If you are a parent or guardian of a young driver, you would want to do things that are in their best interest. Therefore, you must also realize that it’s fundamental to have great auto insurance to safeguard them if they end up in a car accident. Regardless of whether you’re paying for it or they’re striving to take care of everything on their own, it’s an additional cost for your family. Luckily, you can find cheap car insurance for young drivers without burning through every last cent that you have.
To reduce expenses, consider looking for a lower car insurance rate. Despite the fact that looking at accident coverage rates is simple, discovering cheap car insurance for a young driver will take some work. Rates for young drivers are higher on average than for most other ages (excluding teenagers). Young drivers, or those somewhere in the range of 20 and 25 years of age, are not highly experienced. Therefore, they are seen as a danger by safety net providers. As per the National Highway Traffic Safety Administration, drivers in their mid-20s are bound to be involved in an accident as compared to more experienced and older age groups.
In any case, discovering cheap car insurance for young drivers isn’t outlandish. The most ideal approach to discover lower rates is to shop around and compare car insurance quotes from different insurers. Read this article to find out more about affordable car insurance for young drivers.
Table of Contents
- 1 How much is car insurance for young drivers?
- 2 Companies that offer cheap car insurance for young drivers
- 3 Cheap car insurance companies for parents with a teen driver
- 4 How much is car insurance for 18-year-old drivers?
- 5 Can an 18-year-old get their own car insurance?
- 6 Cheap car insurance for new drivers who are 25 years old
- 7 How do insurance costs for 25-year-old male and female drivers differ?
- 8 The average cost of car insurance for 21-year-olds
- 9 Car insurance rates for young drivers by gender
- 10 Cheap car insurance for young drivers by state
- 11 Should young drivers buy their own car insurance?
- 12 How can young drivers get cheaper car insurance?
- 13 Conclusion
How much is car insurance for young drivers?
As per NerdWallet’s investigation of the five biggest auto insurance companies in the country, the average car insurance rate for a young driver is $2,241 each year for full inclusion. However, on the other hand, the average car insurance rate for a 40-year-old driver is $1,523 yearly — $718 less on an annual basis. To find out how much is car insurance for young drivers, rates from the five biggest auto coverage organizations in each ZIP code in all 50 states and Washington D.C were observed. The five best car insurance companies across America are State Farm, Geico, Progressive, Allstate, and USAA.
Full inclusion car insurance alludes to a blend of inclusions. This incorporates liability, comprehensive, collision, uninsured/underinsured driver security, and any extra state-commanded inclusion. Auto insurance is unique to every driver so these average rates are not what you will necessarily end up paying. Different elements like your auto insurance provider, car make and model, gender, the area where you live, and driving record will affect your last cost.
Companies that offer cheap car insurance for young drivers
Out of the country’s five biggest auto insurance providers, USAA offers the cheapest yearly insurance rates for young drivers, on average, for both full and least inclusion. However, it only offers services to veterans and their families. For those without a military background, Geico has the cheapest accident coverage rates on average.
Rates can shift definitely from one organization to another on the grounds that each insurance company utilizes its own formula depending on components like demographics, driving record, and vehicle model. While one safety net provider may charge 20% more for living in a city with high crime rates, another might expand rates by just 10%. In addition to this, you must remember car insurance organizations do not disclose their rubric for insurance rates. The only way you can track down the cheapest car insurance for you is by shopping around.
Company Full coverage Minimum coverage
Allstate $2,996 $910
Geico $1,711 $599
Progressive $2,467 $893
State Farm $2,383 $905
USAA $1,651 $594
Cheap car insurance companies for parents with a teen driver
Teenagers are not just young drivers, they are also inexperienced which makes them more susceptible to be involved in accidents. Thus, they face the most costly car insurance rates as compared to any other age group. In case you’re a parent, the cheapest method to cover your teenage child is to add them to your own strategy, as independent insurance policies will be substantially more costly. Although, by and large, Nationwide offers the cheapest and easily accessible insurance for a parent adding a teenage driver to their approach, the cheapest safety net provider changes by locale and state.
Albeit the organizations aren’t available for everybody, Erie and USAA were the cheapest guarantors in general. Erie is only accessible in 12 states and Washington, D.C., while USAA only offers strategies to current and previous military individuals. In the event that you are hoping to add your teenage to your car insurance strategy, you should think about these organizations.
