Best Cheap Car Insurance for Young Drivers

See If You Qualify for Lower Rates

Car insurance for young drivers is designed for drivers aged between 18 to 25.

This type of insurance provides the same protection as any other vehicle policy; however, it is typically much costlier. This is because many insurance companies believe young drivers are inexperienced and at a higher risk of getting into accidents.

At TrySmartly, we believe that information is a powerful tool for making better insurance decisions. That’s why TrySmartly’s free online request form helps young drivers search for car insurance options that fit their coverage and budget needs. Here is the list of some of the leading cheap car insurance companies:

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Factors Influencing Insurance Rates for Young Drivers

While age is the primary factor insurance companies consider when determining rates for young drivers, there are also several other important personal and financial components insurance companies take into account. Below are additional factors that influence insurance rates for young drivers:


Female drivers tend to pay less than men, as insurers believe women practice safer driving habits than men. As a result, female drivers may enjoy lower rates compared to male drivers.

For example, studies have shown that 20-year-old male drivers pay around $255 more than their female counterparts. Nonetheless, the difference becomes less significant throughout the years. For instance, after five years, male drivers end up paying around $40 more than female drivers.


Drivers who live in highly-populated areas like urban areas tend to pay more for their policies. This is because urban areas typically have higher rates of accidents, theft, and vandalism. In addition, auto insurance premiums are regulated at the state level. This means that each state sets its own price based on factors like traffic density, road conditions, weather conditions, and the likelihood of natural disasters.

As such, states prone to natural disasters will likely have higher premiums than states not prone to harsh weather conditions. For example, Louisiana is the most expensive state for full and minimum auto coverage as it is prone to natural disasters like hurricanes, tornadoes, and flooding.

Marital Status

As young drivers age and get married, the change in their marital status can also affect their insurance rates. Married couples are often seen as financially more stable and safer drivers. Hence, they may enjoy more affordable premiums. According to our research, married drivers pay around $160 less on their premiums than single drivers.


Like getting married, buying a home can also open up car insurance savings possibilities. This is because most insurance companies allow people to bundle their auto and homeowners insurance policies and receive a multi-policy discount. When bundling their home and auto insurance policies, homeowners save around 5% to 25% on their premiums.

However, if you’re not a homeowner, you’re not completely out of luck. Some insurance companies also offer insurance bundles for auto and renters’ insurance. This option can help young drivers save money on both policies.

Credit Score

Again, as young drivers age, their credit scores are also likely to change, which can impact how much they pay. Insurance companies use a variation of your credit score, called credit-based insurance score, to determine the likelihood you may file a claim. This score considers a person’s length of credit history, payment history, amount of debt, recent credit inquiries, and accounts in good standing. For instance, drivers with poor credit pay around 93% more than those with good credit.

However, California, Hawaii, Maryland, Michigan, and Massachusetts do not allow the use of drivers’ credit scores when calculating car insurance rates.

Driving Record

Car insurance companies rely heavily on your driving history to determine your car insurance rates. For instance, drivers with safe habits and clean driving records are more likely to pay less for coverage than those with a history of speeding tickets, traffic violations, and at-fault accidents.

In addition, each violation has a unique set of consequences. For instance, some insurance companies might forgive a minor traffic violation but won't be as forgiving with an at-fault accident. Also, insurance providers check your driving history when your policy is up for renewal. As a result, your premium will only increase due to a violation or accident when you renew your policy.

Here is a list of the most common traffic violations and their impact on your car insurance rate:

Minor Moving Violations: Relatively minor incidents like speeding, rolling through a stop sign, or running a red light are considered less severe violations. Nonetheless, the driver still risks others when committing these violations, as it can lead to accidents and other damage. Depending on the type of violation, the consequences of those actions greatly vary.

For instance, receiving a speeding ticket for going more than 20 miles per hour over the limit is more likely to result in an insurance rate spike than a ticket for a lower speed. However, as a teen or young driver, even minor violations can significantly impact your rate as you don’t have years of driving experience.

