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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.

The best car insurance for young drivers

Updated Jun 01, 2025
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Powered by Coverage.com (NPN: 19966249)

Advertising disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

Key takeaways

  • Motor vehicle crash deaths peak for drivers in their 20s, at a rate of 18.2 per 100,000 people for drivers aged 20 to 24 and 18.4 for drivers aged 25 to 29. As a result, insurers charge high rates for this age group. (Insurance Institute for Highway Safety)
  • Progressive, Geico, Auto-Owners, Travelers and Nationwide tend to offer low average premiums and robust coverage options for young drivers.
  • Discounts for safe driving and good grades can help reduce premiums for young drivers. 

As a young adult, you’re likely trying to balance your own budget for the first time. For many young people, finding affordable car insurance can be one of the hardest parts of this budget-balancing act. On average, drivers between the ages of 20 and 25 pay between $3,307 and $5,430 per year for car insurance. 

Shopping around for competitive quotes is the best way to fit car insurance into your budget as a young adult. As a starting point, Bankrate's insurance editorial team analyzed average premium data for drivers in their early 20s to find the most affordable providers for young adults. In addition to premium data from Quadrant Information Services, we took into account coverage options, available discounts and third-party ratings from J.D. Power and AM Best.

Best for digital tools

Bankrate Score

Rating: 4.4 stars out of 5
4.4

JD Power

672/1,000

Avg annual premium

$2,214

Full coverage

Although its premiums aren’t the lowest on our list, Progressive may appeal to young drivers who prefer to handle their insurance needs digitally. Because Progressive operates in all 50 states and Washington D.C., its digital tools can offer continuity if you need to move your policy to a new address. 

Progressive’s robust mobile app includes options to pay your bill, view your policy information, request changes, call for roadside assistance, file and track a claim and start a new quote. The company’s website is also user-friendly, with an online portal for customers and plenty of information about Progressive’s products. This tech-centric approach helped Progressive earn the top spot in the 2024 J.D. Power study on digital experience.

Scores and Ratings
Bankrate Score 4.4
J.D. Power 672/1,000
AM Best Rating A+
Read full review
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Best for Drivers with Tickets

Bankrate Score

Rating: 4.3 stars out of 5
4.3

JD Power

692/1,000

Avg annual premium

$2,177

Full coverage

Geico offers some of the cheapest insurance for young drivers with a few years of experience — even those who have tickets or accidents on their record. The company won the 2025 Bankrate Award for Best Auto Insurance Company for High-Risk Drivers. Geico also offers a long list of discounts, including student discounts, that could help you lower your premium. 

Recent college grads might also earn discounts for alumni association membership and fraternity or sorority affiliation. Young adults who are active-duty members of the U.S. Armed Forces could earn up to a 15 percent discount, along with additional savings when deployed.

Scores and Ratings
Bankrate Score 4.3
J.D. Power 692/1,000
AM Best Rating A++
Read full review
Plus Icon Collapse Icon
Best for Low Average Rates

Bankrate Score

Rating: 4.3 stars out of 5
4.3

JD Power

692/1,000

Avg annual premium

$1,890

Full coverage

Auto-Owners could be a good choice if you’re looking for a company with plenty of discount options. The company offers three dedicated savings programs and a slew of other discounts that could help you save, all of which contributed to Auto-Owners' recognition in the 2025 Bankrate Awards as the best overall provider for young drivers. What's more, Auto-Owners tied for the Best Budget Auto Insurance Company overall. 

In addition to standard good student and distant student discounts, Auto-Owners also offers a teen monitoring discount, which uses the vehicle’s GPS system to evaluate driving habits. However, Auto-Owners only operates in 26 states, offering coverage through a network of independent agents. 

Scores and Ratings
Bankrate Score 4.3
J.D. Power 692/1,000
AM Best Rating A++
Read full review
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BEST FOR CUSTOM COVERAGE

Bankrate Score

Rating: 4.1 stars out of 5
4.1

JD Power

684/1,000

Avg annual premium

$2,232

Full coverage

Travelers may be a good fit for young drivers who want robust custom coverage for their vehicles at an approachable price. While Travelers' low average rates and multitude of discounts can make coverage affordable, it also offers a range of custom coverage options — think gap coverage, new car replacement and rideshare endorsements. 