Company Insurance rate
State Farm $2,588
Normally, adding a teenage driver to their parent’s approach will be a more affordable option in contrast to getting them an independent car insurance strategy. The average expense of adding an 18-year-old to a car insurance strategy is $1,510 per six months. On the other hand, the average expense of an 18-year-old getting an independent insurance policy is $3,589 per six months.
Parents are affected the most in such a situation as they are the ones facing a huge challenge by adding a young driver to their strategy. Therefore, insurance organizations will raise their yearly installments. Letting a teenager be part of your policy instead of having individual insurance can save families an average of $2,080 every six months and a 44% decrease in car insurance costs.
How much is car insurance for 18-year-old drivers?
Full-coverage car insurance for an 18-year-old driver costs an average of about $7,396 each year, or $616 every month. A $7,551 difference was observed between yearly rates from Erie (the most affordable insurance company) and Allstate (the most costly one). Drawing such comparisons proves how important it is to shop around and compare quotes from different insurers.
Erie offers the cheapest rates, at $3,173 annually, however, its services are only accessible in 13 states. USAA, with a yearly premium of $3,963, offers the second-cheapest rates among some of the best insurance companies. Nonetheless, the organization only provides car insurance to current and/or previous veterans and their families. Geico, with a yearly expense of $4,224, is the cheapest car insurance organization for 18-year-olds that is broadly accessible throughout the country.
Company Insurance rate
State Farm $5,670
Can an 18-year-old get their own car insurance?
An 18-year-old can buy their own car insurance strategy. However, in any case, it is advised to get added to your parent’s strategy if conceivable, as it’s cheaper than having an independent insurance policy. The average expense of adding an 18-year-old to a parent’s car insurance strategy is $3,020 every year, whereas the average expense of an 18-year-old getting their own car insurance is $7,178 yearly. Guardians will probably see an increase in their rates when they add a teenage driver to their strategy. However, by requesting discounts, they can manage to balance the increased expense. On the off chance that the teenager drives a different car, parents could possibly get a multi-car rebate. Furthermore, if parents/guardians choose to have the same safety net provider for their teenager’s car, they might be compensated with a loyalty discount.
Cheap car insurance for new drivers who are 25 years old
The average expense of car insurance for 25-year-olds is $279 each month or $3,348 each year. This is $337 cheaper each month than the average cost of car insurance for an 18-year-old. Remember that young drivers pay excessively more for car insurance than older drivers. Notwithstanding, as they grow old and gain more experience, their rates start to drop.
Erie offers the cheapest car insurance for 25-year-olds. However, in any case, drivers should shop around as rates may change depending on variables like driving history, area, and gender. While Erie is the cheapest alternative, it only works in 13 states. Furthermore, USAA only offers services to present or previous veterans and their families. Among guarantors with far and wide accessibility, Geico has the cheapest rates for 25-year-olds, an average of $165 each month.
Company Insurance rate
State Farm $234
Young drivers ought to likewise take note of the fact that safety net providers do not only ascertain car insurance rates depending on your age, they also consider your driving experience. Car insurance for an inexperienced 25-year-old driver will probably cost more than car insurance for a 25-year-old with nine years of driving experience.
How do insurance costs for 25-year-old male and female drivers differ?
There is only a 3% difference in the average expense of car insurance for 25-year-old male and female drivers. For young drivers, there is a recognizable distinction in the expense of car insurance among male and female drivers. In any case, at 25 years of age, that difference starts to decrease. However, 25-year-old men still pay somewhat more for car insurance than 25-year-old females.
Age Male Female
23 $344 $326
24 $321 $306
25 $283 $275
Young male drivers pay more for car insurance since they are generally more prone to be involved in accidents as compared to female drivers. In specific states, you will not observe any difference between car insurance costs for male and female drivers. This implies that all else being equal, a 25-year-old male and female drivers pay an equal sum for car insurance in the states mentioned below. These states have either completely or partially prohibited utilizing gender as a variable in defining car insurance rates:
- Parts of Michigan
- North Carolina
The average cost of car insurance for 21-year-olds
The average collision protection rates for drivers who are 21-year-old are around $500 lower each year than for 20-year-olds having a full coverage insurance policy. Given below are the average costs of car insurance in some states for 21-year-old drivers with great credit and no accidents on their driving record:
- With an average annual rate of $1,092, Hawaii is the cheapest state for full coverage insurance, followed by North Carolina and Maine.
- Louisiana is the most costly state for full inclusion at $4,646 each year on average.
