When you’re on the lookout for the best car insurance for new drivers under 25, you have many options and factors to consider.
Statistically, younger drivers pay higher monthly or annual premiums, so doing your homework is essential to lower your costs.
Collision rates are higher for drivers under the age of 25, and this is a contributing element when companies calculate policies.
While a good driving record or having good grades may help you lower your policy expenses, other factors are beyond your control.
It helps to know what you can do to get the best insurance for your specific needs.
Table of Contents:
What’s the Cost of Car Insurance for New Drivers Under 25?
In addition to your age, the pricing of your automobile insurance policy is affected by a variety of factors, including:
- Driving history
- The value of your car(s)
- Credit history
- Other people insured to drive your vehicle
- How many miles you drive
- Where you live and park your car(s)
Insurance companies know that younger drivers are less-experienced, therefore more likely to be involved in motor vehicle accidents. The Insurance Information Institute suggests that younger drivers choose vehicles that are known to be safe, and that college students who live away from home for most of the year can be eligible for reduced premium rates.
Best Car Insurance for New Drivers Under 25
Here are the top 11 companies that offer car insurance for young adults:
Younger drivers still enrolled in high school, college, or another learning institution may qualify for good student discounts, so be sure to have your latest grade report on hand when getting a quote.
Drivers who switch to Progressive Auto Insurance save an average of $668, and those who bundled their car insurance with other policies like homeowners or RV, earned an average discount of 5 percent.
The SnapShot® program is a personalized policy that bases your rate on how well you drive. The Safe Driver discount, available to drivers with a clean three-year history, can save customers up to one-third the cost of their policy. Numerous other discounts include multi-car plans, being a homeowner, signing up online, going paperless, and remaining a long-time customer.
Younger drivers who are behind the wheel only occasionally can save money with Metromile Insurance — but only if you have a vehicle registered in one of these eight states:
- New Jersey
Metromile bases its insurance premiums, in part, on how many miles your car travels each month. When you sign up for coverage, you’ll get a small device to plug into your car’s diagnostic port, under the hood.
The device, called the Metromile Pulse, tells Metromile your odometer reading. The device can also sync with an app on your smartphone to help you find a lost car — if it’s been stolen or if you just forgot where you parked.
Keep in mind your monthly mileage comprises only part of your monthly premium.
Traditional underwriting questions such as your age, your car’s safety features, and your driving history help set your premium’s base rate, which you’ll pay no matter how many miles your odometer records.
Still, Metromile has created an innovative approach. If it’s available in your state and if you drive less than 12,000 miles a year, which is the national average, Metromile could save you money.
You’d save the most money if your car leaves its parking spot only occasionally. If you drive more than 12,000 to 15,000 miles a year, you’d most likely pay more with Metromile than with another company on this list.
Fifty million consumers have used QuoteWizard’s comparison tools to find the best car insurance rates.
New drivers under 25 are advised by QuoteWizard to ask about discounts for good drivers, membership in a fraternity or sorority, and deductions for taking defensive driving classes.
QuoteWizard does most of the homework for you, since it lets you compare 30 auto insurance companies on a head-to-head basis. Customer reviews rated QuoteWizard a 4.2 out of 5 stars for its ease-of-use and efficiency.
This company falls under the auspices of the well-established Allstate insurance company and provides discounts for good driving habits, good students, home and auto policy bundling, and having the latest safety and anti-theft equipment on your car.
The company also gives a Fast F5® discount for simply getting an online quote, and the ClaimFree discount is available to drivers who’ve gone 60 months without a claim or DUI/DWI conviction.
Customers who pay-in-full annually are also eligible for price breaks on their auto insurance policy.
There are several ways to save on your premiums when insuring younger drivers with Liberty Mutual.
Good students under 25 can get discounted rates, and you can cut up to ten percent off your policy if you’re part of one of the 14,000 approved alumni or other organizations.
Accident Forgiveness® is a policy addition that keeps your premium rates stable even after a first collision.
This insurer provides quick, personalized quotes for your personal automobile policy. Full-time students with good grades are eligible for price reductions, as are those who attend school 100 miles or more away from home.
The company’s Drivewise® and Cellcontrol®are award-winning technologies that help monitor and improve a young driver’s road behavior.
Boasting an average savings of $547 for policyholders, Travelers has many discounts for drivers of all ages, including price breaks for good students and students studying away from home.
Allstate also offers lower insurance rates for drivers who use hybrid/electric vehicles and those who complete driving training courses.
Travelers Insurance has protected Americans and their assets for more than 160 years and has 13,500 local agents ready to help.
USAA serves 18 million former and current military service members and their families and is an excellent option for active military personnel under 25.
Those who have completed driver training programs have maintained good driving records, and good school grades can earn discounts on their auto insurance policies.
