Getting the best car insurance as a young driver under 25 is a big deal. Why? Because drivers under the age of 25 typically pay more for car insurance than older drivers who have more experience behind the wheel. Sometimes they pay a lot more.
For example, our research found that 20-year-old drivers pay $321 per month for car insurance, on average. Drivers between the ages of 30 and 65 pay an average of $154 per month for car insurance, according to our data. In other words, drivers who are 20 years old pay an average of $167 per month more for car insurance than older drivers.
Why do drivers under 25 pay so much for insurance? Younger drivers tend to take more risks on the road and get into more accidents than their older counterparts. That prompts auto insurers to charge them more for coverage.
How can young adults not only find cheap car insurance, but the best car insurance for them? Keep reading this article, which tells you all you need to know about:
- Cheap car insurance for young drivers
- Best car insurance companies for young adults
- How much car insurance costs for drivers under 25
How can drivers under 25 get cheap car insurance?
To get the best cheap car insurance as a young driver, you need to:
- Buy your policy from one of the best auto insurance companies for drivers under 25.
- Buy the right car insurance coverage types for you and your situation — and the right amounts of coverage, too.
- Have at least a few years under your belt as a driver.
- Have a good driving history.
- Drive a cheap car, a safe car or both.
Of course, several other rate factors also impact what young adults pay for auto insurance, like your gender and where you live.
Still not sure how to get cheap car insurance if you’re under 25? Here’s some additional information related to the tips above.
Choose the best car insurance coverage types for you and your situation
You may not need full-coverage auto insurance — or a policy that includes liability, collision and comprehensive coverage — as a teen or young adult driver. In particular, you may not need comprehensive or collision coverage if you drive an older vehicle, or a vehicle that’s not worth much.
Choose the right amounts of car insurance coverage
If you do need collision or comprehensive coverage as a young driver, don’t get more coverage than you need to repair or replace your car if something damages or destroys it. How much collision or comprehensive coverage should you get if you need it and also want to save money? Look at:
- The value of your car.
- Your savings.
- How much you drive.
- The crime rate and weather where you live.
Something else to consider is that you may not need more than the minimum amount of liability coverage your state requires due to the fact that drivers under 25 usually don’t have as many assets to protect as older drivers.
Have at least a few years under your belt as a driver
First-time or new drivers pay more for car insurance than older, experienced drivers. In fact, we found that new drivers pay 75% more for car insurance than experienced drivers do, on average. Given that, be patient if you’ve only been driving for a couple of years and you’re currently paying more than you’d like for auto coverage. Your premiums should go down soon enough, especially if you steer clear of accidents and tickets.
Have a good driving history
To get your best car insurance rate as a young driver under 25, you need to have as few tickets and accidents on your record as possible. Even one accident on your driving record may cause you to pay a lot more for car insurance than you would otherwise.
Drive a cheap or safe vehicle
You’ll pay less for car insurance as a teen or young adult if you drive a safe and economical car rather than a luxury or sports car. Specifically, based on our research, the cheapest cars for young drivers to insure are mid-sized vehicles like:
- 2018 Jeep Wrangler Sahara.
- 2018 Ford Escape SE.
- 2018 Buick Encore.
- 2019 Honda Civic.
What are the best insurance companies for young drivers?
If you’re a teen driver and you’re looking to buy your own auto policy, Erie may be the best insurance company for you. We recently found that this Pennsylvania-based insurer offers the cheapest car insurance for teens buying their own coverage, at $121 per month.
Not everyone can buy car insurance from Erie, though, because it only operates in 12 states. Also, the average rate above doesn’t account for any discounts. And drivers under the age of 25 can qualify for several discounts that could reduce their premiums.
We can help young drivers find good rates on car insurance
After considering what auto insurers tend to charge young drivers, the discounts they offer and other factors, here are more of the best car insurance companies for drivers under 25:
Best company for discounts overall: GEICO
GEICO offers numerous car insurance discounts that can help young adult drivers save a lot of money on their policies.
For example, if you’re a full-time student with a good academic record, you may be eligible for a good student discount of up to 15% on certain coverages. If you’ve been driving for at least five years and you’ve been accident-free for that same amount of time, you might be able to save up to 26% with GEICO’s good driver discount.
Some other GEICO discounts that could benefit young drivers:
- Defensive driving discount.
- Various vehicle equipment discounts.
- Membership and employee discounts (includes many fraternity, sorority and honor society members).
- Multi-policy discount.
Best for young drivers who live with their parents: Erie
If you live in one of the 12 states where Erie operates and if you still live with your parents, get a rate quote from this company while shopping around for coverage.
Erie offers a youthful driver discount for unmarried drivers under the age of 21 who live with their parents.
See if you qualify for its youthful longevity discount, too. This discount is for unmarried young drivers who’ve been covered by an Erie auto insurance policy — usually a parent’s or guardian’s policy — for consecutive years.
Best car insurance company for good students: State Farm
Although a lot of car insurance companies offer good student discounts, State Farm’s is special. You could save up to 25% with its good student discount. Also, the savings you earn through this discount continue after you graduate and last until you turn 25.
To qualify for State Farm’s good student discount, you must be:
- 16 to 25 years old.
- Enrolled full-time in high school or college.
You also need to show proof of a 3.0 GPA or better, be ranked in the top 20% of your class or have qualifying test scores if you’re homeschooled.
Best for safe drivers: GEICO
Many auto insurance companies offer discounts to safe drivers. Many offer discounts to policyholders who drive safe cars. GEICO does both — and then some.
Here are GEICO’s main safe or good driver discounts, all of which could benefit drivers under 25:
- Defensive driving discount.
- Five-year accident-free good driver discount.
- Seat belt use discount.
GEICO also offers these discounts for vehicle safety features and equipment:
- Air bag discount.
- Anti-lock brakes discount.
- Anti-theft system discount.
- Daytime running lights discount.
You can save between 1% and 25% on certain car insurance coverages with these discounts.
Best insurance company for young drivers who complete a defensive driving course: State Farm
The defensive driving course discount State Farm offers to young and other drivers is impressively robust. Depending on where you live, you may be able to save up to 15% on various coverages.
Best for bundlers: Allstate
As a young driver under 25, you may not yet own a home or condo. Even if you rent, though, you can take advantage of Allstate’s ample multiple policy discount. With it, you could save up to 10% on your auto insurance premium and up to 25% on your home, condo or renters insurance premium.
How much is car insurance for young drivers under 25?
Your age can have a big impact on what you pay for car insurance, especially when you’re under 25.
According to our research on when car insurance premiums go down:
- 16-year-old drivers pay an average of $471 per month for car insurance.
- 20-year-old drivers pay an average of $321 per month.
- 25-year-old drivers pay an average of $194 per month.
Something to keep in mind here is that age isn’t the only factor that determines your premium. Where you buy your policy, your ZIP code, your gender and your driving record also play a role.
This is why it’s so important to compare quotes from several companies while shopping for car insurance. How one insurer prices a policy based on your rate factors is likely to differ from how other insurers price a policy for you.
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