Cheap Car Insurance for Teens and Young Drivers

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Young driver with dad smiling after getting cheap car insurance for young drivers

As a young driver, the cost of car insurance can take a significant bite out of your budget. Although there are plenty of reasons to be excited about striking out on your own, getting your car insurance policy will be a significant expense until you hit your mid-twenties. 


Key Takeaways:


It can be expensive for inexperienced, high-risk drivers under 25 who make their car insurance payments to become insured. Wouldn’t it be great if someone provided affordable car insurance for young drivers? Compare.com has tips for decreasing the cost of auto insurance while maintaining the coverage limits young drivers need.

Why do Young Drivers Need Affordable Car Insurance?

We understand why it costs so much to insure young drivers. The odds of them being involved in an incident that requires the car insurance company to payout are higher than they would be with older, more mature drivers. 

The problem is that it’s a hard cost for young drivers to insure themselves. Many young drivers between 18 and 25 are just starting in life. That might mean working a part-time job while continuing their education or starting at the bottom of the wage-earning totem pole in a company. In either case, young drivers’ earning potential is relatively low compared to mature drivers who have had decades to get their careers off the ground. 

For younger drivers, cheap car insurance is critical to their financial well-being. Since not having car insurance is against the law in most states, finding affordable car insurance for a young driver is crucial.

Why is Car Insurance Expensive for New Drivers?

For parents, insuring young or new drivers can make monthly auto insurance premiums jump drastically. We ran the numbers at Compare.com and found adding a teen driver to a car insurance policy can cause insurance premiums to increase by 111%. When a parent buys their teen a car and adds them to their policy, premiums can increase by an astounding 156%. These are unimaginable numbers but the reality for many.

There is a good reason why young drivers are more expensive to insure: Teens and young drivers are statistically more likely to be involved in an accident. Here are some eye-opening statistics that reveal why it is so much more expensive to insure young drivers than adults:

It can be expensive for inexperienced, high-risk drivers under 21 who make their own car insurance payments to become insured. Wouldn’t it be great if someone provided affordable car insurance for young drivers? Compare.com has tips for decreasing the cost of auto insurance while maintaining the coverage limits teenage drivers need.

How To Get Cheap Car Insurance as a Young Driver

You can take several steps to get affordable car insurance as a new or young driver. First, if you are still on your parent’s car insurance policy, ensure you’re listed as a driver. If not, you may not be covered in the event of an accident. You should also ensure you are assigned as the primary driver of the car you drive regularly.

Next, get a quote on Compare.com and see what’s out there. What’s the difference if you change your coverage levels? What about going with an insurer that isn’t a big name but offers a better deal?

Comparing prices is the easy part. Narrowing down to a more affordable insurance rate as a new driver gets tricky, so here are some extra tips on bringing down the insurance price as a young driver.

Look for Discounts

As a new driver, trying to qualify for as many discounts as possible can make your insurance more affordable. From payment discounts to Safe Driver discounts, there are many available options for young drivers that can help drive down the cost of insurance. 

One easy way to save on costs is by paying your entire policy premium upfront. Typically, this move unlocks a special discount. But if you can’t swing the entire cost upfront, look for any automatic payment discounts. Sometimes insurance companies will offer you a discount for setting up an automatic payment online. 

Another way to save is by proving you are a safe driver. You could score significant savings if you don’t have an accident or speeding ticket on your driving record. For those who don’t have a clean driving record, showing that you are willing to improve your driving habits can pay off. For example, Good2go Insurance offers customers a discount for installing an app on their cell phones that block texts and calls while driving. Be sure to ask your insurer for any other discounts you could qualify for.

Enroll in a Driver Safety Course for Insurance Discounts

Many auto insurance companies offer defensive driver discounts. There is a wide range of driver safety courses available to young drivers. A driver safety course can reduce insurance costs and turn expensive car insurance policies into more affordable plans. Many states even require your insurance provider to give you a discount for taking the course.

If you are up for taking a defensive driving course, it could save you between 5 percent to 20 percent on your car insurance costs. Check with your insurance company to ensure they offer this discount and will honor the course you intend to take. 

Drive a Less Expensive Car

Driving statistics have shown that young drivers are more likely to be involved in a severe accident, which isn’t helped by the kind of cars young drivers like to cruise around. Nearly 50% of people who own performance vehicles like a Mitsubishi Lancer, Volkswagen GTI, or Subaru Impreza are millennials.

It’s hard to be a young driver. You want everyone to see how cool you are, and driving a soccer-Mom minivan or your Dad’s hand-me-down sedan won’t give you any excellent points. However, driving a less exciting car can significantly reduce how much you pay car insurance premiums.

You can’t corner as well in a Honda Odyssey as you would a Ford Focus RS. But that’s what insurance companies like about them and why drivers of safer vehicles typically have more affordable car insurance policies. So let’s settle for the four-door, four-cylinder car instead of the 2.0-liter turbo and use that money you saved for something else.

Get Telematics for Usage-Based Insurance

Having someone track your driving may not sound like much fun, but installing a little black box could help you save. Many insurance companies are wising up to ‘telematics.’ This is when you install a small device in your car or download an app. It tracks your driving for speeding, harsh braking, and what times of the day you drive.

