How to Get the Best Car Insurance for Young Drivers

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Written by Eric Schad Edited by Nick Versaw Reviewed by Amanda Clear

Updated October 19, 2022

Car insurance isn’t always affordable, and with the rising costs of inflation and consumer goods, it’s certainly not getting cheaper. But the plight of finding affordable car insurance is particularly difficult for young motorists, teen drivers, and pretty much anyone under the age of 25. 

Add the cost of clothes, phones, social interactions, and other expenses no longer covered by their parents, and today’s youth have plenty of bills to consider. Nevertheless, the best car insurance for young drivers isn’t as unattainable as one might think.

So whether you’re a young driver taking full responsibility for your expenses or a parent trying to figure out how to juggle the additional cost of a new teen driver, this article will shed light on ways to save on the insurance coverage you need.

What Is the Best Car Insurance for Young Drivers?

The best car insurance for young drivers is, of course, highly subjective. One might argue that the best auto insurance for a teen or person under 25 is simply the option that’s least expensive. However, that’s only part of the equation.

Factors That Help Young Drivers Choose the Right Car Insurance

Finding the right car insurance policy hinges on several factors that you should take into consideration for younger drivers:

• State minimum car insurance requirements where you live
• Levels of protection and types of car insurance
• What car insurance companies do business in your area
• Personality factors, behavior, etc.
• Budget

By assessing these facets of car insurance, you can reasonably come to a better choice for car insurance, but only you can make the decision. Later in this article, we’ll dive further into these factors and how you can successfully balance car insurance rates versus the protection you need.

Top Car Insurance Companies for Young Drivers

One of the many benefits of a competitive car insurance marketplace is that so many different auto insurance companies are vying for your business. With direct competition comes more opportunities to save, which plays into your favor.

Determining which insurers are ideal for young drivers and offer cheap car insurance, you will have your own considerations. But overall rates, the number of discounts available, customer service, and product offerings are also integral.

You always have the opportunity to do business with a local car insurance company. But investigating some of the best car insurance companies known for having great young-driver policies can make your effort more fruitful. Start your search with quotes from reputable insurers like:

• Amica
• Farmers
• Nationwide
• Allstate
• Liberty Mutual

Ultimately, you determine which insurance company is the best fit, but you’ll have plenty of options to balance price with reputation. The more effort you put into this step, the greater your reward when you finally settle on a policy.

Why Are Insurance Costs for Young Drivers So High?

Young drivers, or those between the ages of 20 and 24, and teen drivers ages 16 to 19, easily have the highest auto insurance rates of any age group. The idea seems fairly simple: The less experience you have, the more likely you’re a riskier driver. However, several other aspects also make car insurance companies leery of young drivers.

Risky behavior is a huge factor in the price of car insurance for young adults. Young drivers often make risky, poor decisions fueled by the desire to fit in, look “cool” by driving fast or erratically, or just downright immaturity.

This type of risky behavior leads to more accidents. According to the Insurance Institute for Highway Safety, death rates among young drivers are highest among males between the ages of 20 and 24 and females between 19 and 24. Risky driving directly correlates with reaching the legal drinking age — a deadly and frightening combination.

Although risk is perhaps the most significant determinant of insurance costs for young drivers, other minor factors play into higher insurance premiums. Most of these aren’t necessarily the fault of young drivers; car insurance companies just use a rubric that provides less expensive policies to older, more experienced, and more mature drivers. Some of the reasons that young drivers may experience higher rates include:

• Lower credit scores or less credit history
• Less likely to be married
• Less likely to be a homeowner
• Little driving history
• Fewer opportunities for discounts

To this degree, young drivers have no choice but to take the cheapest car insurance that comes their way, regardless of how expensive it is compared to other age groups. However, a few tricks exist to get the best car insurance for young drivers.

Ways to Get Affordable Car Insurance for Young Drivers

You may have started your quest for affordable car insurance and then had a minor heart palpitation when you saw the price. There is hope. Armed with a few tips, you can discover the policy that fits your budget and offers the protection you need. Here’s how to do it.

