Best Car Insurance For Young Adults
Shopping for the best car insurance for young adults is more different than finding insurance for an adult driver. Insurance providers usually look at young drivers as inexperienced, so their rates are generally quite higher.
Although each insurance company tends to calculate the risks associated with driving differently, nearly all agree that writing a policy for young adults’ insurance is more speculative.
That’s why it’s essential for you or your guardians to shop and compare insurance policies to find the one that protects you and offers the best rate possible. If you don’t take the time to do your research, you risk purchasing an insurance policy that doesn’t adequately cover the unique needs of a young driver.
If you want to find the best insurance for young adults, it’s essential to ask the right questions. The information below provides a summary of young adult insurance requisites and helps you find affordable coverage from top companies.
What’s The Cost Of Car Insurance For Young Adults?
When insurance underwriters calculate rates for young adults’ insurance, they analyze a variety of risk factors and come up with a preset base rate.
In addition to your age and years of driving experience, insurance underwriters consider many other elements, including:
- Your gender
- Your driving record
- The make, model, condition and year of your vehicle
- Your credit history or the credit history of the main policyholder
- Other drivers insured on your policy
- Your average mileage per year
- Certain conditions specific to your geographic region
It’s important to remember that each insurance provider uses different calculations and considers factors differently when quantifying the risk associated with drivers.
Young adult drivers are generally viewed as high risk by insurers, since their inexperience usually leads them to make poor decisions, such as driving while distracted or under the influence.
According to the Insurance Information Institute, for every 100,000 registered drivers in the U.S., 36.76 of those aged 16 to 20 and 36.19 of those aged 21 to 24 were involved in fatal crashes. The average involvement rate for all ages is much lower, at only 23.42 per 100,000 drivers. Statistics like these have a major influence over the rates for young adults’ insurance.
It’s important to do your research when comparing insurance companies, especially if you want to find the best car insurance for young adults. To give you a head start, we’ve gathered average car insurance rates for young drivers in California, which is the most highly populated state in the U.S.
These serve as examples of what young people can expect to pay for insurance.
- A single female that has 1 to 2 years of driving experience, has no violations and drives between 7,600 and 10,000 miles per year on a Toyota Camry, can expect to pay between $1,129 and $5,030 for basic liability insurance in Burbank, Los Angeles County.
- A single female with 1 to 2 years of driving experience, who has one speeding ticket, one at-fault accident and drives between 7,600 and 10,000 miles per year on a Toyota Camry can expect to pay between $1,780 and $8,407 for basic liability insurance on a Toyota Camry in the same city in Los Angeles.
You can notice that traffic infractions heavily influence young adult insurance rates. The violation-free scenario above results in an average rate of $2,318, while a driver with a registered speeding ticket and accident receives higher quotes, averaging at $3,676.
Companies with the Best Car Insurance for Young Adults
The U.S. has no shortage of providers willing to write policies for young adults’ insurance. But if you want to find the best car insurance for young adults, you need to research the prices, discounts, and coverage options from several insurance providers.
It’s also good to start your shopping by looking for providers that have discounts to students, teen drivers, and their families.
Progressive offers a good student discount to reward young drivers who perform well in school. Students who have a “B” average or higher may submit their grades to qualify for lower insurance rates. Progressive also has additional discount options to drivers with multiple vehicles on the same policy, making it a great option for families with young adult drivers.
Liberty Mutual has a variety of discounts available to help young adults save big on insurance coverage. Students in high school and college under the age of 25 can submit their grades to qualify for insurance discounts, provided they maintain a “B” average or higher. Liberty Mutual also offers multi-vehicle discounts to families with young drivers, and discounted rates for young drivers who complete a driver training program.
QuoteWizard is an online marketplace that lets drivers enter their basic information to receive quotes from a variety of insurance providers in their area. QuoteWizard works with more than 40,000 insurance brokers across the country to provide users with a thorough rate comparison, making it easy to find the best car insurance for young adults. For young drivers who aren’t sure where to start shopping, QuoteWizard is a great option.
