Best car insurance for young adults

Young drivers are statistically more likely to be involved in car accidents and have more serious accidents. As a result, auto insurance companies charge some of the highest premiums to younger drivers in order to offset the risk associated with inexperience. Although looking for cheap car insurance for a young driver can be difficult, the StrongInsurance editorial team is here to assist. Using our licensed agent expertise and rate data only available to StrongInsurance, we've identified the best companies and discounts for your young adult driver.

Best car insurance for young adult drivers

According to StrongInsurance research, Auto-Owners, Geico, Nationwide, Progressive, and State Farm are the best car insurance companies for young adults. We began our investigation by looking at average premium data from Quadrant Information Services. With the knowledge that car insurance rates will rise in 2022, we concentrated on finding companies with low average rates for young drivers. We also considered coverage options, young driver-specific discounts, policy features, and third-party ratings to help you find a carrier that provides reasonable rates and adequate coverage.

Remember that your rate may vary depending on whether you are on your parents' policy, married, own a home, or rent. StrongInsurance examined data for adding drivers to their parents' policies and drivers on their own policies to determine the average cost of car insurance for young adults across the United States.

Auto-Owners

Best for discounts

If you're looking for a company that offers a variety of discounts, Auto-Owners could be a good option. The company provides three dedicated savings programmes for young drivers, as well as a variety of other discounts that may help you save.

Perks

Drawbacks

Numerous discounts available

Only available in 26 states and Washington, D.C.

Several endorsements offered

Lower-than-average claims satisfaction score from J.D. Power

 

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$595

$2,073

Age 21

$545

$1,953

Age 22

$584

$2,096

Age 23

$531

$2,004

Age 24

$491

$1,884

Age 25

$439

$1,692

Rates for ages 20-22 reflect the total cost of three drivers and one vehicle and are for the insured on a parent's policy. Rates for young drivers aged 23 to 25 are based on their own policy, insuring one vehicle.

Auto-Owners provides three distinct savings opportunities for young drivers. If you are a full-time student with a letter grade average of "B" or higher, you may be eligible for the good student discounts. Students who are away from home for more than 100 miles and do not have a vehicle are eligible for the student-away-at-school discount. Auto-Owners also provides a Teen Monitoring discount, which evaluates driving habits using your vehicle's GPS system.

Geico

Best for low rates

Geico provides affordable car insurance rates for young drivers with a few years of driving experience. The company also provides a variety of discounts, including student discounts, that may help you reduce your premium.

Perks

Drawbacks

Wide variety of discounts

Few local in-person agencies

Robust digital tools

Few endorsements available

 

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$569

$1,961

Age 21

$459

$1,613

Age 22

$469

$1,656

Age 23

$499

$1,776

Age 24

$473

$1,684

Age 25

$425

$1,521

Rates for ages 20-22 reflect the total cost of three drivers and one vehicle and are for the insured on a parent's policy. Rates for young drivers aged 23 to 25 are based on their own policy, insuring one vehicle.

Recent college graduates may also be eligible for alumni association membership and fraternity or sorority affiliation discounts. Active-duty members of the United States Armed Forces may be eligible for a 15% discount, as well as additional savings when deployed.

Nationwide

Best for customized policies

Nationwide may be a good fit if you're looking for an auto insurer with a lot of customization options. To help teens and young drivers create personalized car insurance, the company offers a variety of coverage add-ons such as roadside assistance and gap insurance.

Perks

Drawbacks

Numerous endorsements available

Lower-than-average claims satisfaction score from J.D. Power

Telematics program could help you save

Auto insurance is not offered in Alaska, Hawaii, Louisiana or Massachusetts

 

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$780

$1,932

Age 21

$682

$1,677

Age 22

$693

$1,706

Age 23

$806

$1,991

Age 24

$752

$1,874

Age 25

$657

$1,621

Rates for ages 20-22 reflect the total cost of three drivers and one vehicle and are for the insured on a parent's policy. Rates for young drivers aged 23 to 25 are based on their own policy, insuring one vehicle.

