Best Auto Insurance for Drivers Under 25 (Find the Top 10 Companies Here!)
Erie, State Farm, and Geico have the best auto insurance for drivers under 25. Erie car insurance stands out for their extensive discount options starting at $81/mo. Our guide can help you find the best car insurance for young adults. Save with the cheapest insurance for young drivers with an average cost of $448 per month.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Sep 13, 2024
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UPDATED: Sep 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Erie, State Farm, and Geico are the best auto insurance for drivers under 25, with rates starting from $83, $124, and $110 per month.
Auto insurance for those 25 years old or younger often comes with high rates, because young drivers have less driving experience.
Our Top 10 Company Picks: Best Auto Insurance for Drivers Under 25
Company Rank Good Student Discount A.M. Best Rating Best For Jump to Pros/Cons
#1 Up to 20% A+ Regional Service Erie
#2 Up to 25% A++ Personalized Service State Farm
#3 Up to 15% A++ Broad Coverage Geico
#4 Up to 25% A++ Military Families USAA
#5 Up to 20% A Coverage Options Farmers
#6 Up to 15% A+ Teen Drivers Nationwide
#7 Up to 25% A Young Drivers American Family
#8 Up to 35% A+ Discount Variety Allstate
#9 Up to 10% A+ Online Tools Progressive
#10 Up to 8% A++ Safe Drivers Travelers
You can find the best auto insurance for young adults by comparing quotes and discounts for teens, and students by entering your ZIP code into our free comparison tool above. Many more offer discounts for existing policyholders who add their child to their auto insurance.
This guide covers which companies have the cheapest insurance for young drivers. We compare rates by age and discuss which discounts reduce rates the most for drivers under 25.
- Policies for drivers under 25 are more expensive due to limited driving history
- Rates for young drivers are often double the national average
- You can save by shopping usage-based insurance and discounts
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#1 – Erie: Top Pick Overall
Pros
- Young Driver Discount: Erie offers discounts for young drivers under 21 who reside with their parents.
- Good Student Discount: Students under 25 who maintain a B average or better can qualify for a discount.
- Driver Training Discount: Young drivers under 21 who complete an approved driver training course can save on their premiums
Cons
- Limited Availability: Erie is only available in 12 states, located mostly in the Northeast and Midwest. See if you live in an eligible state in our Erie auto insurance review.
- Higher Prices: While Erie Insurance generally offers competitive rates, rates for young drivers under 25 can still be relatively high compared to older drivers.
#2 – State Farm: Best for Customer Service
Pros
- Fantastic Service: State Farm is known for having excellent customer service and a wide range of coverage options.
- Student Discount: Young drivers under 25 may qualify for a Good Student discount. Find more discounts in our State Farm auto insurance review.
- Steer Clear: The Steer Clear program for drivers under 25 improves driving habits and offers a discount upon course completion.
Cons
- Limited Availability In Certain Regions: State Farm does not cover every region.
- Higher Rates: Rates can be higher for drivers under 25 compared to other age groups.
#3 – Geico: Best for Wide Range of Coverage
Pros
- Wide Coverage: Geico offers a variety of coverage options including liability, collision, and comprehensive coverage.
- Student Discount: A good student discount is available for young drivers under 25.
- Safe Driver Discount: Young drivers can receive a discount for completing a defensive driving course.
Cons
- Rate Increases: Rates can increase significantly for young drivers with accidents or tickets. (Learn more by reading our Geico insurance review)
- Mixed Customer Reviews: Some customer reviews state issues with customer service.
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#4 – USAA: Best for Military Members and Family
Pros
- Military Friendly Discounts: USAA offers a discount for those who live on military bases.
- Student Discount: Drivers under 25 may qualify for a student discount through USAA.
- Military Base Discount: Customers who live on a military base can receive additional savings.
Cons
- Limited Area Coverage: USAA is only available in certain regions. Find out more in our USAA auto insurance review.
- Exclusive to Military: USAA is exclusive to military members and their families.
#5 – Farmers: Best for Personalized Service
Pros
- Personalized Service: Farmer’s offers a comprehensive range of discounts and coverage plans. Check out our online Farmers review for more information.
