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

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Last Updated: January 2022

Quick Facts

  • The average cost of car insurance for a 25-year-old is $285 per month.
  • Drivers under the age of 25 will typically see the highest car insurance rates when compared to other age groups.
  • Young drivers should always take advantage of all available discounts to lower their cost of car insurance.

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

Age is a big part of determining your risk. 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 use a quote-comparison tool like Insurify.

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
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

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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, drivers under 25 pay an average monthly premium of $285, with males generally paying more than females. When analyzing car insurance rates by age, young drivers pay more on average, regardless of gender.

The main reason that male drivers tend to pay more than female drivers is due to statistics. Data shows that a male driver is more likely to participate in risky driving behaviors than a female driver, meaning their rates will be higher. The practice of using gender as a rating factor is outlawed in a few states, including Massachusetts, California, and North Carolina.

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How much does car insurance cost drivers under 25?

Whether it’s a full-coverage car insurance policy or minimum coverage, young drivers tend to pay more than drivers with more experience. The main reason for this has to do with the number of years behind the wheel. Younger drivers haven’t been driving for as long and are more likely to have an accident.

Factors such as location, coverage type, driving history, and vehicle will also play a role in determining the final rate. Young drivers may be eligible for various discounts to help decrease their monthly costs, like good student discounts or bundling with renters insurance.

Farmers

Farmers is Insurify’s top pick for the cheapest car insurance for drivers under 25. At $89 per month on average, young drivers can 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 young 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 young 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

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.

Best 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
Distant Student 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.

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. Free online quote-comparison tools like Insurify make this process easy.

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 do it. Instead, drive an older, safer car, they’re much 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.

Cheapest States for Car Insurance for 20-Year-Olds

According to Insurify's proprietary research, the average monthly cost of car insurance for drivers under 25 is $285. But in other states, young drivers can score much lower monthly rates for car insurance.

State Insurance Company Cheapest Monthly Premium
Illinois USH&C $64
North Carolina Direct Auto $69
Hawaii Farmers $89
Massachusetts Travelers $91
Utah Sun Coast $112
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

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 years old, “high risk” and charge higher rates to drivers in this group. But don’t worry, cheap car insurance quotes aren’t impossible to find,if you know where to look, that is.

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.