Get Cheap Car Insurance for Young Female Drivers

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Written by Sarah Sharkey Edited by Quiana Darden Reviewed by Amanda Clear

Updated January 31, 2023

For young ladies on the road, working with a company that offers cheap car insurance for young female drivers is a priority.

The good news is that most female drivers can find lower rates than men do. The reason lies in crash statistics. Since men are statistically more likely to be involved in an accident due to risky driving behavior, gender is often a factor that works in favor of women. 

The bad news is that auto insurance companies often charge new drivers more than older drivers. Since older drivers have more experience behind the wheel, they are less likely to get in a crash than younger drivers who have less experience. 

If you are a young female driver, we’ll explore how to lock in a policy that suits your budget and needs.

 Key Takeaways:

• Many car insurance companies use gender as a factor when determining auto rates.
• Women are less likely to get into a car accident than men, which often means women can find lower car insurance quotes than their male counterparts. 
• In some states, car insurance companies aren’t allowed to consider gender as a factor when setting premiums.

Cheap Car Insurance for Young Female Drivers

Car insurance is a significant line-item expense for most drivers. So, like most drivers on the road, young female drivers often want to secure the lowest car insurance costs. 

Price is crucial when looking for the best cheap car insurance for young female drivers. However, other important factors include the company’s customer satisfaction and financial strength. Choosing a company with high financial security and happy customers means you are more likely to enjoy a positive experience if you have to file a claim. 

Below you’ll find some of the cheapest car insurance options for young female drivers. We’ll break down what each has to offer you. 

American Family Insurance 

Average Annual Premium: $2,162

Average Monthly Premium: $180

American Family offers a wide range of insurance coverage options, including car insurance. 

When you work with American Family, you can add affordable emergency roadside assistance, accident forgiveness, and rental reimbursement to your coverage. American Family  also earned above-average ratings for customer satisfaction in the 2022 J.D Power U.S. Auto Insurance Study in the North Central and Central regions. 

But what sets American Family apart is its suite of discount opportunities. You can save by signing up for autopay, bundling policies, driving safely, and more. 

Plus, young drivers under 25 who complete more than 40 hours of volunteer work per year at a non-profit can enjoy a special discount. If your parents are AmFam customers, that’s another way to save on your new policy. 

Erie Insurance

Average Annual Premium: $2,234

Average Monthly Premium: $186

Erie Insurance has a good reputation for providing low rates to drivers. 

While it is one of the cheapest insurers for young female drivers, its high customer satisfaction ratings really makes Erie Insurance a worthwhile option. The company came first in the 2022 J.D Power U.S. Auto Insurance Study for customer satisfaction in both the Mid-Atlantic and North Central regions. Plus, it has earned an A+ rating from the Better Business Bureau. 

According to Erie, more than 90% of their policyholders remain insured for multiple years. One reason behind the staying power of Erie is its Rate Lock program. Erie’s Rate Lock option means you can hang onto your premium for years unless you change addresses, add a new vehicle, or add another driver. 

State Farm

Average Annual Premium: $2,382

Average Monthly Premium: $199

State Farm is one of the largest auto insurance providers in the country. With its massive size, policyholders can expect ample financial resources.

On average, young female drivers pay $2,382 per year, or $199 per month, for a policy with State Farm. The company has solid financial stability. In terms of customer satisfaction, State Farm is also well-regarded. 

Young adults under 25 can take advantage of State Farm’s Steer Clear program. Steer Clear has training courses and practice driving requirements for participants. If you pass this driving-focused training, you can get a special discount. 

Travelers 

Average Annual Premium: $2,415

Average Monthly Premium: $201

Travelers offer young female drivers many affordable add-ons to an auto insurance policy, including new car replacement, accident forgiveness, and roadside assistance. 

The insurance company specifically offers a driver training discount to young drivers who complete an approved course. If you’ve opted for a hybrid or electric car, Travelers also provides a special deal for environmentally conscious drivers. 

Nationwide 

Average Annual Premium: $2,567

Average Monthly Premium: $214

Nationwide is one of the largest insurance agencies in the world. 

Nationwide’s SmartRide program is one way to lower your car insurance costs. The program can lower your insurance premium if you’re safe while behind the wheel. If you don’t put many miles on your car, you can get a flexible monthly rate tied to the miles you drive. 

GEICO 

Average Annual Premium: $2,692

Average Monthly Premium: $224

You might be familiar with GEICO’s clever gecko. But when you go beyond the TV commercials, you can find affordable rates. 

