Best Car Insurance For Young Adults

The term “young adult” in the context of car insurance typically refers to drivers who are between the ages of 18 and 25. Insurance companies often categorize these drivers as “high-risk” due to their relative inexperience behind the wheel and the statistically higher likelihood that they will be involved in an accident compared to older drivers. As a result, Finding cheap car insurance for young adults can seem like a frustrating task.

Auto insurance rates for young drivers under 25 are notoriously high due to a lack of driving experience and a greater likelihood of them getting into an accident. The good news for young drivers is there are a bunch of ways to get cheaper car insurance quotes if you’re willing to shop around and compare. The first thing you need to do is decide on the coverage you need and the limits. 

Choosing Car Insurance Coverage For Young Adults  

There are so many coverage options and factors to consider, so it’s hard to know what to get. As a young driver just starting out, here are some tips on choosing the right auto insurance coverage and limits.

• Liability insurance – This is the minimum coverage required by law. Cheap liability insurance covers damage and injuries you cause to others in an accident. For young drivers, experts recommend getting at least $100,000 per person and $300,000 per accident in bodily injury coverage. Property damage coverage should be at least $100,000. Higher limits will protect your assets better if you cause an expensive accident.
• Collision and comprehensive – Collision covers damage to your car from an accident while comprehensive covers damage from theft, vandalism, weather, and other non-collision causes. They both come with deductibles, usually $500 or $1,000. Since new drivers are more accident and theft-prone, it’s wise to get both collision and comprehensive even if your car is a bit older. The deductibles can help lower your premium.
• Uninsured/underinsured motorist coverage – This protects you if you’re hit by a driver with little or no insurance. Experts recommend getting this equal to your liability limits. 
• Medical payments/personal injury protection – Both cover medical expenses resulting from an accident, regardless of who caused it. They are not mandatory but good to have if you don’t have health insurance. At minimum get $5,000 in coverage.
• Gap insurance – If you have an auto loan, gap insurance will pay it off if your car is totaled and insurance doesn’t fully cover its value. It’s worth considering since new cars depreciate quickly.

Raising your deductibles and removing collision/comprehensive on an older car are other ways to save. But don’t skimp on liability or uninsured motorist coverage. Getting adequate coverage now will establish a good insurance history and make rates more affordable down the road.

Car Insurance Quotes Comparison for Young Adults 

To find the cheapest car insurance for young drivers, it pays to get multiple free quotes and compare each rate. Here are sample quotes a 22-year-old driver may receive from major insurers for minimum liability-only coverage:

These rates are just estimates based on a sample driver with minimum required liability limits. Actual rates will depend on your specific age, driving record, location, car, and other factors. High coverage limits and adding comprehensive and collision coverage will increase premiums quite a bit. 

Average Full Coverage Car Insurance Rates For Young Adults 

Geico Full Coverage

Geico offers full coverage rates starting around $248 per month or $2,976 per year for drivers under 25. The policy includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured motorist bodily injury, $300,000 underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible. 

Allstate Full Coverage

Allstate’s rates for full coverage are approximately $261 monthly or $3,132 annually for under 25 drivers. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured motorist bodily injury, $50,000 underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible.

State Farm Full Coverage

Young adult motorists under 25 can expect to pay around $246 per month or $2,952 per year for State Farm’s full coverage option. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured motorist bodily injury, $50,000 underinsured motorist bodily injury coverage, $500 collision deductible, and $500 comprehensive deductible.

Farmers Full Coverage

Farmers Insurance charges about $285 monthly or $3,420 annually for full coverage for under 25 motorists. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured/underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible. 

Progressive Full Coverage

Progressive’s full coverage rates start at around $249 per month or $2,988 yearly for drivers under 25. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured motorist bodily injury, $100,000 underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible.

Liberty Mutual Full Coverage

Liberty Mutual charges approximately $260 per month or $3,120 annually for full coverage for under 25-year-olds. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured motorist bodily injury, $100,000 underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible.

Nationwide Full Coverage

Nationwide’s full coverage rates are about $252 monthly or $3,024 yearly for drivers under 25. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured motorist bodily injury, $100,000 underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible.

USAA Full Coverage

For eligible members, USAA offers rates starting around $225 per month or $2,700 annually for full coverage for under 25 drivers. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured/underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible.

American Family Full Coverage

American Family Insurance charges approximately $275 monthly or $3,300 annually for full coverage for drivers under 25. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured motorist bodily injury, $100,000 underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible.

Travelers Full Coverage

Travelers Insurance offers full coverage rates starting around $260 per month or $3,120 per year for under 25 motorists. This includes $100,000/$300,000 bodily injury liability, $50,000 property damage liability, $100,000 uninsured/underinsured motorist bodily injury, $500 collision deductible, and $500 comprehensive deductible.

