Best Cheap Car Insurance for Drivers Under 25
Cheap car insurance for drivers under 25
Erie has the cheapest liability insurance for drivers under 25, with an average rate of $88 a month. It also has the cheapest full-coverage car insurance for young adults at $234 a month.
State Farm is the cheapest large company for drivers under 25. Its rates average $138 a month for liability car insurance Liability covers injuries and damage you cause to other people and their property. It’s required by law in almost every state. and $285 a month for full coverage Full coverage includes collision and comprehensive, which cover your own car for damage and theft. . USAA also has cheap rates for young adults. However, it’s only available to the military community.
Young adult auto insurance rates
| Company | Monthly liability | Monthly full coverage | LendingTree score | |
|---|---|---|---|---|
 | Erie | $88 | $234 |  |
 | Auto-Owners | $111 | $260 |  |
 | Country Financial | $120 | $258 | |
 | State Farm | $138 | $285 |  |
 | Geico | $140 | $348 |  |
 | Travelers | $148 | $303 | |
 | American Family | $150 | $381 | |
 | AAA | $162 | $373 |  |
 | Progressive | $167 | $485 | |
 | Allstate | $287 | $554 |  |
 | Nationwide | $293 | $577 | |
 | Farmers | $392 | $784 | |
 | USAA* | $95 | $236 | |
*USAA is only available to current and former members of the military and their families.
Your actual rate depends on factors like your driving record, location and age. For example, 18-year-olds usually pay more for car insurance than 24-year-olds. In most states, your credit history also influences your auto insurance rate.
It’s good to compare car insurance quotes from a few different companies before you buy or renew a policy. Each company uses a different system to determine your rate. Shopping around helps you find the cheapest rate.
Best car insurance for drivers under 25
Along with cheap rates, Erie has the best car insurance coverage options for drivers under 25. State Farm has the best car insurance discounts for young adults.
Country Financial has the best customer service scores. These include satisfaction ratings from J.D. Power J.D. Power’s satisfaction scores are based on customer surveys rating companies on factors like price, coverage options and problem resolution. and complaint ratings from the National Association of Insurance Commissioners NAIC tracks companies on confirmed, or substantiated, complaints. A company with a 0.5 rating has half as many confirmed complaints as average for its size. (NAIC).
USAA is best for young adults in the military community.
Best auto insurance for young adults
| Company | Best for | Satisfaction score** | Complaint rating*** |
|---|---|---|---|
| Erie | Coverage options | 700 | 0.93 |
| State Farm | Discounts | 657 | 0.78 |
| Country Financial | Customer service | 665 | 0.25 |
| USAA* | Military community | 739 | 0.99 |
Sources: J.D. Power 2024 U.S. Auto Insurance Study (640 is average, higher scores are better); NAIC 2023 complaint index (1.0 is average, lower scores are better).
Best auto insurance coverage for young adults: Erie
Erie’s auto policies include a few money-saving features at no extra charge. These include free accident forgiveness Accident forgiveness protects you from a rate increase after your first at-fault accident. after three years with the company. Erie also covers car accident injuries to a pet riding in your car.
The company has an excellent satisfaction rating. This means Erie’s customers are generally happy with its prices, coverage and customer service. On the other hand, its complaint rating is only average. That’s not bad, but it’s also not great.
Pros
Cheapest for drivers under 25
Money-saving features included for free
Excellent satisfaction rating from J.D. Power
Cons
Only available in 12 states and D.C.
Complaint rating is just average
Best discounts for drivers under 25: State Farm
State Farm’s Steer Clear can make its already low rates for drivers under 25 even more affordable. The program combines self-paced instruction on roadway safety with on-road driving exercises. This helps you improve your driving and save money.
State Farm’s Drive Safe & Save can help a driver of any age save more money. It uses a smartphone app to monitor your driving. You get a 10% discount just for signing up. If you drive safely enough, you can save up to 30% when you renew. Unlike some competitors, State Farm’s app doesn’t raise your rate for unsafe driving.
Pros
Full-coverage rate is 26% less than U.S. average
Steer Clear discounts for drivers under 25
Good customer service ratings
Cons
Not as cheap as some regional companies
Best customer service: Country Financial
Country Financial’s 0.25 complaint rating means it has one-fourth as many complaints as average for its size. Its satisfaction rating is also excellent. These are two good signs that the company doesn’t cut corners to offer cheap rates.
The company generally has low rates for all age groups. Its discount for college graduates under 25 makes it even more affordable for qualifying young adults. You can save up to 25% more through its app-based DriverIQ safety program.
Pros
Average liability rate is 29% less than U.S. average
Excellent customer service ratings
Discount for college graduates under 25
Cons
Only available in 19 states
Windshield repair coverage costs extra
Best for young adults in the military community: USAA
USAA is highly regarded for providing reliable insurance to the military community at low prices. The company has a higher satisfaction rating than any other auto insurer. It also makes it easy to manage your policy with a user-friendly website and smartphone app.
However, USAA may not be the best choice if you prefer personalized service. Its agents work in service centers. You usually get a different agent each time you call in for help. With other companies, you typically work with an agent in your area on an ongoing basis.
