Buy Cheap Auto Insurance for Young Adults in 2024

Young drivers pay some of the highest car insurance rates. They typically pay more for auto insurance since they may be more likely to cause accidents than older drivers due to their inexperience behind the wheel. Additionally, younger drivers often do not have as much financial stability as older drivers, so they are more likely to submit a claim. 

As their driving careers progress into adulthood, auto insurance rates start to drop. However, other factors influence your quotes, including credit score, driving record, and experience. 

You can shop with multiple companies to find the best rates. Read our guide for a complete overview of the best auto insurance for young adults, with rates by state and company.

What auto insurance company has the best rates for young adult drivers?

Young drivers with a few years of driving experience might find affordable auto insurance rates from Geico. You could cut your premium with the help of the company’s extensive list of discounts, including student discounts.  For more information, check out our Geico Auto Insurance Review. 

Recent college graduates may also receive discounts by joining a fraternity or sorority and joining an alumni group. Young people who are on active service in the U.S. Armed Forces may receive discounts of up to 15% in addition to additional savings when on deployment.

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Auto Insurance Companies With The Lowest Rates For Young Adults

State Farm, Auto-Owners, Geico, Nationwide, and Progressive are some of the top car insurance providers for young individuals:

• Geico: $1,207
• State Farm: $1,329
• Travelers: $1,373
• Nationwide: $1,552
• Progressive: $1,620
• American Family: $1,709
• Farmers: $1,881
• Allstate: $1,957

Remember that your rates may vary depending on whether you are married, own a house or rent, or are covered by your parent’s insurance policy. 

The table below breaks down what the top companies charge for young adults.

You can save a lot of money on auto insurance for young adults if a parent or roommate can add you to their policy. 

The Best Auto Insurance Rates For Young Adults 

Read through our car insurance company reviews to find the best coverage for young adult drivers.

Best for Discounts: Auto-Owners

If you want to work with a company that offers various discounts, get insurance quotes from Auto-Owners auto insurance. The insurer provides three special savings programs for young drivers and numerous other deals that may help you save money.

Good student discounts are available to young drivers if you’re a full-time student with a grade point average of “B” or higher. The student-away-at-school discount is available to those who are attending school more than 100 miles from home without a vehicle. 

Auto-Owners additionally provides their Teen Monitoring discount, which analyzes driving patterns using the GPS technology in your car.

Best for Low Rates: Geico Auto Insurance

With discounts and savings by adding a young driver to a policy, Geico has the cheapest rates for young drivers. 

However, you will find even lower rates with USAA insurance if you’re in the military. USAA coverage is only accessible to eligible military personnel, veterans, and their families, so other drivers will find better quotes with Geico.

Best for Customized Policies: Nationwide Auto Insurance

Nationwide may be an excellent fit if you’re seeking an auto insurer with many customization possibilities. For teens and young drivers, the firm provides a variety of coverage add-ons, including roadside assistance and GAP insurance. (For more information, read our “Buy Cheap Auto Insurance for 18-Year-Olds“)

You can further reduce the cost of young adult auto insurance when you sign up for Nationwide’s SmartRide (For more information, read our “Nationwide SmartRide Review“). The program employs an app to track acceleration, braking, idle time, mileage, and nighttime driving.

Young drivers receive a 10% discount on certain coverage types just for enrolling in this telematics program. Depending on driving behaviors, they can receive up to a 40% discount on some coverage types. 

For more information, check out our Nationwide Car Insurance Review.

Best for Digital Tools: Progressive Auto Insurance

Even though its premiums aren’t the lowest on our list, young drivers who prefer to handle their insurance needs on mobile may find Progressive appealing. Progressive also provides several discounts that can get you even cheaper quotes.

The comprehensive mobile app from Progressive offers choices to pay insurance bills, check policy details, request changes, contact roadside assistance, submit and follow a claim, and shop for insurance quotes. Progressive’s website also receives positive reviews, offering a customer interface and a wealth of product information.

Best for Local Agencies: State Farm

State Farm auto insurance may be a fantastic option for young adults looking to buy auto insurance from a local agent. You can get the coverage you need from the company’s network of 19,000 agents across the United States.

Young adults’ lives are made a little easier by State Farm thanks to its first-rate roadside assistance program. This includes up to an hour of roadside mechanic work, fuel delivery, locksmith assistance, battery jump starts, and towing.

What’s the average cost of car insurance for young drivers? 

The driver’s age is one of the greatest determinants of rates, except for Hawaii and Massachusetts. If you live in either of these states, insurance companies cannot use your age as a risk factor, and you may get much cheaper auto insurance quotes than other drivers your age.

Drivers between the ages of 20 and 25 continue to pay substantial premiums, even though teens typically pay the highest rates. For instance, drivers who are 20 years old pay 56% more for full coverage. Rates typically start to normalize after the age of 25.

The Average Cost of Car Insurance for Young Drivers By State 

Another important element in deciding auto insurance quotes is location. The minimum coverage requirements and other insurance legislation that vary from state to state might affect each insurer’s rates. 

Additionally, your state, city, and ZIP code have a different accident risk than others.

The average cost of car insurance for young drivers can be determined by more than just the state where they reside. Some companies look at your city and even your zip code to determine cost. 

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How do insurance companies determine rates for young drivers?

Along with age and location, young people’s auto insurance premiums are calculated similarly to those for more experienced drivers. 

