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Young drivers pay some of the highest average rates for car insurance due to inexperience and the higher likelihood of filing a claim. It is possible to find low rates for young drivers, though, and Bankrate can help. Our research highlights five companies that are among the best for young drivers, showcases average premiums for various ages and explains what discounts might help you lower your premium even more.

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Key takeaways
  • Young drivers have less experience behind the wheel, which could lead to more accidents. They are also more likely to file a claim, as they aren’t as financially established as older drivers. This is why rates tend to be higher for younger drivers.
  • Young adults may want to get quotes from Auto-Owners, Geico, Nationwide, Progressive and State Farm due to low average premiums and robust coverage options.
  • Searching for carriers that offer qualifying discounts may help lower young adult rates, which tend to be high.
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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.

Best car insurance for young adult drivers

Bankrate’s research revealed that Auto-Owners, Geico, Nationwide, Progressive and State Farm are among the best car insurance companies for young adults. We started our analysis by analyzing average premium data from Quadrant Information Services. Knowing that car insurance rates are increasing in 2022, we focused on finding companies with low average rates for young drivers. We also took coverage options, young driver-specific discounts, policy features and third-party ratings into consideration to help you find a carrier that offers affordable rates and adequate coverage.

Remember that your rate may depend on factors such as if you are on a parent’s policy, are married, own a home or rent. To determine the average cost of car insurance for young adults across the U.S., Bankrate analyzed data for adding drivers to their parents’ policy and drivers on their own policy.

Auto-Owners

Best for discounts

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 for young drivers as well as a slew of other discounts that could help you save.

Perks Drawbacks
Numerous discounts available Only available in 26 states and Washington, D.C.
Several endorsements offered Lower-than-average claims satisfaction score from J.D. Power
Age Average annual premium for minimum coverage Average annual premium for full coverage
Age 20 $595 $2,073
Age 21 $545 $1,953
Age 22 $584 $2,096
Age 23 $531 $2,004
Age 24 $491 $1,884
Age 25 $439 $1,692

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Auto-Owners offers young drivers three distinct savings opportunities. If you’re a full-time student with a “B” or better letter-grade average, you may qualify for the good student discounts. Students who are away at school over 100 miles from home and do not have a vehicle with them are eligible for the student-away-at-school discount. Auto-Owners also offers its Teen Monitoring discount, which uses your vehicle’s GPS system to evaluate driving habits.

Learn more: Auto-Owners Insurance review

Geico

Best for low rates

Geico offers competitive car insurance rates for young drivers with a few years of experience. The company also offers a long list of discounts, including student discounts, that could help you lower your premium.

Perks Drawbacks
Wide variety of discounts Few local in-person agencies
Robust digital tools Few endorsements available
Age Average annual premium for minimum coverage Average annual premium for full coverage
Age 20 $569 $1,961
Age 21 $459 $1,613
Age 22 $469 $1,656
Age 23 $499 $1,776
Age 24 $473 $1,684
Age 25 $425 $1,521

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

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.

Learn more: Geico Insurance review

Nationwide

Best for customized policies

If you are looking for an auto insurer with plenty of options for personalization, Nationwide might be a good fit. The company offers numerous coverage add-ons, like roadside assistance and gap insurance, to help create personalized car insurance for teens and young drivers.

Perks Drawbacks
Numerous endorsements available Lower-than-average claims satisfaction score from J.D. Power
Telematics program could help you save Auto insurance is not offered in Alaska, Hawaii, Louisiana or Massachusetts
Age Average annual premium for minimum coverage Average annual premium for full coverage
Age 20 $780 $1,932
Age 21 $682 $1,677
Age 22 $693 $1,706
Age 23 $806 $1,991
Age 24 $752 $1,874
Age 25 $657 $1,621

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Young adults may be able to save money on auto insurance when they enroll in Nationwide’s SmartRide program. The program uses an app to track acceleration, braking, idle time, mileage and nighttime driving. Drivers get a 10 percent discount on certain coverage types just for signing up for this telematics program and could earn up to a 40 percent discount on certain coverage types depending on their driving habits.

Learn more: Nationwide Insurance review

Progressive

Best for digital tools

Although its premiums aren’t the lowest on our list, Progressive may appeal to young drivers who prefer to handle their insurance needs digitally. Additionally, Progressive offers several discounts which could help you get a lower rate.

