Best Car Insurance for Young Adults

Car insurance premiums for young adults tend to be pricey. Data shows that young drivers are more likely to be involved in fatal accidents than older age groups. Due to their lack of driving experience, car insurance companies usually charge young drivers the highest premiums.

While most young drivers will have to pay expensive rates for auto insurance, there are ways to potentially get a lower rate. Some car insurance companies also offer cheaper rates than others, which is why it’s important to shop around and compare quotes before buying a policy. Plus, every insurer offers different discounts and coverage options.

To help you find the best car insurance for young adults, we studied average rate data from some of the largest insurance companies. We also evaluated each company to determine what features it stands out for.

Insurance Company	Best For	Monthly Cost	Annual Cost
Insurance Company Geico	Best For Low rates	Monthly Cost $177/month	Annual Cost $2,129/year
Insurance Company State Farm	Best For Safe drivers	Monthly Cost $210/month	Annual Cost $2,523/year
Insurance Company Progressive	Best For Discounts	Monthly Cost $235/month	Annual Cost $2,822/year
Insurance Company Allstate	Best For Online resources	Monthly Cost $302/month	Annual Cost $3,633/year
Insurance Company Nationwide	Best For Accident forgiveness	Monthly Cost $193/month	Annual Cost $2,325/year
Insurance Company Farmers	Best For Coverage options	Monthly Cost $221/month	Annual Cost $2,652/year
Insurance Company USAA	Best For Military families	Monthly Cost $161/month	Annual Cost $1,936/year
Insurance Company American Family	Best For Smart students	Monthly Cost $210/month	Annual Cost $2,529/year
Insurance Company Erie	Best For Comprehensive policies	Monthly Cost $204/month	Annual Cost $2,445/year

*Costs are for full coverage.

Best Car Insurance for Young Adults

Geico

‌Geico, which is owned by Berkshire Hathaway, is one of the largest car insurance companies on the market. The company is known for its affordable premiums and generous discount options, with savings for military personnel, smart students, affinity groups, and more.

State Farm

‌State Farm is the biggest car insurance company in the U.S., with almost 16% of the total market share. State Farm offers lots of discounts for young drivers, including its Steer Clear safe driver program, which is exclusively available to drivers under 25. 

Progressive

‌Progressive is a good car insurance company for young drivers who are looking for the best discounts. The company has discounts for smart students, distant students, claim-free drivers, getting a quote online, enrolling in autopay, and more. Progressive also offers a safe driver rewards program, called Snapshot, which yields an average savings of $146.

Allstate

Young drivers who are purchasing car insurance for the first time can take advantage of Allstate’s helpful online tools and resources, like a coverage calculator and car payments calculator. Allstate also offers a good selection of discounts.

Nationwide

‌Nationwide is a great choice for young drivers who want to customize their car insurance policy with endorsements, like accident forgiveness. Nationwide also offers a vanishing deductible for drivers who remain claim-free. For each claim-free year, you can earn $100 off your deductible, up to $500.

Farmers

‌Farmers is another car insurance provider with excellent coverage options. Depending on your location, you can get guaranteed value coverage, loss of use coverage, customized equipment coverage, full windshield and glass coverage, OEM coverage, accident forgiveness, and more.

USAA

‌USAA is one of the top-rated car insurance companies on the market, but you can only purchase coverage if you or someone in your immediate family is in the military. USAA also issues coverage to students in ROTC programs and students at U.S. Service Academies.

American Family

If you’re a high school or college student who gets good grades, you could save a significant amount of money on car insurance with American Family. The company also offers a discount to students who attend school more than 100 miles from home and leave their car behind.

Erie

Compared to other car insurance companies, Erie has some of the most comprehensive policies. Car insurance from Erie includes pet coverage, locksmith services, auto glass repair coverage, and more. Erie also offers lots of unique endorsements, like a rate lock guarantee, free first accident forgiveness, and new car protection coverage.

How much does car insurance cost for a young adult?

The average full coverage car insurance premium for young adults is $2,373 per year for male drivers and $2,195 per year for female drivers, according to rate data from The Zebra. However, the cost of car insurance depends on many factors, including your claim history, driving record, gender, and age.

In general, a young adult is considered an individual under the age of 25. But within this age range, car insurance premiums can differ significantly. For example, The Zebra found that the average rate for a 20-year-old driver is $3,396 per year, whereas the average rate for a 24-year-old driver is much lower, at $1,978 per year.

Another factor that affects the cost of car insurance for young drivers is location. In New Jersey, the average full coverage rate for a young adult is $1,884 per year for full coverage and $729 per year for minimum coverage. In the table below, you can see the average cost of car insurance for young drivers in all 50 states, based on data from NerdWallet.