There are several rating elements used to calculate auto insurance premiums:

• Gender. Even if they have good driving histories, men typically pay more for auto insurance than women do. 
• Location. You may pay extra for coverage if you reside in a region with a greater possibility of mishaps, damage from natural disasters, theft, or vandalism. 
• Age. Younger drivers typically pay more for auto insurance since they may be more likely to cause accidents and submit a claim. 
• Type of car. Some vehicles are less expensive to insure than others. To make sure you can afford the coverage, it may be a good idea to acquire an estimate from your insurance provider before making a purchase.
• Credit. In most states, insurance companies can utilize your credit-based insurance score when determining your policy rate. Consumers with strong credit generally pay substantially lower rates than those with bad credit. 
• Mileage. Because you are on the road more frequently, the more you drive, the more likely it is that you will get in an accident. People who rarely use their cars can pay less.
• Types and amounts of coverage types. Generally, drivers who purchase only the bare minimum coverage pay the least for car insurance. The amount you pay for specific coverage kinds depends on your deductible.

Buying liability-only insurance coverage for bodily injury and property damage might get you to lower monthly insurance rates. Still, you will be better protected if you acquire collision insurance coverage and comprehensive insurance coverage. 

Most lenders will need you to purchase collision and comprehensive insurance, and most insurance professionals advise buying more than the legally required amount to help safeguard your cash. 

Get multiple auto insurance quotes before choosing an auto insurance company because these factors will affect your cost differently with each provider.

What car insurance discounts are available for young drivers?

Nearly all auto insurance providers provide drivers discounts, and some even give younger drivers special discounts.

The easiest approach to getting affordable auto insurance might be to find a company that gives the right car insurance discounts for your driving style:

• Multi-car discounts. Most vehicle insurance gives a minor reduction when you add numerous automobiles to a single policy. It does not totally cover the insurance cost for each vehicle, but overall, the vehicles are cheaper to insure.
• Multi-policy discount. Combining your vehicle and renters insurance can help you save money on both policies if you’re a driver who owns a car and rents an apartment.
• Alumni association discounts. For recent college graduates, several auto insurance providers provide alumni association discounts.
• Student discounts. Discounts are frequently given to students who maintain a certain grade point average (GPA). Full-time high school and college students can save several hundred dollars per year.
• Young driver safety training. Students who complete a driver education course or authorized driver training school often qualify for discounts. The majority of programs educate new drivers on how to drive defensively and address the laws of the road.
• Discounts for usage-based rating. Usage-based insurance programs are a relatively new method of lowering your rates. A smartphone app or plugin device records data about their daily driving patterns, including acceleration, braking, speed, and trip distance, to calculate discounts.
• Distant student discount. Many auto insurances will give a discount if a student attends school away from home and does not bring a vehicle with them during the academic year. You can only benefit from this discount if you are included in your parents’ insurance policy.

For more savings, see our Guide to Auto Insurance Discounts.

All of these discounts can be used and bundled as a young driver. This is one of the easiest and most effective ways to lower your auto insurance rates.

How to Save Money on Car Insurance as a Young Driver

As a young driver, discounts aren’t the only way to save on auto insurance. Buying the right car and choosing the right deductibles and coverage levels for your policy can get you better rates.  

Maintaining a claim-free driving record devoid of at-fault incidents, keeping an eye on your credit score, and driving safely by abstaining from moving offenses (like speeding) will also help you find cheap car insurance for young drivers.

Select the Best Vehicle

Insurance will be more expensive for high-performance cars, luxury cars with significant maintenance costs, and cars with a history of theft. You can avoid committing yourself to buy a car that will be too expensive for you to insure by speaking with an insurance agent or shopping for auto insurance quotes online.

Pick the Right Coverage

Different young drivers require varying amounts of insurance protection. It’s crucial to remember that different states have varied standards for the types and amounts of auto insurance coverage. The majority of lenders and leasing businesses do as well.

Remember that you should at least carry the minimum coverage required by the state and your lender. This will get you the cheapest auto insurance rates possible. In some circumstances, you’ll want greater coverage than the bare minimum. This insurance costs more, so shop around for multiple quotes to find the most affordable company.

Choose the Right Deductible

It may seem like a good idea to have an extremely low deductible, but you must weigh the cost of the insurance against the price you must pay to obtain a low deductible. In many circumstances, you should select the maximum deductible that your lender, state, and budget will allow.

Your deductible shouldn’t be greater than the emergency fund balance you have available in savings. For example, if you only have $500 in the bank, saving money for a $1,000 deductible is useless.

Maintain a Clean Driving Record

A high at-fault accident rate is one of the main causes of high auto insurance prices for new drivers. If you’ve maintained a spotless driving record during your years as a new driver and teen driver, your rates should drop significantly as you enter your early twenties. 

Maintaining a clean driving record can keep cheaper car insurance for young drivers. Some insurance companies provide accident forgiveness for your first event where you were at fault, but not all of them do. To fully understand what the accident forgiveness provision means to the insurer, it is critical to read the fine language of any policy you consider.

Pay Your Bills On Time

It’s simple to overlook one or two bill payments once you graduate from college and begin your own household. But you can’t skip any payments if you want to have inexpensive auto insurance, especially ones for credit cards or loans. Most states allow vehicle insurance providers to base the pricing on your credit score. The lower your score, the more they can charge you. 

Avoid Traffic Violations

Even though it may seem simple, avoiding traffic penalties is crucial if you want to keep the cost of your auto insurance down. Remember that any traffic infractions you receive — whether in a friend’s car, a rental car, an out-of-state vehicle, or even on a bicycle — can affect your driving record. 

Teen drivers with a history of traffic violations will have high insurance premiums throughout their first few years as young adults due to their poor driving record.

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Bottom Line

Particularly for young drivers with little experience, auto insurance is frequently prohibitively expensive. The businesses covered here provide the best rates, the simplest applications, and the best auto insurance discounts.

Adding a young driver to an existing policy is typically less expensive than getting them their own separate policy. Always shop around to compare prices and determine whether you’re eligible for any possible discounts.

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