Best car insurance for young adults

You may have been driving for a few years by the time you turn 18 years old. Even though you have some driving experience, car insurance companies still consider you a young driver. Understanding how your auto insurance rates are calculated, what the average 18-year-old pays, and what you can do to keep your premium low may help you feel more in control of your auto insurance options.

CompareInsurance collaborates with Quadrant Information Services to obtain current rate information, including average premiums for young drivers. If you are well-versed in the subject of young drivers, you may be in a better position to figure out how to offset the increase in your insurance costs.

Best car insurance for young adult drivers

Young adults may be able to get lower average premiums as they get older because they have a little more driving experience than teenagers. If you maintain a clean driving record, your premium may decrease with each passing year. If you are looking for car insurance for a young driver, you should look into these companies.

Your rate may be affected by factors such as whether you are on your parent's plan or married. The rates here are for single individuals who rent and have their own insurance plan for the purposes of collecting average rates.

Geico

Geico is known for having low average rates, and this is true for young adults as well. In addition, the company provides a long list of discounts that may help you lower your premium.

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$1,294

$2,724

Age 21

$573

$2,234

Age 22

$535

$2,083

Age 23

$492

$1,926

Age 24

$467

$1,826

Age 25

$428

$1,676

 

Recent college graduates may also be eligible for alumni association membership and fraternity or sorority affiliation discounts. Young adults who serve in the United States Armed Forces may be eligible for a 15% discount, as well as additional savings when deployed.

Nationwide

Nationwide may be a good fit if you're looking for a company with a lot of customization options. To assist you in creating a policy that meets your needs, the company provides a variety of coverage options such as roadside assistance and gap insurance.

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$1,201

$3,265

Age 21

$892

$2,383

Age 22

$807

$2,202

Age 23

$740

$2,060

Age 24

$689

$1,932

Age 25

$605

$1,669

 

Young adults who enroll in Nationwide's SmartRide program may be able to save money on car insurance. An app is used to track acceleration, braking, idle time, mileage, and nighttime driving in the usage-based insurance rating program. Because most college students who live on campus spend less time behind the wheel, limiting driving and practicing safe driving habits can result in significant savings. Drivers receive a 10% discount simply for signing up and can earn up to a 40% discount depending on their driving habits.

State Farm

Even if you are in your twenties and prefer to work with a live agent, State Farm may be a good choice for insurance. The company has a nationwide network of agents who can assist you with your car insurance needs.

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$1,014

$2,908

Age 21

$861

$2,503

Age 22

$779

$2,298

Age 23

$694

$2,085

Age 24

$629

$1,932

Age 25

$558

$1,695

 

Young people frequently require assistance in navigating the difficulties of university life or leaving the nest to start their own families. State Farm's exceptional roadside assistance program makes life a little easier for young adults. Battery jump starts, fuel delivery, locksmith service, towing, and up to one hour of roadside mechanic labor are all included.

Average cost of car insurance for young drivers

Knowing the national average cost of car insurance for young drivers can help you determine whether the quote you received is competitive or whether you should switch carriers to get a better rate. The premiums listed below are the average annual full coverage premiums for men and women of various ages.

Age

Male

Female

% Difference

Age 20

$4,098

$3,492

14%

Age 21

$3,166

$2,769

14%

Age 22

$2,913

$2,578

12%

Age 23

$2,733

$2,446

11%

Age 24

$2,590

$2,332

10%

Age 25

$2,183

$2,038

7%

 

At any age, insurers use age and gender to determine car insurance rates. A full coverage annual premium for an 18-year-old male costs around $5,650 on average. Males pay an average of $2,183 by the time they reach the age of 25. Younger drivers have less experience and may be more likely to be involved in an accident.

There are several factors that contribute to your car insurance rates, and age and gender are just two of them, though some states do not allow gender-based rates. Your driving history, the type of vehicle you drive, the coverages you select, and the discounts you are eligible for will all have an impact. Your premium will most likely differ from the averages listed above.

The average cost of car insurance for young drivers varies by state.

Car insurance rates are also affected by where you live. Each state has its own insurance laws, which can affect premiums. Furthermore, the likelihood of being involved in an accident varies by location.

The table below illustrates the average annual full coverage premium for young adults, analyzed by state.

