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