The Best Car Insurance for Young Drivers

 The Best Car Insurance for Young Drivers


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On This Page

  • Best car insurance for young drivers
  • How much is car insurance for young drivers?
  • Average car insurance costs for young drivers by state
  • How are rates determined for young drivers?
  • Car insurance discounts for young drivers
  • Frequently asked questions
  • Methodology

Key Takeaways

  • Motor vehicle crash deaths are highest among drivers aged 20 to 24, with male drivers having a rate of 26.2 per 100,000 people, and female drivers at 9.9. Consequently, insurers charge high rates for this age group. (Insurance Institute for Highway Safety)
  • Progressive, Geico, Auto-Owners, State Farm, and Nationwide tend to offer low average premiums and robust coverage options for young drivers.
  • If you’re a young adult, looking for carriers that offer applicable discounts can help lower your rates.

Best Car Insurance for Young Drivers

With auto insurance rates rising in 2024, our team focused on identifying companies that offer competitively low premiums compared to the national average. Currently, full coverage ranges from $4,804 per year for 20-year-old drivers to $2,932 for 25-year-olds. We analyzed the latest average premium data from Quadrant Information Services, considering coverage options, available discounts, and expert third-party ratings for each carrier.

While the following carriers stand out as the best car insurance companies for young adults, keep in mind that your own insurance situation is unique. If you're on a parent's policy, married, or own a home, your rates might differ. It's always wise to compare personalized quotes when choosing an insurer.

Best for Digital Tools

  • Rating: 4.4 stars out of 5
  • Bankrate Score: 4.4
  • JD Power: 870/1,000
  • AM Best: A+
  • Average Annual Premium: $1,642 for full coverage

Best for Low Rates

  • Rating: 4.3 stars out of 5
  • Bankrate Score: 4.3
  • JD Power: 871/1,000
  • AM Best: A++
  • Average Annual Premium: $1,353 for full coverage

Best for Discounts

  • Rating: 4.2 stars out of 5
  • Bankrate Score: 4.2
  • JD Power: 888/1,000
  • AM Best: A++
  • Average Annual Premium: $1,361 for full coverage

Best for Local Agencies

  • Rating: 4.2 stars out of 5
  • Bankrate Score: 4.2
  • JD Power: 891/1,000
  • AM Best: A++
  • Average Annual Premium: $1,480 for full coverage

Best for Customized Policies

  • Rating: 4 stars out of 5
  • Bankrate Score: 4
  • JD Power: 875/1,000
  • AM Best: A+
  • Average Annual Premium: $1,422 for full coverage

How Much Is Car Insurance for Young Drivers?

Young adults aged 20 to 25 pay between $2,932 and $4,804 per year, on average, for a standalone full-coverage auto insurance policy. For state minimum coverage, young adults pay between $800 and $1,359 per year.

While age and experience contribute to higher rates for young adults, other factors can influence your costs. Staying on a parent's policy is the easiest way to reduce costs. As long as your primary residence is the same as your parents' and any vehicle you drive is garaged there, you may be able to remain on the family policy.

AgeAverage Annual Premium for Minimum CoverageAverage Annual Premium for Full Coverage
20$1,020$3,535
21$899$3,148
22$995$3,620
23$933$3,419
24$885$3,252
25$782$2,854

Rates for ages 20-21 reflect the insured on their married parents’ policy and the total cost of three drivers and one vehicle. Rates for ages 22-25 reflect the young drivers on their own policy, insuring one vehicle.

Average Car Insurance Costs for Young Drivers by State

Location is a critical factor in determining auto insurance premiums. Each state has different insurance laws, including varying minimum coverage requirements, affecting rates set by auto insurance companies. Additionally, the risk of accidents may vary by location, including your state, city, or even ZIP code.

Here’s a snapshot of average annual full coverage premiums for young adults, by state:

State20-year-old21-year-old22-year-old23-year-old24-year-old25-year-old
Alabama$3,128$2,912$3,482$3,335$3,136$2,714
Alaska$3,491$3,020$3,786$3,527$3,366$2,895
Arizona$4,038$3,728$4,040$3,794$3,604$3,107
Arkansas$3,180$2,757$3,288$3,086$2,949$2,679
California$4,066$3,689$4,029$3,824$3,599$3,366
Colorado$4,489$4,171$4,409$4,143$3,954$3,449
Connecticut$3,389$3,088$3,786$3,550$3,353$2,927
Delaware$3,717$3,273$3,864$3,548$3,376$2,897
Florida$5,484$4,725$5,479$5,200$5,025$4,410
Georgia$4,187$3,694$4,207$3,966$3,784$3,355

Note: Hawaii and Massachusetts prohibit using age as a rating factor, but other factors may apply, causing rate fluctuations.

How Are Rates Determined for Young Drivers?

Auto insurance rates for young adults are determined by various factors, including:

  • Age: Drivers under 25 often pay more due to a higher risk of accidents. Hawaii and Massachusetts don't permit using age as a rating factor.
  • Vehicle Make and Model: Some cars are cheaper to insure than others. Consider getting a quote before buying.
  • Credit: Many states allow insurers to use credit-based insurance scores. Poor credit can result in higher premiums. California, Hawaii, and Massachusetts don't use credit scores.
  • Gender: Men typically pay more than women. Some states, like California, prohibit using gender as a rating factor.
  • Location: Living in high-risk areas can increase premiums due to accident risk, natural disasters, theft, or vandalism.
  • Mileage: More driving can lead to higher premiums due to increased accident risk.
  • Coverage Types: More comprehensive coverage costs more. Higher deductibles can lower premiums.

Getting quotes from multiple carriers can help you find the best rates.

Car Insurance Discounts for Young Drivers

Many insurance companies offer discounts that young drivers can use to lower their premiums. Here are some common discounts:

  • Multi-Car Discounts: Adding multiple cars to a single policy can reduce overall costs.
  • Multi-Policy Discount: Bundling auto insurance with renters or homeowners insurance can offer savings.
  • Alumni Association Discounts: Some insurers offer discounts to recent college graduates.
  • Good Student Discount: Students maintaining a good GPA may qualify for discounts.
  • Young Driver Safety Training: Completing a driver education course can lead to lower rates.
  • Usage-Based Discounts: Insurers may offer discounts based on safe driving habits tracked through apps or devices.
  • Distant Student Discount: Students away at school without a car may qualify for lower rates if listed on a parent’s policy.

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