Travelers may also offer specific advantages for young EV owners, with hybrid/electric vehicle discounts available in some states. Be aware, however, that Travelers has an above-average rate of customer complaints to the National Association of Insurance Commissioners (NAIC) and lower J.D. Power scores than some competitors.

Scores and Ratings
Bankrate Score 4.1
J.D. Power 684/1,000
AM Best Rating A++
Read full review
Plus Icon Collapse Icon
Best for Discounts

Bankrate Score

Rating: 4 stars out of 5
4

JD Power

728/1,000

Avg annual premium

$2,026

Full coverage

Most auto insurance companies offer multiple discounts for young drivers, but Nationwide goes a step further with two discount programs that may benefit young drivers. The SmartRide telematics program allows young adults to save money by tracking safe driving habits, with a 10 percent discount at sign-up and no risk of raising premiums. 

Nationwide also offers a pay-per-mile car insurance program that may be a good fit for young drivers who work from home, carpool or use other strategies to limit their driving. These two discount programs earned Nationwide the top ranking among all usage-based insurance (UBI) programs in J.D. Power's 2024 Auto Insurance Study

Scores and Ratings
Bankrate Score 4
J.D. Power 728/1,000
AM Best Rating A+
Read full review
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How much is car insurance for young drivers?

Young adults aged 20 to 25 pay between $3,307 and $5,430 per year, on average, for a standalone full-coverage auto insurance policy. For state minimum coverage, young adults pay between $983 and $1,654 per year, but experts typically recommend carrying more than minimum coverage.

While age and experience drive rates higher for young adults, other factors can influence how much you pay for coverage. Staying on a parent's policy is the easiest way to reduce the cost of car insurance for young adults. For instance, the average annual full coverage premium for a 21-year-old on their own policy is $4,518, compared to $3,723 on their parents’ policy. As long as your primary residence is the same as your parents' and any vehicle you drive is garaged there, you may be able to remain on the family policy.

Average annual premium for minimum coverage
$1,269
Average annual premium for full coverage
$4,077
Average annual premium for minimum coverage
$1,146
Average annual premium for full coverage
$3,723
Average annual premium for minimum coverage
$1,244
Average annual premium for full coverage
$4,164
Average annual premium for minimum coverage
$1,165
Average annual premium for full coverage
$3,915
Average annual premium for minimum coverage
$1,102
Average annual premium for full coverage
$3,717
Average annual premium for minimum coverage
$983
Average annual premium for full coverage
$3,307
* Rates for ages 20-21 are for the insured on their married parents’ policy and reflect the total cost of three drivers and one vehicle. Rates for ages 22-25 reflect the young drivers on their own policy, insuring one vehicle.
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Can I use my parents' address for car insurance?

When trying to lower your car insurance rates as a low adult, you may encounter the advice to list a parent or family member's address instead of your own to get a lower premium. But beware — following this advice could land you in serious trouble. 

Never list an address other than the one where your car is regularly kept on a car insurance application. Doing so is a form of auto insurance fraud and could not only lead to your policy or claims being dropped, but could actually put you in line for criminal charges.  

Instead, consider working with an agent or broker to find the best quotes for your situation. In addition to making sure that your application is above board, a broker may be able to find quotes from carriers you're not familiar with and recommend the best discounts to help lower your bill.

Average car insurance costs for young drivers by state

Location is another critical factor in determining auto insurance premiums. Every state has different insurance laws, including different minimum coverage requirements, which can impact the rates set by every auto insurance company. Additionally, the risk of getting into an accident may vary by location, including your state, city or even ZIP code.

The table below illustrates the average annual full coverage premium for young adults, analyzed by state.

