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Cheapest Car Insurance for Drivers Under 25: Quotes, Discounts (2022)

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Last Updated: January 2022

Your twenties are likely to be some of the best times of your life. You’ll want to hang on to the memories you make, but you could do without the higher auto insurance premiums.

Drivers under 25 pay some of the highest car insurance premiums in the country. Why? Because car insurance providers use risk to determine your auto insurance rates - the higher the risk, the more you pay every month for car insurance.

Age is a big part of determining your risk. Although, companies also use your income, driving experience, and driving record to set premiums.

But that doesn’t mean you can’t get a great deal on your auto insurance policy. It just means you have to look harder, compare different companies, and make sure you’re eligible for discounts.

The best way to ensure that you are getting the cheapest car insurance is to shop around. When you use a comparison site like Insurify to shop for cheap car insurance, you’ll answer a few questions about your car and driving history - and we’ll match you with the best car insurance at a great rate.

Cheap Car Insurance Companies for Drivers Under 25

Some car insurance companies have cheaper policies for younger drivers than others. If you’re looking for auto coverage, consider the insurance companies in this list of the top five most affordable car insurance companies for drivers under 25:

Insurance Company Cheapest Monthly Quote
Farmers $89
USH&C $155
Kemper $162
Amigo USA $178
Novo $184

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Average Car Insurance Rates by Age and Gender

For many people, auto insurance is one of the biggest monthly expenses they have. Depending on the type of coverage you have, either full coverage car insurance or the state minimum, you could be paying hundreds of dollars each month.

Rates can vary by age and gender, in addition to various factors that include the driver’s past driving record, the type of car they drive, where they live, and their age.

The average car insurance rates for young drivers are typically very high. Statistically, you’re more likely to get into an accident if you’re under 25 than drivers over 25 years old.

To find out how much you might pay, get a no-commitment quote. It only takes a few minutes, and you can compare rates from multiple insurance companies with one click.

Cost of Car Insurance for Drivers Under 25 by State

According to Insurify's proprietary research, the average monthly cost of car insurance for drivers under 25 is $285. But how about in our state?

Here are the average rates for drivers under 25 in all 50 states.

Insurance Company Average Monthly Quote
Alabama $254
Alaska $226
Arizona $291
Arkansas $295
California $301
Colorado $299
Connecticut $394
District of Columbia $306
Delaware $411
Florida $367
Georgia $397
Hawaii $124
Idaho $197
Illinois $206
Indiana $203
Iowa $204
Kansas $253
Kentucky $345
Louisiana $468
Maine $193
Maryland $379
Massachusetts $209
Michigan $466
Minnesota $214
Mississippi $304
Missouri $315
Montana $237
Nebraska $234
Nevada $408
New Hampshire $195
New Jersey $412
New Mexico $244
New York $421
North Carolina $171
North Dakota $217
Ohio $194
Oklahoma $256
Oregon $261
Pennsylvania $231
Rhode Island $445
South Carolina $365
South Dakota $204
Tennessee $224
Texas $341
Utah $228
Vermont $217
Virginia $243
Washington $295
West Virginia $279
Wisconsin $189
Wyoming $207

Farmers

Farmers is Insurify’s top pick for the cheapest car insurance for drivers under 25. At $89 per month on average, you get excellent coverage from a reputable company. Farmers also has motorcycle, renters, homeowners, and condo policies available.

A few of the discounts that Farmers offers to 25-year-old drivers include:

  • Good student discount
  • Multi-car
  • Alternative fuel
  • Anti-theft
  • Business and professional group
  • Bundling discount
  • Automatic bank payment
  • Electronic document delivery

USH&C

United Security Health and Casualty (USH&C) is a regional insurer. You can get a policy from them only if you live in Arizona, Arkansas, Illinois, Indiana, Missouri, Nebraska, Oklahoma, and Texas. The company specializes in personalized service and competitive pricing.

A few of the discounts that USH&C offers to 25-year-old drivers include:

  • Clean driving history
  • Monitored driving
  • Insurance credit score

Kemper

Drivers under 25 can get a great rate from Kemper. Their auto policies include 24/7 roadside assistance as a standard coverage option. The company also offers auto, home, life, and health insurance for one-stop-shopping.

A few of the discounts that Kemper offers to 25-year-old drivers include:

  • Good student
  • Military
  • Defensive driving course
  • Paid-in-full
  • Multi-car
  • Advance quote
  • Homeowner

Amigo USA

Amigo USA provides cheap car insurance coverage for drivers under 25. Policies are available in many U.S. states and in Mexico. Coverage can include rideshare driving such as for Uber and Lyft.

