Cheapest Family Car Insurance
Travelers is the cheapest major car insurance company for families with teens on their auto insurance policy.
Find Cheap Car Insurance for Your Family
When your child gets their license, the best way to save is to add them to your policy — and it's still going to be expensive. In almost every case, a family car insurance policy is cheaper than separate policies.
Best cheap family auto insurance plans
Also on this page:
Cheapest companies for family auto insurance
Travelers has the cheapest car insurance rates for most families.
Full coverage car insurance from Travelers costs around $682 per month for a married couple with a 16-year-old on their policy. Families with two teen drivers pay an average of $816 per month.
Erie has even cheaper rates. Full coverage for two parents and a teen costs $537 per month, while a family with two teens pays $812 per month. However, Erie is only available in
12 states
and Washington, D.C.
Couple, 1 child
Couple, 2 children
Couple, no children
Find Cheap Car Insurance for Your Family
Cheapest family auto insurance with one teen driver
Company | Monthly rate | ||
|---|---|---|---|
| Erie | $537 | |
| Travelers | $682 | |
| Country Financial | $710 | |
| Progressive | $757 | |
| Geico | $807 | |
*USAA is only available to military members, veterans and some of their family members.
Couple, 1 child
Find Cheap Car Insurance for Your Family
Cheapest family auto insurance with one teen driver
Company | Monthly rate | ||
|---|---|---|---|
|
| Erie | $537 | |
|
| Travelers | $682 | |
|
| Country Financial | $710 | |
|
| Progressive | $757 | |
|
| Geico | $807 | |
*USAA is only available to military members, veterans and some of their family members.
Couple, 2 children
Find Cheap Car Insurance for Your Family
Cheapest family auto insurance with two teen drivers
Company | Monthly rate | ||
|---|---|---|---|
|
| Erie | $812 | |
|
| Travelers | $816 | |
| Auto-Owners | $1,052 | |
|
| Progressive | $1,123 | |
|
| Geico | $1,165 | |
|
| Country Financial | $1,215 | |
| State Farm | $1,761 | |
| Allstate | $2,057 | |
| Nationwide | $2,353 | |
| Farmers | $2,989 | |
| USAA* | $972 | |
*USAA is only available to military members, veterans and some of their family members.
Couple, no children
Find Cheap Car Insurance for Your Family
Cheapest family auto insurance for married couples
Company | Monthly rate | ||
|---|---|---|---|
|
| Travelers | $154 | |
|
| Erie | $171 | |
|
| Country Financial | $252 | |
|
| Progressive | $280 | |
|
| Geico | $292 | |
*USAA is only available to military members, veterans and some of their family members.
Companies sometimes limit car insurance policies to only four people. If that's the case and you have more than four drivers in your household, speak to your agent. They will usually sell you a second policy so all of the drivers in your household are covered.
How much does adding a teen driver raise car insurance rates?
Adding a 16-year-old with their own car to your family car insurance policy can triple your car insurance rates. But adding a second teen driver to your family's policy won't cost as much, with an average increase of around 47%.
Family size | Monthly cost |
|---|---|
| Married couple | $309 |
| Married couple, 1 teen | $1,007 |
| Married couple, 2 teens | $1,483 |
Rates are for a full coverage policy for a family where each driver has their own vehicle.
How does relationship status affect car insurance rates?
Married or widowed drivers pay around 5% less than a single person for car insurance.
Your family situation, such as being divorced, single or a widower, can impact your rates because some companies believe single drivers are more likely to cause a crash or file a claim in the future. However, not all companies factor your relationship status into the price you pay for car insurance.
Auto insurance rates by family status
Relationship status | Monthly rate |
|---|---|
| Married | $190 |
| Widowed | $194 |
| Divorced | $203 |
| Single | $204 |
Rates for a full coverage policy for a 30-year-old individual.
How to find cheap family car insurance
There are three main ways for families to find cheap car insurance rates:
Compare quotes from multiple companies
The best way to save on family car insurance is to shop for quotes from multiple companies. The cost of car insurance can differ greatly from one company to the next. That's because each company calculates rates differently based on factors like your driving history, location, age and credit score.