Many alumni associations, universities, and student organizations find membership discounts through GEICO. If you are in school, good student discounts are also available  for college students and teen drivers. If you’re interested in taking a driving training class, doing so could also lead to significant savings. 

Auto-Owners Insurance

Average Annual Premium: $2,723

Average Monthly Premium: $227

On average, young female drivers pay $2,723 per year or $227 monthly for car insurance. In the Southeast portion of the 2022 J.D. Power U.S. Auto Insurance Study, Auto-Owners Insurance ranked second for overall customer satisfaction. 

The company offers a wide range of discounts to help you cut costs. Discounts are available for enrolling in paperless billing, paying for your policy upfront, getting a quote days before you need a policy, and choosing a vehicle with helpful safety features. 

One potential downside is you must work with an agent to finalize your policy. But completing the process with an agent will ensure you don’t overlook a possible discount opportunity. 

Progressive

Average Annual Premium: $2,871

Average Monthly Premium: $239

 One service that sets Progressive apart is its Spanish language support offerings. You can speak with an agent who is fluent in Spanish to discuss your current or possible car insurance policy. 

Progressive ranked below average in most of the regions covered in the J.D Auto Insurance Study. But the low rates and solid financial track record still makes it an option worth considering. 

Allstate

Average Annual Premium: $2,998

Average Monthly Premium: $250

Allstate is one of the top insurance companies in the U.S. With that, you’ll find plenty of coverage options through the company.

Customer satisfaction with Allstate varies dramatically based on the region. For example, Allstate earned second place in terms of customer satisfaction in Florida, according to the 2022 J.D. Power Auto Insurance Study. But in other regions, like Central and Mid-Atlantic, it scored below average. 

Allstate offers two programs of note to help you save. First, Drivewise tracks your driving habits and rewards good drivers with lower rates. Second, Milewise tracks your mileage. The fewer miles you drive, the less you pay for insurance. Other savings are available for maintaining good grades, signing up for a defensive driving course, and being a careful teen driver who avoids traffic violations. 

Safe Auto | $3,280

Average Annual Premium: $3,280

Average Monthly Premium: $273

Safe Auto is the last option on this list of cheap car insurance companies for young drivers. 

Like Geico, Safe Auto offers bilingual support options around the clock. The company specializes in providing minimum liability coverage, but you can upgrade your policies to include comprehensive or collision options. 

Discounts for young drivers are limited with Safe Auto. But if you switch you might be rewarded with savings on your premium.

Do Men or Women Pay More for Car Insurance?

Statistically speaking, men tend to get into more car accidents than women. 

According to the Insurance Institute for Highway Safety (IIHS), men typically drive more miles and are more likely to engage in risky driving. Some dangerous driving practices that men are more frequently involved in include driving under the influence of alcohol, speeding, and not using their seatbelts. 

Based on these different driving tendencies, insurers typically look at women in a more favorable light than men when determining rates. With that, women will usually to pay less for car insurance than their male counterparts. 

Why Is Gender Used to Determine Car Insurance Premiums?

When determining premiums, insurance companies consider a wide range of factors. One of the many factors insurers might look at is gender. 

The reasoning is that premiums are based on the risk presented to the insurance company. If a driver is perceived as a higher risk, the insurer compensates for this risk by charging higher premiums. 

Statistics indicate that men present a higher risk to the insurance company, and a greater chance of being in a crash means that men are more likely to file a claim with their insurance company. As with all other available risk factors, insurance companies like to include your gender when determining rates. 

States Where Car Insurance Costs the Same for Men and Women

Crash statistics tied to gender are one way insurance companies assess risk. But some states have passed laws to prevent insurance companies from using gender as a factor when determining rates. 

The states that don’t allow insurance companies to look at gender as a factor include:

• California
• Hawaii
• Massachusetts
• Michigan
• Montana
• North Carolina
• Pennsylvania.

How to Find Cheap Car Insurance as a Young Woman

As a young woman looking for cheap car insurance, there are several steps you can take to find the most affordable option. Here’s a look at your pathway to finding affordable coverage. 

Determine Your Coverage Needs

First, you’ll want to determine how much coverage you need. 

At the very least, you must meet your state’s minimum liability coverage requirements to drive on public roads. The minimum coverage will include some level of bodily injury liability coverage and property damage liability coverage. 

A minimum coverage policy is enough to get you on the road. But that might not be enough. You can add on additional coverage to better protect your finances.

