Car insurance rates can vary widely for drivers under 35, but they can still find friendly rates by comparing the best auto insurance companies for young adults.
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Best Auto Insurance for Young Adults
Teen drivers pay the highest rates for auto insurance, and as the driver grows and enters young adulthood, rates descend, especially if the driver maintains a clean driving history.
No one likes paying for car insurance, but you should know that it’s necessary if you want to be behind the wheel. Don’t look past the word “necessary.”
Car insurance is mandatory in almost every state. Whether your loan, lease or buy a car in cash, when you want to drive it, you have to have car insurance.
Many factors are considered when computing your auto insurance rates, so it’s important to share your unique information with insurers, so you can find car insurance rates that meet your specific needs.
Cheap Auto Insurance for Teens
How is car insurance calculated?
Now that we have covered all the things a young adult driver has to do, let’s give you some insight into how does it all works.
- Age
If you’re a new driver and under 25 years old, your insurance will cost more than your parents. Because generally, young drivers are inexperienced, and the risk of crashing the car is higher in teens.
Why auto insurance is more expensive for young drivers?
The primary reason why young drivers pay the highest auto insurance rates is their lack of driving experience. Driving requires some reflexive responses and a certain level of intuition, which can only be gained by sitting behind the wheel and driving for yourself.
- Vehicle
The model of the car you want to buy insurance for influences your insurance rates. For example, sports cars have high insurance rates, because naturally, it costs more to repair or replace.
Also, if your car has built-in security features like anti-theft devices, you may qualify for a discount on your car insurance.
- Driving History
Having a staller driving record with good driving behaviors not only lowers your rates but will get you discounts.
- Credit Card History
In most states, auto insurance companies are allowed to charge drivers who have low credit ratings with higher insurance premiums. So, your credit score can affect your rates if it is in the dumper.
- Mileage
The more you drive your car, the higher the chances of having an accident. So, you have to pay more for your insurance and vice versa.
- Location
Your car insurance may cost more if you live somewhere where the chances of vandalism, accident, or theft are higher, like in urban areas.
The climate of the place you live (like if the risk of hail and ice storms are high or not), how much car repair costs in the area you live in, and how much auto insurance fraud occurs where you live affects your insurance.
Your parking spot impacts your insurance fee too. For example, if you park your car in your garage, the chances of vandalism, theft, or any other harm to your car decreases; therefore, your insurance fee lowers.
- Gender
The sex of a driver is a variable in how insurance companies determine car insurance rates. Statistically, women get into fewer or less severe accidents than men, and young male drivers pay more for insurance than young female drivers.
- Marital Status
Whether you’re married or not impacts your insurance fee. Research has proved that marriage drivers file fewer auto claims; therefore, insurance companies lower the married driver’s fee.
Best auto insurance companies for young adults
1. GEICO
GEICO is one of the best insurance companies out there. GEICO offers quite a few discounts and programs for young drivers:
Family Pricing Program. This program allows young drivers to get the same policy rates as an experienced drivers within the same family.
This plan encourages young drivers to establish a good driving record and maintain it without paying high premiums, which seems very discouraging.
Accident Forgiveness Program. Only one member of the family can get this discount because it only applies to one single policy. After the event of an at-fault accident, this discount helps avoid a rise in auto insurance rates.
Good Driver Program. You can save up to 22% on your car insurance premium if you pass five years without a single accident; this discount is called Good Driver Discount.
Five years may sound like a long time, but being a young driver, if you begin a policy, for example, a 16-year-old driver will be qualifying for this discount by the time they are 21.
Good Student. Drivers between16 and 24 who are full-time students with a “B” average or better can get this discount.
2. Progressive
Progressive is known for having some of the lowest auto insurance premiums, even for young adults. What makes the premiums they offer cheapest really comes down to the discounts it offers. Progressive is perfect for good drivers.
Safe Driver Discount. This discount is the most popular discount Progressive offers because, with this discount, you can save up to 31% on your premium but only if you haven’t had an at-fault accident or moving violation within the past three years.
Most auto insurance companies require at least five years without any incidents to qualify for this discount, but not progressive.
Teen Driver Discount. Adding a teen driver to your policy does make your rates rise significantly, but with Teen Driver Discount, you can lower your rates when adding a teen driver to an existing policy.
Good Student Discount. Progressive thought of good students who has a “B” GPA or better and considered a discount up to a 10%.
3. Allstate
Allstate may be known to be a little more expensive, but this fine company offers a large number of discounts to help both teens and young adults.
Accident Forgiveness. Allstate, like many other insurers, offers this program. Accident forgiveness is excellent; not only does it help you lower your premium, but in case of an at-fault accident, your premium will not increase afterward. Accident Forgiveness only and only applies to your first accident.
Safe Driving Bonus program. If you have a policy with Allstate, adding this feature is advised. With this program, you will receive a check-in your mail every six months that you didn’t have an accident to reward and encourage you to keep up the good driving behavior.
Allstate Car Insurance Reviews
4. Liberty Mutual
Liberty Mutual thought of discounts perfect for young drivers to lower their auto insurance premiums.
Away at School Discount. This discount will apply to students attending school at least 100 miles away from your home.
Good Student Discount. Full-time students who are under 25 and maintain a GPA of more than 3.0 (B) will get this discount from liberty mutual as a reward for their excellent grades.
Driver Training Discount. Completing a driver training course can get you this discount.
5. State Farm
Steer Clear program. State Farm offers this program specifically for drivers under age 25, and as the name suggests, you will be qualifying if you steer clear of any at-fault accidents or violations within the past three years. You can save up to 20% off your auto insurance premiums.
Drive Safe & Save Discount. By using information from your smartphone or your vehicle’s OnStar or SYNC communication service, State Farm will calculate your discount.
Defensive Driving Course Discount. Young Adults who complete a defensive driving course can receive 10% to 15% off of their policy.
Student Away at School Discount. Students who are living away from home while attending school or college and are only under 25 may qualify for this discount.
Good Student Discount. With this discount, students can cut auto insurance costs by having good grades (a GPA of more than 3.0 or B) as much as 25%.
6. Nationwide
Employer-Sponsored Plan Discount. If you work for an employer that participates in a Nationwide discount plan, you can get a discount as well.
Multi-Policy Discount. Bundle up your auto insurance with your other policies, such as renter’s insurance, and gain a discount.
SmartRide Discount. Nationwide have a safe driver criterion determined by a plug-in device. By installing this device, you will be getting the usage-based insurance program that enables you to earn a discount for safe driving.
Best Auto Insurance for Young Adults
While the price of car insurance is an essential factor, young drivers should look for more than just a reasonably priced quote from an insurance company.
Different insurance companies offer different levels of service and satisfaction to customers.
Some insurance companies offer extra assistance to young drivers, such as accident forgiveness or roadside assistance.
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