Best Car Insurance For Teens In Minnesota 2026

When it comes to finding the best car insurance for teens in Minnesota, GEICO stands out as the top choice.

In this article, we’ll compare the top-rated insurance companies for teen drivers in Minnesota, helping you find the best coverage at an affordable price. Without the right insurance, teens face the risk of higher premiums and inadequate protection.

Best Car Insurance For Teenagers In Minnesota

To find the best car insurance companies for teenagers, we looked beyond price, as it is far from the only factor that matters when selecting a good insurer. We looked at teen safe driving programs, available discounts, and coverage options.

GEICO and State Farm are two of the best insurance companies for teens in Minnesota, with average annual premiums of $7,980 and $6,840.

Cheapest Teen Car Insurance Companies In Minnesota

Auto-Owners is the cheapest car insurance company for teenage drivers in Minnesota, with an average annual premium of $3,612.

Average Cost Of Car Insurance For Teens On Their Parents’ Policy

Remaining on your parents’ insurance policy can be a great way to bring down your teen’s car insurance premium.

Here are the average annual premiums for teens who remain on their parents’ policy, on full coverage policies.

Average Cost Of Car Insurance For Teens On Their Own Policy

Teenagers under the age of 18 usually can’t get their own auto insurance policy. While it’s generally cheaper for teens to remain on their parents’ policy, teenagers who live at a different address from their parents may need to purchase their own policy.

Here are the average annual full-coverage rates for teens on their own policies in Minnesota.

How To Get Cheap Car Insurance For Teens In Minnesota

Finding affordable car insurance for teenage drivers in Minnesota can be challenging, but there are several strategies families can use to reduce costs while maintaining strong coverage.

Shop Around For Quotes

Always compare rates from multiple insurers. Companies like State Farm and USAA often provide competitive options for young drivers in Minnesota, but checking several providers ensures you secure the best deal.

Add To An Existing Policy

It’s usually cheaper to add your teen to a family policy rather than purchasing a separate plan. This approach also makes it easier to qualify for multi-car or multi-driver discounts.

Assess Driving Habits

Evaluate how often and how far your teen drives. Teens who only drive occasionally may benefit from usage-based insurance programs such as GEICO’s DriveEasy or Allstate’s Milewise®, which reward low-mileage drivers.

Bundle Policies

Combining auto insurance with other types of coverage, like homeowners or renters insurance, can unlock multi-policy discounts that lower overall premiums.

Ask About Discounts

Many insurers offer savings opportunities for teens, including good student discounts, accident-free rewards, and safe driving programs. Always ask what discounts are available to maximize savings.

Choose A Higher Deductible

Opting for a higher deductible can reduce monthly premiums. Just make sure the deductible amount is manageable if an accident occurs.

Enroll In A Safe Driving Course

Encouraging your teen to complete a defensive driving or driver’s education course not only improves their skills but can also qualify them for reduced insurance rates.

Consider Usage-Based Insurance

Pay-per-mile or telematics-based programs are ideal for teens who drive less frequently. These plans track driving behavior and mileage, offering discounts for safe and limited driving.

Review And Update Regularly

As your teen gains experience and maintains a clean record, they may qualify for new discounts. Reassess the policy each year to ensure you’re getting the best value.

Why Is Car Insurance So Expensive For Teens?

Teenagers often face some of the highest car insurance premiums because insurers view them as high-risk drivers. Their limited experience and greater likelihood of accidents make coverage more costly compared to older motorists.

Lack Of Driving Experience

New drivers have not yet developed the instincts and judgment that come with years behind the wheel. This inexperience makes teens more prone to mistakes, which increases the risk of collisions.

Higher Accident Rates

Statistics show that teens, especially young males, are involved in more crashes than any other age group. Risky behaviors such as speeding, distracted driving, and failing to wear seat belts contribute to these elevated accident rates.

Greater Severity Of Accidents

When inexperienced drivers are involved in collisions, the damage can be more severe. Teens often struggle to react appropriately in dangerous situations, which can lead to higher claim costs.

Immaturity And Risky Decisions

Because teens are still developing decision-making skills, they may take unnecessary risks or make poor choices while driving. Insurers factor this immaturity into their pricing.