USAA has teamed up with tech giant AT&T to focus on distracted driving, with the innovative “Texting & Driving: It Can Wait” initiative.
This company offers a variety of discounts on auto insurance policies, including an accident-free offer and up to 25 percent off rates for good students. Mobile apps like Steer Clear® help drivers under 25 monitor themselves and qualify for more discounts.
You could save as much as 15 percent while learning to become a better, safer driver. It’s quick and easy to get your quote online or from a State Farm agent.
MetLife offers good-student discounts to drivers under age 25 who have maintained a B average or better for the high school or college semester preceding the purchase of their new policy.
Combo Insurance® bundles home and automobile policies for rate reductions and offers discounts for anti-theft devices installed on your car, low driving mileage, multi-car policies, and safe drivers.
Kelly Klee is a high-end insurance research and advice organization that seeks to match customers with policies that meet their needs. While most new drivers under 25 don’t insure specialty or other luxury vehicles, Kelly Klee can help with comparison shopping and recommendations.
Kelly Klee is a leader in combining modern technology with the best insurance products for high-net-worth families.
What Other Factors Affect Car Insurance for Young Adults?
Because younger drivers have higher-than-average insurance rates, they need to look out for other factors that affect the cost of their monthly or annual premiums.
Gender may factor into your insurance budget as well. When calculating risk, insurance companies keep records that show younger women have fewer accidents than their male counterparts and are less likely to break speed laws or to drive under the influence of drugs or alcohol.
Young women also tend to drive fewer miles and to purchase less-expensive vehicles than young men, so they have a bit of an advantage when purchasing insurance.
Where You Live & Drive Your Car
Where you live has an impact on the cost of your personal automobile policy. Whether you live in a city or suburb, car theft rates in your state and parking areas can change your monthly or yearly premiums.
For example, living in the city or parking your car outside would increase the chances of accidents or theft, so your premiums would adjust to that risk. However, if you live outside city limits and garage your vehicle, your rates would be lower.
Do You Have A Safe Driving Record?
Additionally, if you choose you can lower costs by having lower collision insurance.
In Connecticut alone, 1,049 people were killed in alcohol-impaired driving accidents from 2005 to 2014. Driving under the influence of alcohol or drugs can also increase your insurance premiums and may even cause you to lose your driving privileges altogether.
Following all traffic regulations and attending driver training classes when needed are excellent driving habits to practice and can also net you cheaper insurance, since it reduces the chances of accruing traffic violations.
Compare Prices & Policies
Shopping around is a sound strategy to use when looking for the best car insurance for new drivers under 25. Additionally, when looking for insurance, you may find this “jargon buster“handy when negotiating for your car insurance.
To better understand how costs between insurance carriers vary, we’ve gathered data about car insurance prices for new drivers under 25 in California.
- A male driver with three to five years of driving experience and a clean driving record, who drives 12,000 to 15,000 miles annually, may expect to pay on average $3,684 each year for a standard (full) insurance policy on a Toyota Tacoma in Indio (Riverside County), California.
- A female driver with six to eight years of driving experience and a clean driving record, who drives 12,000 to 15,000 miles annually, may expect to pay around $2,739 per year for a standard insurance policy on a Honda Accord in Indio, California.
These costs are averages, so they won’t be accurate for everyone. Therefore, it’s important to compare quotes from different companies if you want to find the three best car insurance that suits your needs. Since most states have mandatory minimum requirements for car insurance, it’s important to keep these numbers in mind when calculating what your insurance budget is.
How to Reduce the Cost of Car Insurance for Young Drivers
Although a personal automobile policy is an investment, you won’t have to break the bank to find the best car insurance for new drivers under 25.
You may look for discounts for good grades, driver training coursework, keeping your driving mileage driver to a minimum, or insuring a car that has modern safety features. Since the insurance companies listed above have a variety of discount available, you need to know which apply to you.
Tips for Extra Savings
Try using some of these recommendations for extra savings:
- Ask about low mileage discounts if you don’t drive very often or very far
- Inquire about reduced premium rates for good student discounts
- Maintain your good credit history or repair your credit score for future savings
- Tell your agent if you are attending college away from home
- Increase the deductible amount you pay, and lower insurance on older vehicles
Once you’re ready to speak to agents or click online, make sure you have the following pertinent information on hand.
You need this data to get the best, most accurate, and quickest rates for new drivers under 25:
- Your age, where you live, and where you park your car
- Estimated miles you drive per year
- An estimate of any assets you wish to protect
- Your driving history, including traffic violations and accidents
- A list of possible insurance premium discounts you wish to ask about, such as college student living away from home
You might have to invest some time to find reasonable auto insurance for new drivers under 25, but using the tips and research above can ease your research.
Doing your homework, getting at least three quotes from well-regarded insurers, and asking about the latest discounts can save you money and get the best auto coverage for you.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.