Car insurance premiums for young adults tend to be pricey. Data shows that young drivers are more likely to be involved in fatal accidents than older age groups. Due to their lack of driving experience, car insurance companies usually charge young drivers the highest premiums.
While most young drivers will have to pay expensive rates for auto insurance, there are ways to potentially get a lower rate. Some car insurance companies also offer cheaper rates than others, which is why it’s important to shop around and compare quotes before buying a policy. Plus, every insurer offers different discounts and coverage options.
To help you find the best car insurance for young adults, we studied average rate data from some of the largest insurance companies. We also evaluated each company to determine what features it stands out for.
| Insurance Company | Best For | Monthly Cost | Annual Cost |
|---|---|---|---|
| Geico | Low rates | $177/month | $2,129/year |
| State Farm | Safe drivers | $210/month | $2,523/year |
| Progressive | Discounts | $235/month | $2,822/year |
| Allstate | Online resources | $302/month | $3,633/year |
| Nationwide | Accident forgiveness | $193/month | $2,325/year |
| Farmers | Coverage options | $221/month | $2,652/year |
| USAA | Military families | $161/month | $1,936/year |
| American Family | Smart students | $210/month | $2,529/year |
| Erie | Comprehensive policies | $204/month | $2,445/year |
*Costs are for full coverage.
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Best Car Insurance for Young Adults
Geico
Geico, which is owned by Berkshire Hathaway, is one of the largest car insurance companies on the market. The company is known for its affordable premiums and generous discount options, with savings for military personnel, smart students, affinity groups, and more.
State Farm
State Farm is the biggest car insurance company in the U.S., with almost 16% of the total market share. State Farm offers lots of discounts for young drivers, including its Steer Clear safe driver program, which is exclusively available to drivers under 25.
Progressive
Progressive is a good car insurance company for young drivers who are looking for the best discounts. The company has discounts for smart students, distant students, claim-free drivers, getting a quote online, enrolling in autopay, and more. Progressive also offers a safe driver rewards program, called Snapshot, which yields an average savings of $146.
Allstate
Young drivers who are purchasing car insurance for the first time can take advantage of Allstate helpful online tools and resources, like a coverage calculator and car payments calculator. Allstate also offers a good selection of discounts.
Nationwide
Nationwide is a great choice for young drivers who want to customize their car insurance policy with endorsements, like accident forgiveness. Nationwide also offers a vanishing deductible for drivers who remain claim-free. For each claim-free year, you can earn $100 off your deductible, up to $500.
Farmers
Farmers is another car insurance provider with excellent coverage options. Depending on your location, you can get guaranteed value coverage, loss of use coverage, customized equipment coverage, full windshield and glass coverage, OEM coverage, accident forgiveness, and more.
USAA
USAA is one of the top-rated car insurance companies on the market, but you can only purchase coverage if you or someone in your immediate family is in the military. USAA also issues coverage to students in ROTC programs and students at U.S. Service Academies.
American Family
If you’re a high school or college student who gets good grades, you could save a significant amount of money on car insurance with American Family. The company also offers a discount to students who attend school more than 100 miles from home and leave their car behind.
Erie
Compared to other car insurance companies, Erie has some of the most comprehensive policies. Car insurance from Erie includes pet coverage, locksmith services, auto glass repair coverage, and more. Erie also offers lots of unique endorsements, like a rate lock guarantee, free first accident forgiveness, and new car protection coverage.
How much does car insurance cost for a young adult?
The average full coverage car insurance premium for young adults is $2,373 per year for male drivers and $2,195 per year for female drivers, according to rate data from The Zebra. However, the cost of car insurance depends on many factors, including your claim history, driving record, gender, and age.
In general, a young adult is considered an individual under the age of 25. But within this age range, car insurance premiums can differ significantly. For example, The Zebra found that the average rate for a 20-year-old driver is $3,396 per year, whereas the average rate for a 24-year-old driver is much lower, at $1,978 per year.
Another factor that affects the cost of car insurance for young drivers is location. In New Jersey, the average full coverage rate for a young adult is $1,884 per year for full coverage and $729 per year for minimum coverage. In the table below, you can see the average cost of car insurance for young drivers in all 50 states, based on data from NerdWallet.