- Signal Program: The Signal Program offers lower rates for safe driving habits.
- Distant Student Discount: Customers attending school away from home may qualify for this additional discount.
Cons
- Prices Based on Driving Record: Those with limited driving history, including young drivers, report higher costs.
- Higher Premiums: Customers experience higher premiums after accidents or traffic tickets.
#6 – Nationwide: Best for Accident Forgiveness
Pros
- Accident Forgiveness: Young drivers under 25 can receive accident forgiveness.
- Extensive Coverage: Nationwide has a wide range of coverage options.
- Distance Discount: Students who are away at school qualify for a discount.
Cons
- Higher Costs: High-risk drivers may have higher rates. See average Nationwide rates in our Nationwide auto insurance review.
- Difficult Claims Process: Some customers report issues with the claims process.
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#7 – American Family: Best for Generational Discount
Pros
- Personalized Service: American Family provides innovative coverage with the option to personalize your policy.
- KnowYourDrive program: The KnowYourDrive program rewards safe driving with a discount. Check out our AmFam insurance review to learn more.
- Generational Discount: Young drivers with parents who are American Family customers can receive an additional discount.
Cons
- Rates Can Be High: Rates may be higher for younger drivers, especially high-risk drivers with accidents or violations. Learn more in our American Family auto insurance review.
- Limited Availability in Some Areas: American Family is only available in select states, so it may not be an option for everyone
#8 – Allstate: Best for New Car Discount
Pros
- Good Financial Ratings: Instilling confidence in young drivers insured with Allstate.
- Drivewise: Young drivers who value safety when driving can benefit from this program.
- New Car Discount: Young drivers with newer vehicles may qualify for a discount. Find more information about Allstate’s rates in our review of Allstate insurance.
Cons
- High Rates: Young drivers with limited driving experience may incur higher rates.
- High Premiums: Some customers have reported higher premiums following accidents.
#9 – Progressive: Best for Competitive Rates
Pros
- Competitive Rates: Progressive offers innovative programs at competitive rates.
- Snapshot Program: Progressive’s Snapshot program monitors young driver’s driving behaviors to reward customers for their safe driving habits. This is one of the best Progressive auto insurance discounts you can receive.
- Name Your Price Tool: This tool allows entering a monthly budget to see what type of coverage Progressive can offer.
Cons
- Higher Rates for Inexperienced Drivers: Those with limited driving history may have higher monthly costs.
- Premium Increases: Premiums have reportedly been increased after drivers are involved in accidents. Our complete Progressive review goes over this in more detail.
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#10 – Travelers: Best for Financial Stability
Pros
- Financial Stability: Traveler’s has a strong financial rating, which means you won’t have to worry about your claims going unpaid.
- IntelliDrive: This program helps young drivers under 5 save based on their driving habits.
- Distant Student Discount: Students who live and study away from home may qualify for an additional benefit.
Cons
- Higher Rates: Monthly costs are higher for drivers under 25 due to limited driving history.
- Limited to Few Areas: Travelers Auto Insurance is not available in every region (read more in our detailed Travelers review).
How Much Auto Insurance for Young Drivers Costs
According to the National Highway Traffic Safety Administration (NHTSA), men are involved in more fatal accidents than female drivers. Young drivers are also more likely to be involved in a fatal crash than older drivers. This is one of the major reasons why the average cost of car insurance for a 19-year-old male is so expensive.
This chart shows the average car insurance rates by age and gender for younger drivers.
Drivers under 25 can pay up to $5,000 or more per year for coverage than drivers over the age of 30. Car insurance rates go down at 25, but men continue to pay more for car insurance even as they get older. Auto insurance rates are higher for males due to several reasons, such as getting into more accidents than women.
Factors Affecting the Cost of Auto Insurance for Young Drivers
Along with age and gender, where you live will also significantly impact how much car insurance for young drivers costs.
For example, drivers in big cities with more traffic and higher rates of auto theft pose more of a risk to the insurance company. So if you’re a young driver under 25 living in a major city, you can expect to pay more for coverage.