A few of the discounts that Amigo USA offers to 25-year-old drivers include:

  • Good driver
  • Multiple policy
  • Student discounts

Novo

Specializing in car insurance, Novo streamlines the process to get you the coverage you need. The company rounds out Insurify’s top five cheapest auto insurance companies for drivers under 25 with rates that average $184 per month.

Novo doesn’t offer policy discounts - they have built-in savings that provide affordable coverage for everyone. However, you can get special savings for multi-vehicle and multi-driver policies.

Cheapest Auto Insurance Discounts for Drivers Under 25

Remember that the cheapest car insurance quotes for drivers under 25 might not be the best deal available. Many companies offer hefty car insurance discounts and bundling options that could reduce your monthly payments considerably.

Discounts for Under 25 How to Get It Companies That Offer It
Good Student Discount Be a high school or college student with good grades (typically a B average or better) to get 5 to 15 percent off your monthly premium. State Farm, Progressive, Liberty Mutual, Esurance, GEICO, Allstate, American Family, USAA, Amica, Nationwide, The General, Farmers, Travelers, Mercury
Defensive driver discount Take a defensive driving course from an accredited institution to get up to 15 percent off your monthly premium. Liberty Mutual, State Farm, Esurance, GEICO, Travelers, Amica, The General, Nationwide, American Family, Travelers
Safety features discount Insure a car with certain safety features or anti-theft devices like anti-lock brakes, airbags, daytime running lights, and electronic stability control. Farmers, State Farm, Liberty Mutual, Allstate, Esurance, GEICO, Amica, The General, Nationwide, American Family, Mercury
Student away from home discount Attend college away from your parent’s home and leave your car behind to knock off a decent chunk from your premium. Farmers, Progressive, Liberty Mutual, USAA, Amica, American Family, Mercury
Multi-policy discount Bundle your renter’s insurance with your car insurance to get cheaper premiums than buying each policy separately. Most major car insurance carriers.
Multi-car discount Add a trusted roommate (who has a clean driving record) to cash in on a multi-car discount. Most major car insurance carriers.

Many car insurance companies also have teen driver discounts that help new drivers lower their car insurance rates.

It pays to do your research and compare quotes from different companies before buying a policy. Comparing car insurance rates only takes minutes with Insurify. You’ll save time because it includes discounts you might be eligible for and lets you compare quotes from up to 20 different companies at a time.

Tips for Cheaper Car Insurance

If you’re under 25, finding the cheapest car insurance might seem like an impossible task. Follow these tips to save money on insurance and cut your premiums.

Shop Around for Car Insurance

The best way to save money on your car insurance is to shop around. When you’re under 25, many insurers will charge an extra premium just because of your age. It’s smart to get quotes from several different companies.

Remain on Your Parents’ Policy

Since most of us want to keep our costs down, remaining on mom and dad’s policy until we can afford our own is a quick way to save money on car insurance. You’ll need to have the same permanent address as your parents to make this work.

Drive an Older, Safer Car

Convertibles and flashy sports cars are tempting to buy - but don’t. Instead, drive an older, safer car - they’re cheaper to insure.

Select a High Deductible Plan

If you’re looking for cheap car insurance, choosing a higher deductible policy could be your best bet. Generally, the higher your deductible, the lower your premium.

Keep a Clean Driving Record

Maintaining good driving habits and keeping a clean record will save you money on your car insurance policy, no matter your age. If you rack up points on your license for careless driving (e.g., speeding, running red lights), auto insurers consider you riskier and charge accordingly. It’s not worth it. Save yourself some cash by being a good driver.

Maintain a Good Credit Score

Many insurers use your credit score as an indicator of your overall trustworthiness. A poor credit score can end up costing you more for car insurance coverage. Work on building up your credit rating to lower your premiums and increase your peace of mind.

Frequently Asked Questions

  • A typical 25-year-old will pay $285 per month on average for car insurance. Premiums can be higher or lower depending on gender, location, type of car, driving record, credit history, and past insurance claims.

  • If you’re a 25-year-old driver, there are ways to save money on your insurance coverage. The easiest way to lower your costs is to shop around for car insurance. Use Insurify to compare coverages and rates quickly.

  • Car insurance premiums are all about risk - the higher risk you are to the insurance company, the more you’ll pay for premiums. Keeping a clean driving record shows insurers that you’re a reliable and safe driver. And safe drivers typically pay less for car insurance.

The Best Way to Compare and Get Cheaper Car Insurance

Usually, auto insurance companies consider young adults - especially those under 25 - “high risk” and charge higher rates to drivers in this group.

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!

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.