Cheapest Car Insurance for Drivers Under 25 (2024)

Farmers, Travelers, State Farm, and regional insurer Erie stand out as top insurers with the low rates for young drivers.

Choncé Maddox
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Choncé Maddox
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Choncé was a licensed life insurance agent before becoming a freelance personal finance writer. She’s passionate about helping people learn to protect themselves with insurance.

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Tanveen Vohra
Edited byTanveen Vohra
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Tanveen manages Insurify's data insights, annual home and auto insurance reports, and media communications. She’s regularly featured in media interviews on insurance topics.

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Mark Friedlander
Reviewed byMark Friedlander
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As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

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Updated April 17, 2024

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Drivers under 25 often pay the highest rates for car insurance. Statistically, young drivers are more likely to be involved in serious crashes than any other age group.[1]

Younger drivers still have options for cheaper car insurance since each insurance company has different rates and standards for weighing risks. To help narrow down your search, Insurify analyzed quotes for younger drivers to find the cheapest car insurance for drivers younger than 25.

Quick Facts
  • Less driving experience and lower credit scores as they build credit can add up to higher car insurance rates for young drivers.

  • Young drivers can save by taking advantage of a variety of discounts.

  • Drivers under 25 who compare car insurance rates are most likely to find the coverage they need at a price they can afford.

Cheap car insurance quotes for drivers under 25

The overall average monthly cost of car insurance for drivers under 25 is $403, according to Insurify’s proprietary database of more than 70 million quotes. However, several companies, such as Farmers, Travelers, State Farm, and regional insurer Erie, offer quotes much lower than that. The table below shows overall monthly averages for companies offering the cheapest car insurance to drivers under 25.

Insurance CompanyAverage Monthly Quote 
Farmers$180
Travelers$208
State Farm$214
Erie$216
USAA$227
Elephant$243
Nationwide$253
GEICO$267
Clearcover$274
American Family$287
Safeco$289
Plymouth Rock$312
Progressive$325
National General$330
Farmers GroupSelect$346
Direct Auto$347
Midvale Home & Auto$350
State Auto$351
Mercury$358
Allstate$361

On Insurify's secure site

4.8/5
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Editor's Experience

Courtney Mikulski

Courtney Mikulski

Senior Editor, Auto, Insurify

I bought my first policy by myself when I was 24, but I took the time to shop around and compare quotes. I eventually landed on GEICO because it had the lowest rates, around $120 per month, even with an at-fault accident on my record at the time. It was also helpful that I have a relatively low-value, common car — a Hyundai Elantra.

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The best car insurance companies for drivers under 25

Younger drivers naturally have less driving experience, and this gives them a higher risk of being involved in an accident. As a result, insurers tend to charge higher premiums to younger drivers for both liability-only and full coverage car insurance.[2]

While it may seem like companies are penalizing you for your age, insurance premiums are mainly based on the level of risk insurers take on by insuring you and on your likelihood of filing a claim. As a result, if you pose a higher risk, you’ll pay a higher rate.

Insurers also consider other factors like credit, the type of vehicle you drive, where you live, past driving history, and your claims history.[2]This means you can still save money on insurance premiums as a young driver. Check out the best car insurance companies for drivers under 25, according to Insurify.

Farmers

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.8
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$111/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$249/mo

The seventh largest insurer in the U.S., Farmers has been in business for more than 100 years. The company offers about 30 different types of insurance, including auto, home, renters, flood, earthquake, life, and business insurance. Farmers offers numerous discounts, including for multiple cars, safe driving, anti-theft equipment, and bundling. Swiss insurer Zurich Insurance owns Farmers. With an A rating from A.M. Best for financial stability, Farmers has mixed online reviews from customers, and about four times as many complaints as expected in the National Association of Insurance Commissioners Customer Complaint Index. Farmers no longer sells car insurance in Florida.

Pros
  • Many discounts

  • Robust roadside assistance program

Cons
  • Lower customer satisfaction

  • Tends to have higher premiums than some competitors

Read our Farmers review
Mary Adeline - April 17, 2024
Verified

Not Pleased, Unfortunately

I'm very disappointed. My premium was raised by $1,029 because I filed a claim when my car was stolen. Now, I will be paying $30 less monthly than when I had two vehicles insured. I am an 80-year-old widow on Social Security.