Other factors that affect auto insurance rates for drivers under 25 include the kind of car they drive and how often. Newer vehicles will cost more to insure, and auto insurance companies raise rates for drivers who are on the road for more than 12,000 miles per year.
Why Auto Insurance Costs More for Young Adults
Driving record has a big impact on car insurance for anyone under 25 years old, mostly because young drivers lack the experience to build a trustworthy record. Auto insurance companies check driving records of young drivers in a variety of ways.
Without the driving experience to prove you are a good driver, you will pay higher-than-average rates. And if you get into an accident before you turn 25, your auto insurance rates will continue to be expensive. Being a safe driver is the best way to get cheaper car insurance for young drivers.
Age That Auto Insurance Goes Down
On average, car insurance rates go down after drivers enter their 20s. However, car insurance rates for 21-year-olds and new drivers over 21 will be as high as for new teen drivers. This is because insurance companies are more concerned with driving experience than age.
When does car insurance go down for males? By the time young male drivers turn 25 years old, insurance companies can use their driving records to better determine rates.
You will see auto insurance rates for all drivers over 25 start to drop the longer they spend behind the wheel. And rates will continue to decrease if they avoid speeding tickets and collisions, as a speeding ticket affects auto insurance rates. Read more: Best Auto Insurance Companies for Drivers With Speeding Tickets
The Companies With the Cheapest Auto Insurance for Young Drivers
The best car insurance for young adults will have discounts catering to new drivers, making coverage more affordable.
Auto Insurance for Drivers Under 25: Monthly Rates by Coverage Level & Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $223 | $519 |
| American Family | $178 | $414 |
| Erie | $81 | $189 |
| Farmers | $271 | $629 |
| Geico | $107 | $254 |
| Nationwide | $167 | $387 |
| Progressive | $281 | $662 |
| State Farm | $125 | $284 |
| Travelers | $310 | $740 |
| USAA | $88 | $203 |
Some young drivers under 25 may also benefit from companies with usage-based auto insurance (UBI), which uses telematics systems to measure a driver’s speed, braking, mileage, and more.
Avoiding accidents and speeding tickets is the easiest way for drivers under 25 to save money on auto insurance. A clean driving record will get you the cheapest car insurance quotes for young drivers.Kristen Gryglik Licensed Insurance Agent
However, UBI is not available with every company. And not every insurer will offer the same discounts to drivers under 25.
The Company With the Best Auto Insurance Discounts for a Teenager
Most of the major auto insurance companies offer good student and defensive driving discounts to new drivers, including the insurers listed above.
This table shows other common discounts offered by some of the top auto insurance companies.
Auto Insurance Discounts for Drivers Under 25
| Discount Name | Allstate | American Family | Farmers | Geico | Liberty Mutual | Nationwide | Progressive | State Farm | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Adaptive Headlights | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Anti-lock Brakes | 10% | ✓ | ✓ | 5% | 5% | 5% | ✓ | 5% | ||
| Anti-Theft | 10% | ✓ | 23% | 20% | 25% | ✓ | 15% | |||
| Claim Free | 35% | ✓ | ✓ | 26% | ✓ | 10% | ✓ | 15% | 23% | 12% |
| Continuous Coverage | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | ||
| Daytime Running Lights | 2% | ✓ | 3% | 5% | 5% | ✓ | ✓ | |||
| Defensive Driver | 10% | 10% | ✓ | ✓ | 10% | 5% | 10% | 5% | 10% | 3% |
| Distant Student | 35% | ✓ | ✓ | ✓ | ✓ | 10% | ✓ | 7% | ||
| Driver's Ed | 10% | ✓ | ✓ | ✓ | 10% | ✓ | 10% | 15% | 8% | 3% |
| Driving Device/App | 20% | 40% | ✓ | ✓ | 30% | 40% | 20% | 50% | 30% | 5% |
| Early Signing | 10% | ✓ | ✓ | ✓ | ✓ | 8% | ✓ | ✓ | 10% | 12% |
| Electronic Stability Control | 2% | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Emergency Deployment | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Engaged Couple | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Family Legacy | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 10% |
| Family Plan | ✓ | ✓ | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ |
| Farm Vehicle | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Fast 5 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Federal Employee | ✓ | ✓ | 12% | 10% | ✓ | ✓ | ✓ | ✓ | ||