20-year-old
$3,014
21-year-old
$2,916
22-year-old
$3,222
23-year-old
$3,027
24-year-old
$2,829
25-year-old
$2,585
20-year-old
$3,879
21-year-old
$3,434
22-year-old
$3,942
23-year-old
$3,691
24-year-old
$3,528
25-year-old
$2,981
20-year-old
$4,329
21-year-old
$4,081
22-year-old
$4,334
23-year-old
$4,062
24-year-old
$3,880
25-year-old
$3,429
20-year-old
$3,526
21-year-old
$3,090
22-year-old
$3,678
23-year-old
$3,453
24-year-old
$3,304
25-year-old
$3,051
20-year-old
$4,540
21-year-old
$4,162
22-year-old
$4,467
23-year-old
$4,297
24-year-old
$4,078
25-year-old
$3,845
20-year-old
$5,144
21-year-old
$4,909
22-year-old
$4,923
23-year-old
$4,628
24-year-old
$4,408
25-year-old
$3,912
20-year-old
$3,854
21-year-old
$3,727
22-year-old
$4,487
23-year-old
$4,192
24-year-old
$3,928
25-year-old
$3,436
20-year-old
$4,218
21-year-old
$3,959
22-year-old
$4,681
23-year-old
$4,259
24-year-old
$4,032
25-year-old
$3,534
20-year-old
$5,820
21-year-old
$5,420
22-year-old
$6,070
23-year-old
$5,668
24-year-old
$5,420
25-year-old
$4,941
20-year-old
$4,361
21-year-old
$4,007
22-year-old
$4,341
23-year-old
$4,062
24-year-old
$3,830
25-year-old
$3,481
20-year-old
$1,682
21-year-old
$1,667
22-year-old
$1,652
23-year-old
$1,652
24-year-old
$1,652
25-year-old
$1,652
20-year-old
$2,212
21-year-old
$1,994
22-year-old
$2,417
23-year-old
$2,236
24-year-old
$2,134
25-year-old
$1,835
20-year-old
$3,775
21-year-old
$3,429
22-year-old
$3,990
23-year-old
$3,737
24-year-old
$3,547
25-year-old
$3,047
20-year-old
$2,638
21-year-old
$2,379
22-year-old
$2,837
23-year-old
$2,675
24-year-old
$2,530
25-year-old
$2,183
20-year-old
$2,727
21-year-old
$2,609
22-year-old
$3,055
23-year-old
$2,883
24-year-old
$2,751
25-year-old
$2,404
20-year-old
$3,676
21-year-old
$3,426
22-year-old
$3,930
23-year-old
$3,668
24-year-old
$3,525
25-year-old
$3,088
20-year-old
$4,145
21-year-old
$3,618
22-year-old
$4,514
23-year-old
$4,238
24-year-old
$4,036
25-year-old
$3,521
20-year-old
$5,785
21-year-old
$5,210
22-year-old
$6,085
23-year-old
$5,791
24-year-old
$5,509
25-year-old
$4,765
20-year-old
$2,667
21-year-old
$2,299
22-year-old
$2,780
23-year-old
$2,632
24-year-old
$2,499
25-year-old
$2,112
20-year-old
$4,733
21-year-old
$4,245
22-year-old
$4,781
23-year-old
$4,353
24-year-old
$4,173
25-year-old
$3,705
20-year-old
$3,059
21-year-old
$2,988
22-year-old
$2,795
23-year-old
$2,697
24-year-old
$2,480
25-year-old
$2,421
20-year-old
$5,582
21-year-old
$4,849
22-year-old
$5,038
23-year-old
$4,635
24-year-old
$4,452
25-year-old
$3,648
20-year-old
$3,687
21-year-old
$3,356
22-year-old
$3,964
23-year-old
$3,701
24-year-old
$3,527
25-year-old
$3,030
20-year-old
$3,272
21-year-old
$3,180
22-year-old
$3,627
23-year-old
$3,463
24-year-old
$3,264
25-year-old
$2,966
20-year-old
$4,039
21-year-old
$3,587
22-year-old
$4,161
23-year-old
$3,894
24-year-old
$3,673
25-year-old
$3,166
20-year-old
$3,749
21-year-old
$3,268
22-year-old
$3,873
23-year-old
$3,564
24-year-old
$3,433
25-year-old
$2,821
20-year-old
$3,472
21-year-old
$3,270
22-year-old
$3,754
23-year-old
$3,529
24-year-old
$3,392
25-year-old
$2,961
20-year-old
$5,547
21-year-old
$5,237
22-year-old
$5,585
23-year-old
$5,113
24-year-old
$4,898
25-year-old
$4,381
20-year-old
$2,610
21-year-old
$2,324
22-year-old
$2,892
23-year-old
$2,745
24-year-old
$2,601
25-year-old
$2,249
20-year-old
$5,070
21-year-old
$4,552
22-year-old
$4,890
23-year-old
$4,573
24-year-old
$4,314
25-year-old
$3,770
20-year-old
$2,954
21-year-old
$2,809
22-year-old
$3,370
23-year-old
$3,166
24-year-old
$3,010
25-year-old
$2,594
20-year-old
$5,728
21-year-old
$5,214
22-year-old
$5,863
23-year-old
$5,523
24-year-old
$5,264
25-year-old
$4,680
