Insurance

Best Car Insurance for Young Adults | Bankrate

· Best car insurance for young adult drivers ... Bankrate's research revealed that Auto-Owners, Geico, Nationwide, Progressive and State Farm are 
44

Young drivers pay some of the highest average rates for car insurance due to inexperience and the higher likelihood of filing a claim. It is possible to find low rates for young drivers, though, and Bankrate can help. Our research highlights five companies that are among the best for young drivers, showcases average premiums for various ages and explains what discounts might help you lower your premium even more.

Best car insurance for young adult drivers

Bankrate’s research revealed that Auto-Owners, Geico, Nationwide, Progressive and State Farm are among the best car insurance companies for young adults. We started our analysis by analyzing average premium data from Quadrant Information Services. Knowing that car insurance rates are increasing in 2022, we focused on finding companies with low average rates for young drivers. We also took coverage options, young driver-specific discounts, policy features and third-party ratings into consideration to help you find a carrier that offers affordable rates and adequate coverage.

Remember that your rate may depend on factors such as if you are on a parent’s policy, are married, own a home or rent. To determine the average cost of car insurance for young adults across the U.S., Bankrate analyzed data for adding drivers to their parents’ policy and drivers on their own policy.

Auto-Owners

Best for discounts

Auto-Owners could be a good choice if you’re looking for a company with plenty of discount options. The company offers three dedicated savings programs for young drivers as well as a slew of other discounts that could help you save.

Perks Drawbacks Numerous discounts available Only available in 26 states and Washington, D.C. Several endorsements offered Lower-than-average claims satisfaction score from J.D. Power Age Average annual premium for minimum coverage Average annual premium for full coverage Age 20 $595 $2,073 Age 21 $545 $1,953 Age 22 $584 $2,096 Age 23 $531 $2,004 Age 24 $491 $1,884 Age 25 $439 $1,692

Read more: Hurricanes – Florida Climate Center

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Auto-Owners offers young drivers three distinct savings opportunities. If you’re a full-time student with a “B” or better letter-grade average, you may qualify for the good student discounts. Students who are away at school over 100 miles from home and do not have a vehicle with them are eligible for the student-away-at-school discount. Auto-Owners also offers its Teen Monitoring discount, which uses your vehicle’s GPS system to evaluate driving habits.

Learn more: Auto-Owners Insurance review

Geico

Best for low rates

Geico offers competitive car insurance rates for young drivers with a few years of experience. The company also offers a long list of discounts, including student discounts, that could help you lower your premium.

Perks Drawbacks Wide variety of discounts Few local in-person agencies Robust digital tools Few endorsements available Age Average annual premium for minimum coverage Average annual premium for full coverage Age 20 $569 $1,961 Age 21 $459 $1,613 Age 22 $469 $1,656 Age 23 $499 $1,776 Age 24 $473 $1,684 Age 25 $425 $1,521

Read more: Hurricanes – Florida Climate Center

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Read more: Understanding your insurance deductibles | III

Recent college grads might also earn discounts for alumni association membership and fraternity or sorority affiliation. Young adults who are active-duty members of the U.S. Armed Forces could earn up to a 15 percent discount, along with additional savings when deployed.

Learn more: Geico Insurance review

Nationwide

Best for customized policies

If you are looking for an auto insurer with plenty of options for personalization, Nationwide might be a good fit. The company offers numerous coverage add-ons, like roadside assistance and gap insurance, to help create personalized car insurance for teens and young drivers.

Perks Drawbacks Numerous endorsements available Lower-than-average claims satisfaction score from J.D. Power Telematics program could help you save Auto insurance is not offered in Alaska, Hawaii, Louisiana or Massachusetts Age Average annual premium for minimum coverage Average annual premium for full coverage Age 20 $780 $1,932 Age 21 $682 $1,677 Age 22 $693 $1,706 Age 23 $806 $1,991 Age 24 $752 $1,874 Age 25 $657 $1,621

Read more: Hurricanes – Florida Climate Center

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Young adults may be able to save money on auto insurance when they enroll in Nationwide’s SmartRide program. The program uses an app to track acceleration, braking, idle time, mileage and nighttime driving. Drivers get a 10 percent discount on certain coverage types just for signing up for this telematics program and could earn up to a 40 percent discount on certain coverage types depending on their driving habits.