| Forward Collision Warning | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Full Payment | 10% | ✓ | ✓ | $50 | ✓ | ✓ | ✓ | 8% | ✓ | |
| Further Education | ✓ | ✓ | 10% | 15% | ✓ | ✓ | ||||
| Garaging/Storing | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 90% | ||
| Good Credit | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Good Student | 20% | ✓ | 15% | 23% | 10% | ✓ | 25% | 8% | 3% | |
| Green Vehicle | 10% | ✓ | 5% | ✓ | 10% | ✓ | ✓ | ✓ | 10% | ✓ |
| Homeowner | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | 3% | 5% | ✓ | |
| Lane Departure Warning | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Life Insurance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Low Mileage | ✓ | ✓ | ✓ | 30% | ||||||
| Loyalty | ✓ | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | |
| Married | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Membership/Group | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | |||
| Military | ✓ | ✓ | 15% | 4% | ✓ | ✓ | ||||
| Military Garaging | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% |
| Multiple Drivers | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Multiple Policies | 10% | 29% | ✓ | 10% | 20% | 10% | 12% | 17% | 13% | |
| Multiple Vehicles | ✓ | ✓ | 25% | 10% | 20% | 10% | 20% | 8% | ||
| New Address | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Customer/New Plan | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| New Graduate | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Vehicle | 30% | ✓ | ✓ | 15% | ✓ | 40% | 10% | 12% | ||
| Newly Licensed | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Newlyweds | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Non-Smoker/Non-Drinker | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Occasional Operator | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Occupation | ✓ | 10% | 15% | ✓ | ✓ | ✓ | ||||
| On-Time Payments | 5% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | |
| Online Shopper | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 7% | ✓ | ✓ | ✓ |
| Paperless Documents | 10% | ✓ | ✓ | ✓ | 5% | $50 | ✓ | ✓ | ✓ | |
| Paperless/Auto Billing | 5% | ✓ | ✓ | ✓ | $30 | ✓ | $20 | 3% | 3% | |
| Passive Restraint | 30% | 30% | 40% | 20% | ✓ | 40% | ||||
| Recent Retirees | ✓ | ✓ | ✓ | ✓ | 4% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Renter | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Roadside Assistance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Safe Driver | 45% | ✓ | 15% | ✓ | 35% | 31% | 15% | 23% | 12% | |
| Seat Belt Use | ✓ | ✓ | ✓ | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Senior Driver | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Stable Residence | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Students & Alumni | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | ✓ | ||
| Switching Provider | ✓ | ✓ | 10% | ✓ | ✓ | ✓ | ✓ | |||
| Utility Vehicle | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Vehicle Recovery | 10% | ✓ | ✓ | 15% | 35% | 25% | ✓ | 5% | ||
| VIN Etching | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | |||
| Volunteer | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Young Driver | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | $75 |
However, local companies in your state may offer unique discounts, and you may find additional ways to save money with one company over another based on your unique circumstances. For example, Erie offers additional coverage for drivers away at college.
We recommend comparing quotes, discounts, and policy options from at least three companies before you buy auto insurance for drivers under 25. This way, you can guarantee you’re getting the best coverage at the best price for young drivers in your area. You can find coverage in your area today with our quote comparison tool below.
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How Young Drivers Can Save Money on Auto Insurance
Avoiding accidents and speeding tickets is the easiest way for drivers under 25 to save money on auto insurance. A clean driving record will get you the cheapest car insurance quotes for young drivers.
Points can negatively affect your auto insurance rates. Although having points on your license will raise your auto insurance rates, young drivers can still save money on car insurance by doing the following:
- Maintaining good grades. Students who maintain a B average or higher can earn a discount of 3%-10%.
- Going to driving school. Be proactive and take a defensive driving course to reduce your rates.
- Driving an older vehicle. The cheapest vehicles for drivers under 25 will be from 2018 or earlier.
