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:
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.
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.
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
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.