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Best Auto Insurance For Young Adults (Full Guide)

Car insurance is often pricey for young drivers, but it shouldn’t break the bank.

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09/19/2023 04:44 PM

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It can be difficult to know which providers offer the best auto insurance for young adults. Many young drivers under 25 look for quality coverage with the cheapest rates, but it can be hard to find.

Our reviews team has researched the market’s best car insurance providers to determine which ones offer affordable and high-quality coverage. Now, we’ve looked specifically into the best auto insurance for young adults to help these motorists save on coverage.

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Who Offers The Best Auto Insurance Rates For Young Adults?

Our rate estimates reveal that USAA, Geico, State Farm, and Progressive often have cheap car insurance for young adults. All four of these companies are reputable auto insurance providers, so you can expect to receive great coverage when picking them.

For full coverage car insurance, young adults typically pay more than the national average of $1,730 per year. Below, we’ve listed the average auto insurance rate for 24-year-old drivers from some of the country’s leading providers:

Car Insurance CompanyAverage Monthly Rate EstimateAverage Annual Rate Estimate
State Farm$147$1,765

Those with clean driving records and good credit often find some of the best auto insurance for young adults. You can find top choices by comparing car insurance quotes from providers.

Best Auto Insurance Rates By Age And Gender

In most states, male drivers typically pay slightly more than female drivers for similar car insurance policies. This is especially true when both genders are young adults. Below, we’ll compare the average cost of full coverage car insurance for 24-year-old male and female drivers.

GenderUSAAGeicoState FarmProgressive

The cost differences aren’t always significant, but men get charged higher prices than women by every provider listed above. As drivers move past their mid-20s, however, rates begin to even out between the genders.

How Young Adults Can Save Money On Auto Insurance

You’re unlikely to find the industry’s cheapest rates overall when searching for the best auto insurance for young adults, but there are still plenty of ways to save. Below, we’ll outline common opportunities to receive reduced rates.

  • Compare car insurance quotes: By looking at quotes from various companies, drivers can find the best auto insurance for young adults at competitive rates. Those who only consider a few providers may pay more than what’s needed for coverage.
  • Seek out car insurance discounts: Those who bundle auto coverage with homeowners or renters insurance policies, have a history of safe driving, or are college students with good grades may receive lower car insurance rates.
  • Keep a high credit score: Pay all bills on time, as having strong credit can lead to significantly lower car insurance premiums.
  • Maintain a clean driving record: Drivers who haven’t caused accidents and don’t have DUI violations or speeding tickets will likely pay less for the best auto insurance for young adults.
  • Choose a higher deductible: Selecting a higher deductible means you’ll pay more out of pocket after a claim, but it will also reduce your auto insurance rates.
  • Consider coverage options: You’ll spend less if you only get minimum coverage car insurance. Drivers with protection like comprehensive insurance and collision insurance can save money by reducing their coverage amounts.

The best auto insurance for young adults ideally comes from a reputable provider and offers property and bodily injury liability coverage and protection for their vehicles and medical needs. It’s relatively easy to compare car insurance prices to discover which companies best suit your budget and coverage requirements.

Car Insurance Discounts For Young Adults

Many young drivers forgo add-ons such as accident forgiveness, comprehensive coverage, and roadside assistance when leaving their parents’ policies. Getting more than minimum bodily injury and property damage coverage can seem expensive, but car insurance discounts can reduce the cost.

  • Good student discounts: If you’re a college student with good grades–usually at least a B average–you could cut the cost of car insurance.
  • Student away at school discount: Save money on your policy if you’re a student living away from home and leave your car there.
  • Safe driver discounts: Many providers offer discounts to drivers who take defensive driving courses.
  • Multi-car or multi-policy discounts: Save money by insuring more than one car on the same policy or bundling homeowners or renters insurance with your auto insurance.
  • Affinity discounts: Young drivers who are connected to auto clubs, credit unions, college alumni associations, and the military may be eligible for discounts.