Pros
Affordable car insurance for drivers of any age
Easy-to-use website and smartphone app
SafePilot app doesn’t raise your rate for bad driving
Cons
Only available to the military community
No personalized service
How much is car insurance for drivers under 25?
Drivers under 25 pay an average of $171 a month for liability car insurance. Full coverage costs an average of $384 a month.
However, these rates vary by age. For example, 18-year-olds pay $263 a month for liability car insurance. At age 24, liability only costs $111 a month.
Young adult insurance rates by age
| Driver age | Monthly liability | Monthly full coverage |
|---|---|---|
| 18 | $263 | $576 |
| 21 | $138 | $316 |
| 24 | $111 | $261 |
| 25 | $97 | $228 |
| 30 | $87 | $205 |
| 35 | $86 | $200 |
Young adults generally pay more for car insurance than older drivers for a few reasons. For starters, young adults have higher crash rates than older drivers.
When you’re under 25, you usually also still need time to establish good credit. In most states, this can help you get cheaper car insurance in the future.
Male vs. female drivers under 25
When it comes to gender, women under 25 pay 8% less for liability car insurance than young men.
However, the gender gap for car insurance gets smaller with age. An 18-year-old woman pays 10% less for car insurance than an 18-year-old male. At age 25, women are only charged 1% less for liability car insurance than men.
Liability car insurance rates by gender
| Age | Monthly rate females | Monthly rates males | Savings for females |
|---|---|---|---|
| 18 | $249 | $277 | -10% |
| 21 | $133 | $143 | -7% |
| 24 | $109 | $113 | -4% |
| 25 | $97 | $98 | -1% |
| All ages under 25 | $164 | $178 | -8% |
Erie has the cheapest liability car insurance rates for males and females under 25. Among large companies, State Farm and American Family are cheaper than Geico for women under 25. However, Geico is cheaper than both companies for men under 25.
Under 25 liability rates by gender
| Company | Monthly rate females | Monthly rate males |
|---|---|---|
| Erie | $84 | $91 |
| Auto-Owners | $105 | $117 |
| Country Financial | $118 | $122 |
| State Farm | $125 | $150 |
| American Family | $128 | $171 |
| Geico | $138 | $143 |
| Travelers | $138 | $158 |
| AAA | $155 | $169 |
| Progressive | $162 | $173 |
| Nationwide | $281 | $305 |
| Allstate | $286 | $287 |
| Farmers | $381 | $403 |
| USAA* | $93 | $96 |
Car insurance requirements for drivers under 25?
The amount of car insurance you need when you’re under 25 depends on:
- Your state’s insurance requirements
- Whether you have a car loan
- Your financial situation
Most states require you to have liability insurance, but the required limits vary by state. In some states, you also need uninsured motorist coverage Uninsured motorist covers your and your passengers for injuries caused by a driver without insurance. , personal injury protection Personal injury protection covers injuries to you and your passengers, regardless of fault. or both. Your state’s minimum limits are a good starting point for deciding how much insurance you need.
If you have a car loan, your lender will also make you get collision and comprehensive, which cover your own car for damage or theft. Both are usually also worth getting for any car worth more than a few thousand dollars, whether you have a loan or not. However, neither is required by law.
In most states, you are financially responsible for injuries and property damage you cause to others in a car accident. If an accident victim’s expenses are greater than your liability limits, you may need to pay the difference.
Higher liability limits give you more protection. Consider limits that match your net worth.
Affordable car insurance for young adults
Shopping around and searching for discounts can make car insurance more affordable when you’re under 25. You can usually get cheaper rates on a parent’s policy, when possible, than you can on your own.
Reasons to shop around
Shopping around helps you avoid overpaying for car insurance.
- Companies continuously update the system they use to determine your rate. A company that charged you a high rate a few years ago may be a cheaper option today.
- You can also get more affordable rates after your credit improves or a violation comes off your driving record.
Best discounts for drivers under 25
Most companies offer big discounts for bundling policies and signing up for their safety program.
- It’s good to get quotes for all the policies you plan to bundle when you shop. This helps you find the most affordable rate for your entire bundle.
- Most safety programs use a smartphone app to monitor your driving. This may feel weird, but the savings can add up. Just make sure to read the fine print. Some companies raise your rate for unsafe driving, unless you opt out in time.
- Ask the insurance agents you contact for quotes about any other discounts that may be available.
Can I stay on my parents’ policy?
Most young adults get more affordable car insurance rates on a parent’s policy than they do on their own. You can usually stay on a parent’s policy if you live with them, regardless of your age. You may also be able to stay on a parent’s policy if:
- You’re in college and under 25
- A parent is on your vehicle’s title and you live on your own
Some companies handle these situations differently than others. It’s good to discuss your options with the insurance agents you contact for quotes.
Frequently asked questions
Erie Insurance has the best car insurance rates and coverage options for most drivers under 25. However, it’s only available in 12 states and the District of Columbia. State Farm is the best large car insurance company for most drivers under 25. It has cheap rates and good customer service ratings.
Car insurance is more expensive for drivers under 25 than it is for older drivers. However, if you’re in your early 20s, you usually pay less for car insurance than teen drivers. If you avoid tickets and accidents, your rates usually become more affordable each year. However, they may go back up if you get more insurance coverage or buy a fancier car.