Full coverage auto insurance rates for drivers under 25 average around $250-$285 per month or $3,000-$3,500 per year across most major auto insurers.

USAA offers the lowest rates shown here, but eligibility is limited to military members and their families. Comparing multiple quotes is important to find the most competitive rate.

Cheapest Cars To Insure For Young Adult Drivers 

Beyond finding the right insurance company, the vehicle you drive also plays a critical role if you’re looking for cheap car insurance for young adults. Certain cars are cheaper to insure than others based on repair costs, safety ratings, theft rates, and other factors. Here are the most affordable vehicles to insure, including makes and models, for young drivers according to average insurance rates.

1. Honda Civic – This small sedan has excellent reliability and crash test results. Insurance is inexpensive due to lower repair costs and strong safety ratings.
2. Toyota Camry – The Camry mid-size sedan also boasts good safety scores and reliability, resulting in lower premiums.
3. Subaru Legacy – Subaru’s all-wheel drive Legacy delivers solid safety and average insurance rates for young drivers. 
4. Mazda 3 – This sporty compact car offers impressive fuel economy and affordable insurance costs to match.
5. Ford Fusion – The mid-size Ford Fusion brings an upscale interior and affordable insurance rates.
6. Kia Optima – Kia’s fun midsize sedan is valued for high quality at a reasonable price, including insurance coverage.
7. Honda CR-V – Honda’s compact CR-V crossover SUV provides cargo space with low insurance premiums.
8. Jeep Wrangler – Despite higher gasoline costs, the Wrangler holds average insurance rates due to easy repairs.
9. Volkswagen Golf – This nimble, compact hatchback is engaging to drive and delivers cheap insurance pricing.
10. Chevrolet Equinox – Chevy’s affordable Equinox crossover maintains cheap parts that lead to lower insurance costs.

In general, mid-size sedans, small crossover SUVs, and hatchbacks tend to have the lowest rates for young drivers along with certain Asian brands like Honda and Toyota that perform well in safety tests and have lower repair costs. Avoid high-horsepower sports cars like a Corvette and big trucks with much higher auto insurance premiums.

Tips on How Young Adult Drivers Can Save on Car Insurance

1. Take a Defensive Driving Course – Completing a defensive driving course can earn you a discount on car insurance of up to 10%. This teaches safe driving techniques.
2. Ask About Discounts – There are many potential discounts for young drivers, such as low mileage, safety features, anti-theft devices, good grades, and defensive driver courses.
3. Ask About Good Student Discounts – Maintaining a B average or higher can reduce premiums up to 15-25% with most insurers. Providing proof of grades can result in savings.
4. Drop Full Coverage on Old Cars – For vehicles over 10 years old, consider liability-only insurance which is cheaper. However, you will likely need full coverage on newer cars that you’re still paying off. 
5. Get Quotes from Multiple Insurers – Rates can vary dramatically so compare quotes from at least 5-10 different insurers to find the best price.
6. Increase Your Deductible – Opting for a higher deductible of $500 or $1,000 can substantially reduce premiums. Just be sure you have that amount saved in case of an accident.
7. Consider Usage-Based Insurance – Apps that track driving habits can get discounts for safe driving. However, risky driving can also increase rates with this program.
8. Drop Unnecessary Extras – Removing extras like rental reimbursement or roadside assistance can pare down premiums. Only keep what you really need.
9. Get on Parents’ Policy – Being added to parents’ policy can be cheaper than having your own policy due to multi-car and multi-policy discounts.
10. Choose High Safety Rating Vehicles – Cars with excellent safety ratings tend to have lower insurance rates so check safety test results.
11. Maintain Good Credit – Having good credit scores reduces premiums substantially, so keep up on payments and reduce debt to improve your credit rating. 
12. Take Public Transportation When Possible – Reducing days driven and mileage can qualify for a low mileage discount to save money.
13. Ask About Pay-As-You-Drive – Insurers offering pay-per-mile insurance base rates on actual mileage driven, which can be cheaper for low mileage.
14. Shop Around Annually – Get fresh insurance quotes every 6-12 months because new insurers and discounts can pop up over time.
15. Inquire About Paying Premiums Upfront – Paying 6-month or annual premiums in advance can reduce overall rates compared to paying monthly.

Final Words on Car Insurance for Young Drivers

While young adult drivers pay a lot more for coverage than adults over 30, there are still proven ways they can save money. For example, active military members can get great rates with USAA Insurance.  

By taking advantage of smart tips like raising the deductible and dropping unnecessary coverage, young adult drivers can save hundreds per year. Get up to ten young adult auto insurance quotes and see what insurer has the lowest rates for the coverage you need. Start by entering your zip code and then fill out a quick application. Getting cheap car insurance for young adults has never been so easy.