20-year-old
$2,487
21-year-old
$2,355
22-year-old
$2,299
23-year-old
$2,261
24-year-old
$2,193
25-year-old
$2,127
20-year-old
$2,610
21-year-old
$2,498
22-year-old
$2,851
23-year-old
$2,615
24-year-old
$2,490
25-year-old
$2,244
20-year-old
$2,976
21-year-old
$2,755
22-year-old
$3,140
23-year-old
$2,927
24-year-old
$2,752
25-year-old
$2,266
20-year-old
$4,101
21-year-old
$3,763
22-year-old
$4,254
23-year-old
$3,999
24-year-old
$3,822
25-year-old
$3,321
20-year-old
$3,381
21-year-old
$3,274
22-year-old
$3,427
23-year-old
$3,189
24-year-old
$3,039
25-year-old
$2,770
20-year-old
$3,797
21-year-old
$3,383
22-year-old
$3,840
23-year-old
$3,631
24-year-old
$3,480
25-year-old
$2,982
20-year-old
$4,682
21-year-old
$4,065
22-year-old
$4,974
23-year-old
$4,508
24-year-old
$4,306
25-year-old
$3,664
20-year-old
$2,932
21-year-old
$2,645
22-year-old
$3,013
23-year-old
$2,815
24-year-old
$2,695
25-year-old
$2,449
20-year-old
$3,081
21-year-old
$3,014
22-year-old
$3,293
23-year-old
$3,058
24-year-old
$2,968
25-year-old
$2,670
20-year-old
$3,249
21-year-old
$3,017
22-year-old
$3,391
23-year-old
$3,172
24-year-old
$2,924
25-year-old
$2,586
20-year-old
$3,953
21-year-old
$3,565
22-year-old
$4,289
23-year-old
$4,006
24-year-old
$3,760
25-year-old
$3,388
20-year-old
$3,486
21-year-old
$3,227
22-year-old
$3,458
23-year-old
$3,227
24-year-old
$2,998
25-year-old
$2,594
20-year-old
$2,583
21-year-old
$2,168
22-year-old
$2,478
23-year-old
$2,366
24-year-old
$2,280
25-year-old
$1,882
20-year-old
$3,590
21-year-old
$3,018
22-year-old
$3,582
23-year-old
$3,340
24-year-old
$3,176
25-year-old
$2,742
20-year-old
$2,944
21-year-old
$2,648
22-year-old
$3,247
23-year-old
$3,052
24-year-old
$2,892
25-year-old
$2,494
20-year-old
$3,204
21-year-old
$3,031
22-year-old
$3,491
23-year-old
$3,312
24-year-old
$3,108
25-year-old
$2,667
20-year-old
$2,777
21-year-old
$2,583
22-year-old
$3,113
23-year-old
$2,899
24-year-old
$2,760
25-year-old
$2,413
20-year-old
$2,592
21-year-old
$2,393
22-year-old
$2,914
23-year-old
$2,706
24-year-old
$2,588
25-year-old
$2,078
20-year-old
$4,194
21-year-old
$3,980
22-year-old
$4,382
23-year-old
$4,087
24-year-old
$3,837
25-year-old
$3,344
20-year-old
$1,682
21-year-old
$1,667
22-year-old
$1,652
23-year-old
$1,652
24-year-old
$1,652
25-year-old
$1,652
20-year-old
$2,212
21-year-old
$1,994
22-year-old
$2,417
23-year-old
$2,236
24-year-old
$2,134
25-year-old
$1,835
20-year-old
$3,775
21-year-old
$3,429
22-year-old
$3,990
23-year-old
$3,737
24-year-old
$3,547
25-year-old
$3,047
20-year-old
$2,638
21-year-old
$2,379
22-year-old
$2,837
23-year-old
$2,675
24-year-old
$2,530
25-year-old
$2,183
20-year-old
$2,727
21-year-old
$2,609
22-year-old
$3,055
23-year-old
$2,883
24-year-old
$2,751
25-year-old
$2,404
20-year-old
$3,676
21-year-old
$3,426
22-year-old
$3,930
23-year-old
$3,668
24-year-old
$3,525
25-year-old
$3,088
20-year-old
$4,145
21-year-old
$3,618
22-year-old
$4,514
23-year-old
$4,238
24-year-old
$4,036
25-year-old
$3,521
20-year-old
$5,785
21-year-old
$5,210
22-year-old
$6,085
23-year-old
$5,791
24-year-old
$5,509
25-year-old
$4,765
20-year-old
$2,667
21-year-old
$2,299
22-year-old
$2,780
23-year-old
$2,632
24-year-old
$2,499
25-year-old
$2,112
20-year-old
$4,733
21-year-old
$4,245
22-year-old
$4,781
23-year-old
$4,353
24-year-old
$4,173
25-year-old
$3,705
20-year-old
$3,059
21-year-old
$2,988
22-year-old
$2,795
23-year-old
$2,697
24-year-old
$2,480
25-year-old
$2,421
20-year-old
$5,582
21-year-old
$4,849
22-year-old
$5,038
23-year-old
$4,635
24-year-old
$4,452
25-year-old
$3,648
20-year-old
$3,687
21-year-old
$3,356
22-year-old
$3,964
23-year-old
$3,701
24-year-old
$3,527
25-year-old