Glenna - April 14, 2024
Verified

Very Disappointed with Farmers After 20 Plus Years Due to Increased Prices

Farmers requiring a two-month premium at renewal and increased monthly rates was not within my budget.

Robert - April 14, 2024
Verified

No

Our experience has been good overall, except for the value. They have priced themselves out of our budget.

Farmers is Insurify’s top recommendation for the cheapest car insurance for drivers under 25. With premiums of $180 per month on average, young drivers don’t have to pay significantly more than drivers with more experience. Additionally, Farmers offers many discounts that young drivers could be eligible for, such as:

  • A good student discount (for drivers under 25 who maintain a B average or higher)

  • A distant student discount for college students living on campus a certain number of miles away from home

  • A multiple-vehicle driver discount

  • Bundling auto and renters insurance

  • Alternative fuel vehicle discount

Owners who drive hybrids and other alternative fuel vehicles may save 5% on all major coverages.

Keep Reading: Farmers Car Insurance Review

Keep Reading: Farmers Car Insurance Review

Travelers

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
829
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$90/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$197/mo

Travelers has been in business for nearly 160 years. Today, the company sells auto insurance, homeowners, renters, flood, pet, and other types of insurance. In addition to liability and full-coverage car insurance, Travelers offers gap insurance, rental car reimbursement, roadside assistance, rideshare insurance, new car replacement coverage, and more. Policyholders can save with a number of discounts, including for bundling multiple policies, safe driving, paying in full, student discounts, and more. Travelers has fewer complaints than expected with the National Association of Insurance Commissioner’s Consumer Complaints Index. AM Best gives the company an A++ for financial strength.

Pros
  • Accident forgiveness available

  • Robust coverage selections and discount offerings

Cons
  • Rideshare coverage only available in Colorado and Illinois

  • High number of negative customer reviews with the Better Business Bureau

Read our Travelers review
Willard - April 13, 2024
Verified

No

Too expensive.

Jeffrey - March 23, 2024
Verified

Excellent

Fast.

Lisa - March 14, 2024
Verified

Long-time customer with a slight rate reduction

The premium is too much for what I need.

Travelers offers a wide range of car insurance options and has a national network of local independent agents to help you determine the right coverage limits for your needs. This insurance company offers discounts to safe drivers who haven’t had an accident in three to five years, along with high school or college students who maintain a B average or better.

Travelers also offers optional coverages, like roadside assistance and coverage for rental car fees if a covered accident leaves you without a car during repairs. Accidents do happen, and instead of raising your premium if you file a claim, Travelers has an accident forgiveness program where the company forgives one accident within a specified period.

Check Out: Travelers Auto Insurance Review

Check Out: Travelers Auto Insurance Review

State Farm

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$54/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$116/mo

State Farm has been in business for more than 100 years, and today sells auto and other vehicle insurance, homeowners, life, health, pet, disability, and small business insurance. Available in Washington, D.C. and every state except Massachusetts and Rhode Island, State Farm car insurance policies offer multiple ways to save, from customizing coverage types, to a robust list of discounts. The company has far fewer complaints than expected for the industry, according to the National Association of Insurance Commissioner’s Consumer Complaints Index. State Farm also ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power Overall Customer Satisfaction Index.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

Read our State Farm review
Hephzibah - April 16, 2024
Verified

Looking for Good Service and Prices

Not good. The quotes changed and they were difficult to deal with.

Jane - April 16, 2024
Verified

Good Deals

They are friendly and offer good pricing.

Roger - April 16, 2024
Verified

Excellent

Very good agent.

State Farm offers many car insurance coverage options and saves students up to 25% on premiums when they get good grades; just submit your most recent report card as proof. You can lock in these savings even after graduating college, until you’re 25 years old. As a homeschooler, you might also qualify for a good student discount if you submit your national standardized test scores.

State Farm's national network of 19,000 local exclusive agents can help you personalize your coverage and maximize benefits as a young driver. State Farm offers discounts for:

  • Safe drivers who successfully complete State Farm’s Steer Clear program requirements

  • Teens and young adults who complete their driver training program

  • Bundling insurance

To enroll in the Steer Clear telematics program, you must be under 25 years old, have a valid driver’s license, and have no at-fault accidents or moving violations in the past three years. The program requires you to complete a five-module video course and practice safe driving on the road.