State	Average Full Cost	Average Minumum Cost
State Alabama	Average Full Cost $2,236	Average Minumum Cost $608
State Alaska	Average Full Cost $2,515	Average Minumum Cost $915
State Arizona	Average Full Cost $3,764	Average Minumum Cost $1,222
State Arkansas	Average Full Cost $2,343	Average Minumum Cost $878
State California	Average Full Cost $2,808	Average Minumum Cost $944
State Colorado	Average Full Cost $2,788	Average Minumum Cost $841
State Connecticut	Average Full Cost $3,218	Average Minumum Cost $1,591
State Delaware	Average Full Cost $2,645	Average Minumum Cost $1,110
State Florida	Average Full Cost $3,467	Average Minumum Cost $979
State Georgia	Average Full Cost $3,000	Average Minumum Cost $1,364
State Hawaii	Average Full Cost $1,094	Average Minumum Cost $358
State Idaho	Average Full Cost $1,665	Average Minumum Cost $433
State Illinois	Average Full Cost $1,585	Average Minumum Cost $575
State Indiana	Average Full Cost $2,174	Average Minumum Cost $859
State Iowa	Average Full Cost $1,984	Average Minumum Cost $721
State Kansas	Average Full Cost $2,344	Average Minumum Cost $740
State Kentucky	Average Full Cost $4,005	Average Minumum Cost $1,641
State Louisiana	Average Full Cost $4,220	Average Minumum Cost $1,583
State Maine	Average Full Cost $1,624	Average Minumum Cost $638
State Maryland	Average Full Cost $3,079	Average Minumum Cost $1,459
State Massachusetts	Average Full Cost $1,650	Average Minumum Cost $680
State Michigan	Average Full Cost $3,791	Average Minumum Cost $1,974
State Minnesota	Average Full Cost $2,012	Average Minumum Cost $844
State Mississippi	Average Full Cost $3,014	Average Minumum Cost $1,030
State Missouri	Average Full Cost $2,555	Average Minumum Cost $883
State Montana	Average Full Cost $2,830	Average Minumum Cost $702
State Nebraska	Average Full Cost $1,303	Average Minumum Cost $487
State Nevada	Average Full Cost $1,743	Average Minumum Cost $544
State New Hampshire	Average Full Cost $1,938	Average Minumum Cost $568
State New Jersey	Average Full Cost $1,884	Average Minumum Cost $729
State New Mexico	Average Full Cost $2,958	Average Minumum Cost $1,335
State New York	Average Full Cost $2,095	Average Minumum Cost $663
State North Carolina	Average Full Cost $3,616	Average Minumum Cost $1,541
State North Dakota	Average Full Cost $3,192	Average Minumum Cost $1,604
State Ohio	Average Full Cost $1,608	Average Minumum Cost $658
State Oklahoma	Average Full Cost $2,592	Average Minumum Cost $780
State Oregon	Average Full Cost $1,974	Average Minumum Cost $979
State Pennsylvania	Average Full Cost $2,218	Average Minumum Cost $733
State Rhode Island	Average Full Cost $3,283	Average Minumum Cost $1,431
State South Carolina	Average Full Cost $2,520	Average Minumum Cost $1,046
State South Dakota	Average Full Cost $1,894	Average Minumum Cost $442
State Tennessee	Average Full Cost $2,006	Average Minumum Cost $710
State Texas	Average Full Cost $3,608	Average Minumum Cost $1,334
State Utah	Average Full Cost $2,264	Average Minumum Cost $1,023
State Vermont	Average Full Cost $2,109	Average Minumum Cost $858
State Virginia	Average Full Cost $1,976	Average Minumum Cost $583
State Washington	Average Full Cost $1,908	Average Minumum Cost $767
State Washington D.C.	Average Full Cost $2,758	Average Minumum Cost $1,425
State West Virginia	Average Full Cost $1,725	Average Minumum Cost $579
State Wisconsin	Average Full Cost $2,460	Average Minumum Cost $848
State Wyoming	Average Full Cost $1,924	Average Minumum Cost $504

*Costs are for annual coverage.

How much car insurance do young adults need?

Young adults must carry enough car insurance to meet their state’s unique coverage requirements. In most states, all drivers, regardless of age, are required to have personal liability insurance. Other states, including New Jersey, require uninsured/underinsured motorist insurance (UM/UIM) and personal injury protection (PIP).