Why Is Car Insurance Expensive For Young Adults?

Though many drivers in their 20s and late teens follow safe practices on the road, young adults as a whole get categorized as high-risk drivers. Because of this, the best auto insurance for young adults tends to cost more for the same coverage for most older motorists.

On average, coverage costs far less for young adults than for teen drivers. You’ll likely pay higher rates for car coverage than your parents, though, due to the following factors:

Inexperience On The Road

Young motorists have spent less time behind the wheel than older drivers. As people get more driving experience, they often gain a greater understanding of what could go wrong.

Since experience comes through time spent driving, car insurance premiums tend to decrease the longer young drivers have had their licenses.

Risky Driving Habits

Put simply, drivers in this age range are more likely to get in car accidents. One reason the best auto insurance for young adults comes with higher costs is that this age group has more occurrences of risk taking behind the wheel. A study from Translational Psychiatry found that sensation-seeking behaviors are common among 18- to 25-year-olds and steadily decrease with age.

In addition, driving while intoxicated is most common between the ages of 21 and 34, according to 2020 data from the National Highway Traffic Safety Administration. A study in Preventive Medicine Reports found that young adults are more likely to text while driving as well.

Poor Credit Scores

Experian data shows that people aged 23 to 29 had the lowest credit scores of any age range in 2019, with an average FICO score of 660. That fits into the “fair” category of FICO credit scores, which includes borrowers who are considered less likely to repay their debts.

Your credit score is one of the strongest indicators of your potential insurance rates, which is a key reason that the best auto insurance for young adults is quite expensive. Credit can be nearly as impactful in determining rates as your driving history, so young drivers with low credit scores often pay high premiums for car insurance coverage.

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Recommendations For The Best Auto Insurance For Young Adults

The cheapest and best auto insurance for young adults commonly comes from USAA, Geico, and State Farm. These three insurers offer quality coverage and prices that usually compare favorably with those from other providers.

USAA: Best For Military Members

AM Best financial strength rating: A++

Better Business Bureau (BBB) rating: A+

Average annual rate estimate: $1,422

USAA coverage is only available for military members, veterans, and their families, but those who are eligible should almost always consider policies from the company. USAA offers some of the best auto insurance for young adults at rates that are often the cheapest on average.

Keep reading: USAA insurance review

Geico: Best Overall Provider

AM Best financial strength rating: A++

BBB rating: A+

Average annual rate estimate: $1,627

There’s plenty for young adult drivers to like about coverage from Geico. On average, the company offers the second-cheapest car insurance rates for young adults nationwide. Also, an auto insurance policy from Geico is backed by superb financial strength and comes with an array of coverage choices.

Keep reading: Geico insurance review

State Farm: Best For Student Drivers

AM Best financial strength rating: A++

BBB rating: B-

Average annual rate estimate: $1,765

State Farm has many benefits for young drivers, from auto insurance discounts to a large number of local agents. You can save money by being a good driver, bundling insurance policies, and having safety features in your car. On top of these discounts, State Farm’s Steer ClearⓇ app may offer savings to drivers under the age of 25 who go through the company’s driver training courses.

Keep reading: State Farm insurance review

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Best Auto Insurance For Young Adults: FAQ

Which insurance company is cheapest for young drivers?

The cheapest auto insurance companies for young drivers are generally USAA, Geico, State Farm, and Progressive. Each provider offers extensive coverage at competitive rates.

Is Geico good for young adults?

Yes, Geico is a good car insurance choice for young adults. Its rates are relatively low, allowing most young adults to add multiple coverage options to their policies.

Is USAA only for the military?

USAA is only for military members, veterans, and their families. If you don’t fit into one of those groups, you’ll need to find coverage from another auto insurer.

What are the best car insurance companies for young drivers?

The best car insurance for young drivers is often from Geico, USAA, and State Farm. Expect to receive affordable car insurance for young adults from each of these providers

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.