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Cheap car insurance for young adult drivers in 2023
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Key takeaways
- Average full coverage car insurance rates for 20-year-olds are 114 percent higher than the national average.
- USAA, Geico, Secura and Erie offer some of the lowest average rates for young drivers.
- Young drivers may be able to save on their premiums by shopping around, looking for discounts and maintaining clean driving records.
If you've recently moved onto your own car insurance policy, you may be shocked by your premium. Young drivers face some of the highest car insurance rates, but that doesn't mean there aren't ways to find more affordable coverage. Bankrate’s insurance experts reviewed average car insurance premiums from dozens of carriers for drivers ages 20-25 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.
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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.
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 uncover the cheapest insurance for young drivers, Bankrate’s insurance experts reviewed average premium data from Quadrant Information Services. We also evaluated potential discounts, endorsements, digital tools and customer satisfaction scores to help you get a good price without sacrificing coverage or service. The companies below are a mix of regional and national carriers and could be a good place to start when you’re ready to request car insurance quotes.
The rates below are averages, and your rates will vary based on your personal rating factors like location, vehicle type, driving record and, in most states, credit history and gender. However, age is not a car insurance rating factor in Massachusetts and Hawaii, although carriers in Massachusetts are allowed to consider the number of years you have been a licensed driver.
Cheapest car insurance for 20-year-olds
By age 20, some young drivers may be in the market for their own car insurance policy. Below are the cheapest providers for 20-year-old drivers, according to Bankrate’s research. As a point of reference, the national average premium for 20-year-old drivers is $4,319 per year for full coverage.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 20-year-old average |
|---|---|---|---|
| NJM | $186 | $2,233 | -$2,086 |
| Erie | $210 | $2,525 | -$1,794 |
| USAA | $226 | $2,711 | -$1,608 |
| Auto-Owners | $233 | $2,800 | -$1,519 |
| Geico | $233 | $2,800 | -$1,519 |
Cheapest car insurance for 21-year-olds
The national average premium for 21-year-old divers is $3,420 per year for full coverage. The five companies below all offer average full coverage rates below this average, with USAA and Erie coming in more than $1,100 below average. However, USAA is only available to active-duty military members, veterans and their eligible family members.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 21-year-old average |
|---|---|---|---|
| USAA | $184 | $2,205 | -$1,215 |
| Erie | $193 | $2,316 | -$1,104 |
| Geico | $193 | $2,320 | -$1,100 |
| Nationwide | $199 | $2,384 | -$1,036 |
| Farmers | $200 | $2,401 | -$1,019 |
Cheapest car insurance for 22-year-olds
The following car insurance companies offer some of the cheapest average car insurance rates for 22 -year-olds. Bankrate found that the national average full coverage premium for 22-year-old drivers is $3,163 per year.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 22-year-old average |
|---|---|---|---|
| Geico | $169 | $2,026 | -$1,137 |
| Erie | $178 | $2,138 | -$1,025 |
| Nationwide | $182 | $2,182 | -$981 |
| Auto-Owners | $185 | $2,221 | -$942 |
| Travelers | $196 | $2,350 | -$813 |
Cheapest car insurance for 23-year-olds
The companies showcased below offer cheap car insurance rates for 23 -year-old, according to our research. Bankrate found the national average premium for 23-year-old drivers is $2,985 per year for full coverage.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 23-year-old average |
|---|---|---|---|
| Secura | $130 | $1,563 | -$1,422 |
| Geico | $154 | $1,850 | -$1,135 |
| USAA | $166 | $1,991 | -$994 |
| Erie | $171 | $2,048 | -$937 |
| Nationwide | $171 | $2,048 | -$937 |
Cheapest car insurance for 24-year-olds
As drivers turn 24, most have a few years of experience behind the wheel and may see their premiums start to come down. On average, 24-year-olds pay $2,837 per year for full coverage car insurance.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 24-year-old average |
|---|---|---|---|
| Secura | $122 | $1,463 | -$1,374 |
| Selective | $135 | $1,623 | -$1,214 |
| Erie | $139 | $1,665 | -$1,172 |
| Geico | $146 | $1,755 | -$1,082 |
| USAA | $159 | $1,907 | -$930 |
Cheapest car insurance for 25-year-olds
After age 25, drivers should start to see their car insurance premium approach the national average as long as they maintain a clean driving record and, in relevant states, a good credit rating. On average, 25-year-old drivers pay $2,473 per year for full coverage car insurance. This is still 22 percent higher than the national average rate of $2,014, but 43 percent lower than the average rate for 20-year-olds.
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual full coverage compared to the national 25-year-old average |
|---|---|---|---|
| Secura | $110 | $1,314 | -$1,159 |
| Geico | $132 | $1,584 | -$889 |
| Amica | $143 | $1,718 | -$755 |
| USAA | $147 | $1,765 | -$708 |
| Auto-Owners | $147 | $1,767 | -$706 |
How young drivers can save on car insurance
Young drivers face high average car insurance rates, but they may be able to save by improving their other personal rating factors and looking for discounts and incentives for young drivers. The following strategies may help you save:
- 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.
- 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.
- Avoid tickets and accidents: Car insurance companies see speeding tickets and accidents as an indicator or risky driving behavior and typically raise rates as a result. Maintaining a clean driving record may help you save on your premium.
- Shop around: Carriers use proprietary rating algorithms, so you may see significantly lower rates with one carrier compared to another. Most insurance experts recommend comparing at least three quotes to see where you could get the cheapest price.
Car insurance discounts for young adults
Most car insurance companies offer at least a handful of discounts, including ones geared towards young drivers. Here are some of the best car insurance discounts commonly 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.
- Affiliation discounts: Young adults who are in the military or part of a certain profession, organization or alumni group may be able to earn a special discount from certain car insurance companies.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-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 2021 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 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.