Additionally, drivers must purchase a minimum amount of coverage for each policy. For New Jersey, the minimum coverage limits are $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, and $15,000 for PIP. You can choose UM/UIM coverage limits up to the limits you select for liability insurance. 

However, most young adults can also benefit from optional car insurance policies. For example, many drivers purchase full coverage car insurance, which includes liability insurance, collision insurance, comprehensive insurance, and medical payments coverage. Full coverage policies are often required if you lease or finance your vehicle.

There are also some car insurance endorsements that young drivers may consider, like accident forgiveness, roadside assistance, and new car replacement insurance. These coverages will raise your premium, but they can provide valuable protection in certain situations that your basic policy excludes.

How can young drivers save money on car insurance?

The average car insurance rate for young adults tends to be much higher than the average rate for older drivers. However, there are plenty of ways for young drivers to save money on their car insurance policy. Here are a few suggestions for lowering your premium:

Qualify for discounts

Most car insurance companies offer a selection of discounts to help drivers save money. While each insurer has different discounts, you can often find savings for having a safe vehicle, having no recent insurance claims, taking a defensive driving course, paying the premium in full, and insuring multiple vehicles on the same policy. 

Get good grades

If you’re in high school or college, some car insurance providers offer savings for students. For example, you can sometimes lock in a lower rate for getting good grades in school or having a minimum GPA. There are also insurers that will give you a discount if you attend college more than 100 miles away from home and leave your car behind.

Bundle your policies

Most insurance companies have bundling discounts. If you bundle an auto insurance and renters insurance policy, for example, you can save money on your combined premium. 

Choose higher deductibles

If you have a full coverage policy with collision and comprehensive insurance, choosing higher deductibles can help you get a cheaper rate. However, make sure you can afford a higher deductible before you change it. 

Avoid tickets and accidents

Safe drivers are typically rewarded with lower car insurance rates. Practice safe driving habits and avoid tickets and accidents to maintain an affordable rate. You can also research insurance companies that offer telematics-based safe driver reward programs, like State Farm Steer Clear, Allstate Drivewise, and Progressive Snapshot.

Compare rates

Before choosing a car insurance policy, it’s a good idea to research and compare companies, and get quotes to see which carrier can give you the best deal. Aim to get at least four car insurance quotes for the same types and amounts of coverage to find the most affordable rate for your situation. 

How to choose the best car insurance for a young adult

There are dozens of car insurance companies on the market and each insurer has pros and cons. When choosing the best car insurance company for young adults, there are a handful of criteria you should focus on.

First, look at the third-party ratings for insurers you’re interested in. J.D. Power, AM Best, and the National Association of Insurance Commissioners (NAIC) are a few reputable organizations that score insurance companies based on overall customer satisfaction, financial strength, and complaints, respectively.

You should also look at the coverage options and discounts that each provider offers. If you’re looking for specific discounts or endorsements, check to make sure the company offers what you need. If you’re hoping to save the most money possible, look for insurers that have multiple discounts you are eligible for.

The last step in choosing the best car insurance company is to compare rates. This will help you find the most affordable policy for you. You can also apply for new quotes once per year, or after a claim, to make sure you’re always getting the lowest rate.

Methodology

To find the best car insurance for young adults, we studied rates published on insurers’ websites. We also researched each of the top car insurance companies for young adults based on their standout features, like low rates, coverage options, and discounts.

Keep in mind that the rates presented here are meant to help young drivers better understand what they might pay for coverage. Actual rates are personalized based on many factors, like age, claim history, driving record, and insurance company. You will need to apply for quotes to see how much you’ll pay based on your driver profile and coverage requirements.

Frequently asked questions (FAQs)

Why is car insurance so high for young adults?

Car insurance rates are often higher for young drivers because they are newly licensed and have less driving experience than older adults. Data shows that young drivers are more likely to get into accidents than older drivers and are more likely to make errors that can lead to a crash. Due to the increased risk of insuring young drivers, car insurance companies charge higher rates. Usually, premiums start to drop around age 25.

Which company offers the lowest car insurance rate for young drivers?

Based on our analysis of published insurance rates, USAA has the cheapest car insurance for young adults, with an average premium of $1,936 per year for full coverage. However, USAA is not the cheapest insurer for every driver. You should get personalized rate quotes to see how much you will pay based on your situation. 

Can I save money if I add a young driver to my auto insurance policy?

If you’re the parent or guardian of a young driver, and you want to add them to your car insurance policy, some insurance companies will give you a discount. For example, Progressive offers a teen driver discount for parents who add a driver under 18 to their Progressive auto policy. In most cases, it’s cheaper for a parent to add a young driver to their existing policy, rather than a young driver purchasing their own policy.