Young adults who enroll in Nationwide's SmartRide programme may be able to save money on auto insurance. An app is used in the programme to track acceleration, braking, idle time, mileage, and nighttime driving. Drivers receive a 10% discount on certain coverage types simply for enrolling in this telematics programme and may earn up to a 40% discount on certain coverage types depending on their driving habits.

Progressive

Best for digital tools

Progressive may appeal to young drivers who prefer to handle their insurance needs digitally, despite its premiums not being the lowest on our list. Furthermore, Progressive offers several discounts that may help you get a lower rate.

Perks

Drawbacks

Higher-than-average digital service and shopping scores from J.D. Power

Lower-than-average claims satisfaction score from J.D. Power

Numerous discounts available

Higher-than-baseline overall NAIC complaint index

 

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$850

$2,458

Age 21

$830

$2,515

Age 22

$799

$2,418

Age 23

$780

$2,372.03

Age 24

$722

$2,183

Age 25

$643

$1,940

Rates for ages 20-22 reflect the total cost of three drivers and one vehicle and are for the insured on a parent's policy. Rates for young drivers aged 23 to 25 are based on their own policy, insuring one vehicle.

Progressive's comprehensive mobile app includes options for paying your bill, viewing your policy information, requesting changes, calling for roadside assistance, filing and tracking a claim, and starting a new quote. Progressive's website is also robust, with an online portal for customers and a wealth of product information.

State Farm

Best for local agencies

If you prefer dealing with a local agent, State Farm may be a good option for young adult auto insurance. The company has a network of 19,000 agents across the United States who can assist you with your auto insurance needs.

Perks

Drawbacks

Large network of in-person agencies

Accident forgiveness cannot be purchased, only “earned”

Higher-than-average claims satisfaction score from J.D. Power

Not currently available in Massachusetts or Rhode Island

 

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$735

$2,161

Age 21

$675

$2,015

Age 22

$700

$2,088

Age 23

$646

$1,999

Age 24

$585

$1,853

Age 25

$523

$1,637

Rates for ages 20-22 reflect the total cost of three drivers and one vehicle and are for the insured on a parent's policy. Rates for young drivers aged 23 to 25 are based on their own policy, insuring one vehicle.

Young people frequently require assistance in navigating the difficulties of university life or leaving the nest to live on their own. State Farm's exceptional roadside assistance programme makes life a little easier for young adults. Battery jump starts, fuel delivery, locksmith service, towing, and up to one hour of roadside mechanic labor are all included.

Average cost of car insurance for young drivers

Except in Hawaii and Massachusetts, where age cannot be used to calculate insurance premiums, a driver's age is one of the most important factors influencing rates. While teenagers pay the highest rates, drivers between the ages of 20 and 25 continue to pay high average premiums. Drivers under the age of 20 pay 56% more for full coverage than the national average premium of $1,771 per year. Rates generally begin to normalize after the age of 25.

Age

Average annual premium for minimum coverage

Average annual premium for full coverage

Age 20

$871

$2,758

Age 21

$760

$2,426

Age 22

$769

$2,466

Age 23

$785

$2,625

Age 24

$745

$2,494

Age 25

$654

$2,176

Rates for ages 20-22 reflect the total cost of three drivers and one vehicle and are for the insured on a parent's policy. Rates for young drivers aged 23 to 25 are based on their own policy, insuring one vehicle.

Average car insurance costs for young drivers by state

Another important factor in determining auto insurance premiums is location. Every state has its own insurance laws, including varying minimum coverage requirements, which can influence the rates set by each auto insurance company. Furthermore, the risk of being involved in an accident varies by location, including your state, city, or even ZIP code.

The table below depicts the average annual full coverage premium for young adults, broken down by state.

