With more years of driving experience under their belts, 24-year-old drivers generally pay less than teen drivers who have just earned their license. The average cost of car insurance for 24-year-olds is $2,462 per year for full coverage, according to Bankrate’s research. This may be higher compared to the average rates paid by more experienced drivers, but that doesn’t mean affordable car insurance is out of reach.
If you know what factors go into auto insurance rates and how to shop around for quotes, it could help you find the best car insurance for your needs. As such, our study into the average cost of car insurance for 24-year-olds and what factors affect this premium might help you make more informed decisions about your coverage.
How much is car insurance for a 24-year-old?
The average full coverage car insurance premium for 24-year-old drivers with their own policy is $2,462 per year, according to 2021 data obtained from Quadrant Information Services. As you gain more driving experience, assuming you are able to avoid at-fault accidents and traffic citations, your average premium should continue to drop as you get older.
However, car insurance premiums are calculated using a number of factors. Age is one, but if you live in Hawaii, your age won’t be used to rate your policy as insurance companies are barred from using age as a rating factor in the Aloha State. Additionally, your gender (in most states), the state you live in, the type of car you drive, your driving history and the coverage types you choose may all impact your rate. You may pay more or less than the national average premium based on your specific rating factors.
Average car insurance costs for 24-year-old men and women
Car insurance premiums are typically higher for young males because they are statistically more likely to indulge in risky driving activities such as speeding and drinking. Men also typically get into more accidents than women, and those accidents tend to be more serious. It is worth noting that several states have banned the use of gender in calculating car insurance premiums, including California, Hawaii, Massachusetts, Michigan, Montana, Pennsylvania and North Carolina.
| Average annual full coverage premium for a 24-year-old male | Average annual full coverage premium for a 24-year-old female |
|---|---|
| $2,590 | $2,332 |
On average, 24-year-old male drivers pay about $250 more per year for car insurance than female drivers of the same age. However, age is not the only factor that may impact car insurance rates. The state you live in also plays a role in determining how much you will pay.
Average car insurance cost for 24-year-olds by state
The average cost of car insurance can vary greatly by state. One of the biggest reasons for the variation in price is the differing requirements each state has for car insurance. Some states have higher required minimum liability limits or require other types of coverage as well, such as uninsured motorist coverage or personal injury protection. Each state also has different statistics regarding accidents, weather-related damage and the cost for parts and labor, which can impact how much you pay for insurance.
| State | Average annual full coverage premium for 24-year-old male | Average annual full coverage premium for 24-year-old female | Overall average annual full coverage premium |
|---|---|---|---|
| Alabama | $2,742 | $2,423 | $2,583 |
| Alaska | $2,546 | $2,155 | $2,350 |
| Arizona | $2,378 | $2,190 | $2,284 |
| Arkansas | $3,030 | $2,617 | $2,824 |
| California* | $2,872 | $2,868 | $2,870 |
| Colorado | $3,069 | $2,713 | $2,891 |
| Connecticut | $2,579 | $2,233 | $2,406 |
| Delaware | $2,683 | $2,423 | $2,568 |
| Florida | $4,018 | $3,633 | $3,828 |
| Georgia | $3,343 | $2,799 | $3,071 |
| Hawaii* | $1,272 | $1,272 | $1,272 |
| Idaho | $1,850 | $1,608 | $1,729 |
| Illinois | $2,410 | $2,119 | $2,267 |
| Indiana | $2,093 | $1,860 | $1,979 |
| Iowa | $1,943 | $1,699 | $1,823 |
| Kansas | $2,760 | $2,435 | $2,597 |
| Kentucky | $3,712 | $3,240 | $3,479 |
| Louisiana | $4,194 | $3,763 | $3,979 |
| Maine | $1,477 | $1,256 | $1,366 |
| Maryland | $2,716 | $2,359 | $2,538 |
| Massachusetts* | $1,512 | $1,512 | $1,512 |
| Michigan* | $3,621 | $3,630 | $3,625 |
| Minnesota | $2,427 | $2,227 | $2,329 |
| Mississippi | $2,691 | $2,298 | $2,494 |
| Missouri | $2,735 | $2,385 | $2,562 |