For example, there's a difference of $1,335 per month between the most and least expensive companies for a couple with a 16-year-old on their policy. So you could save thousands of dollars per year just by comparing rates.
Qualify for discounts
Families with children and multiple cars have access to a range of discounts that single-driver, single-vehicle households do not. Make sure you're getting every discount you qualify for from each company. That way, you can find the absolute cheapest option for you.
- Multicar discount: If you have multiple vehicles on the same policy, you'll typically save 10% to 25% on your car insurance.
- Good student discount: Many insurance companies offer a discount if a child on your policy has a GPA of at least 3.0.
- Away at school discount: If one of your children is away at college or boarding school and leaves their car at home, you can often get a break on your rates because they won't be driving as often.
In addition, some companies offer discounts to young drivers who complete training courses outside of the classes required to get their license. For example, the State Farm Steer Clear program gives young drivers a discount after they take a series of online courses and practice driving with an older mentor.
Adjust your car insurance coverage
Adjusting your coverage can make a big difference in the amount you pay for car insurance.
For example, a policy that only includes the minimum coverage required in your state costs an average of $544 per month less than a full coverage policy with a $500 deductible. That's a difference of over $6,000 per year.
However, minimum coverage isn't right for everyone, because it doesn't include any protection for your own car. If you have a car loan or lease, most lenders require you to have a full coverage policy with collision and comprehensive coverage. These coverages are also a good idea if your car is less than eight years old or worth more than $5,000.
If you want the cheapest possible insurance for your teen, you may want to consider buying an older, inexpensive car that doesn't need collision and comprehensive coverage.
Cost of family car insurance by coverage
Coverage | Monthly cost |
|---|---|
| Minimum coverage | $455 |
| Full coverage, $500 deductible | $999 |
| Full coverage, $1k deductible | $913 |
If you need full coverage insurance, you can also lower your rates by increasing your deductible. A policy with a $1,000 deductible costs $86 per month less than one with a $500 deductible, on average. That's a difference of $1,032 per year, which easily covers the difference between the deductibles if you're in a crash.
However, it's important to choose a deductible you can easily afford to pay in an emergency situation. You don't want to get in a major accident and have to wait to get your car fixed until you can save up enough money to pay your deductible.
Frequently asked questions
Is it cheaper to have family car insurance?
Yes, it's typically much cheaper to have a family car insurance plan as compared to separate policies. Teens with their own policies tend to pay much more than if they're on a parent's policy.
What is a family auto insurance policy?
A family car policy isn't a specific type of policy but instead a single policy that includes multiple members of a family. A family auto insurance policy is almost always cheaper than having family members buy their own policies.
Is it better to be on your parents' car insurance?
It is better for a child to be on their parents' car insurance in most situations. It will raise the rates of the parents' policy considerably, but it's still cheaper than separate policies.
Do you have to live with your parents to be on the family's car insurance?
You have to live with your parents, or at least list their home as your permanent address, to be on your family's car insurance. This means you can stay on their policy when you're away at school, but if you have your own home or apartment, you will need your own policy.
What happens if I don't add my teenager to my car insurance policy?
If you don't add your teen to your car insurance policy, your insurance company won't pay for any accidents they're in. That means you'll have to pay for any damage or injuries they cause, which could get very expensive. In addition, if your insurance company finds out that your teen is driving your car, they may cancel your policy. And your teen could have their license suspended for driving without insurance.
Methodology
To find the best cheap car insurance for families, ValuePenguin editors collected quotes from hundreds of ZIP codes across Georgia, Illinois and Pennsylvania from the largest insurance companies in those states. All rates are for full coverage policies with collision and comprehensive insurance along with higher liability limits than required in each state.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision: $500 deductible
Rates for couples and families are for two 50-year-old adults with clean driving records and good credit scores. Family policies with one teen include a 16-year-old male driver, while policies with two teens include 16 and 18-year-old males. Each person drives their own vehicle — a 2015 Honda Civic EX.
Rates listed for individual drivers are for 30-year-olds on their own policies.
Insurance rate data was collected using Quadrant Information Services. Rates are publicly sourced from insurance company filings. These should be used for comparative purposes only, as your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.