Oleksandr Rohovnin Auto insurance policies for 17-year-olds are the most expensive in the United Kingdom and the United States, but there are reasons for that.
Read on to learn how a 17-year-old from the US or the UK can get the best deal on the market.
The United States
- You can legally drive a car once you turn 16*
- The minimum legal age for purchasing an auto insurance policy is 18 in most states
This creates a two-year gap, during which teen drivers cannot buy an auto insurance policy themselves but can only be added to their parent’s policy.
*for more info, see the table in the FAQ section
Why Are Car Insurance Policies for 17-Year-Olds so Expensive?
Car insurance policies for 17-year-olds are expensive because inexperienced drivers are riskier for insurance companies to cover. Lack of driving experience leads to poor risk assessment, speeding, not wearing seatbelts, using phones while driving, and ultimately results in traffic violations. The likelihood of a road accident with a 17-year-old is significantly higher than with an adult driver.
How Can 17-Year-Olds Get Insured if They Can’t Purchase a Policy Under the Age of 18?
17-year-olds can be included in their parents’ policy. However, such inclusion may be up to 50% more expensive than purchasing a full-fledged comprehensive or collision coverage for an adult.
What Affects the Price of Car Insurance for 17-Year-Olds in the United States?
There are many factors that affect the price of an auto policy for a 17-year-old, including the type and amount of coverage, the model and make of the car, your driving record, history of claims, and even gender.
Speaking of which, an interesting fact is that California, Hawaii, Montana, Michigan, Massachusetts, North Carolina, and Pennsylvania do not allow insurance companies to factor gender into rates, whereas Massachusetts and Hawaii also forbid taking age into account. That said, auto insurance for female drivers is about 15% cheaper than for male drivers.
However, when talking about the price of car insurance for teens, you should always remember that teens under 18 cannot buy a policy. In fact, the cost of car insurance for a 17-year-old is determined by how much their parents’ premium will increase as a result of the inclusion.
How Much Is Car Insurance for a 17-Year-Old in the United States?
The cheapest insurance policies for 17-year-olds are in North Carolina – about $100 per month – while the most expensive are in Florida – $400 per month.
How to Save on Car Insurance for a 17-Year-Old?
The prices for car insurance for teens may be a bit overwhelming, but there are also many ways to save on your policy:
- Keep your grades high. A common practice among insurance companies – take, for example, State Farm, Nationwide, and Allstate – is to reward students with B or better grades.
- Drive safely. Many companies will offer a discount to drivers with a clean driving history. Avoiding accidents and traffic violations can cut a chunk off your premium, but you may be asked to install a driving-monitoring app.
- Drive less. The less you drive, the less risky you are for your insurer. A fair number of companies reward drivers who drive less than the established minimum.
- Choose the right car. Other things being equal, a sports car will always be more expensive than a sedan, with the difference in an annual premium reaching thousands of dollars.
- Add a named driver. If you add an experienced driver to the policy, most insurers will see it as a risk reduction and will likely lower the premium.
Last but not least, you can use the good old tricks most drivers use when they choose their car insurance:
- Reduce the amount of coverage
- Compare quotes from different auto insurers
- Consult with more agents
All in all, the better you know the market, the more secure you will be with your policy.
Top Car Insurers for 17-Year-Olds in the United States
- State Farm. With over 19,000 agents and 70,000 employees, State Farm is one of the biggest auto insurers in the United States and caters to teen drivers.
- State Farm’s Teen Driver offers an up to 25% discount for college students with good grades.
- State Farm’s Steer Clear offers an up to 25% discount for drivers under 25 who’ve kept their record safe for 3 years.
Read State Farm’s full review.
- Nationwide. One of the cheapest insurers in the United States, Nationwide offers a Good Student discount for drivers under 25 who maintain a B average. In addition, the company runs special ‘accident forgiveness’ coverage preventing an increase in your premium after your first at-fault accident.
