Find best cheap car insurance for young adult drivers : Detailed Guide
Key Insights
- People are often confused between teen driver insurance and young driver insurance.
- Young driver insurance is generally for drivers between 21 years and 25 years of age.
- Gender plays a huge role in car insurance for young drivers; the difference can go up to $194.
- There are different car insurance companies that can provide you with affordable young driver’s insurance.
So you want to buy insurance for your car but terms like young driver’s insurance, car insurance quotes for young drivers scare you? We can understand your fear. The cheapest car insurance for young drivers is higher than the experienced old drivers. And RateForce is going to cover everything you need to know about buying a young driver’s insurance in this blog.
Our objective behind this blog is to help drivers understand who exactly is a young driver. Also to know how the insurance rates are different for this category of drivers. Keep reading till the end to ask and negotiate affordable car insurance rates. Happy reading !!
What age is a young drivers?
You might be wondering, I know the age of a young driver it is between 16 to 25 years or it is between 20 to 30 years. Well, the exact age of a young driver is a huge confusion among a lot of the drivers. That is why we decided to add this section at the beginning.
The exact age of a young driver is between 21 years old and 25 years old. This is the age group that most insurance companies consider while calculating the premium. But this age might vary in a few companies. Some insurance companies are still mixing teen drivers and young drivers. So in such companies, a young driver can be in between 16 years and 25 years old.
How much is car insurance for young drivers?
Before starting our research about the insurance premium cost of your profile it is better to know the average rates. This will help us understand and compare the rates of different companies.
Each company has its method to calculate the insurance rates, so the rates might have a huge difference between some companies.
The national average cost of car insurance for a young driver is $2263 annually for full coverage insurance. Our team at RateForce has analyzed the top insurance carriers in the country and then came up with the national average cost.
On the other hand, it can be $1568 for minimum coverage insurance for a young driver.
What company offers the cheapest car insurance for young drivers?
So which companies provide cheap car insurance for young drivers? Every state has its list of local car insurance carriers but some national companies are available all over the country.
We have created a list for you which includes all the top car insurance carriers in our country.
State Farm
State Farm insurance company is popular for its roadside assistance program. The company provides coverage for fuel delivery, battery jump-start, towing, and even locksmith services.
- The average annual premium for minimum coverage for a 21 years old driver in State Farm is $1059 while the average cost for full coverage premium is $2751.
- On the other hand, it is $1143 for minimum coverage and $1573 for full coverage for a 25 years old driver.
GEICO
GEICO is popular for its amazing discounts and competitive rates for young driver’s insurance. The college graduates can also apply for discounts based on fraternity, sorority, and alumni association membership. The company also provides a 15 percent discount to young drivers serving in the military.
- The average annual premium for minimum coverage for 21 years old driver is $712 and for full coverage, it is $2279.
- For 25 years old driver it is $1062 for the state’s minimum requirement coverage and $1573 for full coverage insurance.
Nationwide
The SmartRide program by Nationwide is gaining popularity day by day. Young drivers get a 10 percent discount on signing up for the unbearable repair cost. SmartRide program and up to 40 percent discount based on driving habits. This is insurance rating program is completely usage-based. It uses an app to track mileage, track acceleration, braking, and nighttime driving.
- The average car insurance rates for the minimum required coverage for a 21 years old driver are $972 and $2718 for full coverage insurance.
- While for a 25 years old driver the insurance cost for the state’s minimum requirement will be $1217 and $1789 for full coverage insurance.
What is the difference between young drivers and teen drivers car insurance?
This is a major confusion that most of the driver deals with most of the time. Young drivers and teen drivers are different. Insurance companies have now started considering teen drivers and young drivers as two different categories. The reason behind this is; there are a lot of factors that affect a teen driver and not a young driver. As a result, the insurance rate of a teen driver is higher than the insurance rate of a young driver.
The drivers between the age of 16 years and 20 years are considered teen drivers. And drivers between the age of 21 years and 25 years are called young drivers. We have a dedicated blog on the best insurance companies for teen drivers too.
Read more >> How to Find Cheap Car Insurance For Teen Drivers
Car insurance by age for young drivers – Between Age 21 to Age 25
The age of the driver affects the cost of car insurance a lot. As per most of the insurance carriers, age is directly proportional to the maturity and experience of the driver. As a result, young drivers get higher insurance rates than experienced old drivers.
A 21-year-old driver will get a higher insurance quotation as compared to a 25-year-old driver. The reason behind this is; insurance companies consider 21 years old drivers as high-risk drivers. Since the driver does not get to drive much and most of the drivers are new hence they can get into accidents easily. And too many accidents means too many claims which are not profitable for insurance companies.
As a result; they have higher insurance quotes for a young driver to cover their expenses.
| Company/Age | 21-year-old driver | 22-year-old driver | 23-year-old driver | 24-year-old driver | 25-year-old driver |
|---|---|---|---|---|---|
| Geico | $1,863 | $1,721 | $1,594 | $1,512 | $1,388 |
| State Farm | $2,689 | $2,463 | $2,244 | $2,079 | $1,823 |
| Nationwide | $2,733 | $2,670 | $2,253 | $2,064 | $1,800 |
| Progressive | $2,748 | $2,478 | $2,258 | $2,083 | $1,856 |
| Allstate | $3,231 | $3,017 | $2,866 | $2,749 | $2,383 |
Cheap car insurance for young drivers by state
Another major factor that affects the car insurance rates for any driver in the area they live and drive. And most importantly his/her city and state. The national average car insurance rate for young drivers is $2189.