- Hawaii is the cheapest state for minimum-required car insurance with an average annual rate of $358, followed by South Dakota and Iowa.
- Michigan has the most costly minimum-required car insurance on average at $2,084 yearly.
Car insurance rates for young drivers by gender
With regards to car insurance rates for young drivers, gender is something that matters a lot. On average young male drivers have higher car insurance rates than young female drivers across all ages. However, the uplifting news for men is that this difference in rate decreases with age. As you can see beneath, collision insurance rates for 20-year-old men are $255 more on average each year than for a female driver. Nonetheless, rates for 25-year-old men are just $40 more each year, on average, than their female partners.
Age Female driver Male driver Annual difference
20 $1,873 $2,128 $255
21 $1,549 $1,732 $183
22 $1,449 $1,583 $134
23 $1,348 $1,462 $114
24 $1,275 $1,372 $97
25 $1,160 $1,200 $40
The question that arises is: Why are rates for young men higher than rates for young ladies? Safety net providers realize the fact that men are more likely to get into accidents than women. As indicated by an investigation from the NHTSA, male drivers had more speeding-related deadly crashes than female drivers across all age groups. Among drivers ranging from 21 to 24 years of age, 15% of females were associated with speeding-related accidents in comparison to 31% of guys.
To track down a superior value, young men should try to shop around more for car insurance. For instance, average rates for young men from Geico are just $63 higher than for ladies. This is not terrible at all, keeping in mind that, on average, rates for young men using Allstate are $234 higher than for young women.
Company Female driver Male driver Annual difference
Allstate $1,836 $2,070 $234
Geico $1,123 $1,186 $63
Progressive $1,629 $1,731 $102
State Farm $1,536 $1,752 $216
USAA $1,088 $1,158 $70
Indeed, even 20-year-old male drivers, who have the highest difference in rates than the women their age, can save by shopping around and comparing rates. Making an effort to shop around could save young men hundreds and thousands of dollars each year. For instance, car insurance rates for 20-year-old men with Allstate are $445 more each year, on average, than for a 20-year-old woman. However, on the other hand, rates from Geico for a similar male profile are $87 higher, on average, than for a female. Thus, highlighting the importance of shopping around and looking at different rates to decide which one works best for you.
Cheap car insurance for young drivers by state
The cheapest car insurance organization for young drivers changes from one state to another. For instance, the cheapest average full inclusion rate for a young driver in Idaho is $679, while the cheapest average rate in Kentucky is more than $2,000. You must remember that state guidelines likewise have an effect on insurance rates. For example, Hawaii doesn’t use age as a factor while computing car insurance rates. Read the table beneath to see the cheapest car insurance organization for young drivers for a full inclusion strategy in your state.
State Insurance company Insurance rate
Alabama Allstate $1,634
Alaska Geico $1,604
Arizona Geico $1,235
Arkansas Southern Farm Bureau Casualty $1,386
California Wawanesa $1,842
Colorado American National $1,059
Connecticut Geico $1,568
Delaware Geico $1,613
Florida Geico $2,964
Georgia Auto-Owners $1,918
Hawaii Geico $928
Idaho American National $679
Illinois Pekin $1,029
Indiana Pekin $951
Iowa Pekin $1,077
Kansas Farm Bureau Financial Services $1,467
Kentucky Geico $2,346
Louisiana Southern Farm Bureau Casualty $2,748
Maine Geico $868
Maryland Geico $2,057
Massachusetts State Farm $736
Michigan Geico $1,633
Minnesota Farm Bureau Financial Services $1,226
Mississippi Mississippi Farm Bureau $1,595
Missouri Missouri Farm Bureau $1,889
Montana Farmers Union $1,580
Nebraska Farmers Mutual of Nebraska $1,355
Nevada Geico $1,459
New Hampshire Concord Group $1,073
New Jersey NJM $1,736
New Mexico Farm Bureau Financial Services $1,593
New York Main Street America $817
North Carolina Geico $814
North Dakota Geico $1,293
Ohio American Family $1,060
Oklahoma Geico $1,115
Oregon QBE $1,594
Pennsylvania Geico $1,075
Rhode Island State Farm $1,437
South Carolina American National $882
South Dakota Farmers Mutual of Nebraska $1,362
Tennessee Geico $1,273
Texas Geico $1,622
Utah Geico $1,394
Vermont Concord Group $1,161
Virginia Erie $1,206
Washington Geico $1,306
Washington, D.C. Erie $1,642
West Virginia Nationwide $1,520
Wisconsin Pekin $1,128
Wyoming State Farm $1,581
Should young drivers buy their own car insurance?