Average annual full coverage premium by age and state

State

20-year-old

21-year-old

22-year-old

23-year-old

24-year-old

25-year-old

Alabama

$2,726

$2,468

$2,564

$2,778

$2,624

$2,189

Alaska

$2,786

$2,401

$2,459

$2,668

$2,549

$2,143

Arizona

$2,807

$2,570

$2,614

$2,611

$2,494

$2,119

Arkansas

$2,852

$2,443

$2,471

$2,691

$2,560

$2,309

California

$3,394

$3,072

$3,101

$3,147

$2,948

$2,750

Colorado

$3,397

$3,081

$3,080

$3,056

$2,916

$2,469

Connecticut

$2,294

$2,054

$2,067

$2,411

$2,279

$1,975

Delaware

$2,983

$2,586

$2,512

$2,943

$2,816

$2,362

Florida

$4,311

$3,651

$3,854

$4,046

$3,915

$3,468

Georgia

$3,173

$2,783

$2,843

$3,018

$2,875

$2,542

Hawaii*

$1,277

$1,256

$1,256

$1,265

$1,265

$1,265

Idaho

$1,617

$1,415

$1,472

$1,662

$1,602

$1,347

Illinois

$2,471

$2,190

$2,257

$2,452

$2,329

$1,941

Indiana

$1,914

$1,693

$1,730

$1,955

$1,830

$1,538

Iowa

$1,836

$1,654

$1,700

$1,867

$1,799

$1,530

Kansas

$2,690

$2,443

$2,482

$2,703

$2,621

$2,226

Kentucky

$3,014

$2,591

$2,650

$3,141

$2,974

$2,483

Louisiana

$4,342

$3,906

$3,987

$4,274

$4,064

$3,524

Maine

$1,469

$1,212

$1,258

$1,444

$1,384

$1,149

Maryland

$3,215

$2,779

$2,830

$2,951

$2,750

$2,385

Massachusetts*

$2,016

$1,889

$1,518

$1,641

$1,527

$1,480

Michigan

$4,062

$3,522

$3,615

$3,486

$3,330

$2,707

Minnesota

$2,418

$2,190

$2,318

$2,479

$2,380

$2,061

Mississippi

$2,510

$2,211

$2,222

$2,542

$2,426

$2,148

Missouri

$2,956

$2,599

$2,719

$2,974

$2,838

$2,355

Montana

$2,769

$2,275

$2,412

$2,737

$2,638

$2,057

Nebraska

$2,221

$1,990

$2,108

$2,306

$2,229

$1,867

Nevada

$3,951

$3,519

$3,485

$3,591

$3,453

$2,981

New Hampshire

$1,870

$1,560

$1,596

$1,920

$1,823

$1,553

New Jersey

$2,897

$2,570

$2,583

$2,841

$2,694

$2,322

New Mexico

$2,157

$1,990

$2,013

$2,214

$2,112

$1,849

New York

$4,438

$3,835

$3,931

$4,155

$3,966

$3,509

North Carolina

$1,585

$1,523

$1,518

$1,531

$1,499

$1,471

North Dakota

$1,733

$1,645

$1,692

$1,741

$1,668

$1,483

Ohio

$1,882

$1,669

$1,713

$1,928

$1,792

$1,543

Oklahoma

$2,859

$2,629

$2,655

$2,771

$2,635

$2,313

Oregon

$2,077

$1,913

$1,924

$2,022

$1,932

$1,678

Pennsylvania

$3,352

$2,809

$2,801

$3,121

$2,943

$2,381

Rhode Island

$2,845

$2,464

$2,517

$2,731

$2,624

$2,253

South Carolina

$2,184

$1,915

$1,983

$2,228

$2,126

$1,840

South Dakota

$2,154

$2,087

$2,115

$2,132

$2,066

$1,812

Tennessee

$2,255

$2,023

$1,989

$2,201

$2,040

$1,799

Texas

$3,156

$2,609

$2,643

$2,819

$2,664

$2,270

Utah

$2,483

$2,171

$2,245

$2,238

$2,108

$1,771

Vermont

$1,900

$1,507

$1,535

$1,612

$1,563

$1,241

Virginia

$2,204

$1,856

$1,906

$2,200

$2,085

$1,756

Washington

$2,135

$1,897

$1,823

$2,063

$1,961

$1,688

Washington, D.C.

