Best Car Insurance for Young Adults | Bankrate

This content is powered by HomeInsurance.com, a accredited indemnity producer ( NPN : 8781838 ) and a corporate affiliate of Bankrate.com. HomeInsurance.com LLC services are lone available in states were it is licensed and policy coverage through HomeInsurance.com may not be available in all states. All policy products are governed by the terms in the applicable insurance policy, and all relate decisions ( such as blessing for coverage, premiums, commissions and fees ) and policy obligations are the lone duty of the underwrite insurance company. The information on this locate does not modify any policy policy terms in any way. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in commute for placement of sponsor products and, services, or by you clicking on certain links posted on our web site. therefore, this compensation may impact how, where and in what order products appear within listing categories. other factors, such as our own proprietary web site rules and whether a product is offered in your sphere or at your self-selected credit grade range can besides impact how and where products appear on this site. While we strive to provide a broad range offers, Bankrate does not include data about every fiscal or credit merchandise or serve. We ’ rhenium transparent about how we are able to bring timbre message, competitive rates, and utilitarian tools to you by explaining how we make money. Bankrate follows a rigid editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right fiscal decisions. The content created by our column staff is objective, factual, and not influenced by our advertisers.

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the technical advice and tools needed to succeed throughout life ’ s fiscal travel. Bankrate ’ s editorial team writes on behalf of YOU – the reviewer. Our goal is to give you the best advice to help you make fresh personal finance decisions. We follow nonindulgent guidelines to ensure that our column capacity is not influenced by advertisers. Our column team receives no address compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. so, whether you ’ re reading an article or a inspection, you can trust that you ’ re getting credible and reliable information. We value your entrust. Our mission is to provide readers with accurate and indifferent data, and we have editorial standards in target to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you ’ rhenium learn is accurate. We maintain a firewall between our advertisers and our column team. Our editorial team does not receive directly recompense from our advertisers. Bankrate follows a hard-and-fast editorial policy, so you can trust that we ’ re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the correctly fiscal decisions. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we ’ rhenium putting accuracy first base. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. Bankrate follows a hard-and-fast editorial policy, so you can trust that we ’ ra putting your interests foremost. All of our capacity is authored by highly qualified professionals and reviewed by subject matter experts, who ensure everything we publish is objective, accurate and desirable of your reliance. Founded in 1976, Bankrate has a long track record of helping people make smart fiscal choices. We ’ ve maintained this reputation for over four decades by demystifying the fiscal decision-making process and giving people assurance in which actions to take future. While we adhere to strict editorial integrity, this post may contain references to products from our partners. here ‘s an explanation for how we make money. This content is powered by HomeInsurance.com ( NPN : 8781838 ). For more information, please see our Insurance disclosure. It ’ sulfur no confidential that young drivers pay a high price for car insurance. still, some companies offer relatively low rates, competitive young-driver discounts and ace service. After careful analysis, Bankrate’s insurance editorial team found that Geico, Nationwide and State Farm offer the best affordable car insurance for young adults in the U.S. We broke down why these three companies are best for unseasoned adults, the average premiums you can expect to pay and what discounts might apply. light bulb
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.

Looking to save money on auto insurance?

Looking to save money on auto insurance?

Compare rates & save

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

Looking to save money on auto insurance?

Compare rates & save

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 :

  • $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 .

Leave a Reply

Your email address will not be published.