- Reducing your coverage. If you drive an older vehicle, you can consider dropping collision or comprehensive coverage for cheaper insurance rates.
- Increasing your deductibles. Insurance companies charge less per month if you’re willing to pay more out of pocket for repairs.
- Etching your VIN into the windshield. This reduces auto theft and can earn you 5%-15% off your rates with a safety discount.
- Signing up for usage-based insurance. UBI tracks driving habits, including speed and braking, and safe drivers pay much less for coverage.
- Shop for new coverage before your renewal period. Compare auto insurance quotes online before you renew just in case another insurer offers better rates.
Although reducing your coverage can lower your monthly rates, check your state minimums before dropping any insurance. Liability-only will have the cheapest rates, but you still need to meet the minimum to legally drive in your state.
How Much Coverage Drivers Under 25 Need
The auto insurance laws in your state determine how much insurance drivers need. Driving without the required amount of coverage can cost you your license and raise your rates in the future.
Here is the minimum amount of coverage drivers under 25 need:
- Liability: This type of coverage pays for damages and injuries you cause to others in an accident, but the policy will not apply to your own injuries or property damage.
- Personal injury protection (PIP): PIP covers injuries you or your passengers sustained in a collision and will pay back lost wages if you miss work for recovery.
- Medical payments (MedPay):MedPay covers your medical costs after an accident or collision but will not cover lost wages.
Not every state will require PIP or MedPay, so check your state laws carefully before you buy a teen or young driver auto policy.
Different Types of Auto Insurance for Teens
As long as you carry your state’s minimum requirements, you can customize teen auto insurance coverage to meet your needs. For example, most companies offer policy add-ons to provide additional coverage for drivers under 25.
Auto Insurance for Limited-Use Vehicles: Monthly Rates by Coverage Level & Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $39 | $115 |
| Farmers | $55 | $155 |
| Geico | $44 | $129 |
| Liberty Mutual | $67 | $171 |
| Nationwide | $49 | $155 |
| Progressive | $85 | $202 |
| Safeco | $79 | $190 |
| State Farm | $49 | $140 |
| Travelers | $72 | $166 |
| USAA | $41 | $125 |
Auto insurance add-ons vary by company, but roadside assistance is the most common type for young drivers. For an additional fee, roadside assistance will provide reimbursement for towing, tire changes, and more.
Other types of insurance add-ons help young drivers who use their vehicles for work. If you drive for a rideshare or delivery service, adding rideshare insurance or commercial coverage to an existing policy will be much cheaper than buying a separate business policy.
How Auto Insurance Protects Teen Drivers
Due to their inexperience behind the wheel, teens and young drivers are more likely to get into an accident. And since young drivers are more likely to be students or have low incomes, having auto insurance will ensure they are protected from paying hefty medical and repair bills after a collision.
Finding cheap car insurance as a new driver can be challenging. However, there are several strategies you can use to potentially lower your insurance costs.
Teen auto insurance rates may be expensive, but having coverage will protect young drivers from paying out of pocket for injuries and vehicle repairs. Full coverage insurance is the best policy for teens because it provides the most protection.
Learn More: Cheapest Teen Driver Auto Insurance in California
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How to Get the Best Auto Insurance for Drivers Under 25
Drivers under 25 should sign up for usage-based car insurance programs and telematic systems that base rates on driving habits and mileage. Safe driving habits can reduce rates by 30% or more, and most major insurers offer UBI and other telematics programs.
Discounts are another excellent way to find the best auto insurance companies for drivers under 25. Look for insurers that offer discounts designed for young and new drivers, such as good student and driving school discounts.
If you’re looking for the best auto insurance company near you, take advantage of free online comparison tools like the one below to start comparing quotes online. Get quotes from at least three different companies in your area to get an average, and then start asking about discounts.
It may take some time to find the best insurance for young adults, but researching quotes and discounts online before you buy will guarantee that you aren’t overpaying for car insurance.
Frequently Asked Questions
Why is auto insurance more expensive for young adults?
Auto insurance tends to be more expensive for young adults due to several factors, including lack of driving experience, higher risk of accidents, and statistical data showing that young drivers are more likely to engage in risky driving behaviors. Insurance companies calculate premiums based on risk factors, and since young adults are considered higher risk, their insurance rates are typically higher.
