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Best Cheap Car Insurance for Young Adults (July 2022)
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Edited by Jackie Cohen | Reviewed by licensed insurance agent, Amber Benka
Last Updated June 15, 2022
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Car insurance costs for young adults are notoriously high, even for good drivers. And if a young adult gets a speeding ticket or other driving infraction, rates tend to rise to a higher rate than they would for drivers in other age ranges. It’s so important when you’re a young adult driver—or if you have one on your policy—to seize all the cost-saving opportunities you can.
When you shop with Insurify, saving is made easy. In a few minutes, you can compare car insurance rates from insurance companies in your area without sharing your personal information with them. Save your profile to compare in the future and set notifications to receive price drop alerts. Best of all, it’s completely free to use Insurify’s tools.
Quick Facts
- Young drivers pay higher premiums because they pose a higher risk to insurance companies.
- Insurance rates can be higher or lower depending on a young driver’s driving habits, driving record, location, and the make and model of the car.
- Taking advantage of policy discounts and comparing car insurance rates before you buy is the best way to save money on car insurance for young adults.
Best Car Insurance Companies for Young Adult Drivers
Below are the best car insurance companies for young adults. Keep in mind that the best company overall may not be the best company for you. Always compare your options before you buy. If any company’s disadvantages are a dealbreaker, don’t be afraid to cross them off your list. Plenty of insurance providers can offer you a policy you want.
See More: Best Car Insurance Companies
Allstate
Insurify Composite Score: 87
Pros
Great financial ratings
Many insurance products
Easy-to-use technology
Cons
Drivers with bad credit pay more
Policyholders often work with local agents rather than a centralized service center which can lead to inconsistency in service
Nationwide
Insurify Composite Score: 85
Pros
Excellent website and mobile app with plenty of features for self-managing your auto insurance policy
Cons
Difficult to get low rates (or a policy) if you’re a high-risk driver
Liberty Mutual
Insurify Composite Score: 83
Pros
Lots of discount programs
Car insurance coverage options
Great bundling opportunities
Cons
Higher premiums than other companies
Pros
Large number of discounts for young drivers
Highly rated across products
Cons
Website is not user-friendly
Company lags in technological advancement
USAA
Insurify Composite Score: 95
Pros
Low average rates
Lots of discounts
Excellent customer service
Cons
Exclusive membership requirements
State Farm
Insurify Composite Score: 84
Pros
Large selection of discounts and auto insurance coverage options tailored to young drivers
Cons
Higher premiums than other insurance companies
GEICO
Insurify Composite Score: 88
Pros
User-friendly website and app
Lots of discounts
Cons
High premiums for drivers with an at-fault accident on their record
Harder to get human-to-human customer service
Amica
Insurify Composite Score: 93
Pros
Customers love working with Amica, especially because they receive policyholder perks and many discount opportunities
Cons
Prices are more expensive in first year
Website is hard to use
Pros
Offers rates based on the total number of miles driven, so young drivers can pay less when they drive less
Cons
No other discounts exist, and Metromile is only available in select states
Esurance
Insurify Composite Score: 91
Pros
Most policy management can be done easily online, and the customer service center receives good reviews
Cons
Claims service is poorly reviewed, and agent availability is limited
Pros
Specializes in high-risk insurance policies, able to file SR-22 forms
Cons
Higher rates than other companies and low customer service satisfaction
Progressive
Insurify Composite Score: 80
Pros
Lots of discounts, including a telematics program
Cons
Policies only available for up to six months, so you can’t lock in low rates on an annual premium
Best Cheap Car Insurance Companies for Young Adult Drivers
We took a look at thousands of car insurance quotes for drivers between the ages of 16 and 29. Below are our findings on which companies consistently offer the lowest rates to drivers in this age group.
| Car Insurance Company | Average Monthly Cost |
|---|---|
| Farmers | $105 |
| Kemper | $196 |
| Travelers | $198 |
| Amigo USA | $218 |
| Progressive | $272 |
| Safeco | $395 |
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Car Insurance Policy Hacks for Young Adults
Which insurance company is cheapest for young drivers?