Keep Reading: State Farm Insurance Review

Keep Reading: State Farm Insurance Review

Safeco

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.7
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
825
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$68/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$126/mo

Safeco, a Liberty Mutual company, offers car, homeowners, renters, pet, and other insurance products. The company has been in business since 1923, and provides new vehicle replacement coverage, rental car reimbursement, liability, and full-coverage policies. Safeco’s money-saving programs include accident forgiveness, a diminishing deductible, and a cash back program for customers who remain claims-free for six months. The company has an average amount of complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index, and placed 13th on the J.D. Powers’ Overall Customer Satisfaction Index. AM Best gives Safeco a score of A for financial stability.


Pros
  • Pays cash back to customers who remain claims-free

  • Many options for customizing car insurance

Cons
  • Limited number of discounts

  • Customer reviews indicate room for improvement in customer service

Read our Safeco review
Gary - April 13, 2024
Verified

Excellent

A very good auto insurance company.

Tammy - April 8, 2024
Verified

Bad

The underwriter is incompetent. Your staff didn't renew my policy and sent a rude letter stating that I have debris or algae on my roof.

Carol - April 6, 2024
Verified

It seemed good, but I never had to use it. They increased the price by $704 a year, and that ended our relationship.

It seemed good, but I never had to use it. They increased the price by $704 a year, and that ended our relationship.

Safeco Insurance is a part of Liberty Mutual Insurance and sells policies exclusively through independent agents. This insurance company offers a diminishing deductible, which means your deductible amount will decrease each year that you don’t file an insurance claim — to a maximum of $500.

If you don’t make any claims for at least six months, Safeco will also automatically mail you a check for up to 5% of your auto insurance policy premium. Even if you do need to file a claim after an accident, Safeco car insurance policies have an accident forgiveness feature, so you may not see premiums increase if you remain accident-free for the next few years.

Learn More: Safeco Auto Insurance Review

Learn More: Safeco Auto Insurance Review

USAA

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$46/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$100/mo

In business for more than 100 years, USAA exclusively serves members of the military and their immediate families. The company offers multiple types of insurance products, as well as banking, investing, and retirement services. Auto insurance customers have access to a number of discounts, including for bundling, insuring multiple vehicles, living on a military base, and more. AM Best gives USAA an A++ rating for financial strength, and the company had the highest or second-highest rating of all insurers in every region in J.D. Power’s Overall Customer Satisfaction Index. Customer reviews are mixed for service and claims processing.

Pros
  • Low premiums

  • SafePilot program rewards good driving with up to 30% discount

Cons
  • Only available to active-duty military, veterans, military spouses, or children of service members or veterans

  • No 24/7 customer phone support

Read our USAA review
Tom - April 16, 2024
Verified

USAA Excellence for Auto and Personal Property Insurance

Excellent.

Joseph - April 13, 2024
Verified

Excellent

It has been very good for a long time.

Candace - April 12, 2024
Verified

USAA Didn't Look Out for Me!

I was overcharged and rated incorrectly.

Known as the United Services Automobile Association, USAA provides financial services for active-duty military, veterans, and their immediate family members. U.S. News and World Report named USAA the cheapest car insurance company in the country for several years, and it’s an excellent option for younger drivers who qualify.

USAA provides discounts on car maintenance, travel, and online shopping while allowing you to get discounted premiums for being a safe driver. Other discounts include:

  • Student driver with good grades

  • Bundling insurance services

  • Driving a new vehicle with an anti-theft device

  • Storing your vehicle when deployed

Read More: USAA Car Insurance Review

Read More: USAA Car Insurance Review

How much does car insurance cost for drivers under 25?

Even though drivers under 25 can pay higher car insurance premiums than older drivers, rates still vary depending on your specific age. A driver who’s 16 may not get the same rate as a driver who’s 23. In fact, your monthly car insurance premiums could fluctuate by $50 to $60 or more each year leading up to age 25.

Age 18 seems to be the most expensive year to pay for car insurance, but discounts from your insurance company could help lower costs. The following table shows average car insurance rates by age.

Driver AgeAverage Monthly Rate
16$275
17$341
18$630
19$537
20$486
21$413
22$371
23$338
24$334
25$306
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

The best auto insurance discounts for drivers under 25

Paying for car insurance as a driver under 25 can be expensive, even if you can find lower quotes from an insurance company. Many insurers understand this and try to offer discounts to help you save a little more money on your monthly payments.

Here are some common car insurance discounts for drivers under 25 and how to get them.