Car insurance company

Average annual 20-year-old full coverage premium

Average annual 21-year-old full coverage premium

Average annual 22-year-old full coverage premium

Average annual 23-year-old full coverage premium

Average annual 24-year-old full coverage premium

Average annual 25-year-old full coverage premium

Alabama

$4,247

$3,103

$2,899

$2,742

$2,583

$2,189

Alaska

$3,534

$2,810

$2,627

$2,457

$2,350

$2,050

Arizona

$3,391

$2,750

$2,570

$2,399

$2,284

$1,953

Arkansas

$4,357

$3,370

$3,092

$2,947

$2,824

$2,470

California

$3,980

$3,459

$3,228

$3,064

$2,870

$2,671

Colorado

$4,494

$3,411

$3,161

$3,016

$2,891

$2,443

Connecticut

$4,420

$3,079

$2,769

$2,546

$2,406

$2,075

Delaware

$4,352

$3,045

$2,831

$2,687

$2,568

$2,176

Florida

$5,726

$4,580

$4,148

$3,955

$3,828

$3,357

Georgia

$4,763

$3,589

$3,426

$3,209

$3,071

$2,562

Hawaii*

$1,294

$1,272

$1,273

$1,272

$1,272

$1,272

Idaho

$2,648

$2,034

$1,882

$1,795

$1,729

$1,460

Illinois

$3,634

$2,807

$2,556

$2,387

$2,267

$1,913

Indiana

$2,945

$2,421

$2,207

$2,129

$1,979

$1,682

Iowa

$2,657

$2,150

$1,996

$1,907

$1,823

$1,550

Kansas

$3,838

$2,998

$2,758

$2,675

$2,597

$2,150

Kentucky

$5,444

$4,071

$3,788

$3,649

$3,479

$2,863

Louisiana

$5,911

$4,847

$4,390

$4,176

$3,979

$3,426

Maine

$2,372

$1,566

$1,476

$1,420

$1,366

$1,107

Maryland

$4,473

$3,208

$2,966

$2,732

$2,538

$2,208

Massachusetts

$3,124

$2,665

$1,719

$1,627

$1,512

$1,451

Michigan

$5,743

$4,495

$4,165

$3,825

$3,625

$3,038

Minnesota

$3,333

$2,856

$2,643

$2,444

$2,329

$2,011

Mississippi

$3,840

$2,959

$2,763

$2,614

$2,494

$2,144

Missouri

$3,923

$2,984

$2,788

$2,670

$2,562

$2,111

Montana

$4,238

$3,183

$3,001

$2,760

$2,639

$2,094

Nebraska

$3,414

$2,584

$2,368

$2,262

$2,187

$1,839

Nevada

$4,928

$3,903

$3,656

$3,358

$3,250

$2,836

New Hampshire

$2,806

$2,199

$2,000

$1,906

$1,806

$1,512

New Jersey

$4,232

$3,346

$3,045

$2,818

$2,670

$2,294

New Mexico

$3,033

$2,511

$2,348

$2,243

$2,148

$1,862

New York

$4,861

$3,754

$3,542

$3,354

$3,207

$2,798

North Carolina

$1,653

$1,576

$1,559

$1,542

$1,512

$1,482

North Dakota

$2,648

$2,158

$1,995

$1,852

$1,777

$1,576

Ohio

$2,679

$2,097

$1,967

$1,832

$1,722

$1,462

Oklahoma

$3,791

$3,154

$2,903

$2,739

$2,615

$2,299

Oregon

$2,945

$2,395

$2,173

$2,062

$1,972

$1,721

Pennsylvania

$3,806

$2,913

$2,735

$2,586

$2,437

$1,964

Rhode Island

$4,238

$3,314

$3,060

$2,824

$2,707

$2,324

South Carolina

$3,733

$2,661

$2,506

$2,347

$2,250

$1,921

South Dakota

$3,232

$2,645

$2,522

$2,379

$2,300

$2,029

Tennessee

$3,241

$2,561

$2,358

$2,201

$2,033

$1,789

Texas

$4,455

$3,346

$3,126

$2,960

$2,817

$2,353

Utah

$3,215

$2,416

$2,221

$2,080

$1,958

$1,651

Vermont

$3,539

$2,133

$2,021

$1,911

$1,853

$1,413

Virginia

$3,246

$2,409

$2,226

$2,098

$1,996

$1,770

Washington

$3,034

$2,235

$2,023

$1,887

$1,794

$1,545

Washington, D.C.

$3,863

$3,224

$2,989

$2,766

$2,602

$2,246

West Virginia

$3,520

$2,773

$2,530

$2,370

$2,216

$1,912

Wisconsin

$2,609

$2,096

$1,922

$1,813

$1,726

$1,505

Wyoming

$3,035

$2,616

$2,397

$2,232

$2,142

$1,720

*Hawaii does not use age as a rating factor

How are rates determined for young drivers?