Learn more: Nationwide Insurance review

Progressive

Best for digital tools

Although its premiums aren’t the lowest on our list, Progressive may appeal to young drivers who prefer to handle their insurance needs digitally. Additionally, Progressive offers several discounts which could help you get a lower rate.

Perks Drawbacks Higher-than-average digital service and shopping scores from J.D. Power Lower-than-average claims satisfaction score from J.D. Power Numerous discounts available Higher-than-average NAIC complaint index Age Average annual premium for minimum coverage Average annual premium for full coverage Age 20 $850 $2,458 Age 21 $830 $2,515 Age 22 $799 $2,418 Age 23 $780 $2,372.03 Age 24 $722 $2,183 Age 25 $643 $1,940

Read more: Hurricanes – Florida Climate Center

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Progressive’s robust mobile app includes options to pay your bill, view your policy information, request changes, call for roadside assistance, file and track a claim, and start a new quote. The company’s website is also robust, with an online portal for customers and plenty of information about Progressive’s products.

Read more: The Cheapest Car Insurance in Illinois for 2022 |

Learn more: Progressive Insurance review

State Farm

Best for local agencies

If you like working with a local agent, State Farm might be a good choice for auto insurance for young adults. The company has a network of 19,000 agents throughout the U.S. who can help you with your auto insurance needs.

Perks Drawbacks Large network of in-person agencies Accident forgiveness cannot be purchased, only “earned” Higher-than-average claims satisfaction score from J.D. Power Not currently available in Massachusetts or Rhode Island Age Average annual premium for minimum coverage Average annual premium for full coverage Age 20 $735 $2,161 Age 21 $675 $2,015 Age 22 $700 $2,088 Age 23 $646 $1,999 Age 24 $585 $1,853 Age 25 $523 $1,637

Read more: Hurricanes – Florida Climate Center

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Young people often need help navigating the challenges of university life or leaving the nest to live on their own. State Farm makes life a little easier for young adults with an exceptional roadside assistance program. This covers battery jump starts, fuel delivery, locksmith service, towing and up to one hour of roadside mechanic’s labor.

Learn more: State Farm Insurance review

Average cost of car insurance for young drivers

A driver’s age is one of the biggest factors to affect rates, except in Hawaii or Massachusetts, where age is not allowed to be used as a factor for calculating insurance premiums. While teens tend to pay the highest rates, drivers between the ages of 20 and 25 are still paying hefty average premiums. At age 20, for example, drivers pay 56 percent more for full coverage than the national average premium of $1,771 per year. After age 25, rates generally begin to normalize.

Age Average annual premium for minimum coverage Average annual premium for full coverage Age 20 $871 $2,758 Age 21 $760 $2,426 Age 22 $769 $2,466 Age 23 $785 $2,625 Age 24 $745 $2,494 Age 25 $654 $2,176

Read more: Hurricanes – Florida Climate Center

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Average car insurance costs for young drivers by state

Location is another critical factor in determining auto insurance premiums. Every state has different insurance laws, including different minimum coverage requirements, which can impact the rates set by every auto insurance company. Additionally, the risk of getting into an accident may vary by location, including your state, city or even ZIP code.

The table below illustrates the average annual full coverage premium for young adults, analyzed by state.

