Nationwide and State Farm offer discounted car insurance policies for young drivers. Nationwide's policies focus on teenagers, while State Farm offers cheaper insurance policies for college students, according to the companies. State Farm also has a discount of up to 25 percent for students who achieve good grades.
Nationwide offers a discount for students who get a B or better in school. Installing anti-theft devices and taking defensive driving classes also lowers rates, notes Nationwide.
Increasing deductibles is another way for teenagers to lower their auto insurance policy rates, according to Nationwide. If young drivers add the company's Accident Forgiveness policy to their insurance, their first accident does not result in a rate increase.