$3,030
20-year-old
$3,272
21-year-old
$3,180
22-year-old
$3,627
23-year-old
$3,463
24-year-old
$3,264
25-year-old
$2,966
20-year-old
$4,039
21-year-old
$3,587
22-year-old
$4,161
23-year-old
$3,894
24-year-old
$3,673
25-year-old
$3,166
20-year-old
$3,749
21-year-old
$3,268
22-year-old
$3,873
23-year-old
$3,564
24-year-old
$3,433
25-year-old
$2,821
20-year-old
$3,472
21-year-old
$3,270
22-year-old
$3,754
23-year-old
$3,529
24-year-old
$3,392
25-year-old
$2,961
20-year-old
$5,547
21-year-old
$5,237
22-year-old
$5,585
23-year-old
$5,113
24-year-old
$4,898
25-year-old
$4,381
20-year-old
$2,610
21-year-old
$2,324
22-year-old
$2,892
23-year-old
$2,745
24-year-old
$2,601
25-year-old
$2,249
20-year-old
$5,070
21-year-old
$4,552
22-year-old
$4,890
23-year-old
$4,573
24-year-old
$4,314
25-year-old
$3,770
20-year-old
$2,954
21-year-old
$2,809
22-year-old
$3,370
23-year-old
$3,166
24-year-old
$3,010
25-year-old
$2,594
20-year-old
$5,728
21-year-old
$5,214
22-year-old
$5,863
23-year-old
$5,523
24-year-old
$5,264
25-year-old
$4,680
20-year-old
$2,487
21-year-old
$2,355
22-year-old
$2,299
23-year-old
$2,261
24-year-old
$2,193
25-year-old
$2,127
20-year-old
$2,610
21-year-old
$2,498
22-year-old
$2,851
23-year-old
$2,615
24-year-old
$2,490
25-year-old
$2,244
20-year-old
$2,976
21-year-old
$2,755
22-year-old
$3,140
23-year-old
$2,927
24-year-old
$2,752
25-year-old
$2,266
20-year-old
$4,101
21-year-old
$3,763
22-year-old
$4,254
23-year-old
$3,999
24-year-old
$3,822
25-year-old
$3,321
20-year-old
$3,381
21-year-old
$3,274
22-year-old
$3,427
23-year-old
$3,189
24-year-old
$3,039
25-year-old
$2,770
20-year-old
$3,797
21-year-old
$3,383
22-year-old
$3,840
23-year-old
$3,631
24-year-old
$3,480
25-year-old
$2,982
20-year-old
$4,682
21-year-old
$4,065
22-year-old
$4,974
23-year-old
$4,508
24-year-old
$4,306
25-year-old
$3,664
20-year-old
$2,932
21-year-old
$2,645
22-year-old
$3,013
23-year-old
$2,815
24-year-old
$2,695
25-year-old
$2,449
20-year-old
$3,081
21-year-old
$3,014
22-year-old
$3,293
23-year-old
$3,058
24-year-old
$2,968
25-year-old
$2,670
20-year-old
$3,249
21-year-old
$3,017
22-year-old
$3,391
23-year-old
$3,172
24-year-old
$2,924
25-year-old
$2,586
20-year-old
$3,953
21-year-old
$3,565
22-year-old
$4,289
23-year-old
$4,006
24-year-old
$3,760
25-year-old
$3,388
20-year-old
$3,486
21-year-old
$3,227
22-year-old
$3,458
23-year-old
$3,227
24-year-old
$2,998
25-year-old
$2,594
20-year-old
$2,583
21-year-old
$2,168
22-year-old
$2,478
23-year-old
$2,366
24-year-old
$2,280
25-year-old
$1,882
20-year-old
$3,590
21-year-old
$3,018
22-year-old
$3,582
23-year-old
$3,340
24-year-old
$3,176
25-year-old
$2,742
20-year-old
$2,944
21-year-old
$2,648
22-year-old
$3,247
23-year-old
$3,052
24-year-old
$2,892
25-year-old
$2,494
20-year-old
$3,204
21-year-old
$3,031
22-year-old
$3,491
23-year-old
$3,312
24-year-old
$3,108
25-year-old
$2,667
20-year-old
$2,777
21-year-old
$2,583
22-year-old
$3,113
23-year-old
$2,899
24-year-old
$2,760
25-year-old
$2,413
20-year-old
$2,592
21-year-old
$2,393
22-year-old
$2,914
23-year-old
$2,706
24-year-old
$2,588
25-year-old
$2,078
20-year-old
$4,194
21-year-old
$3,980
22-year-old
$4,382
23-year-old
$4,087
24-year-old
$3,837
25-year-old
$3,344
*Hawaii and Massachusetts prohibit using age as a rating factor, but other factors may apply that cause rates to fluctuate. **Rates for ages 20-21 are for the insured on their married parents’ policy and reflect the total cost of three drivers and one vehicle. Rates for ages 22-25 reflect the young drivers on their own policy, insuring one vehicle.
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How are rates determined for young drivers?