Several companies offer low rates to young drivers, including State Farm, Mercury, Kemper, and SafeAuto. You can save even more by choosing a company with many discount options.
Young adults have special obstacles to getting affordable car insurance. When possible, avoid buying your own policy. Car insurance premiums are lower when you’re added to a parent’s existing policy. Older drivers usually have access to more discounts than young adults. Multi-car and multi-policy discounts go a long way to lower the cost of car insurance.
Driving an unfinanced, older vehicle means liability insurance is all you’ll need. You’ll be covered for bodily injury, property damage, and anything else required to meet state minimums. It’s still a good idea to add roadside assistance and uninsured and underinsured motorist coverage.
One of the quickest ways to save is by forgoing collision and comprehensive coverage; it can save you hundreds. Look for insurance providers that best match your needs. Don’t focus on one detail like the best rate. Often, a policy that’s more valuable to you is only a few dollars more than one that’s a poor fit.
See More: Car Insurance Quotes
How to Get Discounted Car Insurance for Young Drivers
When you’re buying car insurance as a young driver, getting discounts is key to saving money. But some discounts, like the good driver discount, are difficult to get when you’re a new driver. It’s important to look at companies with discounts that young drivers can capitalize on.
Most companies allow young drivers to get discounts for car safety features like antilock brakes, airbags, and passive restraints. Most companies also allow policy-based discounts, such as paying in full, setting up autopay, and going paperless.
Bundling car insurance with other policies, like homeowners insurance or renters insurance, is a great way to save significantly on all your policies. Don’t forget to ask your agent about any other discounts you may have missed.
See More: Cheap Car Insurance
Best Discounts for Teen Drivers
Teenage drivers are limited when it comes to car insurance discounts. The good student discount offers rewards based on a student’s GPA; usually, at least a B average is needed. Some companies have a defensive driving or accident prevention course discount.
When possible, teen drivers should enroll in a telematics program. These programs track your driving through an installed device or mobile app, rewarding good driving habits with steep discounts.
Best Car Insurance Discounts for Young Adults
Young adults can get grades-based discounts if they are college students. Because they don’t have a long driving history, young adults should take advantage of driver’s education discounts and telematics programs.
Both programs can cut as much as 25 percent off premiums while reducing the risk of a serious accident. Once they build a history of safe driving habits, young adults can usually get a good driver discount and may be able to enroll in accident forgiveness.
How to Get Cheap Car Insurance for Teens and Young Adults
There are quite a few strategies to getting cheap car insurance if you’re a young driver or have one on your policy including staying on your parents insurance policy and taking advantage of insurance discounts.
The best way to find the cheapest car insurance for any policy is to compare car insurance rates with Insurify. Take a few minutes to fill out your driver profile you’ll get up to eight real quotes. You can adjust coverage options at any point, and you can save your profile to quickly compare insurance in the future, as well as receive price drop alerts.
Frequently Asked Questions
Erie, USAA, Nationwide, and GEICO are well known for offering low auto insurance rates to young drivers as well as various advantageous discount programs. Which company is cheapest for you will depend on several factors, such as driving history, driver training, type of car, and location. Always compare rates before buying.
Drivers under 25 cause more car accidents than drivers in any other age group. Insurance companies account for this elevated risk by elevating the premium costs for this group of drivers, with drivers under 21 facing even higher rates.You can use driver training courses and telematics programs to prove good driving habits and lower your rate.
Several car insurance companies offer low rates to new drivers, including Travelers, Progressive, and State Farm. However, you should still always compare auto insurance quotes from multiple companies before you buy. That’s the best way to get a low rate.
New drivers are less experienced, which puts them at a higher risk of causing an accident, and the data backs that assumption up. Insurance companies lose money when they pay out claims, so they set higher premiums for the drivers most likely to cause a claim.
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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.
Insurance Writer
J.J. Starr is a health and finance writer with a background in banking, lending, and financial advising. She holds a Series 6, FINRA, and life insurance licensure and a master's degree from New York University. Through her writing, she strives to use her decade of experience to help consumers make sound financial choices. Connect with J.J. on LinkedIn.