At-Fault Accidents: At-fault accidents are more severe violations than most traffic tickets since the extent of the damage is more severe. As a result, insurance companies see you as a risky policyholder and increase your rate. In addition, at-fault accidents stay on your record for three to five years, resulting in potentially expensive insurance rates for several years. Nonetheless, you may reduce your insurance premium and receive a discount if you enroll in a safe driving course and maintain a clean driving record after an accident.

Driving Under the Influence: A DUI violation is one of the most significant violations you can commit. It can result in hefty fines, alcohol education programs, misdemeanor or felony convictions, imprisonment, and a substantial increase in your insurance rates. You may also risk losing your driver’s license and have to file for SR-22 insurance to reinstate it. Note that an SR-22 isn't an insurance policy but a form of proof that a driver carries the state's minimum required liability insurance.

However, not all insurance companies offer SR-22. We encourage you to take advantage of TrySmartly’s free online request to search for insurance policies for young drivers with a DUI.

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Top 5 Cheap Car Insurance Companies for Young Adults

Insurance companies weigh personal and financial factors differently, resulting in different policy and price estimates for young drivers. That’s why we encourage you to fill out our free online request form to get an estimate from some of the top-rated insurance providers. Here’s a look at some of the best cheap car insurance for young adults:

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USAA holds the top spot in providing cheap car insurance for young drivers. According to our analysis, young drivers are expected to pay around $986 for a full coverage policy yearly or $82 monthly. When compared to the average representative prices of larger insurance companies, this can result in savings of around $800. USAA is also among the top insurance providers known for its customer service and claims handling.

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Geico also offers one of the best car insurance for under 25 drivers. Though each driver’s quote varies based upon numerous factors, young drivers are expected to pay around $1,158 annually or $96 monthly for a full coverage policy with Geico. This number is $631 lower than the average from other providers. Geico also offers eligible drivers with good student or driver’s training discounts. In addition, the company has a good reputation for handling car insurance policy claims.

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CState Farm offers one of the most affordable insurance rates for young drivers. However, even though the company isn’t very cheap compared to the previous options, it is still more affordable than other insurers. According to our study, the average annual cost for a young driver ranges around $1,333, or $111, every month. Those rates are about $450 cheaper than the average cost from other providers. State Farm also offers multiple discounts for young drivers aged 18 to 25, including a good-grade discount. State Farm’s Steer Clear program also helps teens and young adults improve their driving skills and save on the company’s auto insurance.

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Nationwide’s rates may not be the lowest compared to other insurers, but it still offers affordable car insurance for young adults. Young adults can expect to pay around $1,258 yearly or $105 monthly for a full coverage policy. This can result in a total savings of about $500 a year. In addition, Nationwide also offers various discounts to young drivers and access to the Nationwide SmartRide program that rewards safe drivers with a 10% to 40% discount.

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Travelers’ rates for young adult drivers skew slightly to the pricier side. Nonetheless, it is still among the cheapest. The average yearly cost for a young driver ranges around $1,437 or $120 a month for full coverage. These rates are around $350 cheaper per year than more expensive companies. Travelers also offers discounts for students attending and residing at a school more than 100 miles away from home, with good grades, or those who take a driving course.

How to Lower Car Insurance Rates for Young Drivers

Whether you have basic liability insurance or full auto coverage, it’s important to ensure you get the best deal possible. As a young driver, here are five ways to lower your rates and save on car insurance costs:

Get a Good Student Discount

Student drivers up to 24 years old who rank in the top 20% of their class or have a minimum B average may qualify for a good student discount. For instance, you may be eligible for State Farm’s student discount, which can help you save up to 25%. Most insurers reward student drivers because they believe that good students tend to be safer drivers.

Enroll in a Defensive Driving Course

Some insurance companies provide driver safety courses to teach young and inexperienced drivers the rules of the road. They may also offer a discount of about 10% for drivers who complete the defensive driving course. State Farm, Allstate, and Travelers are all examples of auto insurance companies that reward drivers with a discount upon completion of required driver safety training courses. These courses teach about the driver's responsibilities, proper parking, pedestrian rights, traffic laws, changing lanes and turning, navigating intersections, driving on interstates and highways, and more.

