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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Best car insurance for young drivers

R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license in the state of New York.

Natasha Cornelius, CLU, is an insurance editor for Bankrate, specializing in auto, home and life insurance.

Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. His investment experience includes oversight of a $4 billion portfolio for an insurance group. Varied finance and accounting work includes the preparation of financial statements and budgets, the development of multiyear financial forecasts, credit analyses, and the evaluation of capital budgeting proposals.

In a consulting capacity, he has assisted individuals and businesses of all sizes with accounting, financial planning and investing matters; lent his financial expertise to a few well-known websites; and tutored students via a few virtual forums.

Natasha Cornelius, CLU, is an insurance editor for Bankrate, specializing in auto, home and life insurance.

Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. His investment experience includes oversight of a $4 billion portfolio for an insurance group. Varied finance and accounting work includes the preparation of financial statements and budgets, the development of multiyear financial forecasts, credit analyses, and the evaluation of capital budgeting proposals.

In a consulting capacity, he has assisted individuals and businesses of all sizes with accounting, financial planning and investing matters; lent his financial expertise to a few well-known websites; and tutored students via a few virtual forums.

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict  editorial integrity, this post may contain references to products from our partners. Here’s an explanation of  how we make money. Our content is backed by Coverage.com  LLC, a licensed entity (NPN: 19966249). For more information, please see our  Insurance Disclosure.

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Insurance is an industry based on risk — and because young drivers carry a statistically higher risk of car accidents, they typically pay higher rates for auto insurance. Between your teens and age 25, you may see high insurance premiums that slowly decrease as the risk associated with your age and experience level diminishes. But you don't have to wait for your 25th birthday to save on auto insurance. Bankrate's insurance editorial team analyzed average premium data to identify some of the best auto insurance companies for young adult drivers.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

This content is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate.com. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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Best car insurance for young drivers

Key takeaways

With auto insurance rates on the rise in 2024, Bankrate's insurance editorial team focused on finding companies that offer competitively low premiums compared to the national average, which ranges from $3,535 per year for full coverage for 20-year-old drivers to $2,854 for 25-year-olds. We started by analyzing the latest average premium data available from Quadrant Information Services but also took into account coverage options, available discounts and expert third-party ratings for each carrier.

While the carriers below stand out as the best car insurance companies for the average young adult, keep in mind that your own insurance situation is unique. If you're on a parent's policy, are married or own your home, your rates could look different from the ones displayed here. It's always a good idea to go beyond average data and compare personalized quotes when choosing an insurer.

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Answer a few questions to see personalized rates from top carriers.

Auto-Owners could be a good choice if you’re looking for a company with plenty of discount options. The company offers three dedicated savings programs for young drivers as well as a slew of other discounts that could help you save.

Auto-Owners offers young drivers three distinct savings opportunities. If you’re a full-time student with a “B” or better letter grade average, you may qualify for the good student discounts. Students who are away at school over 100 miles from home and do not have a vehicle with them are eligible for the student-away-at-school discount. Auto-Owners also offers its Teen Monitoring discount, which uses your vehicle’s GPS system to evaluate driving habits.

Learn more: Auto-Owners Insurance review

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Best for low rates

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Geico offers competitive car insurance rates for young drivers with a few years of experience. The company also offers a long list of discounts, including student discounts, that could help you lower your premium.

Recent college grads might also earn discounts for alumni association membership and fraternity or sorority affiliation. Young adults who are active-duty members of the U.S. Armed Forces could earn up to a 15 percent discount, along with additional savings when deployed.

Learn more: Geico Insurance review

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Best for customized policies

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If you are looking for an auto insurer with plenty of options for personalization, Nationwide might be a good fit. The company offers numerous coverage add-ons, like roadside assistance and gap insurance, to help create personalized car insurance for teens and young drivers.

Young adults may be able to save money on auto insurance when they enroll in Nationwide’s SmartRide program. The program uses an app to track acceleration, braking, idle time, mileage and nighttime driving. Drivers get a 10 percent discount on certain coverage types just for signing up for this telematics program and could earn up to a 40 percent discount on certain coverage types depending on their driving habits. Nationwide also offers a pay-per-mile insurance program called SmartMiles.

Learn more: Nationwide Insurance review

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Best for digital tools

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Although its premiums aren’t the lowest on our list, especially for full-coverage policies, Progressive may appeal to young drivers who prefer to handle their insurance needs digitally. Additionally, Progressive offers several discounts which could help you get a lower rate.

Progressive’s robust mobile app includes options to pay your bill, view your policy information, request changes, call for roadside assistance, file and track a claim and start a new quote. The company’s website is also user-friendly, with an online portal for customers and plenty of information about Progressive’s products.

