Cheapest Car Insurance for Drivers Under 25 (2024)

COUNTRY Financial, Auto-Owners, and USAA offer affordable rates for drivers younger than 25.

7+ years writing insurance and personal finance content

Certified financial education instructor (CFEI)

Choncé was a licensed life insurance agent before becoming a freelance personal finance writer. She’s passionate about helping people learn to protect themselves with insurance.

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Featured in

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

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Corporate communications director for Insurance Information Institute

20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

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7+ years experience in data analysis

Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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Updated May 15, 2024

Save up to $717 by comparing quotes from the top 100+ insurance companies

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Drivers younger than 25 often pay the highest rates for car insurance. Statistically, young drivers are more likely to be involved in serious crashes than any other age group.[1]

Younger drivers can still find cheaper car insurance since each company has different rates and standards for weighing risks. To help narrow down your search, Insurify analyzed quotes for younger drivers to find the cheapest car insurance for drivers younger than 25.

Less driving experience and lower credit-based insurance scores can add up to higher car insurance rates for young drivers.

Young drivers can save by taking advantage of a variety of discounts.

Drivers younger than 25 who compare car insurance rates are most likely to find the coverage they need at a price they can afford.

Cheap car insurance quotes for drivers under 25

Drivers younger than 25 pay an average of $258 per month for full-coverage insurance and $127 per month for liability-only insurance. Despite the expensive average premiums, plenty of insurers offer more affordable rates.

The table below shows the overall monthly averages for companies offering the cheapest car insurance to drivers younger than 25.

7+ years experience in data analysis

Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Read Editorial Guidelines

Find Cheap Car Insurance for Young Drivers

Rates start as low as $23/mo. for drivers under 25

Courtney Mikulski

Senior Editor, Auto, Insurify

I bought my first policy by myself when I was 24, but I took the time to shop around and compare quotes. I eventually landed on GEICO because it had the lowest rates — around $120 per month — even with an at-fault accident on my record at the time. It was also helpful that I was insuring a Hyundai Elantra, a relatively low-value, common car.

The best car insurance companies for drivers under 25

Due to less experience, younger drivers have a higher probability of being in an accident. As a result, insurers charge higher premiums to younger drivers for liability-only and full-coverage car insurance.[2]

While it may seem like companies are penalizing you for your age, insurance premiums are mainly based on the level of risk insurers take on by insuring you and on your likelihood of filing a claim. As a result, if you pose a higher risk, you’ll pay a higher rate.

Insurers also consider other factors like credit, the type of vehicle you drive, where you live, past driving history, and your claims history.[2] This means you can still save money on insurance premiums as a young driver. Check out the best car insurance companies for drivers younger than 25, according to Insurify.

Best for cheap coverage: Farmers

Cheap coverageFarmers

Farmers is Insurify’s top recommendation for the cheapest car insurance for drivers younger than 25. With low average premiums, young drivers don’t have to pay significantly more than drivers with more experience.

Additionally, Farmers offers many discounts that young drivers could be eligible for, such as:

A good student discount (for drivers younger than 25 who maintain a B average or higher)

A distant-student discount for college students living on campus a certain number of miles away from home

A multiple-vehicle driver discount

Bundling auto and renters insurance

Alternative fuel vehicle discount

Owners who drive hybrids and other alternative fuel vehicles may save 5% on all major coverages.

Many discounts

Robust roadside assistance program

Lower customer satisfaction

Tends to have higher premiums than some competitors

Lousy

Unfair Rates for Me

Good in the Beginning, Bad at the End

Keep Reading: Farmers Car Insurance Review

Best for coverage options: Travelers

coverage optionsTravelers

Travelers offers a wide range of car insurance options and has a national network of local independent agents to help you determine the right coverage limits for your needs. This insurance company offers discounts to safe drivers who haven’t had an accident in three to five years, as well as to high school or college students who maintain a B average or better.

Travelers also offers optional coverages, like roadside assistance and coverage for rental car fees if a covered accident leaves you without a car during repairs. Accidents happen, and instead of raising your premium if you file a claim, Travelers has an accident forgiveness program through which the company forgives one accident within a specified period.

Accident forgiveness available

Robust coverage selections and discount offerings

Rideshare coverage only available in Colorado and Illinois

High number of negative customer reviews with the Better Business Bureau

Do Not Do Business with Travelers Insurance

Disappointed with the Outcome

No

Check Out: Travelers Auto Insurance Review

Best for discounts: State Farm

discountsState Farm

State Farm offers many car insurance coverage options and saves students up to 25% on premiums when they get good grades; just submit your most recent report card as proof. You can lock in these savings even after graduating college until you’re 25 years old. As a homeschooler, you might also qualify for a good student discount if you submit your national standardized test scores.

State Farm’s national network of 19,000 local exclusive agents can help you personalize your coverage and maximize benefits as a young driver. State Farm offers discounts for:

Safe drivers who successfully complete State Farm’s Steer Clear program requirements

Teens and young adults who complete their driver training program

Bundling insurance

To enroll in the Steer Clear telematics program, you must be younger than 25 years old, have a valid driver’s license, and have no at-fault accidents or moving violations in the past three years. The program requires you to complete a five-module video course and practice safe driving on the road.

High rates of customer satisfaction

Rideshare insurance available

No gap insurance offering

May not be the cheapest choice for drivers with violations

Insurance Cost Out of Control

Excellent

Looking for Lower Cost Insurance, but a $10 Monthly Reduction Doesn't Cut It for Me

Keep Reading: State Farm Insurance Review

How much does car insurance cost for drivers under 25?

