Finding the best car insurance for young drivers can be a challenge. Inexperienced drivers who are under the age of 21 are statistically more likely to be at fault for a collision, posing a greater risk to insurance companies.
To offset this risk, insurers typically charge these drivers higher rates. For this reason, shopping for young drivers’ insurance may be difficult for customers on a budget.
It’s important for young drivers to obtain insurance as quickly as possible; after all, most states require that drivers have insurance before operating a vehicle, and the penalties for driving without coverage can be steep.
However, as eager you may be to get coverage, the process shouldn’t be rushed.
Getting a rate that won’t break the bank is possible by conducting careful research and gathering several quotes.
Use the following guide to get started.
What’s the Cost of Car Insurance for a Young Driver?
Unlike most products, car insurance doesn’t have a fixed price. Next-door neighbors who have the same coverage and drive similar vehicles may pay entirely different rates for their auto insurance.
That’s because insurers use complex algorithms to determine how likely a person is to file a claim.
Factors that influence a driver’s cost of coverage include:
- Driving experience
- Geographic location
- Marital status
- Whether you rent or own your home
- Vehicle year, make, model, and trim level
- Whether you’ve completed safe driving courses
- Credit score
Obtaining the best car insurance for young drivers doesn’t have to cost a fortune. Many insurers help responsible young drivers offset their higher cost of coverage by offering discounts for those who have good grades or have taken safe driving courses.
While its best to shop around for insurance using your own personal information, we’ve provided some car insurance averages for young drivers in California.
- A female driver with one to two years of driving experience who drives 7,600 to 10,000 miles annually and has one traffic violation in her history might expect to pay anywhere from $926 to $4,136 annually for a basic liability only policy on a Toyota Camry in San Diego County. The average cost comes out to $1,914.
- A male driver with one to two years of driving experience who drives 7,600 to 10,000 miles annually and a clean driving history might expect to pay anywhere from $780 to $3,633 annually for a basic liability only policy on a Toyota Camry in San Francisco County. The average cost comes out to $1,750.
As you can see even one traffic violation can significantly affect rates for young drivers.
Companies with the Best Car Insurance for Young Drivers
There are many auto insurance companies that offer the best car insurance for young drivers. Here are a few companies to consider as you begin your search for young drivers’ insurance.
Progressive is an online-based auto insurance company that promises quality coverage and an abundance of discounts. Because this insurer allows you to see its prices for coverage alongside the prices of its competitors, its website is a good place to start when researching young adult insurance.
With its unique Name Your Price ® tool, Progressive makes it simple for customers to determine how much insurance they can afford, which is often among the primary concerns of young drivers. Those who are looking for the best car insurance for young drivers should explore Progressive’s discounts for teen drivers, which can offset some of the expense of adding a teen to an existing policy, and the good student discounts for teens and college students who have good grades.
QuoteWizard is an online insurance marketplace that helps you find the best deal on young drivers’ insurance by providing quotes from its extensive list of partner insurance carriers. Drivers can compare costs, policy limits, and discounts, making it simple to find the right coverage to fit their needs. Many of QuoteWizard’s partner companies offer discounts for good grades, which can help high school and college students get the most affordable rate possible.
The company has high customer service scores and an A+ rating with the Better Business Bureau, and it connects customers only with the most highly rated and financially secure insurance providers. For those who are looking for the best insurance for new drivers, Quote Wizard is a valuable resource.
Esurance, which is a subsidiary of Allstate, is an insurance provider that is known for offering highly competitive rates and an extensive list of discounts. Policyholders looking for the best car insurance for young drivers can choose from an array of coverage options, including towing and labor costs, collision insurance, and comprehensive insurance, which are essential for new drivers who are still learning the ropes. To help offset the relatively high cost of young drivers’ insurance, Esurance offers a range of discounts, including a good student discount.
This discount is for high school and college students who are under the age of 25 and have a GPA of 3.0 or higher. Additionally, students who attend a Pac-12 school can save up to 15 percent off their premium.
Liberty Mutual, which is the fourth largest insurance provider in the world, has a presence in 20 countries. It is most recognizable for its teen driving campaign, for which it won the 2017 Internet Advertising Competition award for Outstanding Achievement in Advertising.
The company offers numerous coverage options for drivers, including better car replacement, towing and labor, and rental car services, along with its standard coverage. Liberty Mutual provides young drivers’ insurance with discounts that are specifically designed to help teens and their families save money on coverage.
If you are looking for the best car insurance for young drivers check out the company’s good student discount, which is for students under the age of 25 who have at least a 3.0 GPA. Those who are under the age of 21 who complete a qualifying safe driving program can get a Driver Training Discount.
