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Cheap car insurance for young adult drivers in 2023
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It’s common knowledge that young drivers face some of the highest car insurance rates of any age group, but that doesn’t mean it’s impossible to find savings. Bankrate’s insurance experts reviewed average car insurance premiums from dozens of carriers for ages 20 through 25 to find the cheapest car insurance for young drivers. If you’re getting your own car insurance policy for the first time, or want an idea of how average car insurance premiums change for each year of age, start with our findings for the cheapest auto insurance for young drivers.
Key takeaways
- Car insurance rates tend to be higher on average until after age 25.
- Drivers 25 and under could pay anywhere from around $500 to upwards of $1,000 more for coverage compared to the national average.
- Cheapest company overall for young adults drivers: Secura
- Cheapest company for young drivers with a speeding ticket: Geico
- Cheapest company for young drivers with an at-fault accident: Amica
Compare auto insurance rates
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
What are the cheapest car insurance companies for young adults?
To learn which car insurance carriers offered the cheapest insurance for young drivers, Bankrate’s insurance experts reviewed average premium data from Quadrant Information Services. The companies below are a mix of regional and nationally available carriers, and could be a good place to start when you’re ready to request car insurance quotes.
During your car insurance shopping process, keep in mind that looking for the cheapest insurance for young drivers likely shouldn’t be your only priority. Budget is important, but so is ensuring you have enough coverage to protect your finances. Also consider if you want additional coverage, like roadside assistance and rental reimbursement, to round out your policy. As you’re reviewing carriers, you may compare each carrier’s customer service experience, financial strength rating, mobile app availability and more.
Car insurance rates for 20 -year-old
By age 20, some young drivers may purchase their own car insurance policy. Below are the cheapest providers for 20-year-old drivers, according to Bankrate’s research.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 20-year-old average |
|---|---|---|---|
| NJM | $188 | $2,259 | -$1,523 |
| USAA* | $202 | $2,426 | -$1,356 |
| Erie | $205 | $2,455 | -$1,327 |
| Auto-Owners | $223 | $2,679 | -$1,103 |
| Geico | $224 | $2,686 | -$1,096 |
| State Farm | $228 | $2,734 | -$1,048 |
*Eligibility is limited to active-duty military service members, veterans and qualifying family.
Car insurance rates for 21-year-olds
21-year-old drivers seeking cheap coverage may want to request quotes from the following companies, which are the cheapest on average for drivers in this age group, based on our research.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 21-year-old average |
|---|---|---|---|
| Secura | $145 | $1,743 | -$1,262 |
| USAA* | $165 | $1,977 | -$1,028 |
| NJM | $178 | $2,137 | -$868 |
| Geico | $186 | $2,227 | -$778 |
| Erie | $188 | $2,250 | -$755 |
| Farmers | $191 | $2,293 | -$712 |
*Eligibility is limited to active-duty military service members, veterans and qualifying family.
Car insurance rates for 22-year-olds
The following car insurance companies, which include a mix of national and regional insurers, may offer some of the cheapest car insurance for 22 -year-old.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 22-year-old average |
|---|---|---|---|
| Secura | $134 | $1,605 | -$1,174 |
| Geico | $162 | $1,945 | -$834 |
| NJM | $165 | $1,981 | -$798 |
| Nationwide | $177 | $2,122 | -$657 |
| Farmers | $177 | $2,129 | -$650 |
| Travelers | $182 | $2,186 | -$593 |
Car insurance rates for 23-year-olds
The companies showcased below offer cheap car insurance rates for 23 -year-old, according to our research.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 23-year-old average |
|---|---|---|---|
| Secura | $125 | $1,495 | -$1,130 |
| Geico | $148 | $1,776 | -$849 |
| NJM | $153 | $1,831 | -$794 |
| Erie | $166 | $1,990 | -$635 |
| Nationwide | $166 | $1,991 | -$634 |
| Auto-Owners | $167 | $2,004 | -$621 |
The companies showcased below offer cheap car insurance rates for 23 -year-old, according to our research.
Car insurance rates for 24-year-olds
Our research shows that the following regional and national providers offer the cheapest rates for 24-year-old drivers on average.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 24-year-old average |
|---|---|---|---|
| Secura | $117 | $1,399 | -$1,095 |
| Erie | $135 | $1,617 | -$877 |
| Selective | $139 | $1,664 | -$830 |
| Geico | $140 | $1,684 | -$810 |
| NJM | $147 | $1,760 | -$734 |
| State Farm | $154 | $1,853 | -$641 |
Car insurance rates for 25-year-olds
25-year-old drivers may want to request rates from the following companies to find cheap car insurance.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 25-year-old average |
|---|---|---|---|
| Secura | $105 | $1,258 | -$870 |
| Geico | $126 | $1,516 | -$612 |
| NJM | $132 | $1,582 | -$546 |
| Erie | $132 | $1,584 | -$544 |
| Nationwide | $135 | $1,621 | -$507 |
| State Farm | $136 | $1,636 | -$492 |
The cheapest states for young adult drivers
Based on our analysis of the cheapest car insurance for young drivers by state, young drivers in North Carolina and Maine pay some of the cheapest car insurance premiums of young drivers in the country. Rates by state vary, even down to the ZIP code (if allowed as a rating factor in that state), due to each location’s traffic volumes, accident rate and frequency of vehicle vandalism and theft.
| Age | State | Average monthly full coverage premium | Average annual full coverage premium |
|---|---|---|---|
| 20-year-olds | North Carolina | $139 | $1,669 |
| 21-year-olds | North Carolina | $131 | $1,567 |
| 22-year-olds | Maine | $126 | $1,511 |
| 23-year-olds | Maine | $120 | $1,444 |
| 24-year-olds | Maine | $115 | $1,384 |
| 25-year-olds | Maine | $94 | $1,129 |
Cheapest auto insurance companies for young adults by driving record
Cheap car insurance for new drivers under 25 is already more expensive on average compared to older age groups due to fewer years of driving experience — and may have a higher likelihood of accidents — but having an incident on your driving record could make it even more difficult. A speeding ticket or at-fault accident could significantly increase your car insurance premiums, as insurance companies interpret these incidents as indications that you may be more likely to be involved in costly claims in the future.