Learn more: Progressive Insurance review

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If you like working with a local agent, State Farm might be a good choice for auto insurance for young adults. The company has a network of 19,000 agents throughout the U.S. who can help you with your auto insurance needs.

Young people often need help navigating the challenges of university life or leaving the nest to live on their own. State Farm makes life a little easier for young adults with an exceptional roadside assistance program. This covers battery jump starts, fuel delivery, locksmith service, towing and up to one hour of roadside mechanic’s labor.

Learn more: State Farm Insurance review

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How much is car insurance for young drivers?

Young adults pay between $2,854 and $3,535 per year, on average, for a full-coverage auto insurance policy. For state minimum coverage, young adults aged 20 to 25 pay between $782 and $1,020 per year.

While age and driving experience drive high rates for young adults, other factors can influence the cost of coverage at this age. Staying on a parent's policy is the easiest way to reduce the cost of coverage for young adults — and as long as your primary residence is the same as your parents' and any vehicle you drive is garaged there, you may be able to remain on the family policy.

Average car insurance costs for young drivers by state

Location is another critical factor in determining auto insurance premiums. Every state has different insurance laws, including different minimum coverage requirements, which can impact the rates set by every auto insurance company. Additionally, the risk of getting into an accident may vary by location, including your state, city or even ZIP code.

The table below illustrates the average annual full coverage premium for young adults, analyzed by state.

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

How are rates determined for young drivers?

Auto insurance rates for young adults are determined in the same way as they are for older drivers. Several rating factors that determine car insurance premiums include:

Because these variables will change your rate from carrier to carrier, it can be helpful to get several quotes before settling on an auto insurer.

Car insurance discounts for young drivers

Almost every auto 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 way to get cheap car insurance.

Frequently asked questions

On average, it costs between $979 and $1,366 per year to add a young adult driver to a full-coverage auto insurance policy. A married couple with no other drivers on their policy pays an average of $2,169 per year for full coverage auto insurance. By comparison, a married couple with a 20-year-old driver on their policy pays an average of $3,535 per year for the same coverage. The same couple would pay an average of $3,148 after adding a 21-year-old driver to their policy.

On average, it costs between $979 and $1,366 per year to add a young adult driver to a full-coverage auto insurance policy. A married couple with no other drivers on their policy pays an average of $2,169 per year for full coverage auto insurance. By comparison, a married couple with a 20-year-old driver on their policy pays an average of $3,535 per year for the same coverage. The same couple would pay an average of $3,148 after adding a 21-year-old driver to their policy.

The best teen car insurance discounts are the ones that they qualify for. Depending on the carrier, you could get a discount if your teen completes a driver’s training program while they get their license. Good students typically earn a discount, sometimes up to through college age. A telematics discount could help lower your premium if your teen is a good driver (and help cement safe driving habits, too). Additionally, students away at college without a vehicle could qualify for a distant student discount. Every car insurance company has its own suite of discounts, so experts recommend contacting an agent directly to learn more.

The best teen car insurance discounts are the ones that they qualify for. Depending on the carrier, you could get a discount if your teen completes a driver’s training program while they get their license. Good students typically earn a discount, sometimes up to through college age. A telematics discount could help lower your premium if your teen is a good driver (and help cement safe driving habits, too). Additionally, students away at college without a vehicle could qualify for a distant student discount. Every car insurance company has its own suite of discounts, so experts recommend contacting an agent directly to learn more.

Bankrate identified Auto-Owners, Geico and Nationwide as some of the cheapest insurers for young drivers, so it could be helpful to start your search there. However, rates vary widely based on several factors individual to you. To find the best deal, it’s important to compare car insurance quotes from multiple companies for the same coverage types and policy limits. Experts also recommend looking into discount opportunities to reduce your rates even further.

Bankrate identified Auto-Owners, Geico and Nationwide as some of the cheapest insurers for young drivers, so it could be helpful to start your search there. However, rates vary widely based on several factors individual to you. To find the best deal, it’s important to compare car insurance quotes from multiple companies for the same coverage types and policy limits. Experts also recommend looking into discount opportunities to reduce your rates even further.

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 20-25 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license in the state of New York.

Natasha Cornelius, CLU, is an insurance editor for Bankrate, specializing in auto, home and life insurance.

Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. His investment experience includes oversight of a $4 billion portfolio for an insurance group. Varied finance and accounting work includes the preparation of financial statements and budgets, the development of multiyear financial forecasts, credit analyses, and the evaluation of capital budgeting proposals.

In a consulting capacity, he has assisted individuals and businesses of all sizes with accounting, financial planning and investing matters; lent his financial expertise to a few well-known websites; and tutored students via a few virtual forums.

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