Allstate is an industry-leading insurance provider that has strong financial ratings and a large network of local agents. In addition to its numerous coverage options, the company offers technology to help young drivers build good habits by reinforcing safe driving skills. The unique Drivewise® app promotes personalized experience by providing real-time feedback in-app safety alerts and tips for staying safe behind the wheel.
The teenSMART® advanced driving program features tutorials, tests, and in-app activities that address some of the key issues that are behind a majority of teen crashes. The app provides young drivers with immediate, interactive skill-related feedback, and it can help them score discounts on their insurance policies.
Additionally, policyholders have access to the Cellcontrol ™ app, which prevents young drivers from receiving calls, texts, and access to social media while they’re driving. Allstate also offers a student discount for drivers who are single, under the age of 25, and have good grades.
Travelers is a multinational insurer that offers a variety of auto insurance products, letting drivers build a policy that fits their needs. The insurer offers a variety of discounts as a reward for practicing safe driving habits.
The good student discount is given to students who maintain a 3.0 average or whose grades put them in the top 20 percent of their class. Travelers also offers a discount for students who are away at school, as well as a discount for young drivers who complete an approved driver training course.
Certain age restrictions apply, so it’s important to talk to an agent to find out if you or the young driver on your policy is eligible.
USAA, which was originally founded by a small group of U.S. Army officers who decided to insure one another’s vehicles, is available to those who have served in the military, as well as their immediate family. Children of those who are actively serving in the military or are veterans qualify for a 10 percent Family Legacy discount. USAA offers some of the best car insurance for young drivers with its discounts that are designed to promote good habits and save money.
The driver training discount, which is available to drivers who have completed a basic driver training course, is available to those under the age of 21. Good student discounts are available to young drivers who keep up good grades, and the safe driving discount is available to drivers who maintain a good driving record for five years.
These discounts are not available in every state, so as you’re searching for young drivers’ insurance, it’s important to speak to an agent to find out what discounts are available in your region.
State Farm is the largest auto insurance provider in the U.S. and it has built its name on providing numerous coverage options to fit the needs of any driver. The insurer offers an array of discounts for young drivers’ insurance, helping to ease the financial burden of having a less experienced driver on a policy.
The Steer Clear® safe driver discount, which is for teens and young adults, is awarded to young drivers who complete five training modules on the Steer Clear® app, drive for five hours in at least 10 trips, and earn a program certificate.
To be eligible, drivers must be under the age of 25, have a valid drivers license, and have no at-fault accidents for at least three years. State Farm also offers a driver training discount for drivers under the age of 21 and a good student for young drivers who maintain good grades.
MetLife, which has long been associated with the Peanuts characters Snoopy and Woodstock, has been selling auto insurance policies since the 1970s. The company offers a variety of options that may be useful for young drivers, including roadside assistance, gap coverage, and glass coverage, along with standard insurance coverage options.
To help inexperienced drivers afford auto insurance, MetLife offers a couple of discounts, including the good student discount for drivers under the age of 25 and discounts for completing driver training, driver improvement, or defensive driving courses.
Kelly Klee offers coverage for high-value vehicles and homes, providing personalized quotes for customers. Young drivers or their parents who have a high net worth can contact a coverage advisor, who compiles their information and provides customized recommendations on what types of coverage are right for their needs. Kelly Klee is ideal for individuals who need coverage options and policy limits that are outside of what other insurance companies provide.
It’s a great place to start when you’re looking for young drivers’ insurance, but you don’t have time to conduct careful research or you want expert advice on the best car insurance for young drivers.
How to Reduce the Cost of Your Car Insurance for Young Drivers
While young adult insurance usually costs more than insurance for older, more experienced drivers, there are ways to reduce the cost of coverage.
First of all, you might want to consider increasing deductibles for young drivers to score a lower premium. Because drivers with higher deductibles are less likely to file a claim, insurers generally charge them less.
Additionally, those who drive older cars may save money by foregoing optional insurance coverage.
Finally, identifying and reporting your vehicles’ safety features to the insurance company can often help young drivers save money on premiums.
To find the best car insurance for young drivers at the best price, make sure that you provide the insurance company with the necessary information.
- Make, model, year, trim package, and VIN for all vehicles on your policy
- Safety and anti-theft features for all vehicles
- How many miles each vehicle is driven per year
- Where the policyholder and all drivers live
- Where the vehicles are parked each night
- How many drivers will be on the policy
- How much liability coverage is needed
- The amount of deductible required
- The age of all drivers
- Driving records for all drivers
Whether you have just passed your driving test or are adding a newly fledged driver to your policy, by carefully researching the best car insurance for young drivers, you can find the right coverage for your needs and budget.
*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.