers who don’t yet know how to change a tire. (Telematics may also give drivers access to usage-based insurance that’s charged by the mile.)

Pros of Allstate Auto Insurance for Teen Drivers

• Drivewise telematics can provide discounts of up to 40% for driving conservatively
• Many other discounts are available for all drivers
• Multiple roadside assistance plans available within policies
• Rideshare coverage is optionally available
• Interactive online guide explains auto insurance basics
• Policies are written for 6-month terms

Cons of Allstate Auto Insurance for Teen Drivers

• Average claims satisfaction ratings despite the agents and customer support number
• Premiums for drivers who are more aggressive may be high

Average Annual Premium for a 17-Year-Old: $4,716*

Allstate has almost 90 years of experience insuring drivers, and continues to offer some of the best policies today. The company is known for its many discounts, flexible policies and numerous agents.

Drivewise is Allstate’s largest potential discount, offering discounts of up to 40% for drivers who demonstrate conservative and safe habits. The program requires on-vehicle telematics that are used to monitor drivers’ habits, so only drivers who truly are conservative behind the wheel receive the maximum discount.

Not all young adults and new drivers will meet the program’s telematics metrics, partly because of their driving habits, and partly because new drivers can be strong on the accelerator and brakes. For new drivers who do meet the telematics metrics, however, this could be the largest discount that any insurance company will offer. Even if drivers don’t have impeccable habits, meeting some metrics can still qualify for some savings.

The Drivewise discount program is especially effective for teens who pay their own premiums, as they personally see the financial benefits of safe driving. Discounts for good grades and/or being away at college can help reduce premiums, too.

A few unique features that new drivers might be especially interested in are Allstate’s available roadside assistance plans and its available rideshare driving coverage:

• Drivers (or their parents) can choose the level of roadside assistance that they’re comfortable with, ensuring that they always have help should something happen on the road.
• Rideshare driving lets drivers earn extra money through rideshare gigs without having to purchase a different insurance policy, which is something drivers might want to do during college or shortly thereafter.
• Coverage for driving in Mexico is also available, which may be a consideration for young adult drivers who want to take a road trip south of the U.S.-Mexico border.

All of Allstate’s auto insurance policies are written for 6-month terms, which is half as long as most companies’ standard 12-month policies. While this is a drawback for most drivers, the shorter timeframe can be a benefit to teen drivers. They may qualify for slightly lower rates every six months if they demonstrate safe driving habits. Standard 12-month policies would only adjust once per year.

Who It’s For: Young drivers who are extra careful can save a lot with Allstate. It’s also an obvious choice for drivers who want extra protection through roadside assistance, and a potential choice for college students who have rideshare gigs.

One of Allstate’s many insurance agents can help drivers with a 6-moth policy that provides the coverages they want and need.

Best Accident Forgiveness Discount: Amica Young Driver Car Insurance

Amica offers many potential car insurance discounts, including generous accident forgiveness if new drivers are ever in a collision. The company is also loved by many of its clients, even if it’s not as well known as some other insurance providers.

Pros of Amica Auto Insurance for Teen Drivers

• Accident forgiveness available for newer drivers
• Generous discounts for those who qualify
• Excellent customer satisfaction and claims satisfaction ratings

Cons of Amica Auto Insurance for Teen Drivers

• Restricted discounts aren’t available to all drivers
• Drivers who don’t receive discounts often pay above-average discounts
• Small number of local insurance agents

Amica offers one of the most extensive car insurance policies for young drivers who want full protection.

Average Annual Premium for a 17-Year-Old: $6,156*

The Amica Platinum Choice Auto Insurance has higher premiums if compared to many new driver car insurance options, but the Platinum Choice also has more coverages. Deductible-free glass repair and replacement, new car replacement, rental car reimbursement without a daily limit, and credit monitoring are all included at this level.

Most importantly, the Platinum Choice Auto Insurance also includes accident forgiveness. Even new drivers won’t see their premiums increase if they’re in an accident, including if the accident is determined to be their fault.

