+120 more){kind=small}
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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10+ years writing and editing insurance content
Published in Washington Post, LA Times, and more
Nick leads Compare.com's editorial team in creating helpful, easy-to-understand content about insurance and personal finance.
){kind=small}
25+ years teaching risk management and insurance
Managing director, Brantley Risk & Insurance Center
An Appalachian State Univ. professor, David teaches risk management/insurance. He's appeared in the NY Times, CNN, and more.
Updated
Teens, college students, and young adult drivers under 25 pay more for car insurance than other age groups because they lack driving experience and are at a higher risk of accidents. But if you’re a younger driver, you can still find plenty of ways to save on auto insurance.
Below, we break down average costs for young drivers, the cheapest car insurance, and ways to lower your rates.
Age is a major factor insurers look at when setting car insurance rates, and drivers younger than 25 usually pay the highest premiums.
Your car insurance rates usually start to come down once you turn 21, but you’ll see the biggest drop at age 25.
The cheapest auto insurance company for drivers younger than 25 is Country Financial, with an average monthly liability rate of $61.
No single insurance company is the cheapest for all drivers under 25. Insurers price risk differently, so your age, location, driving history, vehicle type, and coverage choices all matter.[1] That’s why it’s worth taking the time to compare quotes from several companies, especially if you have good grades and a clean driving record to qualify for auto insurance discounts.
COUNTRY Financial, State Farm, Auto-Owners, USAA, and GEICO often have some of the lowest car insurance rates for young drivers.
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Average Premium $69/mo* | Average Premium $78/mo* | Average Premium $69/mo* | Average Premium $77/mo* | Average Premium $113/mo* |
Overall Rating N/A | Overall Rating | Overall Rating | Overall Rating | Overall Rating |
Value N/A | Value | Value | Value | Value |
Customer Service N/A | Customer Service | Customer Service | Customer Service | Customer Service |
Claims Handling N/A | Claims Handling | Claims Handling | Claims Handling | Claims Handling |
Special Highlight N/AAI-generated from 0 user reviews | Special Highlight N/AAI-generated from 1068 user reviews | Special Highlight N/AAI-generated from 14 user reviews | Special Highlight N/AAI-generated from 217 user reviews | Special Highlight N/AAI-generated from 893 user reviews |
Below are other affordable insurers that may be a good fit for young adult and teen drivers, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| Country Financial | $61 |
| USAA | $96 |
| Auto-Owners | $107 |
| State Farm | $109 |
| Erie | $122 |
| Root | $133 |
| GEICO | $145 |
| The General | $154 |
| American Family | $161 |
| GAINSCO | $163 |
| Dairyland | $164 |
| Commonwealth Casualty | $166 |
| Clearcover | $167 |
| Mile Auto | $169 |
| Mercury | $174 |
| Bristol West | $185 |
| Direct Auto | $189 |
| National General | $190 |
| Elephant | $190 |
| Safeco | $191 |
| Plymouth Rock | $210 |
| Liberty Mutual | $214 |
| Travelers | $229 |
| Anchor | $230 |
| Farmers | $233 |
| 21st Century | $237 |
| AssuranceAmerica | $244 |
| Chubb | $272 |
| Shelter | $288 |
| The Hartford | $351 |
| Amica | $427 |
| State Auto | $454 |
| CSAA | $481 |
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Car insurance costs more for drivers under 25 because age and experience play a big role in how insurers assess risk. Younger drivers have fewer years behind the wheel and take more risks, like speeding, which statistically leads to more accidents and claims.
Teen drivers, especially new drivers, have the highest accident rate, so they pay higher premiums than young adults in their 20s.[2] [3] For example, average full-coverage rates from GEICO run about $254 per month for teens, while drivers in their 20s pay around $171 per month.
The good news is that rates usually drop as new drivers gain experience, especially by their mid-to-late 20s.
Compare personalized quotes from top insurers side by side.
The average cost of car insurance for teens is $268 per month, according to our data. But you should see rates come down as you age and get more experience behind the wheel.
