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Key takeaways
- When seeking coverage for young adults, you may want to start by generating quotes from major auto insurers Geico, Nationwide and State Farm – which we found to offer low average premiums, wide coverage options and the most competitive potential discounts to young adults.
- Since auto insurance can be pricey when you’re young, you may want to choose a carrier that offers niche discounts. For instance, Geico offers discounted rates to more than 800 professional and alumni groups.
- What makes car insurance rates so expensive for young drivers is their inexperience compared to older drivers, but numerous factors, such as driving record, location, mileage and vehicle make and model also affect the cost of car insurance.
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Best car insurance for young adult drivers
Bankrate ’ s indemnity editorial team chose the best car policy companies for youthful drivers by searching for the companies that offer the best discounts for unseasoned adults. Our exceed picks for helping them save on premiums are Geico, Nationwide and State Farm. To help you see how a lot you might spend on car indemnity, Bankrate assessed the most late premium data from Quadrant Information Services. however, keep in mind that your actual rate may depend on factors such as if you are on a parent ’ south design, are married or own a home or condominium. For the purposes of determining the median price of car indemnity for young adults across the U.S., the rates cited here are based on individual young adults who rent their residency and have their own insurance design .
Geico
Geico offers competitive car indemnity rates for young drivers with a few years of experience. The company besides offers a hanker list of discounts, including student discounts, that could help you lower your premium .
| Pros | Cons |
|---|---|
| Wide variety of discounts for alumni membership, fraternity or sorority affiliation and military members | Few local in-person agencies make it difficult for those who want a single point of contact for insurance |
| Primarily digital experience could be advantageous for those who want to manage their own policy | Received a complaint index rating of 1.70 from the National Association of Insurance Commissioners (NAIC), indicating that Geico received almost twice as many complaints as other insurance companies. |
late college grads might besides earn discounts for alumnus association membership and brotherhood or sorority affiliation. Young adults who are active-duty members of the U.S. Armed Forces could earn up to a 15 % discount rate, along with extra savings when deployed. Learn more: Geico Insurance review
Nationwide
If you are looking for an car insurance company with enough of options for customization, Nationwide might be a good fit. The ship’s company offers numerous coverage add-ons, like wayside aid and gap insurance, to help create personalize cable car insurance for teens and young drivers.
| Pros | Cons |
|---|---|
| Offers many optional add-on coverage selections to personalize car insurance | Ranked below industry average in J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study |
| Usage-based telematics program that tracks driving habits could be an opportunity to save more for low-mileage and safe drivers | Auto insurance is not offered in Alaska, Louisiana and Massachusetts |
Young adults may be able to save money on car insurance when they enroll in Nationwide ’ randomness SmartRide program. The usage-based policy rate program uses an app to track acceleration, brake, idle clock, mileage and night drive. Because most college students who live on campus spend less time behind the bicycle, limited drive and dependable drive habits may lead to bang-up savings. Drivers get a 10 % dismiss merely for signing up for this telematics platform and can earn up to a 40 % rebate depending on their tug habits. Learn more: Nationwide Insurance review
State Farm
If you like working with a local agent, State Farm might be a dear choice for car indemnity for young adults. The company has a net of 19,000 agents throughout the U.S. who can help you with your car insurance needs .
| Pros | Cons |
|---|---|
| Large network of in-person agencies throughout the country means you can stay with State Farm wherever you move | Auto insurance discounts are more standard compared to other car insurance companies |
| Scored above average in recent J.D. Power U.S. Auto Claims Satisfaction Studies from the past three years | Over time, average rates for adult drivers may be higher compared to those of other companies |
unseasoned people often need help navigating the challenges of university life or leaving the nest to live on their own or start a kin. State Farm makes life a little easier for young adults with an exceptional wayside aid broadcast. This covers barrage rise starts, fuel delivery, locksmith service, towing and up to one hour of wayside mechanic ’ south british labour party. Learn more: State Farm Insurance review
Average cost of car insurance for young drivers
The national average cost of full coverage car insurance is $ 1,674 per class – however, young drivers will probable pay importantly more for their car insurance. many factors play a role in determining car policy rates, such as your driving history, the type of car you drive and the coverage options you choose, but a major component for young drivers is historic period and gender. Though not permitted in all states, the long time of a driver and their sex could have an determine on their car policy rates. In Hawaii, senesce is not permitted as a rate factor for cable car insurance companies, and in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania, gender is not allowed as a rat factor. On average, a 20-year-old male pays around $ 4,098 per class for a full coverage annual premium. By the clock time they reach 25 years of old age, males pay an modal of around $ 2,183 per year for the same coverage. relatively, female drivers pay less than males evening as young drivers in the like age periods. Although young drivers face higher car policy rates compared to early long time groups, there are ways to find low-cost car indemnity. many indemnity companies offer discounts specifically for unseasoned drivers, such as the good scholar discount. Below is a list of the average cost of full coverage car insurance for young drivers, but because of individual rat factors and the count of discounts applied, actual rates may vary .