$2,958

$2,761

$2,771

$2,852

$2,675

$2,345

West Virginia

$2,279

$2,047

$2,063

$2,306

$2,157

$1,856

Wisconsin

$1,896

$1,745

$1,766

$1,883

$1,795

$1,556

Wyoming

$2,189

$2,025

$2,160

$2,300

$2,206

$1,774

Rates for ages 20-22 reflect the total cost of three drivers and one vehicle and are for the insured on a parent's policy. Rates for young drivers aged 23 to 25 are based on their own policy, insuring one vehicle.

*Hawaii and Massachusetts prohibit using age as a rating factor, but other factors may apply that cause rates to fluctuate.

How are rates determined for young drivers?

Auto insurance rates for young adults are calculated in the same manner as rates for older drivers. There are several rating factors that influence car insurance premiums, including:

  • Age: Drivers aged 25 and under typically pay more for car insurance because their lack of driving experience puts them at a higher risk of causing accidents than older drivers. They are also more likely to file a claim because they are typically less financially established than older drivers. State regulations in Hawaii and Massachusetts prohibit insurance companies from using age as a rating factor.
  • Vehicle make and model: Some vehicles are less expensive to insure than others. Getting a quote from your insurance carrier before purchasing a vehicle may be a good idea to ensure you can afford the coverage.
  • Credit: In most states, insurance companies can use your credit-based insurance score to calculate your policy rate. People with bad credit typically pay much higher interest rates than those with good credit. Credit is not allowed to be used as a factor in determining auto insurance rates in California, Hawaii, or Massachusetts. Car insurance companies in Michigan cannot use your actual credit score, but they can use credit-related factors.
  • Gender: Males typically pay more for car insurance than females, even if they have clean driving records. Men are statistically more likely than women to be involved in accidents, and those accidents are more severe. Gender as a rating factor is prohibited in California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.
  • Location: If you live in an area where accidents or damage caused by natural disasters, theft, or vandalism are more likely, you may pay more for coverage. Furthermore, each state has its own insurance laws, which can affect premiums.
  • Mileage: The more you drive, the more likely you are to be in an accident because you are on the road more frequently. People who drive only occasionally may pay lower rates than those who drive frequently.
  • Types of coverage and their amounts: Drivers who only purchase the minimum required coverage types, such as bodily injury and property damage liability, pay less for auto insurance than those who also purchase collision and comprehensive coverage. Lenders will typically require you to purchase collision and comprehensive insurance, and most insurance experts recommend purchasing more than the bare minimum to protect your finances. Your deductible for certain types of coverage will also influence how much you pay.

Because these variables will affect your rate from carrier to carrier, getting several quotes before deciding on an auto insurer can be beneficial.

Discounts for young drivers

Almost every auto insurance company provides discounts to drivers, and some even specifically target young drivers. Finding a company that offers the appropriate discounts for your driving habits may be the most cost-effective way to obtain cheap car insurance.

  • Multi-car discounts: When you add multiple cars to a single policy, most auto insurers offer a small discount. It does not fully offset the cost of insurance for each vehicle, but it is cheaper to insure the vehicles together.
  • Multi-policy discount: Drivers who rent an apartment and own a car can save money by bundling their auto and renters insurance policies.
  • Alumni association discounts: For recent college graduates, many car insurance companies offer alumni association discounts.
  • Good student discount: Most businesses give students who maintain a certain GPA or letter grade average a discount. These student discounts are intended for full-time high school and college students, and they can save hundreds of dollars on insurance premiums per year.
  • Young driver safety training: Many companies provide discounts to students who have completed a driver education class or an approved driver training course. Most courses cover traffic laws and teach young drivers how to drive defensively.
  • Discounts for usage-based rating: Usage-based rating is a relatively new way to lower your auto insurance rate, but it may be a way to earn additional discounts. Carriers that offer these telematics programmes require policyholders to use a mobile app or plugin device that tracks driving habits like acceleration, braking, speed, and trip distance every time they drive.
  • Distant student discount: Many auto insurers provide discounts to students who attend school away from home and do not drive during the school year. To take advantage of this discount, you must be listed on your parents' policy.