Cheap Car Insurance for Teens and Young Drivers

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

Compare Car Insurance for Young Drivers

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.

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 it’s a hard cost to bear for young drivers who are insuring themselves. Most teen drivers work part-time at jobs that pay either minimum wage or close to it, which means much of their earnings are going to expenses such as insurance payments and gas. For these 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 as a young driver is all the more crucial.

As the economy recovers, there aren’t many parents out there eager to take on the high cost of their kid’s car insurance payments. Those parents that do pay their child’s insurance premium often feel the strain, especially if they have more than one young driver on their auto insurance policy at a time. For them, a more affordable car insurance policy for younger drivers would save a lot of worries and money. So it’s surprising so many parents simply add their teenage driver to their existing car insurance policy without doing anything to lower the cost.

How To Get Cheap Car Insurance as a Young Driver or Student?

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

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 is offering 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 Safe Driver & Distant Student Discounts

As a new driver, trying to qualify for as many discounts as possible can help make your insurance more affordable. From Good Student discounts to Safe Driver discounts, there are many available options for young drivers that can help drive down the cost of insurance. Many auto insurance companies offer students a discount that can be applied if they maintain a B or above in all their classes. Good2go Insurance offers customers a discount for installing an app on their cell phone that blocks texts and calls when they’re driving. Be sure to ask your insurer for any other discounts you could qualify for.

Insurance discounts also exist for college drivers who go away to school. These are known as Distant Student Discounts, and many insurances require you simply update the mileage you travel each day to possibly cut your rates. If you don’t take the car you drive to school, your parents may update the policy to reflect the change in how often the vehicle is being driven and how far. It may even lower your car insurance premium since you’re driving less. 

To qualify for a distant student discount, you typically have to attend school at least 100 miles away from home. Not sure where to start? We recommend speaking with your current insurance agent. Tell them you need to lower your rates and ask if they provide discounts for which you might qualify as a student or a parent of a student.

Enroll in a Driver Safety Course for Insurance Discounts

There are a wide range of driver safety courses available to young drivers and students. 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 gives you a discount for taking the course. Car insurance discounts from completing a safe driver class can range from 5 percent to 20 percent.

Drive a Less Expensive Car

Driving statistics have shown teen drivers are more likely to be involved in a serious accident. This isn’t helped by the kind of cars young drivers like to cruise around in. Nearly 50% of people that 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 safe sedan won’t give you any cool points. However, driving a less exciting car can significantly reduce how much you pay in 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 maybe settle for the four-door, four-cylinder car instead of the 2.0-liter turbo and use that money you saved for something else.

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, and it tracks your driving for things like speeding, harsh braking, and what times of the day you drive.

If you’re a good driver, you may get a premium adjustment after a couple of months of monitoring. Some insurers will offer discounts for not driving between 11 pm, and 5 am or limiting the number of miles you drive.

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What Company Offers Cheap Car Insurance for Young Adults & Teens?

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 even 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 pay more for their auto insurance in general, 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 & Teens by State

The state you live in can also have a major impact on how much you pay for auto insurance. That can be due to the 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 teens and 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

Gender can also impact auto insurance rates for teens and young drivers. Data typically shows male drivers will pay more for auto insurance than female drivers because they’re more likely to engage in risky driving behavior. 

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

The average monthly premium for female drivers under 15 is $154/mo

Average Car Insurance Rates for Young Drivers by Age and Gender

As the table above shows, men pay more for their auto insurance than women on average. 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 associated with having a roommate.

To reduce the chance of this happening, exclude your roommate from your auto insurance policy or get a joint policy together.

Getting Married

There are many benefits to getting married – one being 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 own vehicle. 

Simply let your insurance company know you’re married and get on the same policy with 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, meaning if they drive your vehicle, they’d essentially be driving without insurance and vice versa. 

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

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

Renting or Buying a Home

Finally, a significant life event that can impact auto insurance rates for young drivers 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 tend to 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

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

Cheap Car Insurance for College Students and Graduates

Like new drivers, college students face challenges not just with finding cheap insurance, but other big challenges, like living in a new area, finding a job, and studying for classes. On top of all that, it can be a real pain trying to balance out your finances like living costs, gas money, and insurance. None of these are easy tasks, but we can help with at least one – finding an affordable car insurance plan for a recent grad.

How to Find Cheap Car Insurance as a College Student

Buying affordable car insurance for college students or grads 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 or two from different 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 Check List

  • If you have your own policy, make sure your insurance policy reflects where you live and where you park the vehicle. Your address may be a variable that insurance companies use to price policies, plus having it updated makes submitting claims more efficient.
  • Check the limits on collision, comprehensive, and liability coverages. Colleges are densely populated with inexperienced, new drivers. Thus, accidents are more likely to happen. Checking your coverages in these areas will help ensure you have appropriate coverage if an accident occurs.
  • Theft of vehicles and personal items from within cars is more common on and near college campuses. Be sure to avoid leaving valuables in your car when parked on campus. And, of course, always lock your car.

Best Auto Insurance Companies for College Students and Graduates

Unfortunately, there is no absolute cheapest insurance company for college students and 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.

What About After Graduation?

If you’re a recent college graduate, what can you do to get a good deal on car insurance when buying your own car insurance policy? The first thing is to make sure you have a good credit score. A good credit score allows you a more affordable rate on car insurance. Be sure to keep your score up, too, 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 choose not to renew your policy when it expires.

Bundle Your Car Insurance Policy with Other Policies

You may have several insurance policies such as auto, renters, and perhaps 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 not only decrease your auto insurance premium but the premium for your other insurance products as well – leaving you one less bill to worry about.

Understanding What Coverage Limits You Need

As a recent college graduate, you may not be in the position to run out and buy a new car. Some get a new car from mom and dad, but not many. 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 comprehensive coverage.

Be careful, though, because while you can save money by changing coverage levels and deductibles, you can also get yourself into a tight spot if you don’t have money put aside to deal with issues that might arise.

The only way to get the best car insurance is to compare rates. Age, driving history, and your address are all factors insurance companies may consider when they price your policy. These factors are also currently in flux as a recent college grad, especially if you move out of state.

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

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

FAQs About Cheap Car Insurance for Young Drivers & Teens

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 either remain on your parents’ plan or compare auto insurance rates amongst different companies to see which company can get you the best deal. 

What insurance is best for young drivers?

The best insurance company 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. 

How can a 16-year-old get cheap insurance?

Buying coverage under an existing policy with your parents is the best way to get affordable insurance as a 16-year-old. Alternatively, you can obtain insurance quotes from multiple providers to save money. While insurance laws vary from state to state, many states do not require drivers to have full coverage.

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. In some cases, you can 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 best rate while maintaining quality coverage. 

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