Auto insurance rates for young adults are determined in the same way as they are for older drivers. Factors that influence car insurance premiums include:

  • Driving experience: Typically, drivers who are 25 and younger pay more for car insurance because their lack of driving experience may put them at a greater risk for causing accidents than older drivers. They are also more likely to file a claim because they are typically not as established financially as older drivers. In Hawaii and Massachusetts state regulations restrict insurers using age as a rating factor, but most states look as years licensed as an indicator of driving experience.
  • Vehicle make and model: Some cars are cheaper to insure than others. In general, affordable SUVs and crossovers with strong safety ratings will carry the lowest premiums, while luxury cars will come with higher insurance costs. Before buying a vehicle, getting a quote from your insurance carrier may be a good idea to make sure you can afford the coverage.
  • Credit: Most states allow insurance carriers to use your credit-based insurance score when calculating your policy rate. People with poor credit typically pay much higher rates than consumers with good credit scores because actuarial data shows how a consumer handles their finances is a predictor of filing insurance claims. Regulations in California, Hawaii and Massachusetts ban the use of credit as a factor in determining auto insurance rates.
  • Gender: Men usually pay higher rates for car insurance than women, even if they have clean driving records. Men — especially men in their twenties — are statistically more likely to get into accidents than women, and those accidents tend to be more severe. California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania ban the use of gender as a rating factor.
  • Location: If you live in an area with a high likelihood of accidents or damage caused by natural disasters, theft or vandalism, you may pay more for coverage. Additionally, every state has different insurance laws, which can affect premiums.
  • Mileage: The more you drive, the more likely you will have an accident due to being on the road more often. People who only use their cars occasionally may pay lower rates than people who are on the road more often.
  • Coverage selections: If your car is financed or leased, you will need to carry comprehensive and collision coverage — a combination often called “full coverage” — to satisfy lender requirements. For some young adults, the cost of full coverage may be prohibitive. If you don't have an auto loan, you may want to reduce the types of coverage on your policy, but maintaining high liability limits is still typically worthwhile

