Young drivers often face high premiums when shopping for car insurance. Newly licensed drivers typically pay the most expensive premiums due to their lack of experience and increased risk of accidents.
To find the most affordable car insurance for your situation, it’s a good idea to shop around and compare rates from multiple companies. To help you find the cheapest car insurance for drivers under 25, we analyzed published rate data and found the cheapest companies.
| Insurance company | Monthly cost for full coverage for drivers under 25 | Annual cost for full coverage for drivers under 25 | Best for |
|---|---|---|---|
| Travelers | $208/month | $2,496/year | Lowest rates |
| State Farm | $214/month | $2,568/year | Safe drivers |
| Nationwide | $253/month | $3,036/year | Optional coverages |
| Geico | $267/month | $3,204/year | Discounts |
| American Family | $287/month | $3,444/year | Good students |
| Progressive | $325/month | $3,900/year | Online resources |
| Allstate | $361/month | $4,332/year | Teen drivers |
Best cheap car insurance for drivers under 25
Travelers
After analyzing recent car insurance rate data, we found that Travelers has the lowest rates overall. Travelers also offers a good selection of discounts, which include savings for students with a ‘B’ average or better, claim-free drivers, taking a driver training course, driving a hybrid, and attending school more than 100 miles from home, when you leave your car behind.
State Farm
State Farm is our top-pick for drivers under 25 who have no tickets or accidents on their driving record. If you enroll in State Farm’s Steer Clear program, you can qualify for a lower car insurance premium by demonstrating good driving behaviors every time you get behind the wheel. State Farm also offers a variety of other discounts, including savings of up to 25% for getting good grades in school.
Nationwide
Nationwide is our recommendation for drivers under 25 who want to customize their car insurance policy with endorsements. Nationwide has a wide selection of optional policies, including accident forgiveness, gap insurance, rental car coverage, and roadside assistance. The company also has some unique perks, like a vanishing deductible program.
Geico
Out of the best cheap car insurance companies for drivers under 25, Geico has the best discounts. Geico offers more than a dozen discounts, with savings for safe drivers, good students, taking a driver’s ed course, completing a defensive driving program, insuring a new vehicle, and insuring a car with safety features like anti-lock brakes and airbags.
American Family
Good students who maintain a minimum GPA can get a discount on their car insurance policy with American Family. The company also offers a discount for distant students and drivers under 25 who complete at least 40 hours of volunteer work per year for a non-profit organization.
Progressive
Progressive has some of the best online tools and resources, which can be helpful if you’re looking for the cheapest car insurance policy. You can use Progressive’s AutoQuote Explorer tool to compare rates from multiple insurers, or use the Name Your Price Tool to build a car insurance policy based on your specific budget.
Allstate
Allstate has the highest car insurance premiums out of the companies we reviewed, but it can be a good option for teen drivers. Young drivers under 25 can qualify for a smart student discount if they meet Allstate’s grade requirements or get teenSMART® certified. Allstate’s teenSMART® training program aims to help young drivers reduce the risk of accidents and comes with a discount in most states.
What is the average cost of car insurance for males and females under 25?
There are many different factors that impact the cost of car insurance. Two of the most important criteria are your age and gender. Among young adults, males tend to pay higher car insurance rates than females. However, for drivers over 25, females often pay slightly more for their coverage, depending on location. In the table below, you can see the average full coverage car insurance rates for male and female drivers under 25.
| Age | Monthly cost for male drivers under 25 | Annual cost for male drivers under 25 | Monthly cost for female drivers under 25 | Annual cost for female drivers under 25 |
|---|---|---|---|---|
| 16 | $558/month | $6,701/year | $497/month | $5,969/year |
| 18 | $422/month | $5,064/year | $373/month | $4,483/year |
| 20 | $300/month | $3,602/year | $265/month | $3,189/year |
| 22 | $221/month | $2,654/year | $201/month | $2,416/year |
| 24 | $195/month | $2,340/year | $180/month | $2,169/year |
Cheapest car insurance for drivers under 25 by state
Car insurance rates can vary significantly based on your location. For example, in New Jersey, the average annual cost of car insurance is $5,286 for a 16-year-old and $1,436 for a 25-year-old. In the table below, you can see the average full coverage car insurance premium for 16-year-old and 25-year-old drivers:
| State | Annual cost for 16-year-old driver | Annual cost for 25-year-old driver |
|---|---|---|
| Alabama | $3,012 | $737 |
| Alaska | $2,363 | $567 |
| Arizona | $4,152 | $903 |
| Arkansas | $2,980 | $773 |
| California | $2,534 | $900 |
| Colorado | $3,601 | $747 |
| Connecticut | $5,837 | $1,296 |
| Delaware | $4,949 | $1,116 |
| Florida | $5,301 | $1,440 |
| Georgia | $4,508 | $1,112 |
| Hawaii | $493 | $432 |
| Idaho | $2,071 | $484 |
| Illinois | $3,145 | $750 |
| Indiana | $2,056 | $533 |
| Iowa | $1,416 | $383 |
| Kansas | $2,405 | $683 |
| Kentucky | $3,736 | $1,020 |
| Louisiana | $6,488 | $1,449 |
| Maine | $1,906 | $556 |
| Maryland | $4,319 | $1,225 |
| Massachusetts | $2,808 | $729 |
| Michigan | $4,704 | $1,392 |
| Minnesota | $2,333 | $825 |
| Mississippi | $2,501 | $672 |
| Missouri | $3,247 | $825 |
| Montana | $2,468 | $506 |
| Nebraska | $2,209 | $561 |
| Nevada | $4,894 | $1,063 |
| New Hampshire | $2,412 | $702 |
| New Jersey | $5,286 | $1,436 |
| New Mexico | $2,439 | $575 |
| New York | $5,701 | $1,983 |
| North Carolina | $1,738 | $534 |
| North Dakota | $2,075 | $440 |
| Ohio | $1,976 | $543 |
| Oklahoma | $3,343 | $656 |
| Oregon | $3,608 | $940 |
| Pennsylvania | $2,642 | $717 |
| Rhode Island | $6,068 | $1,143 |
| South Carolina | $3,871 | $996 |
| South Dakota | $1,530 | $370 |
| Tennessee | $2,455 | $597 |
| Texas | $3,930 | $997 |
| Utah | $4,192 | $917 |
| Vermont | $1,384 | $428 |
| Virginia | $2,748 | $757 |
| Washington | $3,640 | $898 |
| West Virginia | $2,364 | $650 |
| Wisconsin | $2,265 | $519 |
| Wyoming | $1,404 | $339 |
How much car insurance should you have under 25?
