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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.
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.
Table of contents
- Cheap car insurance quotes for drivers under 25
- The best car insurance companies for drivers under 25
- How much does car insurance cost for drivers under 25?
- The best auto insurance discounts for drivers under 25
- Tips for getting cheaper car insurance
- States with the cheapest car insurance for young drivers
- How to find cheap car insurance as a driver under 25
- Car insurance for drivers under 25 FAQs
Cheap car insurance quotes for drivers under 25
The 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 monthly averages for companies offering the cheapest car insurance to drivers under 25.
|Insurance Company||Average Monthly Quote|
|Midvale Home & Auto||$350|
Learn More: Car Insurance for Young Professionals
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 and comprehensive coverage.
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. 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 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 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
Travelers offers a wide range of car insurance options and has 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 students who maintain a B average or better.
Travelers also offers optional added coverage, 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.
Learn More: Travelers Car Insurance Review
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.
Local State Farm 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
To enroll in the Steer Clear 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.
Learn More: State Farm Car Insurance Review
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.
Keep Reading: Safeco Car Insurance Review
Known as the United Services Automobile Association, USAA provides financial services for current and former military members, including their families. 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
Check Out: 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 Age||Average Monthly Rate|
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 25||Criteria||Companies That Offer It|
|Good Student Discount||Be 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 Discount||Take 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 Discount||Bundle auto insurance with your renters or homeowners insurance.||Most major car insurance providers|
|Safety Features Discount||Choose a car with certain safety features or anti-theft devices, like antilock 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 Discount||Complete an insurer-approved driver education course for teens and young adults.||Allstate, American Family, State Farm|
|Telematics Discount||Place a device in your car to monitor your mileage and safe 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.
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. 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.
Learn More: 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.
Maintain a good credit score
Auto insurance companies look at your personal credit score and your insurance score when you apply for car insurance. Your insurance score is based, in part, on your credit score, and it helps predict the likelihood you’ll file an insurance claim and the cost of the claim. Meanwhile, your personal credit score measures how well you pay bills on time and manage your money.
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.
Check Out: Car Insurance Rates by Credit Tier
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.
Using Insurify’s proprietary database of more than 70 million insurance quotes, here are some of the states with the cheapest car insurance for young drivers.
|State||Average Monthly Premium|
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.
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.
Comprehensive coverage pays for damage to your car that occurs from something other than an accident — for example, a tree branch falling on the roof of your SUV.
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.
Car insurance for drivers under 25 FAQs
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 65, so insurance premiums may increase once you reach this age.
The 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.
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.
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.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers 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. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
- Insurance Information Institute . "Facts + Statistics: Teen drivers." Accessed December 12, 2022
- NAIC. "A Consumer's Guide to Auto Insurance ." Accessed December 12, 2022
- Insurance Information Institute. "Credit and insurance scores." Accessed December 12, 2022
- Insurance Information Institute . "What determines the price of an auto insurance policy?." Accessed December 12, 2022