Average annual full coverage premium by age and state State 20-year-old 21-year-old 22-year-old 23-year-old 24-year-old 25-year-old Alabama $2,726 $2,468 $2,564 $2,778 $2,624 $2,189 Alaska $2,786 $2,401 $2,459 $2,668 $2,549 $2,143 Arizona $2,807 $2,570 $2,614 $2,611 $2,494 $2,119 Arkansas $2,852 $2,443 $2,471 $2,691 $2,560 $2,309 California $3,394 $3,072 $3,101 $3,147 $2,948 $2,750 Colorado $3,397 $3,081 $3,080 $3,056 $2,916 $2,469 Connecticut $2,294 $2,054 $2,067 $2,411 $2,279 $1,975 Delaware $2,983 $2,586 $2,512 $2,943 $2,816 $2,362 Florida $4,311 $3,651 $3,854 $4,046 $3,915 $3,468 Georgia $3,173 $2,783 $2,843 $3,018 $2,875 $2,542 Hawaii* $1,277 $1,256 $1,256 $1,265 $1,265 $1,265 Idaho $1,617 $1,415 $1,472 $1,662 $1,602 $1,347 Illinois $2,471 $2,190 $2,257 $2,452 $2,329 $1,941 Indiana $1,914 $1,693 $1,730 $1,955 $1,830 $1,538 Iowa $1,836 $1,654 $1,700 $1,867 $1,799 $1,530 Kansas $2,690 $2,443 $2,482 $2,703 $2,621 $2,226 Kentucky $3,014 $2,591 $2,650 $3,141 $2,974 $2,483 Louisiana $4,342 $3,906 $3,987 $4,274 $4,064 $3,524 Maine $1,469 $1,212 $1,258 $1,444 $1,384 $1,149 Maryland $3,215 $2,779 $2,830 $2,951 $2,750 $2,385 Massachusetts* $2,016 $1,889 $1,518 $1,641 $1,527 $1,480 Michigan $4,062 $3,522 $3,615 $3,486 $3,330 $2,707 Minnesota $2,418 $2,190 $2,318 $2,479 $2,380 $2,061 Mississippi $2,510 $2,211 $2,222 $2,542 $2,426 $2,148 Missouri $2,956 $2,599 $2,719 $2,974 $2,838 $2,355 Montana $2,769 $2,275 $2,412 $2,737 $2,638 $2,057 Nebraska $2,221 $1,990 $2,108 $2,306 $2,229 $1,867 Nevada $3,951 $3,519 $3,485 $3,591 $3,453 $2,981 New Hampshire $1,870 $1,560 $1,596 $1,920 $1,823 $1,553 New Jersey $2,897 $2,570 $2,583 $2,841 $2,694 $2,322 New Mexico $2,157 $1,990 $2,013 $2,214 $2,112 $1,849 New York $4,438 $3,835 $3,931 $4,155 $3,966 $3,509 North Carolina $1,585 $1,523 $1,518 $1,531 $1,499 $1,471 North Dakota $1,733 $1,645 $1,692 $1,741 $1,668 $1,483 Ohio $1,882 $1,669 $1,713 $1,928 $1,792 $1,543 Oklahoma $2,859 $2,629 $2,655 $2,771 $2,635 $2,313 Oregon $2,077 $1,913 $1,924 $2,022 $1,932 $1,678 Pennsylvania $3,352 $2,809 $2,801 $3,121 $2,943 $2,381 Rhode Island $2,845 $2,464 $2,517 $2,731 $2,624 $2,253 South Carolina $2,184 $1,915 $1,983 $2,228 $2,126 $1,840 South Dakota $2,154 $2,087 $2,115 $2,132 $2,066 $1,812 Tennessee $2,255 $2,023 $1,989 $2,201 $2,040 $1,799 Texas $3,156 $2,609 $2,643 $2,819 $2,664 $2,270 Utah $2,483 $2,171 $2,245 $2,238 $2,108 $1,771 Vermont $1,900 $1,507 $1,535 $1,612 $1,563 $1,241 Virginia $2,204 $1,856 $1,906 $2,200 $2,085 $1,756 Washington $2,135 $1,897 $1,823 $2,063 $1,961 $1,688 Washington, D.C. $2,958 $2,761 $2,771 $2,852 $2,675 $2,345 West Virginia $2,279 $2,047 $2,063 $2,306 $2,157 $1,856 Wisconsin $1,896 $1,745 $1,766 $1,883 $1,795 $1,556 Wyoming $2,189 $2,025 $2,160 $2,300 $2,206 $1,774

Read more: Hurricanes – Florida Climate Center

Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

*Hawaii and Massachusetts prohibit using age as a rating factor, but other factors may apply that cause rates to fluctuate.

How are rates determined for young drivers?