Every insurance company checks different factors for each state to decide the annual premium of the policy. These factors include the crime rate of the state, the conditions of the road, and the weather conditions of the state. Based on these factors the company decides the insurance premium of the driver.
The below table contains the list of some states along with the best insurance carrier in that state. The table also contains the average full coverage car insurance rates provided by that company.
| State | Insurance Carrier | Average Full Coverage Car Insurance Rates |
|---|---|---|
| Alabama | Allstate | $1,653 |
| Arizona | Geico | $1,254 |
| California | Wawanesa | $1,861 |
| Colorado | American National | $1,078 |
| Florida | Geico | $2,983 |
| Georgia | Auto-Owners | $1,937 |
| Illinois | Pekin | $1,048 |
| Kentucky | Geico | $2,365 |
| Michigan | Geico | $1,652 |
| Missouri | Missouri Farm Bureau | $1,908 |
| Pennsylvania | Geico | $1,094 |
Car insurance for young drivers by gender
Wondering which is the best car insurance for young adults by gender? Gender plays an important role in car insurance rates for every driver and especially the young ones.
As per our analysis, male drivers get higher rates as compared to female drivers in all the top insurance carriers. One of the major reasons behind this can be, female drivers have clean driving records and history. Moreover; female drivers drive safer and within the limits as compared to male drivers.
But as the age of men increases the difference between the insurance rates between male and female drivers decreases drastically. You can see in the table, the insurance cost difference between 21 years old male and female drivers is approx $194.
On the other hand, the insurance cost difference between 25 years old male and female drivers is approx. $51 only. So with time and age, the insurance rates for males and females will be the same for every driver.
| Age | Male driver | Female driver | The Difference |
|---|---|---|---|
| 21 | $1,759 | $1,565 | $194 |
| 22 | $1,610 | $1,465 | $145 |
| 23 | $1,489 | $1,364 | $125 |
| 24 | $1,399 | $1,291 | $108 |
| 25 | $1,227 | $1,176 | $51 |
How to find affordable car insurance rates for young drivers?
Searching for affordable car insurance rates for a young driver can be a difficult task. Every company has its average rates and these rates are not at all affordable for a common citizen. Hence it is important to search for alternative ways to decrease the insurance rates. The best ways to reduce car insurance rates in every state are:
- Shop around and compare the rates: The best way to get affordable rates is to know what other companies are charging for the same policy. Once you have the list of all the insurance companies in your area and the average rates you can compare and check which companies have the lowest rates. Once you know the rates from different companies you can negotiate to get the best rates for your profile.
- Ask for discounts: There are so many types of car insurance discounts available for every driver type and every state. But most of the drivers are not aware of these discounts and hence they never ask their company. Make sure to discuss the discounts that are applicable on your profile and utilize them.
- Stay on your parent’s policy: Staying on your parent’s policy will provide affordable rates to a young driver. Also, the driver can get some extra discounts like policy bundling. You just have to request the insurance carrier to add you either as an occasional driver or a primary driver.
- Leverage the latest technologies: If you have full confidence in your driving skills and you know you follow all the rules then this method can save a lot of money. Some insurance companies offer a telematics device that stores important data about the driving habits of a driver. The device will be connected to your vehicle or will be operated through an app. This device can provide completely customized insurance rates based on your driving habits. If you were driving safely then you’ll get lower insurance rates and vice versa.
- Provide a lower-cost vehicle to a young driver: Most of the parents either buy an expensive car for their kids or share their valuable car with them. The value of your vehicle affects the insurance cost to a great level. So if you can assign a lower value small car to your kids then it can save a lot of money on insurance.
Lower value cars have low actual cost value hence even if they get totaled the insurance company will get lower claims to pay. On the other hand, valuable cars have higher actual cost value so their claims can be a lot higher.
Frequently Asked Questions(FAQs)
-
Which is the best car insurance company for drivers under 25 years?
Every company follows its method to provide the policy to every driver. Each company considers a lot of factors to decide the profile type of driver and based on these factors and profile they provide the policy. Hence, giving out just one name will be unfair and biased. But the best car insurance companies for drivers under 25 years old are GEICO, Nationwide, Progressive, Allstate, and USAA.
-
How much is the difference between the car insurance cost of a 21-year-old driver and a 25-year-old driver?
The difference between insuring a 21 years old driver’s car and a 25 year’s old driver’s car is between $800 to $1300. This difference can vary for every driver and it depends on factors like the type of car, the area the driver lives, etc. so it can be $1800 for one driver and $2300 for another.
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How to add a young driver to an existing policy?
There are two ways to add a young driver to your existing policy: 1. Online and 2. Manual.
If your company allows you to manage your profile online then you can add a young driver directly. The company will take some time to verify. Or you can call and inform your insurance company that you want to add a young driver to your policy. -
Which is the best way to save money on a young driver’s insurance?
The best way to get cheap car insurance for young drivers is to ask for discounts. You can check if you are eligible for student discounts or multiple cars discounts or any other discount. Ask your company’s agent to help you with the details and information about different car insurance discounts.
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How much insurance is required for a young driver?
Young drivers can get minimum requirement insurance as per his or her state or full coverage insurance. Both the options are available but it is always recommended to get full coverage insurance for young drivers. They have less experience and more adrenaline rush so to avoid getting unbearable repair costs it is better to keep yourself insured.
Conclusion
Now that you know everything about young driver insurance, we hope you’re ready to make your decision. And we hope all your confusions and doubts are now clear about which is the best company, and how to get affordable rates.
Still, having second thoughts? Need expert opinion about your insurance type and company? RateForce has a dedicated team for your assistance. Get in touch with us today.
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Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.
Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.
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