Travelers have several discounts aimed at young drivers. Similar to many of its competitors, this company presents students with the chance to receive discounted insurance rates if they maintain a “B” average in school. It also offers a student away-at-school discount, which lets families save 7 percent on their policy if the young driver attends school a minimum of 100 miles away from home and won’t be driving often. Young drivers who complete driver training programs can also save 8 percent on their insurance policy.
Allstate encourages safe driving habits among young adults with its teenSMART driver education program. Drivers who complete this program qualify for discounted rates. Allstate also has discounts for students who maintain good grades in school and those who attend school more than 100 miles away from their fixed address. With so many ways to save with Allstate, it’s definitely among the best options for young adults.
Esurance rewards young drivers who do well in school with discounted insurance rates. Students who maintain a “B” grade point average and are under the age of 25 qualify for this discount. Esurance also has a multi-vehicle discount, so it’s a perfect choice for families who share a policy.
State Farm offers several discounts for young adults. Its Steer Clear® and Drive Safe & Save™ programs encourage safe driving habits in young drivers, rewarding them with a discounted insurance rate. Additionally, State Farm gives discounts to young drivers who complete driver training programs, and students who maintain good grades in school can save up to 25 percent on their insurance policy.
USAA encourages families to add young drivers to their policy by giving price breaks for teens and young adults. Policyholders that add young people to their policy receive discounts like good student discounts and a driver training discount that rewards drivers under 21 years of age for completing driver education. A multi-vehicle discount is also available to families who share a policy.
MetLife gives young adults the opportunity to save up to 15 percent on their insurance policies if they maintain a “B” grade point average in school. Young drivers who’ve held their license for at least two years can qualify for further discounts by completing a defensive driving program.
Kelly Klee is an insurance brokerage with access to insurance from most of the top companies in the U.S. Hiring a broker can be the easiest way to find car insurance since they can recommend coverage options and liaise with your provider to negotiate the best rates. Insurance brokers like Kelly Klee can also research for discounts from each provider to make sure you and your young driver aren’t missing out on any.
How To Reduce The Cost Of Your Car Insurance For Young Adults
Although car insurance seems like a big expense, especially for young drivers paying their way, it’s necessary to purchase a good policy. Without valid insurance, young drivers risk license suspensions and hefty fines, as well as enormous auto repair and medical bills in the event of an accident.
For young adults, being responsible for damage costs after a car accident can have lifelong, detrimental consequences. For example, these expenses can cut into college and university tuition costs, hindering the college goals of young drivers. Therefore, it’s important to make sure you get insurance from a reliable insurer.
While rates may be higher for young drivers, there are several ways to reduce the cost of an insurance policy.
Here are a few tips to help you reduce your rate:
- Combine all vehicles and drivers in your household into a single policy
- Bundle your policies (homeowners, renters, life insurance, etc.)
- Complete driver training and advanced driver education courses
- Increase your deductible
- Reduce your mileage by carpooling or by taking public transportation.
- Reduce additional coverage on older vehicles
Once you’ve found your provider, it’s time for the sign-up process. Many top insurance companies have a variety of discount options for policyholders.
If you want to take get the best rates possible, it’s important to come prepared with any competing offers and the following information:
- The age and date of birth of all drivers on your policy
- Your full home address and mailing address (if it’s different)
- Your driver’s license information and information about your driving history
- Details of any tickets or other infractions on your record
- Information about where your vehicle is parked when at home
- Details about your vehicle(s), including make, model, year, condition, mileage, safety features, custom add-ons, and vehicle identification number
- An estimate of how many miles you drive on average per year
- Your estimated budget for auto insurance
- Proof of school grades if you or any drivers of your policy are enrolled in school
Bring the above information to your insurance appointment and you’ll secure the lowest possible rates for your young adult. Without the right information, you risk incurring a higher rate or receiving insufficient coverage for your driving needs.
Now that you know how insurance rates are determined and which questions to ask regarding discounts, it’s time to put your knowledge to the test. Take your time, get your quotes, and soon you’ll find the best car insurance companies for young adults at a great price.