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 expert advice and tools needed to succeed throughout life ’ s fiscal travel. Bankrate ’ s column team writes on behalf of YOU – the lector. Our finish is to give you the best advice to help you make smart personal finance decisions. We follow rigorous guidelines to ensure that our column subject is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our capacity is thoroughly fact-checked to ensure accuracy. so, whether you ’ re reading an article or a review, you can trust that you ’ re getting credible and dependable information. We respect your trust. Our mission is to provide readers with accurate and unbiased information, and we have column standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial message to ensure the information you ’ rhenium read is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Bankrate follows a rigid editorial policy, so you can trust that we ’ re putting your interests first. Our award-winning editors and reporters create honest and accurate subject to help you make the right fiscal decisions. All providers discussed on our web site are vetted based on the respect they provide. And we constantly review our criteria to ensure we ’ rhenium putting accuracy first. Our policy team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer serve, policy features and savings opportunities — so you can feel confident about which supplier is right for you. Bankrate follows a rigorous editorial policy, so you can trust that we ’ ra putting your interests first base. All of our content is authored by highly qualify professionals and reviewed by national matter experts, who ensure everything we publish is objective, accurate and worthy of your reliance. Founded in 1976, Bankrate has a long path record of helping people make smart fiscal choices. We ’ ve maintained this repute 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 ’ randomness no secret that new drivers pay a senior high school price for cable car policy. calm, some companies offer relatively broken 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 young adults, the median 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.
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Best car insurance for young adult drivers
Bankrate ’ s insurance editorial team chose the best car policy companies for young drivers by searching for the companies that offer the best discounts for young adults. Our crown picks for helping them save on premiums are Geico, Nationwide and State Farm. To help you see how much you might spend on car insurance, 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 rear ’ sulfur design, are married or own a home or condominium. For the purposes of determining the average cost of car indemnity for young adults across the U.S., the rates cited here are based on unmarried young adults who rent their residence and have their own insurance plan .
Geico
Geico offers competitive car insurance rates for young drivers with a few years of experience. The company besides offers a long list of discounts, including student discounts, that could help you lower your bounty .
| 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. |
holocene 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 % dismiss, along with extra savings when deployed. Learn more: Geico Insurance revue
Nationwide
If you are looking for an car insurance company with batch of options for customization, Nationwide might be a good fit. The company offers numerous coverage add-ons, like wayside aid and gap policy, to help create individualized cable car indemnity for teens and new drivers.
Read more: The Best Car Insurance Companies for 2022
| 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 course of study. The usage-based policy evaluation program uses an app to track acceleration, brake, idle time, mileage and night repel. Because most college students who live on campus spend less prison term behind the wheel, specify force and good driving habits may lead to great savings. Drivers get a 10 % deduction fair for signing up for this telematics program and can earn up to a 40 % rebate depending on their drive habits. Learn more: Nationwide Insurance review
State Farm
If you like working with a local agent, State Farm might be a full choice for car insurance for youthful adults. The company has a network of 19,000 agents throughout the U.S. who can help you with your car indemnity 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 |
young people frequently need help navigating the challenges of university life or leaving the nest to live on their own or start a family. State Farm makes liveliness a little easier for young adults with an exceptional wayside aid program. This covers battery alternate starts, fuel pitch, locksmith service, towing and astir to one hour of wayside machinist ’ randomness british labour party. Learn more: State Farm Insurance revue
Average cost of car insurance for young drivers
The national average monetary value of full coverage cable car indemnity is $ 1,674 per year – however, young drivers will probable pay significantly more for their car policy. many factors play a character 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 age and sex. Though not permitted in all states, the age of a driver and their gender could have an influence on their car insurance rates. In Hawaii, age is not permitted as a rating factor for cable car policy companies, and in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania, sex is not allowed as a rat divisor. On average, a 20-year-old male pays around $ 4,098 per year for a full coverage annual premium. By the time they reach 25 years of historic period, males pay an average of around $ 2,183 per class for the same coverage. relatively, female drivers pay less than males even as young drivers in the like senesce periods. Although young drivers face higher car policy rates compared to other long time groups, there are ways to find low-cost car policy. many insurance companies offer discounts specifically for young drivers, such as the good scholar dismiss. Below is a list of the average price of full coverage cable car indemnity for new drivers, but because of person rat factors and the number of discounts applied, actual rates may vary .
Average car insurance costs for young drivers by state
placement is another critical factor in determining car policy premiums. Every state has different indemnity laws, which can impact the rates set by every car indemnity company. additionally, the gamble of getting into an accident may vary by location. The postpone below illustrates the average annual full coverage premium for young adults, analyzed by submit .
| 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 denounce component
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How are rates determined for young drivers?
car indemnity rates for young adults are determined in the lapp way as they are for older drives. There are respective 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 carrier 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 flush offer discounts specifically for young drivers. Finding a caller that offers the right discounts for your driving habits may be the best way 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 young driver to your existing car policy policy quite than purchasing a standalone policy for them. In addition, your adolescent will be ineffective 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 measure 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 full coverage, meaning that the insurance company will not cover damage to the vehicle, that can help keep your car policy price 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 policy 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 dependable driver, they may benefit from enrolling in a telematics program that tracks their drive in real number time. If they are away at college, they may want to benefit from a distant scholar cope .
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 drive record, good accredit and the following 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 minimal coverages that meet each state of matter ’ mho requirements. Our base profile drivers own a 2019 Toyota Camry, permute five days a workweek and drive 12,000 miles per annum. The drivers are renters on their own indemnity plans except for distant student rebate rates, in which case the drivers are on their parents ’ plan. These are sample rates and should only be used for comparative purposes. Age: Rates were calculated by evaluating our basal profile with the ages 18-60 ( base : 40 years ) applied. Depending on age, drivers may be a renter or homeowner. Hawaii rates indicate old age is not a contribute agent .