You may get a premium adjustment after a few months of monitoring if you’re a good driver. Some insurers will offer discounts for not driving between 11 pm and 5 am.

You might also score a discount for limiting the number of miles you drive. On average, drivers aged 16 to 19 put in 7,624 miles on the road, while drivers aged 20 to 34 drive 15,098 per year. If you are driving less frequently than your peers, it’s possible to lock in savings.


Compare Car Insurance Quotes for Young Drivers


What Company Offers Cheap Car Insurance for Young Adults?

Auto insurance rates can vary drastically between companies because they each have their unique way of determining insurance rates based on several factors, including driver demographics, vehicle type, driving record, and credit score. 

The best way to find the cheapest car insurance is to get quotes from multiple insurers to see who can offer the best deal.

What Are Car Insurance Rates by Age for Young Drivers

Drivers under 25 will generally pay more for their auto insurance, but as you get older, you’ll see the rate change.

Age Insurance Premium
18 $227/mo
19 $196/mo
20 $189/mo
21 $161/mo
22 $151/mo
23 $145/mo
24 $136/mo
25 $131/mo

Cheap Car Insurance for Young Drivers by State

The state you live in can also significantly impact how much you pay for auto insurance. That can be due to natural weather occurrences, crime rate, population, and state regulations, amongst other things. 

The table below will outline the cheapest auto insurance company on average in each state for young drivers.

State Company Monthly Premium
Alabama Assurance America $78/mo
Arkansas Gainsco $103/mo
Arizona Assurance America $97/mo
California Hugo $71/mo
Colorado Sun Coast $106/mo
Connecticut Liberty Mutual $244/mo
Washington DC Liberty Mutual $228/mo
Delaware Dairyland $196/mo
Florida Assurance America $135/mo
Georgia Clearcover $147/mo
Hawaii Twenty First Century $76/mo
Iowa Dairyland $107/mo
Idaho Dairyland $106/mo
Illinois Mercury $75/mo
Indiana Dairyland $70/mo
Kansas Dairyland $108/mo
Kentucky Safeco $130/mo
Louisiana Clearcover $187/mo
Maryland Clearcover $186/mo
Maine Liberty Mutual $192/mo
Minnesota Safeco $135/mo
Missouri Clearcover $120/mo
Mississippi Answer Financial $109/mo
North Carolina Liberty Mutual $90/mo
Nebraska Clearcover $135/mo
New Hampshire Safeco $118/mo
New Jersey MetroMile $165/mo
New Mexico Gainsco $93/mo
Nevada Sun Coast $172/mo
New York TSC $262/mo
Ohio Gainsco $88/mo
Oklahoma Mercury $104/mo
Oregon MetroMile $119/mo
Pennsylvania Clearcover $113/mo
South Carolina Gainsco $181/mo
Tennessee Gainsco $86/mo
Texas Commonwealth Casualty $98/mo
Utah Sun Coast $87/mo
Virginia Mercury $80/mo
Washington Foremost $151/mo
Wisconsin Clearcover $77/mo
West Virginia Liberty Mutual $129/mo
Wyoming Dairyland $104/mo

Car Insurance Rates for Young Drivers by Gender

According to the Insurance Institute for Highway Safety, the reasons behind this difference are that men are more likely to engage in risky driving behavior, which means a higher risk for the insurance company. This reality is reflected in the fact that more men die in motor vehicle crashes than women each year. 

The average monthly premium for male drivers under 25 is $164/mo

The average monthly premium for female drivers under 25 is $154/mo

Average Car Insurance Rates for Young Drivers by Age and Gender

As the table above shows, men pay more for auto insurance than women. But one additional point to consider is the difference decreases as male drivers get older.

Age Male Female
18 $237/mo $216/mo
19 $205/mo $185/mo
20 $195/mo $182/mo
21 $166/mo $155/mo
22 $153/mo $149/mo
23 $147/mo $144/mo
24 $136/mo $137/mo
25 $132/mo $129/mo

Life Events That Affect Auto Insurance Rates for Young Drivers

Along with age and gender, several life events and choices can impact your auto insurance rates as a young driver. Here are a few to consider. 

Having a Roommate

Insurance companies often have rules related to roommates using shared vehicles. Companies will assume roommates are sharing cars since they share a home and other responsibilities. The company might raise your rate to account for the potential risk of having a roommate.

To reduce the chance of this happening, exclude your roommate from your auto insurance policy, add your roommate as a driver on your policy, or get a joint policy together. Keep in mind that securing a joint policy isn’t allowed in every state.

Getting Married

One benefit of getting married is that your auto insurance rate is likely to decrease almost immediately. You’ll also be able to take advantage of a multi-car discount if you both have your vehicle. 

Let your insurance company know you’re married and get on the same policy as your spouse.

Otherwise, if you choose not to be on the same insurance policy as your spouse, you’ll want to exclude them from your policy. If they drive your vehicle, they’d be driving without insurance and vice versa. 

The average monthly car insurance premium for married drivers under 25 is $130.

The monthly car insurance premium for non-married drivers under 25 is $160.