| Montana* | $2,640 | $2,639 | $2,639 |
| Nebraska | $2,350 | $2,025 | $2,187 |
| Nevada | $3,436 | $3,065 | $3,250 |
| New Hampshire | $1,976 | $1,635 | $1,806 |
| New Jersey | $2,836 | $2,504 | $2,670 |
| New Mexico | $2,266 | $2,029 | $2,148 |
| New York | $3,403 | $3,005 | $3,207 |
| North Carolina* | $1,510 | $1,515 | $1,512 |
| North Dakota | $1,888 | $1,666 | $1,777 |
| Ohio | $1,848 | $1,595 | $1,722 |
| Oklahoma | $2,741 | $2,489 | $2,615 |
| Oregon | $2,060 | $1,884 | $1,972 |
| Pennsylvania* | $2,434 | $2,439 | $2,437 |
| Rhode Island | $2,937 | $2,477 | $2,707 |
| South Carolina | $2,393 | $2,106 | $2,250 |
| South Dakota | $2,413 | $2,186 | $2,300 |
| Tennessee | $2,158 | $1,908 | $2,033 |
| Texas | $3,089 | $2,539 | $2,817 |
| Utah | $2,080 | $1,837 | $1,958 |
| Vermont | $1,993 | $1,713 | $1,853 |
| Virginia | $2,150 | $1,839 | $1,996 |
| Washington, D.C. | $2,744 | $2,460 | $2,602 |
| Washington | $1,920 | $1,669 | $1,794 |
| West Virginia | $2,348 | $2,083 | $2,216 |
| Wisconsin | $1,812 | $1,639 | $1,726 |
| Wyoming | $2,367 | $1,918 | $2,142 |
*These states do not allow insurers to rate consumers differently based on gender.
Best car insurance companies for 24-year-olds
The car insurance company that you choose also has an impact on your premiums, as well as what coverage types, discounts and policy features will be available to you. Bankrate analyzed dozens of car insurance companies for rate information, coverage options, customer satisfaction and available discounts, and found several that stand out. If you are looking for the best car insurance for 24-year-olds, you might want to get quotes from the following carriers.
| Car insurance company | Average annual full coverage premium for 24-year-old males | Average annual full coverage premium for 24-year-old females | Overall average annual full coverage premium |
|---|---|---|---|
| Geico | $1,901 | $1,751 | $1,826 |
| Progressive | $2,071 | $1,969 | $2,020 |
| Travelers | $2,109 | $1,960 | $2,035 |
| USAA | $1,716 | $1,590 | $1,654 |
USAA
USAA is a good carrier for young drivers in search of affordable coverage, but not everyone qualifies. USAA is a membership-based insurer for veterans, active duty and retired military personnel and their immediate families. If you do qualify, USAA provides unique insurance options for those affiliated with the military, including a discount for garaging your vehicle on a military base. Accident forgiveness coverage is also offered in some states. If you remain accident-free for five years, your first at-fault accident after that time period will not typically be charged against your policy.
Learn more: USAA Insurance review
Geico
Geico has more discounts than some insurers, increasing the odds of finding ways to save on your insurance premiums. Bundling your car insurance with a renter’s insurance policy or taking a defensive driving course might save you money. Geico also has a mobile app with ratings of 4.8 out of 5.0 in both the App Store and on Google Play. Policyholders who want to handle their insurance digitally can pay bills, file claims, print ID cards and request roadside assistance from the app.
Learn more: Geico Insurance review
Progressive
Progressive’s unique tools and discounts make it a good choice for 24-year-old drivers. You can use the Name Your Price tool to see a range of coverage options within your designated budget. You may also want to consider enrolling in Progressive’s Snapshot program. Snapshot tracks your driving habits using a plug-in device or a mobile app to determine how safe of a driver you are. Depending on the state you live in, you may get a discount just for signing up, and you could earn additional savings based on your driving habits.
Learn more: Progressive Insurance review
Travelers
Although its average premium is the highest on our list, Travelers might still be a good option if you are looking for a policy that is highly customizable. The company offers several optional coverage types, including new car replacement, accident forgiveness and ridesharing coverage, if available in your state. There are plenty of ways to save, too, with discounts for being a safe driver, having continuous insurance and insuring an electric or hybrid vehicle. Travelers also integrates with Amazon Alexa, so you can handle some of your insurance needs with just a voice command.