Even though drivers younger than 25 can pay higher car insurance premiums than older drivers, rates still vary depending on your specific age. A 16-year-old driver may not get the same rate as a 23-year-old driver. In fact, your monthly car insurance premiums could fluctuate by $50–$60 or more each year leading up to age 25.

Age 18 is typically the most expensive age for car insurance, but discounts from your insurance company and staying on your parents’ insurance could help lower costs. The following table shows average car insurance rates by age.

Car insurance discounts for drivers under 25

Paying for car insurance as a driver younger than 25 can be expensive, even if you can find lower quotes from an insurance company. Many insurers understand this and try to offer discounts to help you save a little more money on your monthly payments.

Here are some common car insurance discounts for drivers younger than 25 and how to get them.

Tips for getting cheaper car insurance

When you’re younger than 25, finding cheap car insurance that fits your budget isn’t impossible. Use these tips to help you cut your premiums as a young driver:

Shop around for car insurance. Shopping around for car insurance helps you understand all your options, compare rates, and can save you up to 30%. No two auto insurance companies are the same, and some insurers offer better rates to younger drivers despite their age and lack of experience, so comparing multiple companies is an important step in saving money.

Stay on your parents’ policy. When you started driving, your parents likely added you to their existing policy. It’s typically cheaper to add another driver — even a teen driver — to an existing policy than it is to initiate a solo one for the new driver. On average, young drivers save $89 monthly by staying on their parents’ policy. This is especially true if your parents have clean driving records and credit history. But your parent’s name will have to be on the registration for your car in order to add it to their insurance policy.

Choose a higher deductible. If you can choose your deductible, consider setting a higher deductible to save on your premium.[2] But understand that this means you’ll need to pay more out of pocket if you do need to file a claim. You’ll save money on premiums long term if you don’t get into any accidents, which may be a worthwhile risk.

Drive safely and take a defensive driver class. Defensive driver classes help you learn how to drive safely to avoid accidents and follow the law. These classes are beneficial, and many insurers give you a discount between 5% and 10% on car insurance if you provide proof that you completed a course. In addition to the discount, the fact that you’re a safe driver will lower your risk and help you get more savings in the future. Plus, what you learn in the class could help you avoid accidents that typically increase your insurance premium.

Consider driving an older but reliable car. Car insurance rates also depend on the type of car you drive. A newer car or a high-performance car like a sports car will cost more to insure, especially if the type of vehicle is commonly involved in accidents or theft. When a car costs more to repair or replace, insurers charge a higher premium, so consider driving an older but reliable car.[2]

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How car insurance works

Car insurance financially protects drivers in the even of an accident and is required by law in all states except New Hampshire. Every state has different minimum liability coverage requirements, but it most commonly includes:

Bodily injury coverage pays for medical bills, funeral costs (in severe cases), and other accident-related expenses for the other parties involved in an accident you cause. You’ll commonly see coverage requirements per accident and per person.

If you’re at fault in an accident and damage someone else’s property, including their vehicle, property damage liability coverage helps pay for the repairs.

Other common coverages you may see include:

Mostly found in no-fault states, PIP insurance pays for both medical expenses and non-medical expenses related to injuries you or your passengers suffer in a car accident.

This coverage protects you financially if you’re in an accident with a driver who has too little insurance or is uninsured.

You can elect to get more than just the minimum liability insurance and add on a collision or comprehensive policy, which are included in full-coverage insurance.

Collision insurance covers repairs to your vehicle due to hitting an object, like a light pole, fence, or another car, regardless of fault. Comprehensive coverage pays for vehicle repairs due to unexpected damage from hail, vandalism, animals, and other events outside your control.

While not required, it’s recommended that you select these optional coverages if you can afford them to protect yourself fully.

Car insurance for drivers under 25 FAQs

While younger drivers pay more for car insurance than other age groups, once you pass age 25, your car insurance rates can begin to decline — provided you’ve maintained a clean driving record. Here are answers to some commonly asked questions about car insurance for young drivers.

What is the cheapest car insurance for drivers under 25?

The cheapest car insurance companies for drivers younger than 25 include COUNTRY Financial, Auto-Owners, and USAA. All three companies offer liability rates lower than the $127-per-month average that young drivers pay. These companies also offer several discounts for young drivers and students.

How much does car insurance cost for a 25-year-old driver?

The overall average car insurance cost for a 25-year-old driver is $127 per month for liability insurance and $258 for full coverage. Younger drivers generally pay higher premiums since insurers consider them a higher risk. Drivers younger than 25 have less experience on the road and tend to have more accidents, which leads to more insurance claims. A good driving record, a good credit history, and no accidents for a few years could help lower your car insurance costs.

What is the cost difference for males and females under 25?

Males pay 5% more on average than women for car insurance. Statistically, women get into fewer accidents than men and engage in less risky driving behaviors, so insurers consider male drivers riskier to insure.[3]

When do car insurance rates go down?

Drivers usually begin to see rates decrease past age 25. Rates generally decrease as you get older, but only up to a certain point. Around age 70, drivers may see their premiums increase due to health-related risk factors.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

Choncé Maddox is a Certified Financial Education Instructor (CFEI) and personal finance freelance writer. She graduated from Northern Illinois University with a degree in Journalism and has been covering personal finance topics surrounding saving, debt payoff, credit, and home insurance for seven years. Chonce briefly held a life insurance license in Illinois where she developed a passion for helping people learn how to protect themselves and their property through insurance coverage. Her work has been featured on LendingTree, Business Insider, RateGenius and more.

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

Read Editorial Guidelines

Corporate communications director for Insurance Information Institute

20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Read Editorial Guidelines

7+ years experience in data analysis

Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Read Editorial Guidelines

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