Perks Drawbacks
Higher-than-average digital service and shopping scores from J.D. Power Lower-than-average claims satisfaction score from J.D. Power
Numerous discounts available Higher-than-average NAIC complaint index
Age Average annual premium for minimum coverage Average annual premium for full coverage
Age 20 $850 $2,458
Age 21 $830 $2,515
Age 22 $799 $2,418
Age 23 $780 $2,372.03
Age 24 $722 $2,183
Age 25 $643 $1,940

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

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 robust, with an online portal for customers and plenty of information about Progressive’s products.

Learn more: Progressive Insurance review

State Farm

Best for local agencies

If you like working with a local agent, State Farm might be a good choice for auto insurance for young adults. The company has a network of 19,000 agents throughout the U.S. who can help you with your auto insurance needs.

Perks Drawbacks
Large network of in-person agencies Accident forgiveness cannot be purchased, only “earned”
Higher-than-average claims satisfaction score from J.D. Power Not currently available in Massachusetts or Rhode Island
Age Average annual premium for minimum coverage Average annual premium for full coverage
Age 20 $735 $2,161
Age 21 $675 $2,015
Age 22 $700 $2,088
Age 23 $646 $1,999
Age 24 $585 $1,853
Age 25 $523 $1,637

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Young people often need help navigating the challenges of university life or leaving the nest to live on their own. State Farm makes life a little easier for young adults with an exceptional roadside assistance program. This covers battery jump starts, fuel delivery, locksmith service, towing and up to one hour of roadside mechanic’s labor.

Learn more: State Farm Insurance review

Average cost of car insurance for young drivers

A driver’s age is one of the biggest factors to affect rates, except in Hawaii or Massachusetts, where age is not allowed to be used as a factor for calculating insurance premiums. While teens tend to pay the highest rates, drivers between the ages of 20 and 25 are still paying hefty average premiums. At age 20, for example, drivers pay 56 percent more for full coverage than the national average premium of $1,771 per year. After age 25, rates generally begin to normalize.

Age Average annual premium for minimum coverage Average annual premium for full coverage
Age 20 $871 $2,758
Age 21 $760 $2,426
Age 22 $769 $2,466
Age 23 $785 $2,625
Age 24 $745 $2,494
Age 25 $654 $2,176

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

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.