Average car insurance costs for young drivers by state
location is another critical agent in determining car policy premiums. Every state has different policy laws, which can impact the rates set by every car insurance company. additionally, the risk of getting into an accident may vary by location. The table below illustrates the average annual wide 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 prohibits using age as a rate gene
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How are rates determined for young drivers?
car indemnity rates for young adults are determined in the same manner as they are for older drives. There are several rat factors that determine car insurance premiums, including :
- Age: Typically, drivers who are 25 and younger pay more for car insurance, because their lack of driving experience may put them at a greater risk for causing accidents than older drivers.
- Automobile make and model: Some cars are more expensive to insure than others. Before buying a vehicle, it may be a good idea to get a quote from your insurance carrier to make sure you can afford the coverage.
- Credit: Most states allow insurance carriers to use your credit-based insurance score when calculating your policy rate. People with poor credit typically pay much higher rates than consumers with good credit scores. Regulations in California, Hawaii, Massachusetts, Michigan and Washington do not permit the use of credit as a factor in determining auto insurance rates.
- Gender: Males usually pay higher rates than females pay for car insurance, even if they have clean driving records. Men are statistically more likely to get into accidents than women, and those accidents tend to be more severe, according to research by the Insurance Information Institute (Triple-I).
- Location: Car owners who live in areas prone to car theft and vandalism may pay more for auto insurance. Additionally, every state has different insurance laws, which can affect premiums.
- Mileage: The more you drive, the more likely it is that you will have an accident. People who only use their cars occasionally usually pay lower rates than people who are on the road more often.
- Types and amount of coverages: Drivers who only purchase minimum required coverages, such as bodily injury and property damage liability, generally pay less for auto insurance than motorists who also buy collision and comprehensive coverage. Lenders will typically require you to buy collision and comprehensive insurance as well, and most insurance experts recommend purchasing more than the minimum amount required to better protect your finances. Your deductible for certain coverage types will also play a role in how much you pay.
Because these variables will change your rate from mailman to carrier, it can be helpful to get several quotes before settling on an car insurance company .
Discounts for young drivers
about every car insurance company offers discounts to drivers, and some even offer discounts specifically for young drivers. Finding a company that offers the right discounts for your driving habits may be the best room to get cheap car policy .
- Multi-car discounts: Most auto insurers give a slight discount when you add multiple cars to a single policy. It does not fully offset the cost of insurance for each vehicle, but overall, the vehicles are cheaper to insure together.
- Multiple policy discount: For drivers who rent an apartment and own a car, bundling their auto and renters insurance can be one way to make both policies more affordable.
- Good student discount: Most companies offer discounts for students who maintain a certain GPA or letter grade average. These student discounts are intended for full-time high school and college students, and may save hundreds of dollars per year on insurance premiums.
- Young driver safety training: Many companies offer discounts to students who have taken a driver education class or an approved driver training course. Most courses go over the rules of the road and teach young drivers to drive defensively.
- Usage-based rating discounts: Usage-based rating is a relatively new way to reduce your auto insurance rate, but could be a way to earn additional discounts. Carriers that offer these telematics programs require policyholders to use a mobile app or plugin device which monitors driving habits such as acceleration, braking, speed and trip distance each time they drive.
- Distant student discount: Many auto insurers offer discounts for students who attend school away from home if they do not take a vehicle with them during the school term. You must be listed on your parents’ policy to take advantage of this discount.
Frequently asked questions
Can I save money if I add a young driver to my auto insurance policy, or should I purchase a standalone policy?
It is typically less expensive to add a youthful driver to your existing car indemnity policy quite than purchasing a standalone policy for them. In addition, your adolescent will be unable to hold their own car insurance policy until they turn 18 .
Should I buy my teenager a new or used car?
There are a lot of factors that go into the price of insurance for versatile car models, including the value of the vehicle, the statistical likelihood that it will be in an accident and the monetary value of repairs. Generally, an older vehicle is going to be cheaper to insure with a adolescent driver than a newer vehicle. If you feel comfortable insuring a vehicle with indebtedness only rather than fully coverage, meaning that the insurance company will not cover damage to the vehicle, that can help keep your car indemnity cost lower .
How much will my car insurance increase when I add a teenager to my policy?
On average, you will spend an average of $ 1,200 to $ 1,900 more per year after adding a adolescent to your existing car indemnity policy .
Which is the best auto insurance discount for a teenager?
The best deduction for your adolescent is whichever one applies to them. For example, if your adolescent is a safe driver, they may benefit from enrolling in a telematics platform that tracks their force in real clock. If they are away at college, they may want to benefit from a distant student deal .
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 18-year-old through 25-year-old male and female drivers with a clean tug record, good credit and the adopt full coverage limits :
Read more: Best Car Insurance for Seniors of March 2022
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each submit ’ second requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles per annum. The drivers are renters on their own indemnity plans except for distant scholar deduction rates, in which case the drivers are on their parents ’ plan. These are sample distribution rates and should only be used for comparative purposes. Age: Rates were calculated by evaluating our root profile with the ages 18-60 ( base : 40 years ) applied. Depending on age, drivers may be a tenant or homeowner. Hawaii rates indicate senesce is not a contribute component .