Being in your late teens and early twenties is probably one of the best times of your life. But it sure comes at a price—higher car insurance premiums.
That’s right, drivers under 25 have to pay some of the highest car insurance premiums in the country.
Your monthly auto insurance payment is proportional to the risk you represent to your insurance provider. The higher the risk, the more you pay every month for car insurance. To assess your risk, and therefore your premium, companies use factors such as your age, income, driving experience, and driving record.
Usually, insurance companies consider young drivers—especially those under 25—“high risk” and charge higher rates to drivers in this group. Don’t worry, though. This doesn’t mean you still can’t get a great deal on your car insurance policy. It just means you have to look harder, compare different companies, and make sure you’re eligible for discounts.
The process only takes a few minutes if you use an auto insurance comparison site like Insurify. All you have to do is answer a couple of questions about your car and driving history, and we’ll match you with the cheapest car insurance policies available for your driver profile.
How Much Does Car Insurance Cost for Drivers Under 25?
According to Insurify’s proprietary database of millions of customer quotes, the average cost of car insurance for drivers under 25 is $373. But how about in your state? Check out the map below, which uses Insurify data to compare the average cost of car insurance for drivers under 25 in all 50 states.
Cheap Car Insurance Companies for Drivers Under 25
Some car insurance companies have cheaper policies for younger drivers than others. Below is a list of the top 10 cheapest companies for drivers under 25, along with average quotes:
|Insurance Company||Average Monthly Cost|
|Farmers 21st Century||$122|
|Anchor Motor Club||$209|
While these are the companies with the cheapest car insurance quotes for drivers under 25, other companies might offer hefty discounts and bundling options that could make your monthly payments a lot cheaper as well.
Make sure to do your research and compare quotes from different companies before buying a policy. Comparing car insurance rates only takes minutes with Insurify, which factors in any discounts you might be eligible for, and lets you compare quotes from up to 20 different companies at a time.
For example, take a look at this quote list for a 21-year-old student in Houston, Texas, who drives a 2010 Honda Civic and has a 3.4 GPA:
Remember to compare car insurance quotes on comparison sites like Insurify before buying your car insurance policy!
Car Insurance Discounts for Drivers Under 25
Plenty of auto insurance companies offer drivers under 25 discounts to lower their monthly payments. Here is a list of popular discounts you may be eligible for:
|Discounts for drivers under 25||How to get it||Companies that offer it|
|Good student discount||Some high school and college students can get anywhere from 5 to 15 percent off their monthly premium if they get good grades (usually defined as a B average or higher).||State Farm, Progressive, Liberty Mutual, Esurance, GEICO, Allstate, American Family, USAA, Amica, Nationwide, The General, Farmers, Travelers, Mercury|
|Defensive driver discount||If you take a defensive driving course from an accredited institution, you could get up to 15 percent off your monthly premium.||Liberty Mutual, State Farm, Travelers, USAA, The General, Nationwide, American Family, Travelers|
|The safety features discount||Many insurance providers will give you a discount if your car has certain safety features or anti-theft devices like anti-lock brakes, airbags, daytime running lights, and electronic stability control. Depending on the number of safety features you have, you could rack up a pretty big discount.||Esurance, Progressive, State Farm, Liberty Mutual, GEICO, Amica, The General, Nationwide, American Family, Mercury|
|The student away from home discount||If you attend a college away from your parent’s home but leave you car at their home you can apply for this discount, which could knock off a decent chunk from your premium.||Farmers, Progressive, USAA, Allstate, Amica, American Family, Mercury|
|Multi-policy discount||Bundling your renter’s insurance with your car insurance could get you a cheaper combined premium than if you purchased each policy separately.||Allstate, Travelers, American Family, Nationwide, State Farm, Mercury|
|Multi-car discount||If your roommate has a clean driving record, you might consider buying a car insurance policy together and applying for a multi-car discount. Depending on you and your roommate’s driving history, this might be cheaper than buying separate policies.||Most car insurance companies|
Many car insurance companies also have teen driver discounts that help new drivers lower their car insurance rates.
Quotes comparison websites like Insurify factor in any discounts you may be eligible for, and allow you to compare post-discount prices from up to 20 car insurance companies at a time. Make sure you compare car insurance quotes before settling down on any single company!
Consider Using a Telematics App
If you’re a driver under 25, you might also consider enrolling in a telematics program. These are programs that place a telematics device in your car to track your driving behaviors, such as how fast you drive, how much you drive, how hard you brake, and the time of day you usually drive.
Based on the information the device gathers, you can get up to a 35 percent discount if you have good driving habits. This is a great option for good drivers who want to be rewarded for their safe driving.
Many car insurance companies, like Travelers, Progressive, and State Farm, offer telematics programs, making it a good way to reduce premiums for drivers under 25.
Some companies, like Metromile, Root, and Noblr, rely entirely on telematics devices to charge you for your car insurance. So as long as you’re driving safely, you’ll keep your car insurance costs down.
Conclusion: How to Save on Your Car Insurance
Comparing car insurance quotes will always guarantee you have the cheapest car insurance. If you use a quotes comparison website like Insurify, the process only takes a few minutes, and you could compare up to 20 companies at a time!