For drivers who qualify, several discounts can help mitigate the higher premiums that come with this level of policy. After a year or two, young drivers might qualify for loyalty, safe driver, bundling and other discounts. Those whose parents already use Amica may get some of these discounts right away, but those who don’t have parents insured with Amica are unlikely to qualify for many discounts during their first year of having coverage.

Although Amica only has local insurance agents in only 12 states and Washington D.C., the company has excellent customer satisfaction ratings. It earned the top place in J.D. Power’s 2021 New England Rankings of car insurance companies. Customers can reach a representative through phone, online chat, or a local agent if one is nearby.

Who It’s For: Young drivers who are concerned about premium increases if they’re in an accident should consider Amica’s accident forgiveness.

Best for Military Families: USAA Young Driver Car Insurance

USAA auto insurance is only available to members of the armed forces and their families (including their children). For families that qualify, USAA has highly competitive rates and outstanding customer service.

Pros of USAA Auto Insurance for Teen Drivers

• Some of the most affordable rates for all drivers
• Excellent customer service that’s available 24/7
• Detailed online comparison and quote tool
• Additional insurance and banking services

Cons of USAA Auto Insurance for Teen Drivers

• Coverage is restricted to military members and their families
• USAA’s SafePilot telemetrics app isn’t available in all states yet
• Online quotes are only available once a member is logged in
• Extremely limited access to local agents

Average Annual Premium for a 17-Year-Old: $2,662*

USAA is celebrating 100 years of serving members, and the company continues to provide industry-leading customer service. J.D. Power consistently ranks USAA as having the best customer service within the insurance industry, and that customer service includes a combination of phone support and online tools.

The policies that USAA offers are also among the top in the industry, as they provide robust coverages and competitive rates. USAA frequently has the lowest premiums of any insurer, and young drivers may qualify for discounts that further reduce premiums. New drivers can immediately get discounts if they’re located on-base and/or their parents are USAA members, and there are other ways to save money too.

Who It’s For: Young drivers who qualify for USAA membership, either through their service or their parents’, should consider USAA. This is considered one of the best (if not the best) insurance providers for qualifying members.

Best on a Budget: Erie Young Driver Car Insurance

Erie Insurance only offers insurance in a small number of states, but drivers in those states will likely find that Erie has the lowest insurance rates for young drivers.

Pros of Erie Auto Insurance for Teen Drivers:

• Some of the cheapest car insurance rates
• No need to qualify for low rates through military service
• Local agents are available throughout the states that Erie serves

Cons of Erie Auto Insurance for Teen Drivers:

• Availability is limited to only a few states
• No support for online claims filing

Average Annual Premium for a 17-Year-Old: $2,248*

Erie has been underwriting insurance policies for almost a century. Although the company continues to only offer insurance in a select number of states, it’s now a Fortune 500 company with solid financial and customer service credentials.

Only drivers residing in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin have access to Erie’s auto policies. (Availability is based on residency, and not where a young driver might go to college.)

For drivers who are in these states, however, Erie offers rates that are comparable to USAA’s and sometimes beat the military-focused provider. Rates can be even lower for new drivers who pay in full, enroll in paperless billing, and complete an approved driver’s education course (which is required in some states). Erie also charges unmarried drivers a smaller surcharge than most other insurers do (married drivers regularly get slightly lower premiums).

Erie Insurance also offers two exclusive programs of note. Rate Lock helps guarantee drivers’ rates. Auto Plus combines a few benefits, including waived or diminishing deductibles, increased limits, and reimbursement for certain transportation expenses.

In order to keep premiums low, Erie offers somewhat limited customer support. The company doesn’t have support for claims, which must be processed through an agent or over the phone. Customer satisfaction with the process is decent.

Who It’s For: Young drivers who are residents of states where Erie Insurance operates should check the company’s policies for the cheapest car insurance rates.

*Average annual premiums are based on a 17-year-old who needs a full auto insurance policy. Premiums can vary significantly according to a driver’s age, experience, record, vehicle, needed coverages and many other factors. Individual drivers may find that their premiums are substantially more or less, as rates for young adults can be especially varied.