Auto insurance rates for young adults are determined in the same way as they are for older drivers. Several rating factors that determine car insurance premiums, including:

  • Age: Typically, drivers who are 25 and younger pay more for car insurance because their lack of driving experience may put them at a greater risk for causing accidents than older drivers. They are also more likely to file a claim because they are typically not as established financially as older drivers. Hawaii and Massachusetts state regulations do not permit insurance companies to use age as a rating factor.
  • Vehicle make and model: Some cars are cheaper to insure than others. Before buying a vehicle, getting a quote from your insurance carrier may be a good idea to make sure you can afford the coverage.
  • Credit: Most states allow insurance carriers to use your credit-based insurance score when calculating your policy rate. People with poor credit typically pay much higher rates than consumers with good credit scores. Regulations in California, Hawaii and Massachusetts ban the use of credit as a factor in determining auto insurance rates. Car insurance companies in Michigan cannot use your actual credit rating but can use factors that go into your credit rating. Washington is in the process of determining if credit should be used as a rating factor going forward.
  • Gender: Males usually pay higher rates than females pay for car insurance, even if they have clean driving records. Men are statistically more likely to get into accidents than women, and those accidents tend to be more severe. California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania ban the use of gender as a rating factor.
  • Location: If you live in an area with a high likelihood of accidents or damage caused by natural disasters, theft or vandalism, you may pay more for coverage. Additionally, every state has different insurance laws, which can affect premiums.
  • Mileage: The more you drive, the more likely you will have an accident due to being on the road more often. People who only use their cars occasionally may pay lower rates than people who are on the road more often.
  • Types and amount of coverage types: Drivers who purchase only the minimum required coverage types, such as bodily injury and property damage liability, generally pay less for auto insurance than motorists who also buy collision and comprehensive Lenders will typically require you to buy collision and comprehensive insurance, and most insurance experts recommend purchasing more than the minimum amount required to better protect your finances. Your deductible for certain coverage types will also affect how much you pay.

Because these variables will change your rate from carrier to carrier, it can be helpful to get several quotes before settling on an auto insurer.

Discounts for young drivers

Almost every auto insurance company offers discounts to drivers, and some even offer discounts specifically for young drivers. Finding a company that offers the right discounts for your driving habits may be the best way to get cheap car insurance.

  • Multi-car discounts: Most auto insurers offer a slight discount when you add multiple cars to a single policy. It does not fully offset the cost of insurance for each vehicle, but overall, the vehicles are cheaper to insure together.
  • Multi-policy discount: For drivers who rent an apartment and own a car, bundling their auto and renters insurance can be one way to make both policies more affordable.
  • Alumni association discounts: Many car insurance companies offer alumni association discounts for recent college graduates.
  • Good student discount: Most companies offer discounts for students who maintain a certain GPA or letter grade average. These student discounts are intended for full-time high school and college students and may save hundreds of dollars per year on insurance premiums.
  • Young driver safety training: Many companies offer discounts to students who have taken a driver education class or an approved driver training course. Most courses cover the rules of the road and teach young drivers to drive defensively.
  • Usage-based rating discounts: Usage-based rating is a relatively new way to reduce your auto insurance rate but could be a way to earn additional discounts. Carriers that offer these telematics programs require policyholders to use a mobile app or plugin device which monitors driving habits such as acceleration, braking, speed and trip distance each time they drive.
  • Distant student discount: Many auto insurers offer discounts for students who attend school away from home if they do not take a vehicle with them during the school term. You must be listed on your parents’ policy to take advantage of this discount.

Frequently asked questions

    • Can I save money if I add a young driver to my auto insurance policy?
    • Should I buy my teenager a new or used car?
    • How much will my car insurance increase when I add a young driver to my policy?
    • Which is the best auto insurance discount for a teenager?

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 20-year-old through 25-year-old male and female drivers with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually. The drivers are renters on their own insurance plans except for distant student discount rates, in which case the drivers are on their parents’ plan.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 20-40 applied. Depending on age, drivers may be a renter or homeowner. Rates for ages 20-22 are for the insured on a parent’s policy and reflect the total cost of three drivers and one vehicle. Rates for ages 23-25 reflect the young drivers on their own policy, insuring one vehicle.

Due to state regulations, age is not a contributing rating factor in Hawaii and Massachusetts.

0 ( 0 voted )

150 Charles

https://150charles.com
A remarkable site overlooking the expanse of the waterfront, 150 Charles Street is sited between the activity on the Hudson River and the history of the West Village

See more