Rates for young adults are calculated in the same way that rates for older drivers are. Your insurance premium is affected by a number of rating factors, including:

  • Age: Drivers aged 25 and under typically pay more for car insurance because their lack of driving experience puts them at a higher risk of causing accidents than older drivers.
  • Automobile make and model: Some vehicles cost more to insure than others. Before purchasing a car, it is a good idea to obtain a quote from your insurance provider to ensure that you can afford the insurance.
  • Credit: In most states, insurance companies can use your credit score to calculate your policy rate. People with bad credit typically pay much higher interest rates than those with good credit.
  • Gender: Males typically pay more for car insurance than females, even if they have clean driving records. Men are statistically more likely than women to be involved in accidents, and those accidents are more severe.
  • Location: Car owners who live in high-crime areas may have to pay more for auto insurance. Furthermore, each state has its own insurance laws, which can affect premiums.
  • Mileage: The more you drive, the more likely you are to be in an accident. People who only use their cars on occasion usually pay lower rates than those who drive more frequently.
  • Types and amounts of coverage: Drivers who only purchase mandatory coverages such as bodily injury and property damage liability typically pay less for car insurance than those who also purchase collision and comprehensive coverage. If you own your vehicle outright, you can purchase state-mandated coverages; however, if you finance it, the lender will require you to purchase collision and comprehensive insurance as well. The less coverage you purchase, however, the less financial protection you have.

Because these variables will affect your rate from provider to provider, getting several quotes before deciding on an insurance company can be beneficial.

Discounts for young drivers

Almost every car insurance company provides discounts to drivers, and some even specialize in discounts for young drivers. Finding a company that offers the appropriate discounts for your driving habits may be the most cost-effective way to obtain cheap car insurance.

Multi-car discounts

When you add multiple vehicles to a single policy, most carriers give you a discount. However, the discount is unlikely to cover the cost of adding a second vehicle. It may make each vehicle less expensive to insure, but your overall policy will most likely be more expensive if you have two or more vehicles. Purchasing a second car solely for the purpose of receiving a multi-car discount is not an effective way to reduce your car insurance premium.

Good student discount

Most businesses provide discounts to full-time high school and college students with a certain GPA or letter grade average. These savings can amount to hundreds of dollars per year.

To be eligible for a good student discount, you should have a 3.0 GPA or higher, or a B or better letter grade average.

Young driver safety training

Many businesses provide discounts to students who have completed a driver education course or an approved driver training course. Most courses go over traffic laws and teach young drivers how to drive defensively.

Usage-based rating discounts

Usage-based rating is a relatively new way to lower your car insurance rate, but insurance companies are increasingly offering these types of discounts. The program's providers require policyholders to use a mobile app or plugin device that monitors driving habits such as acceleration, braking, speed, and trip distance every time they drive. Drivers who maintain safe driving habits may be eligible for discounts.

Distant student discount

Many insurance companies provide discounts to students who attend school away from home and do not bring a car with them. To take advantage of these discounts, you must be listed on your parents' policy. Many students can save money on car insurance during the school year by taking advantage of a distant student discount.

Age

Without distant student discount

With distant student discount

Percent savings

Age 20

$3,795

$1,284

66%

Age 21

$2,967

$909

69%

Age 22

$2,745

$761

72%

 

Frequently asked questions

Should I add my young driver to my auto insurance policy to save money, or should I get a separate policy?

Teens under the age of 18 are not allowed to have their own insurance policy because they are considered minors. When your child reaches the age of 18, he or she will be able to purchase their own insurance policy. However, it is usually less expensive to keep young drivers on a parent's or caregiver's policy until they leave the household.

What types of discounts do insurers offer young drivers?

Insurance companies recognize that teens and young drivers are costly to insure and provide discounts to help offset the cost. Good student and driver education discounts are two of the most common ways to lower your car insurance rates. Also, look for an insurer that offers a usage-based discount program, which rewards safe driving with lower rates.

Should I buy a new or used car for my teen?

The cost of insurance for various car models is determined by a number of factors, including the vehicle's value, the statistical likelihood that it will be involved in an accident, and the cost of repairs. In general, an older vehicle will be less expensive to insure with a teen driver than a newer vehicle. If you are comfortable insuring a vehicle with liability only rather than full coverage, which means that the insurer will not help pay for vehicle damage, this can help you save money on insurance.

Methodology

CompareInsurance analyses 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. using Quadrant Information Services. Rates are based on male and female drivers aged 18 to 25 with a clean driving record, good credit, and the following full coverage limits:

  • Liability for bodily harm of $100,000 per person
  • Liability for bodily injury of $300,000 per accident
  • Property damage liability per accident is $50,000.
  • Uninsured motorist bodily injury per person: $100,000
  • Uninsured motorist bodily injury per accident: $300,000
  • The collision deductible is $500.
  • The comprehensive deductible is $500.

CompareInsurance used minimum coverage limits that meet each state's requirements to determine minimum coverage limits. Our typical driver owns a 2019 Toyota Camry, commutes five days a week, and drives 12,000 miles per year. Except for distant student discount rates, the drivers are renters on their own insurance plans unless they are on their parents' plan.

These are sample rates that should only be used for comparison.