Average Cost of Car Insurance for Young Drivers

Average car insurance costs vary among all drivers, as insurance companies consider many different factors when calculating rates. This is doubly true for young drivers who have higher rates.

Young drivers and new drivers pay some of the highest auto insurance rates, generally rivaled in cost only by high-risk drivers who have DUIs or similar offenses.

New drivers without anything negative on their record can still pay 2-3 times as much as older and experienced drivers. That difference only increases for drivers who have been in accidents or received tickets.

To know exactly how much they’ll have to pay for auto insurance, young drivers must request customized car insurance quotes from one or more insurance companies. Most drivers without a record will find that insurance costs somewhere between $2,000 and $6,000, depending on their details, the insurance company, and the policy.

Auto Insurance Discounts for Young Drivers

Discounts can substantially reduce any driver’s insurance premiums, and they have an oversized effect on young drivers’ higher premiums. New drivers can ultimately save a lot if they qualify for multiple discounts.

Some common discounts that young drivers may quickly qualify for include:

• Pay in Full: Small discount for paying premiums in full at the time of purchase (as opposed to monthly).
• Paperless Statements: Small discount for opting into e-statements and other electronic documents.
• New Driver Discount: Discount for drivers who switch to a new insurer, and are thus new to the insurer (not to be confused with being a new, recently licensed driver).
• Loyalty Discount: Discount for remaining with the same insurance for consecutive years; young drivers may qualify if their parent’s policy is with the same insurer. (USAA also calls this a legacy discount.)
• Safe Driver Discount: Potentially large discount for taking safe driving lessons, demonstrating safe driving through telematics, and/or remaining claims-free. Usually requires a clean driving record.
• Accident Forgiveness: Feature that ensures premiums won’t increase after a single accident.
• Anti-Theft Discount: Small discount for installing or having a car alarm or other security devices on a vehicle. Many new vehicles automatically qualify.
• Good Student Discount: Small discount for maintaining good grades, which usually require a 3.0 GPA or being in the top 20% of one’s class.
• Multi-Policy Discount: Moderate discount for buying two or more insurance policies from the same company. New drivers might qualify if their parents have other policies with the same insurer, or if they also need renters insurance (or another type of insurance).

Insurance companies offer still more discounts that drivers might take advantage of.

Frequently Asked Questions

Can I Save Money If I Add a Young Driver to My Auto Insurance Policy?

Adding a teen driver to your auto insurance policy will increase the policy’s premiums even if the driver doesn’t have their own vehicle, and the increase is often significant. This is normally a cheaper auto insurance option than purchasing your child or other young driver their own auto policy is, though.

Additionally, teenage drivers generally can’t have their own policies until they turn at least 18 years old.

If you’re looking for ways to save when adding a teenage driver, check quotes from insurers that offer good student, student at school, safe driver lesson, or similar discounts. Check quotes for both them and you, so you can determine what company offers the cheapest car insurance for both drivers.

How Much Does Car Insurance for Young Drivers Cost?

The premiums that young drivers pay vary dramatically. Their age, driving record, vehicle, state of residence, and chosen coverages, limits and deductibles are just a few of the many details that impact rates.

As a general guideline, expect to pay a few thousand dollars per year for a teenage driver’s car insurance coverage. Rates frequently start in the $2,000 to $6,000 range, with most policies in the middle 50% of this range. Adding a driver to your own policy could cost less than this.

Young drivers should see their premiums decrease slowly as they get older and gain experience, and could eventually have access to cheap car insurance. Any accident or traffic ticket could cause rates to spike, however.

How Are Rates Determined for Young Drivers?

Insurance companies usually calculate young drivers’ rates according to the same criteria that they use for older drivers. Insurers just weigh certain criteria differently for young drivers. Details about the driver being insured and the vehicle being insured heavily influence insurers’ calculations. Some will offer cheap car insurance, while others will have expensive policies.

Each insurance company will consider different factors differently, which is one of the reasons why premiums vary across companies. The only way to know exactly how any specific insurer will calculate premiums for a specific driver and situation is by requesting a customized quote. Young drivers can see how various insurers calculate premiums for them by requesting several customized quotes from different companies.