Because these variables will change your premium from carrier to carrier, it can be helpful to compare rates from multiple providers before settling on an auto insurer.

Car insurance discounts for young drivers

Almost every auto insurance company offers discounts to drivers, and some even offer discounts specifically for young drivers. Finding a company that offers the right discounts for your driving habits may be the best way for young drivers to save on insurance.

  • Good student discount: Most companies offer discounts for students who maintain a certain GPA or letter grade average. These student discounts are intended for full-time high school and college students and may save hundreds of dollars per year on insurance premiums.
  • Young driver safety training: Many companies offer discounts to young drivers who have taken a driver education class or an approved driver training course. Most courses cover the rules of the road and teach young drivers to drive defensively.
  • Usage-based discounts: Usage-based auto insurance is a relatively new way to potentially reduce your premium. Carriers that offer these telematics programs require policyholders to use a mobile app or plugin device that monitors driving habits like acceleration, braking, speed and trip distance.
  • Distant student discount: Many auto insurers offer discounts for students who attend school away from home if they do not take a vehicle with them during the school term. You must be listed on your parents’ policy to take advantage of this discount.
  • Billing discounts: If you enroll in auto-pay or paperless billing, most insurance companies will offer a small discount on your premium. You may also be eligible for a larger discount — typically around 10 percent — if you're able to pay your annual premium in full rather than in monthly installments.
  • Multi-policy discount: For drivers who rent an apartment and own a car, bundling their auto and renters insurance can be one way to make both policies more affordable.
  • Alumni association discounts: Many car insurance companies offer alumni association discounts for recent college graduates.

Frequently asked questions

Methodology

Rates

Bankrate utilizes Quadrant Information Services to analyze June 2025 rates for all 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 for our base profile are based on the following characteristics and full coverage limits with bundling and paperless billing discounts applied: 

User Icon
40 year old
Single male and female driver
Logo for Brand name
2023 Toyota Camry
Primary vehicle
Credit Good Icon
Good credit score
Auto Insurance Guide Icon
Clean driving record
Briefcase Icon
Commutes 5 days

Bodily injury liability

$100,000 per person
$300,000 per accident

Property damage liability

$50,000 per accident

Personal injury protection

$100,000 per accident

Uninsured motorist bodily injury

$100,000 per person
$300,000 per accident

Collision deductible

$500

Comprehensive deductible

$500

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.

If otherwise specified, the base profile has been modified with the following driver characteristics:

Bankrate Score

Our 2025 Bankrate Score for auto insurance considers key variables that our insurance editorial team determined impact policyholders’ experiences with an insurance company. These factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

50% Cost & ratings
 
30% Coverage & savings
 
20% Support
 
  • Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC). 
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated the discount options listed on each company’s website.
  • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.

Written by
R.E. Hawley
Senior writer, Insurance
R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license.
Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute