Every young driver needs auto insurance, but it can be hard to know what the best car insurance is for young adults. The average young adult pays more than $2,000 each year for car insurance.
However, you can find insurance coverage you need at a price you can afford – you just need to know where to look.
Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.
Teenagers and young adults are typically considered a higher risk than older drivers with otherwise similar driver profiles. 16-year-old drivers pay the most for auto insurance, and rates steadily drop as you get older. Age is one of the most significant factors that insurance companies use to calculate their rates for young adults; however, other factors like where you live and the car you drive also impact rates.
These are the average annual rates for young adults with a clean driving record:
The price you pay for car insurance will be different depending on where you live, what kind of car you drive, and a few other personal factors like your driving record and credit score. The only way to know what you can expect to pay is to compare rates from multiple car insurance companies.
Shopping for the right car insurance can be challenging for any driver, but it can be especially daunting for young adults. With so many different companies and options available, it can be difficult to know where to start. One of the best ways to find cheap car insurance for young adults is by comparing rates from top insurance providers.
These are the rates at popular insurance companies that offer insurance in a large portion of the United States. Rates are based on a profile of a single 23-year-old male with Good credit.
| Company | Average Annual Premium |
|---|---|
| USAA | 2,044 |
| Progressive | 2,247 |
| Travelers | 2,354 |
| Geico | 2,359 |
| Nationwide | 2,385 |
| Auto-Owners Insurance | 2,677 |
| State Farm | 3,274 |
| Allstate | 3,457 |
| Farmers | 3,546 |
Annual rates for a male driving a 2023 RAV4, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of January 2024.
Teenage and 20-year-old drivers pay the most for auto insurance coverage out of any other age group due to their lack of driving experience. Fortunately, there are still plenty of affordable car insurance options available. Young drivers can find lower rates by asking their insurance company if they have teen driver discounts available.
Once drivers reach the age of 21, car insurance costs decrease slightly. By age 25, drivers will see the most significant price reduction associated with their age. Finding affordable car insurance for young adults over 21 is easier than younger drivers, but it’s still worth asking about all available discounts from top insurance providers.
Finding affordable car insurance for college students is a top priority for young adults. If you’re a college-aged student living at home, you have the option to get on a parent’s existing insurance policy. If you don’t live at home, ask about discounts on car insurance for college students to help reduce the price.
For a deeper look into car insurance for young drivers, visit one of the guides below to see data, insights, and recommendations specific to the age you’re most interested in:
For young adults, life is full of changes. You may have just graduated from high school and started college or gotten your first job. Or you might be getting married, having a baby, or buying a house.
As you navigate these new milestones, your car insurance rates may change, as many insurers consider life events when setting rates for young adults. When you experience a life event, it’s a great time to reevaluate your insurance policy and compare car insurance companies to see if you can get a better rate.
Insurance premiums steadily decrease until age 25, at which you’ll see the most significant reduction in the price of auto insurance. At 25, you’re considered less of a risk in the eyes of insurance providers and therefore have more options for cheap car insurance.
Some of the top insurance companies will consider your marital status when calculating your premium rates. The companies that do usually set lower rates for married couples than single individuals. This means married couples can receive some of the best car insurance rates for young adults.
If you live with roommates, some insurance companies may require you to list your roommates on your policy if you share your car often. This can increase the cost of car insurance for young adults.
Buying a new car can increase or decrease your insurance rates depending on the vehicle’s year, make, and model.
Brand new cars are typically more expensive to insure than used cars. Additionally, drivers often choose to get more or better coverage for their new or expensive-to-repair vehicles.
However, buying a car with safety features like an anti-theft device or a rearview camera can decrease your insurance rate. This is especially important for young drivers with accidents on their driving record.
When you buy a home, you have more assets to protect. Many homeowners choose to purchase a home insurance policy to protect their new investment. Some of the top insurance companies bundle home and auto insurance, which tends to save policyholders money on both policies.
Some insurance companies look at your education level when determining your rates. Completing a higher level of education shows you are responsible and considered less of a risk, leading to more affordable car insurance for young adults.
Whether you’re a brand new 16-year-old driver or in your 20s looking for cheap car insurance for young adults, you have options. Here are a few steps you can take to get the best car insurance rates.
To find affordable car insurance for young adults, shop around and compare rates from top auto insurance companies. There can be a big difference in rates from one company to the next, so it’s important to compare your options from three to five companies.
Start today by finding the top insurance providers for your driver profile with Rate Retriever.
Some auto insurance companies offer discounts to help lower the cost of car insurance for young adults, such as:
Each state has auto insurance requirements for the type and amount of insurance every driver must carry to operate a vehicle legally. If you drive an older car on your own policy, you may consider choosing a state-minimum policy. This is only recommended if the value of the car is comparable to the deductible, or if you can afford any accident-related repairs out-of-pocket.
It’s most important that you feel safe and confident on the road, and your policy meets your unique needs.
When shopping for the best car insurance for young adults, you’ll come across two main terms: premium and deductible. Your premium is the amount you pay for your car insurance policy on a monthly, annual or bi-annual basis. Your deductible is the amount you’ll need to pay out-of-pocket for accident damages before your insurance covers the rest.
As a general rule, the higher your deductible is, the lower your premium will be. This means when you choose a policy with a higher deductible, you’ll pay less for your insurance annually. However, you should only raise your deductible if you can afford to pay the higher deductible out-of-pocket in case of an accident.
It depends. If you don’t drive regularly, or if you live with your parents and drive their vehicle, then no, you don’t need your own insurance policy. However, if your permanent address is different than your parents’ address, then yes, you need your own insurance policy in your 20s.
The best car insurance for young adults varies depending on your state, vehicle, coverage needs, and driving record. Additionally, the company with the best car insurance for young adults with accidents on their record may differ from the most affordable choice for drivers with a clean record.
There are a few things young adults can do to get cheaper car insurance. One is to stay on their parent’s policy if they are eligible. Another is to shop around and compare rates from different companies. Lastly, practicing safe driving and taking advantage of available discounts is also a good idea.
It’s important to remember that the cheapest policy isn’t always the best deal when it comes to finding affordable car insurance for young adults. It’s important to read the fine print and make sure the coverage covers all your needs. In some cases, insurance companies will offer more coverage at a better or comparable rate to their most basic policy.
Getting car insurance for new drivers over 21 starts with comparing quotes from top providers and selecting a policy that fits your needs and budget. Some providers also offer discounts for new drivers to lower the cost of car insurance.
If you are a young adult with accidents on your record, there are still ways to get affordable car insurance. One option is to find an insurance company that has discounts for drivers who take a defensive driving course, and then completing the course on your own time. Another possibility is to purchase a policy with a high deductible. This means you’ll have to pay more out of pocket if you have an accident, but it can lead to lower overall premiums.
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Rate Retriever rates are based on public rate filings obtained by analytics company First Interpreter. This data comes from the rating plans insurance carriers submit to each state’s department of insurance. Rating plans detail how each carrier calculates premiums using factors such as location, age, gender, and driving record, and they ensure that insurance premiums are both fair and competitive.
For the data on this page, we made the following assumptions: a single male with a clean driving record and Good credit score, driving a 2023 RAV4. We adjusted this profile by age to determine the rates you see on this page.
These rates are not actual quotes and should be used only for comparative purposes. Your rates can vary significantly based on your unique driver profile.
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