What is the best car insurance for young drivers?
Erie insurance offers the most competitive rates to young drivers under 25 for full coverage auto insurance, but coverage is only available in 12 states. State Farm, Geico, and USAA offer the next most affordable rates.
Are there any ways for young adults to save money on auto insurance?
Yes, young adults can take several steps to potentially save money on auto insurance:
- Good Student Discounts: Maintaining good grades in school may qualify young adults for discounts with certain insurance providers.
- Defensive Driving Courses: Completing a defensive driving course can sometimes result in a discount on auto insurance premiums.
- Bundling Policies: If a young adult has other insurance policies, such as renters or homeowners insurance, bundling them with their auto insurance can lead to savings.
- Comparison Shopping: It’s essential to shop around and compare quotes from different insurance companies to find the most competitive rates.
- Clean Driving Record: Avoiding traffic violations and accidents helps build a good driving history, which can lead to lower premiums over time.
Where can you get cheap car insurance for a new driver?
Finding cheap car insurance as a new driver can be challenging. However, there are several strategies you can use to potentially lower your insurance costs. Shopping around for the best discounts, bundling policies, and usage-based insurance can help drivers under 25 save in the long-run. Find out how to get multiple quotes for auto insurance at once.
How will adding a young driver to my policy affect my rates?
Adding a teen driver or anyone under 25 to an auto insurance policy will raise your rates. The good news is that your rates will not be nearly as high if you were to buy a new policy for a young driver.
Can young adults stay on their parents’ auto insurance policy?
In many cases, young adults can stay on their parents’ auto insurance policy if they are living in the same household. However, this may vary depending on the insurance company’s specific rules and guidelines. It’s important to consult with the insurance provider to determine the eligibility and any potential limitations.
Why is car insurance so high for people under 25 years old?
Auto insurance rates are influenced by many different factors. Drivers under 25 years old pay the most for auto insurance due to inexperience. Inexperience behind the wheel leads to an increased risk of accidents and insurance claims, so companies charge higher rates. Don’t let expensive insurance rates hold you back. Enter your ZIP code below and shop for affordable premiums from the top companies.
When should young adults consider getting their own auto insurance policy?
Young adults should consider getting their own auto insurance policy when they move out of their parents’ household, purchase their own vehicle, or if their parents’ insurance company does not allow them to stay on the policy. It’s recommended to discuss the situation with the insurance provider to determine the best course of action.
What type of coverage do young adults typically need?
The type of coverage young adults need may vary based on individual circumstances and preferences. However, it’s generally advisable to have at least the following coverage:
- Liability Coverage: This coverage is typically required by law and helps cover costs if the young adult is at fault in an accident and causes injury or property damage to others.
- Collision Coverage: This coverage helps pay for repairs or replacement of the young adult’s vehicle if it is damaged in a collision, regardless of fault.
- Comprehensive Coverage: This coverage protects against damage or loss due to non-collision events, such as theft, vandalism, or natural disasters.
- Uninsured/Underinsured Motorist Coverage: This coverage provides protection if the young adult is involved in an accident with a driver who does not have insurance or has insufficient coverage.
At what age is car insurance most expensive?
Car insurance is typically most expensive for young drivers under the age of 25. This is because younger drivers are statistically more likely to be involved in accidents compared to older, more experienced drivers. Insurers base their rates on risk, and younger drivers are seen as higher risk due to inexperience. Many auto insurers have auto insurance discounts though, which can help younger drivers save.
Will my insurance go down when I’m 25?
Car insurance premiums typically begin to decrease around the age of 25 as drivers gain more experience and demonstrate a history of safe driving. However, rates can vary based on individual factors such as driving record, location, and the type of vehicle insured.
What are the risks young drivers pose to insurance companies?
Young drivers have less experience behind the wheel, which can lead to a higher likelihood of car accidents. Young drivers are more likely to engage in risky behaviors such as speeding or distracted driving. Without a driving history to demonstrate their safety on the road, young drivers are often placed in a higher risk category.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
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