Renting or Buying a Home

Finally, a significant life event impacting young drivers’ auto insurance rates is the decision to rent or buy a home. 

Once you purchase a home, you’ll likely save on auto insurance since you can bundle a home and auto insurance policy and receive a multi-policy discount. Also, insurance companies view homeowners as more stable and responsible than renters and offer cheaper auto insurance rates in return. 

The average monthly car insurance rate for a homeowner is $93/mo

The average monthly car insurance rate for a renter is $110/mo

When you’re a homeowner, you can save around 20% on your monthly auto insurance premium.

Cheap Car Insurance for Young Drivers

As you start in life, young drivers will likely face many obstacles on and off the road. Of course, one challenge is finding cheap auto insurance. But there are other big choices to navigate, like living in a new area, finding a job, and studying for classes. On top of all that, balancing your finances, like living costs, gas money, and insurance, can be a real pain. None of these are easy tasks, but we can help with at least one – finding an affordable car insurance plan.

How to Find Cheap Car Insurance

Buying affordable car insurance for young adults is undoubtedly a concern, but it’s rarely a top priority. Many young drivers under 25 get a policy from the same insurance company that their parents use or that they’ve used since first starting to drive. Some go online and get a quote from car insurance companies. Fortunately, Compare.com makes it easy to find cheap car insurance for college drivers or lower your current rate.

Just follow our checklist!

Car Insurance Policy Checklist

If you have your own policy, ensure your insurance policy reflects where you live and park the vehicle. Your address may be a variable that insurance companies use to price policies, plus having it updated makes submitting insurance claims more efficient.

Check the limits on collision, comprehensive, and liability coverages. The right coverage will be handy if you have to make a claim. Otherwise, you could be stuck with a lot of out-of-pocket costs. Checking your coverage in these areas will help ensure you have appropriate coverage if an accident occurs.

Best Auto Insurance Companies for Young Drivers

Unfortunately, there is no absolute cheapest insurance company for drivers under 25. Every insurance company calculates risk differently, which means prices vary from company to company. However, there is a simple solution when looking for an affordable insurance plan: shop around. Do your homework and get multiple quotes. 

But who’s got time for that? We can help you expedite your search with a single form that will give you multiple quotes at once. You can compare insurance prices side by side, lock in your best rate, buy, and be done.

Take Care of Your Credit Score

A good credit score can help you unlock better auto insurance rates. But building credit as a young adult driver can take time. Make it a point to protect your credit score from damage.

Keep your score up by making bill payments on time and paying off overdue debts. On the other hand, falling behind on payments can hurt your credit score. If you get too far behind, your insurance carrier might not choose to keep your policy when it expires.

Bundle Your Car Insurance Policy with Other Policies

You may have insurance policies such as auto, homeowner’s, renter’s, and life insurance. One way to find the most affordable auto insurance policy for you is to bundle these policies. Bundling is when you buy multiple types of insurance from the same insurance company. It could decrease not only your auto insurance premium but the premium for your other insurance products, leaving you one less bill to worry about.

Understand What Coverage Limits You Need

As you start making your way into the world, you may need help to run out and buy a new car. Some get a new car from mom and dad, but only a few. If you plan on driving your current vehicle for a few years more, take a closer look at the coverage levels. If the car has a few scratches and dings, it might be worth raising the deductible or dropping collision and comprehensive coverage.

Be careful, though, because while you can save money by changing coverage levels and deductibles, you can get into a tight spot if you need more money to deal with issues that might arise.

The only way to get the best car insurance is to compare rates. Insurance companies may consider age, driving history, and address when they price your policy. 

We make finding affordable car insurance easy for college students and new drivers under 25. Enter your details once, and we’ll show you some of the best options!

Are you still looking for a more affordable insurance policy? Start comparing today!


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FAQs About Cheap Car Insurance for Young Drivers

How can I get cheap car insurance at a young age?

As a young driver, your best bet for finding cheap car insurance is to compare auto insurance rates amongst different companies to see which company can get you the best deal. But practicing safe driving habits, building your credit score, and taking a defensive driving course might help unlock savings. 

What insurance is best for young drivers?

The best insurance companies for young drivers will depend on your location and driving history since rates vary widely. You want to determine what’s important to you about an insurance company, the type of coverage you want, and the company that can give you the most affordable rate. 

Why is first-time car insurance so expensive?

Insurers tend to charge first-time drivers much higher rates, regardless of age, because these drivers lack experience. You can sometimes expect to pay $5,000 or more for car insurance in your first year.

How do I compare cheap car insurance for young new drivers online?

The best way to find the cheapest car insurance for young drivers is to secure quotes from different auto insurance providers to see who can offer you the lowest rates while maintaining quality coverage.

Is insurance cheaper when you turn 25?

As you gain experience on the road, many insurance companies will reward this experience with lower rates. But your driving record and other factors will determine whether or not you see insurance savings after your 25th birthday. 

Does credit affect car insurance?

Yes, your credit score can impact your car insurance premiums. In many cases, drivers with a good credit score will find lower insurance premiums than those with a lower credit score. As a young driver, building your credit score can help you tap into lower car insurance costs.

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