By and large, teenage drivers save many dollars by remaining on a parent’s car insurance strategy. However, they probably won’t get a major value break. Young drivers who move to a state with lower car insurance rates and fewer minimum insurance prerequisites would certainly profit from an individual arrangement. Nonetheless, a few states may require you to purchase an independent arrangement. In case you’re living on your own all year, you’ll need to purchase your own insurance in any case. Whether you should remain on your family’s insurance policy or not relies upon various components including your driving record, gender, FICO assessment, and the area where you live. For instance, since rates for young men are typically higher than for young ladies, you should remain on a parent’s insurance longer in case you’re a male.
How can young drivers get cheaper car insurance?
The average expense of car insurance is determined on the basis of multiple factors. These incorporate things like your age, driving experience, the kind of car you drive, yearly mileage, and where you park your car for the night. While a few elements (like your age and experience) can’t be changed, there are a few things you can do that will assist with cutting down the expense of coverage. For example,
Good student discounts: Students with higher grade point averages are typically more mindful and better drivers. In the event that your young driver acquires an average B grade or better at school, you may fit the bill for a decent student discount on teenager car insurance.
Accident forgiveness: Accidents end up happening to even the best young drivers. Furthermore, on the off chance that one happens, insurance rates may increase as much as 30%. On the off chance that you have Accident Forgiveness as a component of the car insurance package for your teenager, your rates won’t increase after an at-fault car crash.
Defensive driving class discount: A discount can also be applied for when your teenage child effectively finishes an approved defensive driving class. This may assist you with getting cheaper car insurance.
Install anti-theft devices: You may save it when you install an anti-theft device in the vehicle. The type of discount you get depends on the sort of gadget introduced and the condition in which the vehicle is garaged.
Choose the right car and insurance policy: Your new driver may have their heart set on their dream car. However, recollect that an extravagant car is probably going to cost you more in insurance. Your smartest option when purchasing your teenager’s first car is to discover one that is safe and sturdy, as this won’t be very heavy on your wallet. Notwithstanding, if your teenager has an extravagant vehicle, it might very well be cheaper for them to have an independent car insurance strategy since chances are the insurance charges will be fundamentally higher than different cars within your approach. It might likewise bode well for them to buy their own approach if either parent has any DUIs or numerous moving infringements, as adding a high schooler driver can make the ebb and flow strategy cost significantly more.
As a rule, however, it’s by and large cheaper to add your young child to your family car insurance strategy. This will expand your insurance rates, and your arrangement’s inclusion and deductibles will likewise apply to your youngster. In addition to this, you may also have the option to save up some cash by pursuing a multi-car insurance strategy. A higher collision insurance deductible may bring down the rate. However, this means that you might have to pay more cash from your own pocket after a m ishap. If the vehicle is older or has extremely high mileage, liability inclusion might be a preferable alternative over collision or comprehensive – however it won’t cover harms to the car after an at-fault accident. Getting the right inclusion that best meets your requirements is significant for getting a good deal on your teenager auto strategy.
Don’t modify your car: The only alterations that could bring down your premium are ones that work on your car’s security. And surprisingly then, at that point, they should be industry-approved gadgets and your safety net provider should know about them before they’re fitted. Remember that a few adjustments, like superchargers, may make it impossible for a young driver to get coverage.
Boost your excess: At the point when you get a quote for car insurance, you need to set an excess, which is the sum you’ll pay in case of a claim. As a rule, the more prominent the excess, the lower your premium. However, you must be certain that you can manage the cost of your excess on the off chance that you decide to claim.
Practice safe driving: Perhaps the most solid approach to keep insurance costs low is to stay away from accidents.
Now that you have read this article, you know all about cheap car insurance for young drivers. Young drivers are bound to be involved in accidents as compared to drivers who are older than 25 years. Young drivers are less experienced which is why safety net providers classify them as clients with high risk. Less experienced drivers are bound to have more accidents and consequently put in more claims to their guarantors – so insurance organizations make their charges more costly. Erie, USAA, and Nationwide are some companies that provide cheap car insurance for young drivers. However, every driver will get personalized rates, so you ought to compare quotes from at least five safety net providers. Make a point to shop around to get better deals.