What Are the Different Types of Car Insurance for Teens?

Teenage car insurance providers make many coverages available through their policies. States mandate minimum levels of certain coverages, and drivers can choose to purchase other coverages. Coverages to consider include:

• Bodily Injury Coverage: Covers injuries to persons in other vehicles, and pedestrians
• Personal Injury Protection (PIP): Covers injuries to persons within the insured vehicle
• Medical Payments Coverage: Covers medical costs associated with injuries to persons within the vehicle
• Property Damage Liability Coverage: Covers damage to other people’s or businesses’ physical property
• Collision Coverage: Covers damage to the insured vehicle that occurs during multi-vehicle accidents
• Comprehensive Coverage: Covers damage to the vehicle that occurs during non-accident incidents
• Guaranteed Asset Protection (GAP) Coverage: Covers the difference between a vehicle’s value, and the balance on a lease or loan
• Uninsured/Underinsured Motorist Coverage: Covers accidents involving insufficiently insured drivers

How Much Coverage Does a Teen Driver Need?

Most states mandate minimum amounts of personal injury protection and property damage liability, and some states have additional requirements. Leases and loans might have additional requirements for comprehensive, collision and GAP coverages, which protect the vehicle.

Teen drivers need at least the levels of coverage that their state stipulates, and the coverages that any lease or loan calls for. Many teen drivers should consider additional coverages and higher limits.

Exactly what coverages and limits a teen driver should purchase depend on the driver’s situation, and the situation of their family if they share a policy with their parents. Drivers should consider different coverages, limits and deductibles in light of how much an accident, injury or lawsuit could cost them. Purchasing substantial coverage in a teen car insurance policy is often wise.

While reducing coverages or other protections can be tempting, coverages shouldn’t be sacrificed simply to save a little on premiums. The potential cost of an accident or other claim is much greater than any premium savings.

What Factors Affect the Cost of Car Insurance for Young Drivers?

Some of the factors that influence young drivers’ insurance rates can be controlled, but other factors can’t.

Driver experience, driver age, location, marital status (presumably single) and credit score (in most states) all affect rates. Young drivers are obviously inexperienced, young, usually single, and have little credit history, and there’s little they can do about this. That’s one of the main reasons why teen car insurance rates are higher.

Some factors that drivers can control include their driving habits, chosen coverages, limits and deductibles, vehicle, driver safety training, grades and similar details.

How We Chose the Best Auto Insurance for Teens

We considered multiple criteria when conducting this car insurance review. We generally considered cost (median annual premium, pricing methodology), availability (regional/national), customer service (complaint scores, J.D. Power ratings, Consumer Reports ratings), and coverage choice.

The vast majority of standard car insurance policies are written for 6- or 12-month terms, and this duration is usually suitable for drivers who are keeping their vehicles long-term. Sometimes drivers don’t need car insurance coverage indefinitely, though, and they may not even need coverage for 6 or 12 months. In these situations, short-term car insurance offers temporary coverage for only a few months (or less).

What is Short-Term Car Insurance?

Short-term car insurance policies provide temporary coverage for a period less than 6 months. Many policies offer 1 or 3 months’ worth of coverage, although almost any period can be chosen if you explore different insurance companies’ offerings.

When creating these policies, insurance companies frequently shorten standard auto insurance policies to the needed duration. They base temporary on standard ones, because much of the underwriting considerations are the same for both types of policies. Your age, marital status, vehicle, driving record, credit score (in many states) and other factors will affect temporary insurance premiums, just as they will standard insurance premiums.

Importantly, however, temporary insurance policies don’t typically have cancellation costs for prematurely ending the policy. The insurance company is aware that the policy will only provide a few months (if that) of coverage, and thus doesn’t charge an additional fee beyond the premium when the policy terminates.

Not having a cancellation fee can be a significant reason to purchase temporary coverage, rather than purchasing a standard policy and actually canceling it early. The latter may indeed invoke an additional cancellation fee.

Additionally, temporary car insurance offers much of the same coverages and protections that standard car insurance codes. While you might have to consider car insurance quotes from multiple insurance companies that offer temporary car insurance, usually you can find all desired coverages from some company that has temporary policies.

Best Temporary Car Insurance Companies of 2022

Not all insurance companies that offer temporary car insurance policies make the same coverages available, nor do their policies have the same premiums. Each insurer determines what coverages they’ll offer, what the terms of each coverage are, and how they evaluate different risk factors. This results in differences among both policy options and premiums.

If you need temporary car insurance, we’ve compared temporary car insurance offerings from some of the most well-known insurers in the country. Here are the best temporary car insurance companies, depending on specifically what you need in a policy.

In our assessment, we prioritized coverage options, premiums and customer service:

• Coverage options should be robust, so you can get all of the protections you need
• Premiums should be affordable, so you aren’t overpaying for your policy’s protections
• Customer service should be excellent, so you have support in the event of a claim

Best Overall: USAA Short-Term Car Insurance

USAA provides many customizable coverage options, and is known for its historically excellent customer service.

Pros of USAA Temporary Auto Insurance

• Detailed online comparison and quote tool
• Some of the most affordable rates
• Excellent customer service available 24/7
• Impeccable financial ratings

Cons of USAA Temporary Auto Insurance

• SafePilot telematics app isn’t yet available in all states
• Restricted to members of the armed forces, and their families
• Online quotes are only available once logged into a member account
• Very limited in-person access to agents

USAA has been serving members of the armed forces for a full century, and the service is now available to members and their families (including descendants). The company offers full banking and full insurance services, including some of the best car insurance policies.

Among insurance companies, USAA has long been the go-to choice for qualifying members. The company’s combination of coverages and premiums is almost unmatched, and it’s known for having industry-leading customer service. Customer service agents are based in the United States (Georgia usually), and available 24/7.

While USAA is most well-known for its standard auto insurance offerings, the company offers identically great temporary auto insurance policies. The customer service is a benefit that’s especially helpful if you ever have to file a claim — few other companies give so much support throughout the claims-filing process.

If you qualify through military service (active duty, reserves, cadets, veterans, family members, etc.), this is probably the best company to purchase temporary auto insurance from. It should at least be one of the companies that you consider and compare.

Best for Collector Cars: Nationwide Short-Term Car insurance

Nationwide provides extensive coverage options, including coverages that are specifically for collector, antique and exotic cars.

Pros of Nationwide Temporary Auto Insurance

• Highly customizable car insurance coverage options
• Coverages specifically for classic cars (and exotic vehicles)
• Guaranteed value coverage available
• Quick and easy online quote tool
• Easy access to local agents

Cons of Nationwide Temporary Auto Insurance

• Relatively average claims satisfaction ratings
• Discounts aren’t clearly advertised
• Sometimes more expensive for standard policies

Nationwide offers nearly comprehensive property and casualty insurance options, including homeowners, renters, auto, boat, ATV and many other policies. The numerous policies make it easy to attain a multi-policy discount, which can be particularly important when trying to reduce premiums (see below).

Although Nationwide offers competitive insurance rates, the company primarily differentiates itself on coverage selection and quality. Across policies, Nationwide tends to offer somewhat more extensive protections — including for short-term auto insurance policies.

The extensive coverage options that Nationwide offers make this an excellent choice for classic car insurance. Less common coverages for antique cars, hot rods, collector vehicles, sports cars and exotic vehicles are readily available.

Nationwide temporary auto policies can come with guaranteed value coverage, which insures a vehicle for a predetermined amount rather than an estimated fair market value. This is just one example of specialized coverage, as policies may also offer coverage for genuine parts, guaranteed flatbed towing (for roadside assistance), coverage for auto shows, and more.

If you need to temporarily insure a classic car, you’ll likely find that Nationwide’s policies offer the most extensive protections. Even though premiums may be higher, it’s worth paying a little more when you’re insuring a special vehicle.

(You may also consider Nationwide for a customized short-term policy for common vehicles. Although premiums can be higher, the difference in cost may be minimal because these policies are only for a shorter duration.)

Best for Driving Emergencies: Allstate Short-Term Car Insurance

Allstate offers multiple roadside assistance plans through its short-term car insurance policies, which is a relief during roadside emergencies. Coverage for rideshare driving is also available on a short-term basis.

Pros of Allstate Temporary Auto Insurance

• Specializes in 6-month policies for longer but still temporary insurance
• Multiple roadside assistance plan options for 24/7 help
• Coverage for rideshare driving is available
• Interactive online guide explains the basics of auto insurance
• Impeccable financial ratings

Cons of Allstate Temporary Auto Insurance

• No policies shorter than 6 months
• Average claims satisfaction ratings

Allstate is particularly focused on safety, ensuring you can receive assistance during roadside emergencies. Policies can come with any of several roadside assistance plans, each of which offers varying levels of support 24/7.

Additionally, the company has over 10,000 local agents who can help navigate claims or other issues that might arise. Few insurers match Allstate’s availability for in-person support. This is one of the largest insurance companies, and size has its advantages.

Allstate is alternatively an obvious choice if you drive for any ridesharing app. Policies make coverage for rideshare driving available as an optional feature, and it can be added at quite affordable rates. If you’re rideshare driving as a short-term gig, a 6-month policy that provides coverage could be perfect.

Each of Allstate’s insurance policies is for a 6-month term, which makes their standard policies akin to longer temporary policies. You can’t get anything shorter than a 6-month policy. If you need auto insurance for half a year and/or drive in precarious conditions (e.g. winter weather), however, these policies might be tailor-made to suit your needs.

Best for Multiple Car Coverage: GEICO Short-Term Car Insurance

Geico has competitive rates for short-term car insurance, and those rates only get better if you bundle multiple policies (including multiple auto policies) together.

Pros of Geico Temporary Auto Insurance

• Competitive rates, especially for multi-vehicle temporary policies
• Detailed online comparison tool with many coverage options
• 24/7 customer support all year long
• Impeccable financial ratings

Cons of Geico Temporary Auto Insurance

• Average claims satisfaction ratings
• Geico’s DriveEasy app isn’t available in all states

Geico uniquely doesn’t offer gap coverage (for relatively new leased/financed vehicles), but the company has just about everything else. Both standard and temporary auto insurance coverage options are extensive, and there are also insurance policies for all types of homes, recreational vehicles (including temporary motorcycle insurance policies), and other property.

With so many policy options, it’s easy to take advantage of Gieco’s multiplicity discount. Simply combine auto insurance policies (including standard and temporary), home insurance policies, boat policies, or any of Geico’s many other property insurance policies. A percent-off will apply to each policy.

Don’t expect the absolute best customer service from Geico, but also don’t expect to pay the highest premiums. Rates are competitive and get better with multiple policies — which makes this the economical choice if purchasing temporary insurance for several cars (when cost becomes especially important).

Best for Filing Claims: State Farm Short-Term Car Insurance

Stat Farm has some of the highest customer service ratings in the industry, thanks to an army of agents and representatives.

Pros of State Farm Temporary Auto Insurance

• Consistently excellent customer service and claims satisfaction ratings
• 19,000 agents throughout the United States for in-person service
• 24/7 dedicated customer service phone number
• Extensive discount programs to reduce premiums

Cons of State Farm Temporary Auto Insurance

• Personal information required for a customized quote
• May not have the lowest available rates

State Farm has been serving customers right for a full century. The company’s insurance policies (including temporary auto policies) are good, and its customer service is excellent.

More than 19,000 agents are throughout the United States, so you’re never far from an agent’s office. If you can’t drive at all, need help outside business hours, or don’t want to visit an office, a 24/7 dedicated customer service phone number ensures assistance is no more than a phone call away.

State Farm is also known for offering discounts that offer opportunities to save money, and you can likely qualify for several percent-off and flat-amount discounts. They’ll award safe driving (more than any insurer), good grades, drivers education, bundling policies and more. (Check the advertiser disclosure for the specifics on advertised discounts.)

If you have a clean driving record, State Farm should be on your shortlist of companies to consider for temporary auto insurance. You’ll receive substantial discounts, solid coverage, and superb customer service anytime you need it.

Frequently Asked Questions

What is Temporary Car Insurance?

Temporary car insurance provides auto coverages for a short time. The duration of a temporary policy can vary, but it’s usually less than 6 months. Rates may be billed by the day, week or month.

Should you be in an accident while a temporary car insurance policy is in effect, the policy would likely cover the accident according to the coverages, terms and conditions set forth in the policy’s papers.

Notably, short-term insurance isn’t a substitute for non-owner car insurance. While non-owner insurance is available through short-term policies, purchasing liability insurance when driving others’ vehicles and insuring for only a short time are two different matters.

Short term-insurance also shouldn’t be confused with pay-per-mile insurance. Usage insurance that’s charged according to how far you drive can be purchased through standard or short pay-per-mile car insurance policies, but it and short-term are different.

Why Don’t Auto Insurance Companies Like Short-Term Policies?

Short-term insurance policies can be difficult to find, because many insurance providers find that the financial risk outweighs the premiums received. Underwriting a short-term policy isn’t any easier than underwriting a standard policy, and the same amount of work is required.

Most car insurance providers favor standard 6- or 12-month policies for these reasons, and some don’t offer short-term policies at all.

What Should You Do If You Need Temporary Car Insurance?

If you need temporary car insurance, compare policy options from several insurance providers that offer short-term policies. You might have to look at a few policies in order to find the one that best meets your coverage, duration and premium needs.

An independent agent or website makes it easy to compare policies from several insurance companies. Be sure to look at coverages and duration, in addition to the premiums.

How Do You Apply for Temporary Car Insurance?

You can apply for temporary car insurance by requesting a customized quote, and then providing some personal information to purchase the quoted policy. You’ll need your driver’s license, your car’s vehicle identification number (VIN) and some other information.

The process of purchasing temporary insurance is fairly straightforward, though. It only takes a little while to compare quotes, and buy car insurance of any kind.

How Much Does Temporary Car Insurance Typically Cost?

Premiums for temporary car insurance can vary dramatically, as your vehicle, coverages, driving record, policy duration and other details all impact cost. You’ll have to request customized quotes to find out how much car insurance costs in your situation.

However, you can expect these policies to cost much less than a full-year car insurance policy (which can have annual premiums in the four figures). Premiums for temporary policies are often charged by the day or week, although some policies are charged by the month.

Who Shouldn’t Get Short-Term Insurance?

While short-term insurance may be more affordable for the duration of a few days, weeks or months, these policies often come with a slightly higher per-day rate than comparable standard insurance policies have. The rate for short-term policies is slightly higher because of the increased risk to the insurance provider, and the work involved with underwriting.

For this reason, short-term insurance generally isn’t the best option for drivers who need insurance long-term or indefinitely. These drivers would be better served by a standard 12-month auto insurance policy rather than a day-by-day car insurance policy. Drivers who are unsure might want a 6-month policy, such as Allstate specializes in.

Who Should Get Temporary Car Insurance?

Drivers who need insurance for less than six months may want to replace their existing policy with a short-term one, whether that’s a short-term liability car insurance policy or a more comprehensive short-term policy.

Drivers need temporary coverage when they rent vehicles. Before purchasing a short-term rental car policy, though, drivers should check whether they have coverage for a rental car through their existing policy or a credit card. Any coverage that’s needed in addition to these sources can be purchased from the rental car policy, or through a short-term policy.

College students might also want a short-term policy if they’re only driving during school breaks. Students who drive to work during holidays and summer vacations need coverage for those periods, but they may not need car coverage if they don’t have a vehicle at school.

Any other times that a driver has a vehicle for only a few months also calls for a short-term policy. Drivers can get a short-term policy for a winter beater, a cheap vehicle that they purchase, a vehicle they buy and then resell while taking a road trip, or any other reason.