Increase Your Deductibles

Generally, the lower the deductible, the higher the annual premium. At the same time, the higher the deductible, the lower the premium. Deductibles are the amount you would have to pay out-of-pocket before your insurance plan starts to pay in the event of an accident, theft, or other vehicle damage. Depending on the policy, they typically range from $250 to $1,000. So, ask your agent how your premium might be affected if you raise your deductible.

Opt for a Different Make or Model

The make and model of your vehicle can have a significant impact on your car insurance rates. Typically, small and large vehicles cost more to insure because they sustain more damage and cause more damage in an accident, respectively. Additionally, newer cars cost more because they have had less time to depreciate, meaning it will cost more to replace the vehicle. However, there is an exception for vintage and antique cars. In addition, vehicles with extra features like sound systems, convertibles, and leather interiors cost more. Finally, luxury and foreign cars come with higher insurance premiums.

Although you may be eager to drive a new sports car as a young driver, the cost of insuring your new ride might be out of your budget. As a result, you can opt for a vehicle without all the bells and whistles instead. In turn, it can help you save some money on your rates.

Shop Around

Shopping around and obtaining quotes from multiple companies is one of the most effective ways to find lower rates. So, if you’re searching for cheap car insurance for young drivers, take advantage of TrySmartly’s free online request to search for quotes from reputable auto insurance companies. The process will take just a few minutes and may result in significant savings.

How Insurance Prices for Drivers Under 25 Change Over the Years

For 18-year-old drivers, the cost of auto insurance is typically at its highest. This is because insurance companies believe young drivers are inexperienced behind the wheel and may be more prone to accidents. However, as younger motorists gain more experience, the prices of their policies begin to decrease gradually.

Age Annual Full Coverage Estimate
18 $5,139
19 $3,919
20 $3,782
21 $2,896
22 $2,779
23 $2,759
24 $2,614
25 $2,098

Car Insurance For Young Drivers FAQ

Here are the most commonly asked questions about auto insurance for young drivers:

How Much Does Car Insurance for Young Drivers Cost?

The cost of car insurance varies on different factors, including the driver's age, gender, marital status, location, driving history, and credit score. Generally speaking, young drivers, especially teens, tend to pay more than older drivers as they are inexperienced behind the wheel and more susceptible to road incidents.

According to our research, the average 18-year-old pays around $5,139 for a full coverage policy, whereas a 22-year-old pays about $2,779. At the same time, a 25-year-old pays approximately $2,098. As you gain experience on the road and maintain a clean driving record, your insurance policy costs tend to decrease.

What Are the Different Types of Car Insurance for Young Drivers?

The different types of car insurance include the following:

Bodily injury liability: covers damage to the other driver's medical damages if you are at-fault in an accident

Property damage liability: covers the cost of property damages to the other party if you are at-fault in an accident.

Collision coverage: covers damages to your vehicle regardless of who is at fault.

Comprehensive coverage: covers damage caused by non-collision events like theft, vandalism, or weather-related damage.

Personal injury protection (PIP) and medical payments (MP) coverage: covers the driver's medical expenses in case of an accident.

Uninsured motorist coverage: covers damage to you and your vehicle if you are in an accident with a driver who does not have insurance.

Underinsured motorist coverage: covers damage to you and your vehicle if you are in an accident with a driver with minimal insurance that doesn’t cover the full cost of damage.

How Much Coverage Does a Young Driver Need?

Every state sets its own minimum car insurance requirement. In order to lawfully operate a vehicle in the state, the driver must obtain the minimum amount of coverage set by the state. However, if you are a new and inexperienced driver, you may opt for additional coverage options like collision and comprehensive coverage. Typically, these insurance plans come at a higher cost, but they can save you hundreds to thousands of out-of-pocket expenses if you are in a future accident.

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