4.8out of 3,000+ reviews

Cheapest Car Insurance for Drivers Under 25 (2022) - Insurify

Secure. Free. Easy-to-use.
Advertising disclosures
auto insurance

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.
Amy Beardsley

By: Amy Beardsley

Edited by Jackie Cohen | Reviewed by Licensed Insurance Agent at Insurify, Stephen DeFord

Updated September 15, 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

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.

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.

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 CompanyCheapest Monthly Quote
Farmers$89
Kemper$162
Amigo USA$178
Travelers$195
Elephant$205
Clearcover$228
National General$233
Commonwealth Casualty$314
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

See More: Best Car Insurance Companies

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 California, Massachusetts, and North Carolina.

Compare Car Insurance Quotes Instantly

  • Personalized quotes in 5 minutes or less
  • No signup required

How much does car insurance cost drivers under 25?

How much is car insurance for drivers under 25?

Drivers 25-years-old and younger typically pay the highest auto insurance premiums. The average cost of car insurance for drivers under 25-years-old is $285 per month.

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. Drivers over the age of 25 will have generally lower rates from each of these companies.

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 discount

  • Anti-theft device discount

  • Bundling discount

  • Automatic payment discount

  • Paperless discount

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:

  • Safe driver discount

  • Telematics discount

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 discount

  • Military discount

  • Defensive driving course discount

  • Paid-in-full discount

  • Multi-car discount

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 25How to Get ItCompanies That Offer It
Good Student DiscountBe 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 DiscountTake 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 DiscountInsure 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 DiscountAttend 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 DiscountBundle your renter’s insurance with your car insurance to get cheaper premiums than buying each policy separately.Most major car insurance providers.
Multi-Car DiscountAdd a trusted roommate (who has a clean driving record) to cash in on a multi-car discount.Most major car insurance providers.
Telematics DiscountIf you drive more safely or drive fewer miles than the average driver (and let your insurance company track your driving) you can save.Progressive, Allstate, Esurance, Farmers, American Family, Nationwide, Liberty Mutual, USAA, GEICO, State Farm, Metromile

See More: Car Insurance Quotes

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. Staying on a parents car insurance policy helps young drivers keep rates reasonable.

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 driving 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. Drivers with a good credit score benefit from lower average rates.

Take Advantage of Discounts

Cash in on all the car insurance discounts you might be eligible for. Some might include:

See More: Cheap Car Insurance

Cheapest States for Car Insurance for Drivers Under 25

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.

StateInsurance CompanyCheapest Monthly Premium
IllinoisUSH&C$64
North CarolinaDirect Auto$69
HawaiiFarmers$89
MassachusettsTravelers$91
IdahoTravelers$95
MaineTravelers$107
OhioTravelers$109
UtahSun Coast$112
IndianaTravelers$117
New HampshireTravelers$119
WisconsinProgressive$119
IowaTravelers$122
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

See More: Best and Worst Sites to Compare 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 car insurance quotes comparison website like Insurify, the process only takes a few minutes, and you could compare many companies at a time.

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.

Compare Car Insurance Quotes Instantly

  • Personalized quotes in 5 minutes or less
  • No signup required
  • Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.

Amy Beardsley
Amy Beardsley
Linkedin

Insurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

Learn More