Auto Insurance for Young Adults (2024)

FAQs

What insurance is the cheapest for young drivers? ›

According to our cost research, USAA provides the cheapest young driver insurance for 21-year-olds, costing $134 per month or $1,609 per year. Geico, Auto-Owners and Erie Insurance are also affordable options for drivers.

Our top picks for the best car insurance for 20-year-olds are State Farm, USAA, Geico, Erie Insurance and Liberty Mutual. We've found these companies to be affordable on average for young drivers. *The overall rating applies to a standard driving profile, while the ranking order applies to 20-year-old drivers.

Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.

Many parents generally opt to retain teens on the family's automobile insurance policy until they graduate from college, assuming they find employment and live away from home. At this point they should be paying for their own housing, food and credit card bills, building up a positive credit rating.

The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.

Teens and young drivers pay as much as 300% more than older drivers. State Farm, Erie Insurance and Geico are great choices for inexperienced drivers.

Although 25-year-olds tend to pay higher premiums than 40- and 50-year-old drivers, you can usually expect lower average premiums than teens and younger adults. Generally, you'll see a drop in premium at the first renewal after you turn 25.

On average, 25-year-olds pay about $2,336 per year or $197 per month for full coverage car insurance policies. This is about 16% more than the national average for 35-year-old drivers, which is $2,008 per year.

Driving Record: Young drivers may lack experience on the road, leading to more accidents or traffic violations. As a result, they can be considered higher risk and have higher premiums charged by insurance providers.

In general, car insurance companies charge male drivers more for coverage because they're more likely to get into accidents. But while most states allow insurers to consider gender when setting rates, your age, location, insurance provider and driving record usually make a bigger difference.

Why is AAA insurance so expensive? ›

AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.

If you buy directly from a Progressive company, your car insurance price reflects the cost of staffing and maintaining the sales centers, and a larger portion of our marketing costs.

Why Is Car Insurance So Expensive for 18-Year-Olds? Car insurance rates are more expensive for teenage drivers because they have less driving experience and get into more car accidents. Even an 18-year-old with a clean driving record will likely pay much more for auto insurance than drivers in their 30s or 40s.

Some insurers allow you to include family members who don't live with you, like adult children, parents, or siblings if you provide a strong case for it. Some insurers also allow domestic partners and significant others who don't live with you to be added to your policy if they meet specific criteria.

As long as you give the person permission and they only drive the car occasionally, there shouldn't be an issue. Accidents, however, can happen anytime. Even a minor accident can cause confusion about whose insurance covers the damage. Find out what happens when you lend your car to a family member or friend.

USAA, Geico and Auto-Owners were the cheapest companies for 19-year-olds who are buying their own insurance, based on the companies in our analysis.

The cheapest car insurance for 21-year-olds is USAA, which offers average rates of $134 per month. However, USAA is only available to military members, veterans and their immediate families. Geico is the cheapest company available to any 21-year-old driver, with average rates of $154 per month.

USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.