Check out the table below for average car insurance premiums for teens and drivers in their 20s, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| USAA | $96 |
| State Farm | $109 |
| GEICO | $145 |
Company | Average Monthly Premium |
|---|---|
| USAA | $68 |
| State Farm | $71 |
| GEICO | $95 |
When you’re younger than 25, you have ways to get cheaper car insurance. Here are a few tips to lower your premiums:
Compare quotes regularly. Shop around and compare car insurance companies at least once per year to make sure you have the best deal.
Choose the right vehicle. Driving a midsize used car with strong safety ratings and features like electronic stability control could help lower rates for teenage drivers, according to the Insurance Institute for Highway Safety (IIHS).
Avoid tickets and accidents. Maintaining a clean driving record qualifies you for the best rates and car insurance discounts, like a safe driving discount.
Keep your grades up. Some insurers offer a good student discount that could help lower your premium.
Adjust deductibles. If you can afford a higher deductible for comprehensive and collision coverage, you may get a cheaper rate.
Stay on your parents’ policy. It’s generally cheaper to stay on your parents’ car insurance policy than to get your own policy.
Compare auto insurance quotes and find the right policy for you.
Generally, you get cheaper rates by staying on your parents’ policy since risk is spread across multiple drivers and you may be eligible for more discounts. But you may need to live at home and likely can’t own a vehicle registered in your name.
Simpler claims and policy management
Eligible for multi-car and other discounts
Long policy history can help lower pricing
Claims and tickets can raise parents’ rates
Young driver doesn’t have control over coverage
Parent must be listed on vehicle title
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Car insurance discounts are especially important for high-cost age groups. They’re one of the easiest ways for young drivers to lower premiums without changing coverage or deductibles. Many insurers will stack discounts, so qualifying for even one or two can make a noticeable difference in how much you pay for car insurance.
As a driver younger than 25, you may qualify for some of these common discounts:
Good student discounts for teens and college students who get a B or better GPA
Driver education or training discounts for completing an approved safety or defensive driving course
Telematics or usage-based programs that reward safe driving habits, like smooth braking and staying under the speed limit
Multi-car and multi-policy discounts for insuring more than one vehicle and having another insurance policy, such as renters or home insurance
Ask your insurance agent about any available discounts that you may qualify for.
For young drivers, finding car insurance that offers the right coverage without straining your budget doesn’t have to be hard. Below, we answer the most common questions about under-25 car insurance to help you find affordable coverage.
Car insurance rates for someone under 25 vary widely. Premiums depend on your age, ZIP code, the type of car you drive, what discounts you qualify for, and your coverage needs.
The best car insurance for people younger than 25 helps protect you financially after an accident. We found that State Farm, COUNTRY Financial, Auto-Owners, GEICO, and USAA are among the best insurers for young drivers. They offer affordable rates, financial stability, and high customer satisfaction.
Yes. Drivers under 25 have the least driving experience and the highest crash rates, making them more expensive to insure than any other age group. Rates are usually highest for teens and start to go down once you turn 21.
The cheapest car insurance for drivers under 25 varies by driver. When determining rates, insurers factor in your age, driving history, vehicle, coverage choices, and discount eligibility. Comparing quotes from multiple companies can help you find the cheapest rate.
In most cases, yes. Most insurers allow young drivers to stay on a parent’s car insurance policy if they live at home or go to college full-time and don’t have a vehicle solely in their name.
Staying on your parents’ existing policy is usually cheaper than getting your own insurance since you can often benefit from their established relationship with the insurer and may qualify for more discounts.
Yes. Car insurance rates typically drop slightly when you reach 21. You should also see a noticeable decrease at 25 as long as you maintain a clean driving record.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
10+ years writing and editing insurance content
Published in Washington Post, LA Times, and more
Nick leads Compare.com's editorial team in creating helpful, easy-to-understand content about insurance and personal finance.
25+ years teaching risk management and insurance
Managing director, Brantley Risk & Insurance Center
An Appalachian State Univ. professor, David teaches risk management/insurance. He's appeared in the NY Times, CNN, and more.
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