Discounts for Drivers Under 25CriteriaCompanies That Offer It
Good Student DiscountBe a high school or college student with good grades (typically a B average or better)State Farm, Progressive, Liberty Mutual, Esurance, GEICO, Allstate, American Family, USAA, Amica, Nationwide, The General, Farmers, Travelers, Mercury
Defensive Driver DiscountTake a defensive driving course from an accredited institution to get up to 15% off your monthly premium.Liberty Mutual, State Farm, Esurance, GEICO, Travelers, Amica, The General, Nationwide, American Family, Travelers
Multi-policy DiscountBundle auto insurance with your renters or homeowners insurance.Most major car insurance providers
Safety Features DiscountChoose 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
Driver Education Program DiscountComplete an insurer-approved driver education course for teens and young adults.Allstate, American Family, State Farm
Telematics DiscountPlace a device in your car to monitor your mileage and safe driving habits. Keep in mind, though, some companies may raise your rates if they detect poor driving habits.Progressive, Allstate, Esurance, Farmers, American Family, Nationwide, Liberty Mutual, USAA, GEICO, State Farm, Metromile

Tips for getting cheaper car insurance

When you’re under 25, finding cheap car insurance that fits your budget isn’t impossible. Use these tips to help you cut your premiums as a young driver.

Shop around for car insurance

Shopping around for car insurance helps you understand all your options and compare rates. No two auto insurance companies are the same, and some insurers offer better rates to younger drivers despite their age and lack of experience on the road. The easiest way to shop around for car insurance is by comparing rates and features online from top insurers all in one place.

Stay on your parents’ policy

When you started driving, your parents likely added you to their existing policy. It’s typically cheaper to add another driver — even a teen driver — to an existing policy than it is to initiate a new, solo one for the new driver. This is especially true if your parents have clean driving records and credit history.

Remaining on their auto insurance policy as a young adult could also help your parents score a multi-car discount. You can work out with your parents what portion of the premium you’ll be responsible for paying.

Important Information:

Generally, you can’t insure a car that’s in someone else’s name. This means your parents will have to be named on the registration for your car in order for them to add or keep it on their policy.

Choose a higher deductible

If you can choose your deductible, consider setting a higher deductible to save on your premium.[2] But understand that this means you’ll need to pay more out of pocket if you do need to file a claim.

However, you’ll save money on premiums long-term if you don’t get into any accidents, so it may be a worthwhile risk. During the sign-up process, ask your insurance company or agent how much your premium payment would change if you chose a $1,000 deductible vs. $500, for example.

What to Do If You Can’t Pay Your Car Insurance Deductible

What to Do If You Can’t Pay Your Car Insurance Deductible

Drive safely and take a defensive driver class

Defensive driver classes help you learn how to drive safely to avoid accidents and follow the law. These classes are beneficial, and many insurers give you a discount on car insurance if you provide proof that you completed it.

In addition to the discount, the fact that you’re a safe driver will lower your risk and help you get more savings in the future. Plus, what you learn in the class could help you avoid accidents that typically increase your insurance premium.

Consider driving an older but reliable car

Car insurance rates also depend on the type of car you drive. A newer car or a high-performance car like a sports car will cost more to insure, especially if the type of vehicle is commonly involved in accidents or theft. When a car costs more to repair or replace, insurers charge a higher premium, so consider driving an older but reliable car.[2]

Maintain a good credit score

In some states, auto insurance companies can use your personal credit history to generate a credit-based insurance score intended to predict your likelihood of filing a claim. Meanwhile, your personal credit score measures how well you pay bills on time and manage your money. People with good credit and credit scores tend to get lower car insurance rates than those with poor credit.

Maintain a good credit score by paying bills on time so they don’t go to collections, paying down debts, and limiting your hard inquiries.[3]

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Take advantage of discounts

Save 10% to 25% on your car insurance premiums with various discounts. Most insurers have discounts for students with good grades, bundling different insurance policies, driving a vehicle with anti-theft protection, and more.

States with the cheapest car insurance for young drivers

The state you live in affects your car insurance rates for a number of reasons, including the differences in medical care and car repairs costs by location. Some states also have different risks from others, such as extreme weather conditions or population density, that are unique to a specific area.[4]

Using Insurify’s proprietary database of more than 70 million insurance quotes, here are some of the states with the cheapest overall car insurance averages for young drivers under the age of 25.