Take Advantage of Car Insurance Discounts

Discounts are the most common way young drivers can lower their car insurance rates. But don’t get discouraged if you think you aren’t eligible. These days, insurers have more than just good student discounts, providing ample opportunity to save. While good student discounts — offered to college students who get good grades (usually a B average or higher) — are still popular, here are some other options:

• Telematics discounts: Both national and regional car insurance providers have apps and GPS-tracking software that monitor your driving. Stick to safe driving habits, and you could reap the benefits of a cheaper rate.
• Safe driving or safe driver discounts: Avoid tickets and accidents, keep a clean driving record, and you could see the savings pile up.
• Defensive driving discounts: In some states, insurers allow you to take defensive driving courses and driver education classes to learn how to fix poor driving habits and become a better driver. Once you pass the class, you receive a sizable discount on your insurance.
• Accident forgiveness: So, accident forgiveness isn’t really a discount, but it will keep your rate from automatically increasing if you are in an at-fault accident. Think of it as your one-time get-out-of-jail-free card.

The Mom and Dad Equation

Being a young adult is all about starting your path to independence. But don’t ignore the help from your parents quite yet. Young drivers who stay on their parent’s policy often experience a sizable drop in their average annual car insurance rates. It’s essentially a form of bundling that’s far cheaper than getting your own policy. Even if you’re a good driver, you may want to stay on mom and dad’s policy until you get your own place or become financially independent.

Choose the Right Car

Every young driver wants that souped-up car they’ve seen on the big screen or the fancy ride driven by an influencer. However, sports cars and luxury cars are often prohibitively expensive to insure, even for adults. As a result, opting for a car that’s cheap to insure is a better choice until you have some disposable income to get the vehicle you want.

The right car for cheap insurance mixes premium safety features and crash test ratings with smaller engines. So while you may want that brand new Mustang or Camaro, remember that good things come to those who wait.

Select the Perfect Car Insurance Coverage

You have plenty of coverage options as a young driver. But what coverage do you really need? Some experts say full coverage is ideal to protect young motorists from every dreadful scenario, no matter how small the odds. Yet that’s not always necessary. Review these options to determine what coverage is the best for your needs:

• Liability coverage or state minimum coverage: If you get an old beater or a cheap car, having full coverage car insurance is a waste of money. Just so long as you’re legal or have decent coverage limits on property damage liability and bodily injury liability, you should be fine. Liability coverages pay for the medical bills and repairs to other motorists if you’re at fault in an accident. As a general rule, shoot for a 100/300/100 policy, which is $100,000 bodily injury coverage per accident, $300,000 in total bodily injury coverage, and $100,000 in property damage coverage.
• Collision coverage: This type of coverage pays for repairs to your car if you’re in an accident, regardless of who’s at fault. For an older car, it’s probably not necessary, but if you can’t afford repairs out of pocket and your car’s a bit newer, it’s probably not a bad idea. Note that getting a high deductible can equal lower rates, while a low deductible means higher average rates.
• Comprehensive coverage: This type of auto insurance policy pays for damage to your vehicle that’s the result of an act of God, vandalism, natural disaster, or theft. Like collision, it has a deductible you can adjust to get a more affordable quote.

Shop Around for the Best Car Insurance

The average cost of car insurance for young drivers varies considerably from place to place and driver to driver. As a result, gathering car insurance quotes and shopping around is to your benefit. So rather than checking a single quote with a lone car insurance company, broaden and expand your search as much as you can by using sites like Compare.com.

Discover the Most Affordable Coverage for Young Drivers Today

Discounts, safe cars, and telematics can help you find a more affordable rate on your car insurance for young drivers. However, putting in the time to shop around with Compare.com could give you the advantage you need to get the best rate possible.

With side-by-side comparison shopping, searching for car insurance has never been easier. So whether you’re a concerned parent or an energetic youth itching to get behind the wheel, let Compare.com become your ally for great car insurance options and instant car insurance quotes. Enter your ZIP code below to start saving today:

Eric Schad Insurance Writer

Eric Schad has been an expert content writer for nearly a decade. Before getting behind the keyboard, he worked in the finance and music industries. With eight years of writing experience in the automotive and insurance industries, he enjoys communicating information that makes shopping for car insurance a breeze. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.