| State | Average Full Cost | Average Minimum Cost |
|---|---|---|
| Alabama | $2,236 | $608 |
| Alaska | $2,515 | $915 |
| Arizona | $3,764 | $1,222 |
| Arkansas | $2,343 | $878 |
| California | $2,808 | $944 |
| Colorado | $2,788 | $841 |
| Connecticut | $3,218 | $1,591 |
| Delaware | $2,645 | $1,110 |
| Florida | $3,467 | $979 |
| Georgia | $3,000 | $1,364 |
| Hawaii | $1,094 | $358 |
| Idaho | $1,665 | $433 |
| Illinois | $1,585 | $575 |
| Indiana | $2,174 | $859 |
| Iowa | $1,984 | $721 |
| Kansas | $2,344 | $740 |
| Kentucky | $4,005 | $1,641 |
| Louisiana | $4,220 | $1,583 |
| Maine | $1,624 | $638 |
| Maryland | $3,079 | $1,459 |
| Massachusetts | $1,650 | $680 |
| Michigan | $3,791 | $1,974 |
| Minnesota | $2,012 | $844 |
| Mississippi | $3,014 | $1,030 |
| Missouri | $2,555 | $883 |
| Montana | $2,830 | $702 |
| Nebraska | $1,303 | $487 |
| Nevada | $1,743 | $544 |
| New Hampshire | $1,938 | $568 |
| New Jersey | $1,884 | $729 |
| New Mexico | $2,958 | $1,335 |
| New York | $2,095 | $663 |
| North Carolina | $3,616 | $1,541 |
| North Dakota | $3,192 | $1,604 |
| Ohio | $1,608 | $658 |
| Oklahoma | $2,592 | $780 |
| Oregon | $1,974 | $979 |
| Pennsylvania | $2,218 | $733 |
| Rhode Island | $3,283 | $1,431 |
| South Carolina | $2,520 | $1,046 |
| South Dakota | $1,894 | $442 |
| Tennessee | $2,006 | $710 |
| Texas | $3,608 | $1,334 |
| Utah | $2,264 | $1,023 |
| Vermont | $2,109 | $858 |
| Virginia | $1,976 | $583 |
| Washington | $1,908 | $767 |
| Washington D.C. | $2,758 | $1,425 |
| West Virginia | $1,725 | $579 |
| Wisconsin | $2,460 | $848 |
| Wyoming | $1,924 | $504 |
*Costs are for annual coverage.
How much car insurance do young adults need?
Young adults must carry enough car insurance to meet their state’s unique coverage requirements. In most states, all drivers, regardless of age, are required to have personal liability insurance. Other states, including New Jersey, require uninsured/underinsured motorist insurance (UM/UIM) and personal injury protection (PIP).
Additionally, drivers must purchase a minimum amount of coverage for each policy. For New Jersey, the minimum coverage limits are $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, and $15,000 for PIP. You can choose UM/UIM coverage limits up to the limits you select for liability insurance.
However, most young adults can also benefit from optional car insurance policies. For example, many drivers purchase full coverage car insurance, which includes liability insurance, collision insurance, comprehensive insurance, and medical payments coverage. Full coverage policies are often required if you lease or finance your vehicle.
There are also some car insurance endorsements that young drivers may consider, like accident forgiveness, roadside assistance, and new car replacement insurance. These coverages will raise your premium, but they can provide valuable protection in certain situations that your basic policy excludes.
How can young drivers save money on car insurance?
The average car insurance rate for young adults tends to be much higher than the average rate for older drivers. However, there are plenty of ways for young drivers to save money on their car insurance policy. Here are a few suggestions for lowering your premium:
Qualify for discounts
Most car insurance companies offer a selection of discounts to help drivers save money. While each insurer has different discounts, you can often find savings for having a safe vehicle, having no recent insurance claims, taking a defensive driving course, paying the premium in full, and insuring multiple vehicles on the same policy.
Get good grades
If you’re in high school or college, some car insurance providers offer savings for students. For example, you can sometimes lock in a lower rate for getting good grades in school or having a minimum GPA. There are also insurers that will give you a discount if you attend college more than 100 miles away from home and leave your car behind.
Bundle your policies
Most insurance companies have bundling discounts. If you bundle an auto insurance and renters insurance policy, for example, you can save money on your combined premium.
Choose higher deductibles
If you have a full coverage policy with collision and comprehensive insurance, choosing higher deductibles can help you get a cheaper rate. However, make sure you can afford a higher deductible before you change it.
Avoid tickets and accidents
Safe drivers are typically rewarded with lower car insurance rates. Practice safe driving habits and avoid tickets and accidents to maintain an affordable rate. You can also research insurance companies that offer telematics-based safe driver reward programs, like State Farm Steer Clear, Allstate Drivewise, and Progressive Snapshot.
Compare rates
Before choosing a car insurance policy, it’s a good idea to research and compare companies, and get quotes to see which carrier can give you the best deal. Aim to get at least four car insurance quotes for the same types and amounts of coverage to find the most affordable rate for your situation.
How to choose the best car insurance for a young adult
There are dozens of car insurance companies on the market and each insurer has pros and cons. When choosing the best car insurance company for young adults, there are a handful of criteria you should focus on.
First, look at the third-party ratings for insurers you’re interested in. J.D. Power, AM Best, and the National Association of Insurance Commissioners (NAIC) are a few reputable organizations that score insurance companies based on overall customer satisfaction, financial strength, and complaints, respectively.
You should also look at the coverage options and discounts that each provider offers. If you’re looking for specific discounts or endorsements, check to make sure the company offers what you need. If you’re hoping to save the most money possible, look for insurers that have multiple discounts you are eligible for.
The last step in choosing the best car insurance company is to compare rates. This will help you find the most affordable policy for you. You can also apply for new quotes once per year, or after a claim, to make sure you’re always getting the lowest rate.
Methodology
To find the best car insurance for young adults, we studied rates published on insurers’ websites. We also researched each of the top car insurance companies for young adults based on their standout features, like low rates, coverage options, and discounts.
Keep in mind that the rates presented here are meant to help young drivers better understand what they might pay for coverage. Actual rates are personalized based on many factors, like age, claim history, driving record, and insurance company. You will need to apply for quotes to see how much you’ll pay based on your driver profile and coverage requirements.
