Because a 17-year-old person is a minor, a parent or guardian must sign the car insurance policy that is issued to them. This means that parents will be responsible for what happens when their teen driver is behind the wheel. A 17-year-old can get car insurance in most states, but as a minor, a parent or guardian must sign the policy with you. Teenage drivers are high-risk drivers because they are inexperienced and at high risk of car accidents.
17-year-old drivers may have a year of driving experience, but they are still quite inexperienced behind the wheel. As such, your premiums may be lower than when you first got your license, but your average car insurance costs are still significantly higher than average. Bankrate can show you why 17-year-olds pay higher rates, how rates vary by location and insurance company, and how you can find a lower premium. Reviewing the quotes of several car insurance companies and comparing discounts and types of coverage can help you find the right policy for your needs.
The risk to the insurer and the cost to the insured generally decrease as drivers age and gain experience. While some insurers may agree to put a policy in a teen's name, most will require a parent or guardian to sign or co-sign the car insurance policy. Age affects auto insurance rates because it is an indicator of driver risk for an insurance company. Since then, she has worked as a news writer in the insurance industry and has gained in-depth knowledge of state and national insurance laws and rates.
Most of the time, the name on the vehicle title and the car insurance policy must match to ensure adequate insurance. The table below illustrates the average annual premium for car insurance with full coverage for 17-year-olds by state. In addition, other individual qualifying factors influence your car insurance premium, such as the make and model of the vehicle, the number of miles traveled annually, and the history of car claims. Read the full answer Some factors, including your driving history, gender, location, vehicle and auto insurance company.
In general, auto insurance premiums continue to fall every year until age 25, when rates begin to stabilize for the next few decades. Each geographic area of the country also has its own statistics on the volume and severity of car accidents, the cost of car repairs, and the likelihood of weather-related damage. Therefore, in most states, a teen cannot independently buy or insure a car because minors cannot own property in most states or sign contracts, so parents would own that property until the child becomes an adult. Even the best car insurance companies consider teens to be at greater risk because of their inexperience and charge higher premiums.
The cheapest car insurance companies for teens are Travelers, USAA and Progressive, according to the WalletHub analysis.