- Allstate. Allstate offers a special Smart Student discount for unmarried students who have B-grades or better, completed All State’s teenSMART driver education program, or attend a school located over 100 miles from the garage.
There are plenty more fish in the sea, though. With more than 6,000 insurers in the United States, you can find dozens and hundreds of insurers offering discounts for teen drivers. But then again, make sure to take into account the full spectrum of factors, not just discounts, bonuses, and perks.
The United Kingdom
- You can apply for a provisional driving license at 15 years and nine months old
- You can drive a car at 17, or you can drive at 16 provided you’ve applied for the enhanced rate of the mobility component of the Personal Independence Payment
- You can buy car insurance at 17 or even 16 with some insurers
In the UK, there’s no gap between the minimum driving age and the minimum age for buying insurance. Unlike their American peers, 17-year-old Britons do not need to beg their parents to include them in their car insurance policy.
What are the Differences between Car Insurance for 17-Year-Olds in the UK and the US?
In the UK:
- 17-year-olds can purchase car insurance independently from their parents
- The number of major car insurance options is smaller
- UK car insurance options: third-party, third party fire and theft, and comprehensive auto insurance
- US car insurance options: liability, collision, comprehensive, medical payments, personal injury protection, and uninsured/underinsured motorist insurance
- Car insurance is cheaper than in the US and is tied to both the driver and the car, not just the driver
How Much Is Car Insurance for a 17-Year-Old in the UK?
Although car insurance in the United Kingdom is cheaper than in the United States, the policies for 17-year-olds are still expensive. The quotes can vary significantly depending on the type and amount of coverage, the insurer, location, driving record, and other factors.
However, the average price for a comprehensive insurance policy for a 17-year-old in the United Kingdom would be around £2,000 per year. Unlike US policies, we’re talking about a full-fledged policy, not an inclusion in the parents’ policy.
The Cheapest Car Insurance Offers for 17-Year-Olds in the UK
When looking for the cheapest option for a teen driver in the United Kingdom, make sure to get quotes from multiple niche websites – for example, Confused, ComparetheMarket, and MoneySuperMarket – and factor in bonuses and other perks that rival insurers provide.
Top Car Insurers for 17-Year-Olds in the UK
The two most common deals for young drivers in the UK are Churchill’s affordable DriveSure telematics and Bell’s ‘black box.’ For the best offer, though, it would be reasonable to research other renowned companies, including Admiral, Aviva, Age Co, CSIS, Direct Line, Dial Direct, and Hastings.
FAQ
What Is the Legal Age for a Driver’s License in the United States?
17 years | 18 years | Other |
| Alabama, California, Colorado, Delaware, Hawaii, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Nebraska, Oklahoma, Oregon, Tennessee, Utah, Washington, and West Virginia | Arkansas, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Maryland, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New York, Ohio, Pennsylvania, Texas, and Virginia |
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Can You Drive Without Car Insurance in the UK?
Car insurance is mandatory in the United Kingdom.
Can You Drive Without Car Insurance in the US?
Car insurance is mandatory in all states except for New Hampshire, where proof of financial responsibility is enough.
Can 17-Year-Olds Get Their Own Car Insurance in the US?
You have to be at least 18 years old to purchase car insurance in the United States. As an alternative, a 17-year-old can be included in their parents’ policy.
Should You Adjust Your Coverage when Adding a Teen Driver?
Inclusion of a teen driver in the policy will increase the premium, but it doesn’t mean you have to change the policy itself.
Why Is Car Insurance for 17-Year-Olds So Expensive?
Car insurance for 17-year-olds is expensive because teen drivers pose a greater risk for insurance companies.
How Can Students Save on Car Insurance?
Students can save on car insurance by taking advantage of discounts, including a Good Student Discount, discounts for safe driving, and discounts for driving less than the required minimum.
Oleksandr is an expert in deep research. He covers insurance topics across four major insurance verticals – auto, health, life, and home insurance – while taking into account the legal landscape of the state in question. Come rain or shine, you can expect regular quality blogs and timely updates from Oleksandr.