StateAverage Monthly Premium
Hawaii$125
New Hampshire$161
North Carolina$174
North Dakota$193
Idaho$242
Montana$243
Vermont$249
Indiana$256
Ohio$257
Alaska$269
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

How to find cheap car insurance as a driver under 25

To find cheap car insurance in your teens and early 20s, first, consider how much coverage you need. Each state has minimum coverage requirements for liability insurance, which will cover medical costs and vehicle damages for the other driver if you hit their car.

However, you may want to consider collision or comprehensive insurance to cover your vehicle. Consider the value of your car as well when deciding whether to purchase full coverage and the coverage amount you’d need. Keep in mind that if you financed or leased your car, your lender or leasing company will require you to carry full coverage.

Term Translations:
  • Liability insurance pays for damages or injuries you cause to other vehicles and their occupants.

  • Collision coverage pays for damage to your vehicle in an accident with another car or stationary object, such as a tree, fence, or light pole.

  • Comprehensive coverage pays for damage to your car that occurs from something other than a collision, such as a tree branch falling on the roof of your SUV, theft, vandalism, fires, and weather hazards.

If your car is older, it may make more sense to make repairs or replace it out of pocket rather than pay for full coverage and file an insurance claim.

Also, consider insurance companies that offer discounts to drivers under 25, whether it’s a student driver discount or a defensive driver course discount.

Comparing auto insurance quotes early on ensures you’ll get the cheapest car insurance since you can see what each insurer offers. Use an insurance-comparison tool, which often requires you to fill out just one form to receive multiple quotes. Comparison tools do all the work and research for you, and you may find insurance options you didn’t know were available before.

Find Cheap Car Insurance for Young Drivers

Rates start as low as $21/mo. for drivers under 25

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Car insurance for drivers under 25 FAQs

While younger drivers tend to pay more for car insurance than other age groups, once a driver passes age 25, their car insurance rates can begin to decline – provided they've maintained a clean driving record. Here are answers to some commonly asked questions about car insurance for young drivers.

  • When do car insurance rates go down?

    Drivers usually begin to see rates decrease past age 25. Rates generally decrease as you get older, but only up to a certain point. Accident rates increase for people over the age of 75, so insurance premiums may increase slightly once you reach this age.[2]

  • How much does car insurance cost for a 25-year-old driver?

    The overall average car insurance cost for a 25-year-old driver is $306 per month. Younger drivers, generally up to age 25, will pay higher premiums since insurers consider them a higher risk. Drivers under 25 have less experience on the road and tend to have more accidents, which leads to more insurance claims.

    A good driving record, good credit score, and no accidents for a few years could help lower your car insurance costs.

  • What is the cost difference for males and females under 25?

    Males under 25 pay an average of $45 more per month than women under 25. Statistically, women get into fewer accidents than men, so insurers consider male drivers riskier to insure.[4]

  • What is the cheapest car insurance for drivers under 25?

    The cheapest car insurance companies for drivers under 25 are Farmers and Travelers. Both companies offer rates much lower than the $403 per month average that young drivers pay. Both companies also offer several discounts for young drivers and students.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. Insurance Information Institute. "Facts + Statistics: Teen drivers."
  2. A Consumer's Guide to Auto Insurance. "NAIC."
  3. Credit and insurance scores. "Insurance Information Institute."
  4. Insurance Information Institute. "What determines the price of an auto insurance policy?."
Choncé Maddox
Choncé Maddox

Choncé Maddox is a Certified Financial Education Instructor (CFEI) and personal finance freelance writer. She graduated from Northern Illinois University with a degree in Journalism and has been covering personal finance topics surrounding saving, debt payoff, credit, and home insurance for seven years. Chonce briefly held a life insurance license in Illinois where she developed a passion for helping people learn how to protect themselves and their property through insurance coverage. Her work has been featured on LendingTree, Business Insider, RateGenius and more.

Tanveen Vohra
Edited byTanveen VohraManager of Content and Communications
Tanveen Vohra
Tanveen VohraManager of Content and Communications
  • Property and casualty insurance specialist

  • 4+ years creating insurance content

Tanveen manages Insurify's data insights, annual home and auto insurance reports, and media communications. She’s regularly featured in media interviews on insurance topics.

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Mark Friedlander
Reviewed byMark FriedlanderDirector, Corporate Communications
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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