A full coverage policy also includes collision and comprehensive coverage. If you are involved in an at-fault accident, collision coverage kicks in to help cover the repairs to your vehicle. Comprehensive coverage kicks in if your vehicle is stolen or damaged by a natural disaster, amongst other things.  

Depending on your financial situation, the safety net provided by a full coverage policy might be worth shelling out a bit more every month. Take time to weigh your coverage options to decide the right fit for your comfort level. 

Need help nailing down how much car insurance you need? Use our complete guide to dive into the details. 

Consider Your Deductible

Once you’ve decided how much coverage you need, it’s time to consider your deductible. The deductible is how much you’ll pay towards an incident before your insurance company will pay the remainder of your claim up to your policy’s covered amount. 

For example, let’s say you have a $500 deductible. If you get in an at-fault accident, you’ll have to pay $500 towards the repairs before your insurance company picks up the rest of the tab. Since no one ever plans on getting into an accident, choosing a deductible you can afford at any moment is best. 

Be a Good Driver

Safe driving habits can pay off in a big way. With a clean driving record, you are likely to pay lower premiums than drivers with violations on their record. If possible, avoid at-fault accidents, speeding tickets, and DUIs.

Most of us plan on being good drivers. But it sometimes takes a concerted effort to make good choices on the road. As a driver, choosing to avoid distractions and stay focused on the road can go a long way toward being safe. 

Improve Your Credit

Some insurance companies look at your credit history when determining your premiums. 

Although credit-based insurance scores are slightly different from regular ones, both rely on information from your credit report. With that, improving the information on your credit report can lead to lower car insurance costs. 

One of the most critical factors on your credit report is your payment history, and a solid record of on-time payments is viewed positively by lenders. Make paying your bills on time a priority. For those who sometimes forget deadlines, take advantage of any automatic payment options available through your bill providers. 

Shop Around

The final and most critical step is to shop around for a policy that suits your needs. If you don’t compare quotes from multiple companies, it is challenging to know if you are getting a good deal.

In the past, many drivers avoided comparing quotes due to the tedious manual nature of the process. If you envision spending a few hours on the phone with a range of insurance companies, we’re happy to report that times have changed for the better. 

Instead of spending hours on this task, you can tackle it in minutes. We offer a free auto insurance comparison tool that allows you to explore your options across multiple car insurance companies easily. 

Car Insurance Discounts for Female Drivers

Female drivers can tap into a wide range of discounts. Here’s a look at some valuable discount opportunities:

• New customer discount: Although you may want to stick with the same insurance company, many drivers who shop around make a switch. If you are switching insurance companies, some offer new customers special savings. 
• Multi-policy discount: Car insurance might be one of many insurance needs. Choosing to bundle your policies could lead to savings if you need homeowner’s or renter’s coverage as well. 
• Payment discounts: If you can afford to pay your entire bill upfront, you might save on your premium. Other payment based savings might be available if you sign up for automatic payment options. 
• Safe driving programs: Many car insurance companies offer safe drivers a discount. Sometimes, this involves enrolling in a telematics program, which tracks your driving behaviors. If you are a good driver, this could help you save.
• Defensive driver classes: Although taking a defensive driving course might not be at the top of your to-do list, taking an approved class can lead to a discount. 

If you qualify for one of these discounts, ask a potential insurer about the savings opportunity. 

FAQs About Cheap Car Insurance for Young Female Drivers

Are female drivers cheaper to insure?

In general, women pay less for car insurance than men. The lower rates are because men are more likely to be involved in a crash. With a lower likelihood of filing a claim, women present less risk to the insurance company and may be cheaper to insure. In contrast, men find higher rates due to the higher risk they present to insurance companies. 

What is the cheapest level of car insurance?

A policy that meets the minimum liability requirements of your state is the cheapest level available. Although liability-only policies might be easier on your monthly budget, you will get stuck paying for repairs to your vehicle out-of-pocket after an accident or other event a liability policy doesn’t cover. 

Is it cheaper to insure an old or new car?

Generally, it’s cheaper to insure an older car. After an accident, older vehicles are less expensive to repair or replace. The higher price tag to repair or replace a new vehicle leads to higher car insurance costs in most cases. 

Sarah Sharkey Auto Insurance Writer

Sarah Sharkey is a personal finance writer and auto insurance who loves diving into the details to help readers make savvy life choices. She has written for numerous publications, including Business Insider, SmartAsset, and Rocket Mortgage.