Expensive Claims

Repairing modern vehicles and covering medical expenses after an accident can be costly. Since teens are statistically more likely to file claims, insurers offset this risk by charging higher premiums.

Limited Credit History

Insurance companies often use credit history as part of their rate calculations. Teens usually have little or no credit record, which can result in higher costs compared to adults with established financial histories.

How Can I Add A Teen To My Car Insurance Policy?

Adding a teen driver to your car insurance policy is a key milestone, and doing it strategically can help balance affordability with strong protection. Here’s a clear step-by-step guide:

1. Notify Your Insurance Company

• Contact your insurer as soon as your teen gets a learner’s permit or driver’s license.
• Provide details such as their date of birth, license number, and any driving history. Some insurers require immediate notification, while others allow you to wait until the license is fully issued.

2. Discuss Coverage Options

• Review your current policy to see if liability limits and coverage levels are sufficient. Adding a teen often raises premiums.
• Consider higher liability limits or adding collision/comprehensive coverage if your teen will drive a newer or more valuable vehicle.
• Ask if your insurer offers special coverage options for young drivers.

3. Ask About Discounts

• Good student discounts for maintaining a B average or higher.
• Driver’s education discounts for completing certified courses.
• Safe driving discounts for keeping a clean record.
• Bundling discounts if you combine auto insurance with homeowners or renters insurance.

4. Evaluate The Impact On Premiums

• Request a quote to see how much your premium will increase. Compare with other insurers if needed.
• Consider deductible changes: raising your deductible lowers premiums, but ensure it’s an amount you can afford out of pocket.

5. Formalize The Addition

• Once you’ve chosen coverage and applied discounts, officially add your teen to the policy. Your insurer will update documents to reflect the change.

6. Educate Your Teen On Safe Driving

• Stress the importance of safe driving habits. A clean record helps keep costs down.
• Enroll them in a defensive driving course for skill-building and potential discounts.

7. Review The Policy Regularly

• Annual reviews are essential. As your teen gains experience, they may qualify for new discounts or need coverage adjustments.

Car Insurance Discounts For Teens

Teen drivers in Minnesota often face higher insurance premiums, but many companies provide discounts that can help reduce costs. Below are some of the most common options available, reordered for uniqueness and tailored to teenage drivers.

• Bundling Discount. Families can save money by adding a teen driver to an existing auto policy or by combining auto coverage with other types of insurance, such as homeowners. Multi-policy discounts are a simple way to cut costs.
• Good Student Discount. Insurers reward academic performance. Teens who maintain at least a B average or a 3.0 GPA often qualify for reduced rates, since responsible students are seen as more likely to be safe drivers.
• Usage-Based Insurance Programs. Programs like Progressive’s Snapshot® or Allstate’s Drivewise® monitor driving behavior through apps or devices. Teens who consistently demonstrate safe driving habits can earn significant savings.
• Student Away at School Discount. If a teenager attends college more than 100 miles from home and doesn’t regularly drive, insurers may lower premiums because the vehicle is used less frequently.
• Safe Driver Programs. Special initiatives such as State Farm’s Steer Clear® or GEICO’s DriveEasy encourage young drivers to practice safe habits. Participation in these monitored programs can lead to discounts.
• Accident-Free Discount. Maintaining a clean record without accidents over a set period can qualify teens for lower rates. This reward emphasizes consistent safe driving.
• Driver’s Education Discount. Completing a certified driver’s education course not only teaches safe practices but also reduces insurance costs. Many Minnesota insurers recognize the value of formal training.
• Low Mileage Discount. Teens who drive only occasionally, such as commuting to school or part-time jobs, may qualify for a low mileage discount. Less time on the road means lower risk.
• Early Signing Discount. Some companies reduce premiums if families renew or sign up for coverage before the current policy expires. Planning ahead can pay off.
• Safe Driving Discount. Teens who avoid traffic violations and accidents can earn discounts simply by keeping their record clean.
• Good Driver Discount. Young drivers who have held a license for several years without incidents may qualify for this reward, further lowering costs as they gain experience.

Compare Teen Car Insurance Costs To Other States