Learn more: Travelers Insurance review
Cheapest car insurance for 24-year-olds
Because car insurance for 24-year-olds is still more expensive than the national average, finding a cheap policy might be especially important for you. Based on our research, the following companies offers some of the cheapest average rates for 24-year-old drivers:
| Car insurance company | Average annual full coverage premium for 24-year-old males | Average annual full coverage premium for 24-year-old females | Overall average annual full coverage premium |
|---|---|---|---|
| Erie | $1,496 | $1,473 | $1,484 |
| USAA | $1,716 | $1,590 | $1,653 |
| Geico | $1,892 | $1,742 | $1,817 |
| State Farm | $1,929 | $1,817 | $2,042 |
| Progressive | $1,898 | $1,850 | $1,946 |
Although these rates are all below the national average annual cost for 24-year-old drivers, you should keep in mind that the price you pay will vary based on your individual rating factors, including the state you live in, the coverage you purchase, the type of car you drive and your driving history.
How to save on car insurance for 24-year-olds
Although average premiums for 24-year-old drivers are lower than they are for teen drivers, many young adult drivers will still want to find ways to save on their auto insurance. Below are some tips that may help you lower your auto insurance premium as a 24-year-old driver.
Bundle coverage
Many 24-year-olds have moved out and are living on their own. Whether you are renting an apartment or house or you have bought a condo or single family home, purchasing your renters, condo owners, or homeowners insurance and your car insurance from the same carrier might be a good choice. Many companies offer multi-policy discounts that can save you quite a bit of money.
Drive a sensible car
The car you drive has an impact on your insurance premiums. If your budget is already stretched thin, you might want to consider driving a more modest vehicle in order to save money on car insurance. If you are unsure what kind of car to look for, you should be able to get quotes from your agent or company to get an idea of what the premium for certain makes and models might look like.
Maintain a clean driving record
Accidents, tickets and DUI convictions are surcharged on your insurance policy, most likely causing your premium to increase. Keeping a clean driving record can help you avoid these increases. Some companies offer ticket or accident forgiveness programs. These options generally cost more to participate in, but if you get into an accident and you already participate in the program, you may be able to avoid a surcharge.
How to get the best car insurance for a 24-year-old
To find the best car insurance for you, you may want to get quotes from several carriers to compare prices, coverage options and discounts. Taking customer service reviews and financial strength ratings into consideration may also be prudent. If you maintain a clean driving record, with no accidents or tickets, your auto insurance premiums should stay lower than if you have a history of citations or at-fault accidents. If you are still in school, you might still be able to take advantage of student discounts; many companies offer these savings opportunities to drivers up to age 25.
Frequently asked questions
What is the best car insurance company for 24-year-olds?
The best car insurance company will be different for every driver. Getting quotes from several carriers and comparing prices and coverage options can help you to find the right company for you. Before you request quotes, it can be helpful to understand what features matter most to you. If you want to handle your insurance digitally, for example, you can research companies that have a highly-rated digital app.
How much is car insurance for 24-year-old drivers?
The average annual cost of full coverage car insurance for a 24-year-old is $2,408. Your actual premium will be different from the average due to a number of factors, including where you live, your car insurance company, your vehicle type and even your selected coverage and amounts. The best way to find a cheap car insurance policy is to shop around with different carriers and request quotes to see which company offers you the best coverage and rates.
How much car insurance does a 24-year-old need?
The amount of car insurance can differ for every driver depending on their needs. At minimum, you must at least carry your state’s required amount of auto insurance coverage. However, most licensed insurance agents suggest that, if possible, you should consider higher limits, extra coverage options and full coverage car insurance policies to better protect your finances from losses due to at-fault accidents and other claims. This may also include optional coverage, like comprehensive coverage and collision coverage, roadside assistance or rental car coverage. If you’re not sure where to start, speaking with a licensed insurance agent can help you better understand your unique coverage needs.
Should I have my own insurance at 24 or stay on my parents’ policy?
It depends on your living situation and how your car is titled. If you still live with your parents and they are on the title of your vehicle, you could stay on their auto insurance policy. However, if you live on your own, you should likely have your own car insurance, especially if you are on the title to your vehicle.
If a parent still owns your car, but you don’t live with your family anymore, contact your insurance company to see what method of remaining insured would be best. Your agent may recommend getting your own policy and listing your parent as an additional insured or could advise that you stay on your parents’ policy and simply update the garaging address on the car.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 24-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week, drive 12,000 miles annually and have a renters insurance policy.
These are sample rates and should only be used for comparative purposes.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Share