The answer depends partly on your state’s insurance requirements. Every state has minimum liability coverage requirements in case you damage someone else’s property while driving. New Jersey has the same requirements for drivers, no matter their age. New Jersey requires all vehicle owners to carry personal liability insurance, uninsured/underinsured motorist insurance (UM/UIM), and personal injury protection (PIP). Collision insurance is optional in every state, including New Jersey. Here’s how these difference coverages work:
Liability
Drivers must carry at least $25,000 in bodily injury liability coverage per person and at least $50,000 in bodily injury liability coverage per accident. For property damage liability coverage, the minimum policy limit is $25,000.
Uninsured/underinsured motorist insurance (UM/UIM)
There are no mandatory coverage limits in New Jersey, but UM/UIM is required. That means you can choose a coverage limit up to the policy limits you select for liability insurance.
Personal injury protection (PIP)
New Jersey drivers must carry at least $15,000 in PIP per person or per accident. You can choose to buy coverage limits of $250,000 or higher if you want additional coverage for your medical bills.
Collision/comprehensive insurance
The coverage limits for optional collision and comprehensive insurance are the actual cash value of your vehicle. To arrive at that figure, subtract depreciation from the replacement cost of your vehicle. You might be able to choose a replacement cost value policy, which doesn’t include depreciation when you receive a claim payout.
How to lower your car insurance rate
Many drivers under 25 are looking for the cheapest car insurance, especially if they’re purchasing their own policy for the first time. Even though car insurance premiums for young drivers tend to be expensive, there are ways to potentially save money.
As you’re shopping for car insurance, pay attention to the discounts that each insurer offers. You can often get a discount for having no traffic violations or accidents, taking a defensive driving course, paying your annual premium in full, bundling your policies, and having certain safety features in your car, like an anti-theft device.
If you’re in school, you might be eligible for additional discounts. For example, many insurers provide savings for high school and college students who have a minimum GPA or attend college more than 100 miles away from home and don’t bring their vehicle to school. Some companies, like State Farm, have safe driver discount programs specifically for young drivers under 25.
Another way to lower your car insurance rate is to shop around. Getting quotes from multiple insurance companies will help you find the cheapest policy for your situation and the type of coverage you want.
Methodology
To find the cheapest car insurance for drivers under 25, we analyzed rate data published on insurers’ websites for individuals in this age group. We also studied average rates for drivers under 25 based on gender and location.
These rates are meant to help car insurance shoppers understand average rates based on data from multiple insurance companies. However, car insurance rates are personalized, so drivers might pay higher or lower rates depending on their unique profile and coverage needs.
Frequently asked questions (FAQs)
Why is Car Insurance so Expensive for Drivers Under 25?
Car insurance rates are more expensive for drivers under 25 due to their lack of driving experience. According to the CDC, young drivers between the ages of 16 and 19 have a greater risk of car accidents than any other age group. Compared to older drivers, teens are more likely to underestimate dangerous situations, drive without a seatbelt, drive distracted and make critical mistakes that can result in serious collisions.
While teen drivers pay the highest rates, the cost of car insurance typically starts to drop around age 25. This is assuming the driver has a clean record with no violations or insurance claims. Due to the high cost of car insurance for young drivers, it’s often cheaper for parents to add a teen driver to their existing policy, rather than purchasing a separate policy for the teen.
What is the cheapest car insurance for male drivers between 20 and 25 years old?
There is no single cheapest car insurance company for male drivers between the ages of 20-25. Car insurance rates are personalized based on factors like your driving record, location, insurance company, and age. For example, the cheapest company for a 20-year-old driver may not be the cheapest provider for a 22-year-old. To find the cheapest company for you, it’s important to compare quotes from multiple insurers.
Is insurance cheaper when you turn 25?
In most cases, car insurance rates start to drop around age 25. For example, Progressive advertises that rates drop by an average of 9% when a driver turns 25. However, it all depends on the individual driver. If you get a speeding ticket or a DUI right before your 25th birthday, your car insurance premium may not decrease (and could increase even more, depending on the situation).
Should I stay on my parents’ insurance policy in my 20s?
At some point, young drivers must decide if they will stay on their parents’ car insurance policy. In general, it’s cheaper to stay on a parents’ policy in your 20s than it is to purchase your own policy. At some point, however, you might have to get your own coverage. For instance, drivers are typically only allowed to stay on their parents’ policy while they have the same permanent address. That means if you move out, you may have to buy your own policy.