Although receiving a DUI conviction is one of the most serious driving offenses, the impact of a DUI on car insurance has been excluded from the tables below, as not all carriers will accept drivers with a DUI on their driving record. The best way to find out if a carrier extends policies to drivers with DUIs is to contact a licensed agent who represents the company.
Additionally, the following tables showcase nationally available carriers without eligibility restrictions. Depending on where you live, you may be able to request car insurance quotes from regional carriers that write in your area to compare premiums.
| Driving incident | Age 20 | Age 21 | Age 22 | Age 23 | Age 24 | Age 25 |
|---|---|---|---|---|---|---|
| Clean driving history | $3,782 | $3,005 | $2,779 | $2,625 | $2,494 | $2,128 |
| Speeding ticket conviction | $4,864 | $3,914 | $3,633 | $3,439 | $3,275 | $2,813 |
| At-fault accident | $5,530 | $4,539 | $4,217 | $4,005 | $3,816 | $3,297 |
Car insurance rates for young adults with a speeding ticket
Although a speeding ticket is one of the less serious driving infractions, receiving a speeding ticket conviction could still significantly increase your car insurance premiums. However, Bankrate’s analysis of average car insurance premiums after a speeding ticket found that Geico may provide the cheapest car insurance for drivers aged 20–25.
| Age | Insurance Company | Average annual full coverage premium after a ticket | % change in premium compared to national average after a ticket* |
|---|---|---|---|
| 20 | Geico | $3,093 | -36% |
| 21 | Geico | $2,644 | -32% |
| 22 | Geico | $2,352 | -35% |
| 23 | Geico | $2,158 | -37% |
| 24 | Geico | $2,049 | -37% |
| 25 | Geico | $1,855 | -34% |
*Percent change calculations reflect the premium compared to the national annual average for each group after a speeding ticket conviction.
Car insurance rates for young adults with an at-fault accident
An at-fault accident could cause your car insurance premiums to be surcharged, making car insurance a loftier expense compared to drivers with a clean driving history. But even so, each car insurance carrier has its own algorithm for calculating surcharges. Below is an overview of the cheapest car insurance companies for young adults after an at-fault accident.
| Age | Insurance Company | Average annual full coverage premium after an accident | % change in premium compared to national average after an at-fault accident* |
|---|---|---|---|
| 20 | Amica | $3,350 | -39% |
| 21 | Amica | $2,968 | -35% |
| 22 | Amica | $2,627 | -38% |
| 23 | Geico | $2,486 | -38% |
| 24 | Geico | $2,371 | -38% |
| 25 | Amica | $1,964 | -40% |
Car insurance discounts for young adults
Cheaper insurance for young drivers can be accomplished by taking advantage of discounts, especially those geared towards this age group. Here are some of the best car insurance discounts typically available for young drivers:
- Good student discount: Young drivers that are still in college and maintain high grades may be able to qualify for this discount.
- Safe driving course discount: By completing an approved safe driving course, young drivers may be able to apply this discount to their car insurance policy for additional savings.
- Career discounts: Young adults who are in the military or part of a certain profession, like medicine, education, engineering or others, may be able to earn a special discount from certain car insurance companies.
How do life events impact car insurance rates for young drivers?
Certain life events may also help with achieving cheap car insurance for young drivers. If you’ve experienced any of the outlined events recently, you can check with your car insurance company to see how one or more of these changes impact your rate:
- Getting married: Married individuals may receive a lower car insurance rate compared to single individuals. If you’ve recently gotten married, consolidating your car insurance policies into a single policy may qualify you for a multi-car discount as well.
- Renting an apartment: If you’ve just moved out and are now renting on your own, you may want to think about getting a renters insurance policy to insure your belongings. This could also qualify you for a multiple policy discount to make both your car and renters insurance cheaper.
- Buying a home: Bundling your homeowners and car insurance policies together typically results in the biggest discount. If you’ve recently purchased a home, shopping around with different carriers can help reveal which carrier may be best for your coverage needs and budget.
How young drivers can save on car insurance
Whether you’re looking for the cheapest car insurance for first-time drivers or young drivers with a few years of experience, all ages on the spectrum of young drivers might benefit from these strategies. Here’s some tips for saving on car insurance:
- Evaluate your annual mileage: If you work from home or take public transportation regularly, consider how much you actually drive in a year. Depending on your annual mileage, you may want to see if any low mileage car insurance options may be a good fit for your lifestyle. Whether you’re looking for cheap car insurance for new drivers under 21 or any age, this could help.
- Use a telematics program: Telematics programs track real-time driving behavior in exchange for car insurance discounts. If you’re a safe driver and this is available by your carrier and in your state, this may be an option.
- Shop around: If you’re in the market for new car insurance, shopping around with different carriers could help you see which one fits your budget and coverage needs.
Frequently asked questions
Methodology
- $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 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the ages 20–25 applied. Rates for ages 20–24-year-old drivers are renters on their own policy. Rates for 25-year-old drivers are homeowners on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Incidents: Rates were calculated by evaluating each of our age profiles with the following incidents applied: clean record (base), single at-fault accident and single speeding ticket.