What is the Best Car Insurance for a Family?

Car insurance for a family, like other major living expenses, can be extremely costly. Whether you're getting married, purchasing a home, or adding teen drivers to your policy, each step in your family's journey can affect the monthly cost of insurance. Understanding how your changing family dynamic affects your premium is important, but so is knowing the best ways to lower your rates. And here's the good news: we've already done all of the legwork for you.

Want to keep your family auto insurance rates under control? Stay with us as we break down the most affordable options and reveal some insider secrets for permanently lowering your rates.

Life Events That Can Save You Money

You're in luck, married people. Although having a spouse does not necessarily make you a better driver, insurers consider spouses who share an auto insurance policy to be less of a risk on the road. As a result, married drivers receive lower premiums. In fact, when compared to single, unmarried drivers, spouses save an average of $160 per year.

Insurance companies also favor homeowners and condo owners over renters, offering an average savings of 2% off their premiums. This is because homeowners are thought to be less likely to file a claim than renters, and when they do, the payouts are less expensive.

So, what does this imply for you? If you've recently purchased a new home or condo, you should notify your current insurer because you could be eligible for additional savings. You should also check with other providers to see who offers the best discount to homeowners—and then switch to get the best deal.

Now that you know which life changes can lower your auto insurance rates, it's time to look at the ones that can raise them. And here's a hint: it all starts when you introduce children into the mix.

Best Car Insurance Companies for Young Drivers

Nothing beats the rush of getting your driver's license as a teen. However, this newfound independence comes at a cost—literally. Younger drivers are more likely to be in an accident due to a lack of driving experience, and thus more likely to be in an accident. As a result, teens are more expensive to insure than almost any other age group, paying an average of 80% more than older drivers.

After adding a teen driver to their car insurance policy, parents can expect a $4,000 annual premium increase. The increase may be even greater for families with multiple driving-age children. However, car insurance for teenagers does not have to be prohibitively expensive.

The first step in lowering your insurance rates for a more affordable policy is to select the right insurance provider:

  • Travelers: For 150 years, Travelers has been a trusted provider of all types of insurance. It also has the most affordable rates for teen drivers, with an annual rate of $1,314. It is known for having a wide range of coverage options, in addition to being the most affordable car insurance for families with teen drivers. Travelers also provides a variety of discounts for young drivers, including good student, driver training, and away-from-school discounts, which can further reduce rates.
  • USAA: Just behind Travelers, USAA has some of the most affordable rates for teen drivers, with an average annual rate of $1,595 per year. The only catch is that USAA's auto insurance is only available to military members and their immediate families, so it may not be suitable for everyone. However, service members are also eligible for special discounts to further reduce costs. Discounts are available for teens who achieve good grades or complete a driver training course, as well as long-term customers.
  • Progressive: It should come as no surprise that well-known insurance company Progressive offers low teen driver rates, ranking third with an annual rate of $1,835. The insurance behemoth doesn't get as high marks for customer service and claims handling as our top two picks, Travelers and USAA, but it does provide a wide range of coverage options. Teen drivers are also eligible for its teen driver, good student, and distant student discounts, which can help offset premium costs even further.
  • State Farm: Not only is State Farm the largest car insurance company in the country, but it's also an excellent choice for families with young drivers. State Farm is the fourth most affordable if you have teen drivers on your policy, with typical policy rates averaging $1,896 per year. It also offers customized discounts to help lower rates even further. With State Farm's good student discount, full-time high school, homeschool, or college students can save up to 25%. Young drivers may also be eligible for driver training and student discounts while away at school.
  • The Hartford: The Hartford insurance company comes in last on the list of the most affordable insurance companies for teen drivers, with an annual rate of $2,116. Because The Hartford is well-known for its discounted AARP auto insurance program, young drivers who share a policy with an AARP member can save even more money on their premium.

How to Save Money on Car Insurance with Teen Drivers

The good news is that as your teen driver gains more driving experience and avoids tickets and accidents, the cost of their insurance should continue to fall. Car insurance rates typically drop by 13% once a driver reaches the age of 19, and another 7% once they reach the age of 21. Meanwhile, here are some easy ways to keep your premiums under control:

  • Increase your deductible: By raising your deductible, you agree to pay more money up front in the event of a claim. In exchange, the insurance company will often significantly reduce your monthly premium. Remember that raising your deductible is a good way to cut your costs right away, but you'll need to have enough money saved up to cover the deductible in the event of an accident.
  • Bundle your policies: Bundling refers to using the same insurance provider for both your car insurance and your homeowners insurance–and it can result in significant savings. Some carriers may also provide discounts for combining a car policy with a boat, RV, motorcycle, renters, or life insurance policy.
  • Reevaluate your coverage requirements: Examine your policy to see if and where you can reduce coverage. For example, if you own an older vehicle, you may want to reconsider dropping collision coverage. Collision coverage pays for repairs regardless of who is at fault in an accident. Paying hundreds of dollars for a collision premium on an older car that isn't worth much may not make sense, especially since you'll still have to pay a deductible if you file a claim.
  • Take a defensive driving class: Taking a defensive driving class, either in person or online, can often reduce your insurance rate by as much as 10-15%. Inquire with your provider about approved driving classes that will earn you a monthly discount.
  • Shop around for coverage: Car insurance rates differ depending on the company, state, and even neighborhood. As a result, it's critical to compare quotes each year to ensure you're getting the best rate possible.

Affordable Car Insurance for the Whole Family

When it comes to family car insurance, a comprehensive policy is the first step in ensuring the safety of your loved ones. But affordability is also important, and we're here to ensure that your coverage provides both. You can choose a plan and have the entire family safely insured in minutes thanks to our quick and affordable online car insurance quotes. Request a quote today to get the protection and savings that your family deserves.