Average annual full coverage premium by age and state
State 20-year-old 21-year-old 22-year-old 23-year-old 24-year-old 25-year-old
Alabama $2,726 $2,468 $2,564 $2,778 $2,624 $2,189
Alaska $2,786 $2,401 $2,459 $2,668 $2,549 $2,143
Arizona $2,807 $2,570 $2,614 $2,611 $2,494 $2,119
Arkansas $2,852 $2,443 $2,471 $2,691 $2,560 $2,309
California $3,394 $3,072 $3,101 $3,147 $2,948 $2,750
Colorado $3,397 $3,081 $3,080 $3,056 $2,916 $2,469
Connecticut $2,294 $2,054 $2,067 $2,411 $2,279 $1,975
Delaware $2,983 $2,586 $2,512 $2,943 $2,816 $2,362
Florida $4,311 $3,651 $3,854 $4,046 $3,915 $3,468
Georgia $3,173 $2,783 $2,843 $3,018 $2,875 $2,542
Hawaii* $1,277 $1,256 $1,256 $1,265 $1,265 $1,265
Idaho $1,617 $1,415 $1,472 $1,662 $1,602 $1,347
Illinois $2,471 $2,190 $2,257 $2,452 $2,329 $1,941
Indiana $1,914 $1,693 $1,730 $1,955 $1,830 $1,538
Iowa $1,836 $1,654 $1,700 $1,867 $1,799 $1,530
Kansas $2,690 $2,443 $2,482 $2,703 $2,621 $2,226
Kentucky $3,014 $2,591 $2,650 $3,141 $2,974 $2,483
Louisiana $4,342 $3,906 $3,987 $4,274 $4,064 $3,524
Maine $1,469 $1,212 $1,258 $1,444 $1,384 $1,149
Maryland $3,215 $2,779 $2,830 $2,951 $2,750 $2,385
Massachusetts* $2,016 $1,889 $1,518 $1,641 $1,527 $1,480
Michigan $4,062 $3,522 $3,615 $3,486 $3,330 $2,707
Minnesota $2,418 $2,190 $2,318 $2,479 $2,380 $2,061
Mississippi $2,510 $2,211 $2,222 $2,542 $2,426 $2,148
Missouri $2,956 $2,599 $2,719 $2,974 $2,838 $2,355
Montana $2,769 $2,275 $2,412 $2,737 $2,638 $2,057
Nebraska $2,221 $1,990 $2,108 $2,306 $2,229 $1,867
Nevada $3,951 $3,519 $3,485 $3,591 $3,453 $2,981
New Hampshire $1,870 $1,560 $1,596 $1,920 $1,823 $1,553
New Jersey $2,897 $2,570 $2,583 $2,841 $2,694 $2,322
New Mexico $2,157 $1,990 $2,013 $2,214 $2,112 $1,849
New York $4,438 $3,835 $3,931 $4,155 $3,966 $3,509
North Carolina $1,585 $1,523 $1,518 $1,531 $1,499 $1,471
North Dakota $1,733 $1,645 $1,692 $1,741 $1,668 $1,483
Ohio $1,882 $1,669 $1,713 $1,928 $1,792 $1,543
Oklahoma $2,859 $2,629 $2,655 $2,771 $2,635 $2,313
Oregon $2,077 $1,913 $1,924 $2,022 $1,932 $1,678
Pennsylvania $3,352 $2,809 $2,801 $3,121 $2,943 $2,381
Rhode Island $2,845 $2,464 $2,517 $2,731 $2,624 $2,253
South Carolina $2,184 $1,915 $1,983 $2,228 $2,126 $1,840
South Dakota $2,154 $2,087 $2,115 $2,132 $2,066 $1,812
Tennessee $2,255 $2,023 $1,989 $2,201 $2,040 $1,799
Texas $3,156 $2,609 $2,643 $2,819 $2,664 $2,270
Utah $2,483 $2,171 $2,245 $2,238 $2,108 $1,771
Vermont $1,900 $1,507 $1,535 $1,612 $1,563 $1,241
Virginia $2,204 $1,856 $1,906 $2,200 $2,085 $1,756
Washington $2,135 $1,897 $1,823 $2,063 $1,961 $1,688
Washington, D.C. $2,958 $2,761 $2,771 $2,852 $2,675 $2,345
West Virginia $2,279 $2,047 $2,063 $2,306 $2,157 $1,856
Wisconsin $1,896 $1,745 $1,766 $1,883 $1,795 $1,556
Wyoming $2,189 $2,025 $2,160 $2,300 $2,206 $1,774

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

*Hawaii and Massachusetts prohibit using age as a rating factor, but other factors may apply that cause rates to fluctuate.

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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.

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. Several rating factors that determine car insurance premiums, including:

  • Age: 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. Hawaii and Massachusetts state regulations do not permit insurance companies to use age as a rating factor.
  • Vehicle make and model: Some cars are cheaper to insure than others. 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. Regulations in California, Hawaii and Massachusetts ban the use of credit as a factor in determining auto insurance rates. Car insurance companies in Michigan cannot use your actual credit rating but can use factors that go into your credit rating. Washington is in the process of determining if credit should be used as a rating factor going forward.
  • Gender: Males usually pay higher rates than females pay for car insurance, even if they have clean driving records. Men 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.
  • Types and amount of coverage types: Drivers who purchase only the minimum required coverage types, such as bodily injury and property damage liability, generally pay less for auto insurance than motorists who also buy collision and comprehensive Lenders will typically require you to buy collision and comprehensive insurance, and most insurance experts recommend purchasing more than the minimum amount required to better protect your finances. Your deductible for certain coverage types will also affect how much you pay.

Because these variables will change your rate from carrier to carrier, it can be helpful to get several quotes before settling on an auto insurer.

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 to get cheap car insurance.

  • Multi-car discounts: Most auto insurers offer a slight discount when you add multiple cars to a single policy. It does not fully offset the cost of insurance for each vehicle, but overall, the vehicles are cheaper to insure together.
  • 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.
  • 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 students 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 rating discounts: Usage-based rating is a relatively new way to reduce your auto insurance rate but could be a way to earn additional discounts. Carriers that offer these telematics programs require policyholders to use a mobile app or plugin device which monitors driving habits such as acceleration, braking, speed and trip distance each time they drive.
  • 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.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 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 are based on 20-year-old through 25-year-old male and female drivers 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 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually. The drivers are renters on their own insurance plans except for distant student discount rates, in which case the drivers are on their parents’ plan.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 20-40 applied. Depending on age, drivers may be a renter or homeowner. Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Due to state regulations, age is not a contributing rating factor in Hawaii and Massachusetts.