Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Feb 28, 2022

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The Short of It

  • Teen car insurance rates average between $300 and $450 per month
  • Honda and Mazda make the best cheap cars for teens to insure
  • Subaru makes the best cheap SUV for teens to insure

Are you looking for cheap teen car insurance? Consider the kind of car you drive. Certain vehicles have lower rates, and you can get more affordable teen car insurance when you buy the right car. 

What are the best cars for teens to insure? The Honda Civic and the Mazda MX-5 Miata have the cheapest teen insurance rates, but rates can vary based on the age of your vehicle.

Cheap cars for teens don’t always equal cheap insurance rates. Shop around with different dealerships and insurance companies to find the right policy. Each insurer will offer different discounts and rates to teen drivers depending on the kind of car they drive. 

Keep reading to learn which are the best auto insurance companies for teens. We break down the top five cheapest cars for teens to insure, and the list includes various makes and models. You’ll have plenty of options when it comes to choosing a ride, and you can drive with confidence knowing you bought the right policy.

The Top 5 Cheap Cars for Teens to Insure

The top five cheap cars on our list cost less than $30,000 and have average rates for young drivers around $220 per month. The table below breaks down the best cheap cars for teens to insure:

Car Make and ModelAverage Monthly Rates for Young DriversMSRP
Honda Civic$198From $22,350
Mazda MX-5 Miata$220From $27,300
Subaru Outback$228From $26,945
Volkswagen Golf GTI$228From $29,545
Mini Countryman$231From $28,400
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The Honda Civic comes with the cheapest car insurance and the cheapest starting price. The Mazda MX-5 Miata and the Subaru Outback are almost tied, as the Miata has slightly cheaper rates and the Outback comes with a slightly cheaper price tag. But, if you want an SUV, the Subaru Outback offers the better rates. 

The average rates on this table include all young drivers under 25, but drivers under 21 pay higher-than-average rates. Your car insurance rates can vary based on your age, gender, and driving record. While these five vehicles are still the cheapest for teens to insure, you can still expect car insurance for a 16-year-old to be more expensive. 

To find the cheapest car for a 16-year-old (and cheapest car insurance), shop around with multiple companies. Then, compare the quotes you find with the average cost of teen car insurance in your city to make sure you aren’t overpaying for coverage.

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What is the average cost of car insurance for a teen?

Age is one of the biggest causes for higher insurance rates for most drivers. Most car insurance companies consider teens high-risk drivers and often charge them the same rates as drivers with multiple accidents on their records. Teen males pay the highest rates overall, as you can see in the table below:

Average Monthly Car Insurance Rates for Teens by Company

GroupSingle 17-Year-Old FemaleSingle 17-Year-Old Male
USAA$401.00$449.00
Geico$471.00$523.00
Nationwide$480.00$598.00
State Farm$496.00$610.00
American Family$500.00$678.00
Farmers$710.00$762.00
Progressive$724.00$802.00
Allstate$774.00$887.00
Travelers$776.00$1,071.00
Liberty Mutual$968.00$1,143.00
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To put it into perspective, the average cost of car insurance is $138/mo. Compare that to the average monthly cost of car insurance for teens, which is around $400/mo. 

What are the best car insurance companies for teens?

When it comes to rates, the best car insurance companies for teens are USAA, GEICO, Nationwide, and State Farm. All four companies have monthly rates under $500, which is very affordable for teen drivers. 

However, your rates can vary based on where you live, along with your age and vehicle type. To find the best insurer near you, look for auto insurance companies that accept permits. These companies are more likely to cater to young drivers and offer more affordable rates.

Another tip for getting cheap car insurance for teens is shopping with companies that offer good student and good driver discounts. For example, students can earn up to 20% or more off their rates for maintaining a 3.0 GPA. Teens can also earn additional discounts for attending driving school from the following companies:

Driver's Education Discounts by Car Insurance Company

Insurance CompanyDriver's Ed Discount (%)
21st Century-
AAA-
Allstate10%
American Family-
Ameriprise-
Amica5%
Country Financial10%
Esurance-
Farmers-
Geico-
Liberty Mutual10%
MetLife10%
Nationwide-
Progressive10%
Safe Auto10%
Safeco5%
State Farm15%
The General8%
The Hanover5%
The Hartford3%
Travelers8%
USAA3%
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As you can see, discount availability and amounts will vary. Before you buy teen car insurance from any company, always ask about what discounts are available and if they’re automatically applied.

What are the most popular cars for teens to insure?

Price and popularity don’t always correlate. When it comes to teen drivers, the cheapest cars to insure and the cars teens love to drive have very little overlap — except for the Honda Civic.

Overall, the Honda Civic is the cheapest car for teens to insure and one of the most popular cars in the country with drivers of all ages. 

Why is the Civic so popular? Drivers love how easy the Civic is to upgrade and modify. And according to Car and Driver, the 2010s Honda Civics are some of Honda’s safer models and offer 39 mpg. 

The other most popular cars for teens to insure are:

  • Honda Civic ($2,370/yr)
  • Toyota Tacoma ($3,853/yr)
  • Toyota Highlander ($5,154/yr)
  • Toyota Camry ($7,997/yr)
  • Ford Mustang ($2,821/yr)

The annual insurance rates for the most popular vehicles for teens are more expensive. On average, trucks and SUVs are more expensive to insure than sedans. However, the annual rates for the Toyota Tacoma and Highlander are both very competitive for teen drivers with good grades and clean records.

What are the best cheap cars for teens to insure?

The best cars for teens to insure will be the vehicles that fit your budget. On average, the Honda Civic is the best car for teens to insure because it is the safest, gets the best gas mileage, and comes with cheaper insurance rates on average for all drivers. However, if you prefer SUVs, the Subaru Outback has the cheapest rates. 

When it comes to the most popular cars on the road for teens, Honda Civics and Ford Mustangs have affordable rates. However, Ford Mustang insurance rates are still more expensive than the five cheapest cars for teens to insure. 

If you’re looking for the cheapest teen car insurance rates, you can significantly reduce your insurance costs by driving an older vehicle that requires minimum coverage. Out of the best cheap cars for teens on our list, you’ll get the lowest rates if you choose a model from 2015 or later.