Updated: May 20, 2024
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For 24-year-olds seeking full coverage car insurance, the average yearly cost is $1,891 when added to a family policy. Nationwide offers the cheapest full coverage car insurance for 24-year-olds, with an annual rate of approximately $1,565.
Factors influencing these rates include driving history, location and the type of vehicle. While gender still plays a role in most states, it's less significant than during the teenage years, with driving record and location becoming more important.
Car Insurancefor 24-year-oldsThe average cost of car insurance for 24-year-olds is approximately $1,891 per year for full coverage and around $345 per year for liability-only coverage when added to a family policy.
The cheapest car insurance company providing a liability-only policy is GEICO, with a $351 annual premium. Nationwide offers the cheapest full coverage policy at $1,565 per year.
To get cheap coverage as a 24-year-old, focus on maintaining a clean driving record, choosing the right coverage level and comparing quotes from multiple insurers to find the best deal.
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These rates reflect the average cost of car insurance for 24-year-olds as of 2024.
The average cost of car insurance for 24-year-olds varies by coverage level:
Liability-only coverage provides basic protection for 24-year-olds looking to meet legal requirements or those with old or used cars. However, full coverage offers more exhaustive financial protection, recommended for those with new or valuable vehicles. Leased or financed vehicles are generally required to have full coverage insurance.
| State Minimum Liability Only | Family Policy Annual Premium$345 | Family Policy Monthly Premium$29 |
| 100/300/100 Full Cov. w/$1,000 Ded. | Family Policy Annual Premium$1,891 | Family Policy Monthly Premium$158 |
| 300/500/300 Full Cov. w/$1,000 Ded. | Family Policy Annual Premium$2,247 | Family Policy Monthly Premium$187 |
The average cost of car insurance for 24-year-olds varies significantly by gender in most states:
Car insurance rates for young drivers under 25 are influenced by age and gender, with males typically facing higher premiums due to statistical risk factors. However, as drivers reach their mid-20s, gender becomes less significant in determining rates. In six states, gender is not allowed to be used as a rating factor: California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania.
| Female | Family Policy Annual Premium$1,850 | Family Policy Monthly Premium$154 |
| Male | Family Policy Annual Premium$1,932 | Family Policy Monthly Premium$161 |
Louisiana and Florida have the most expensive car insurance rates for 24-year-olds, exceeding $3,500 per year, while states like Hawaii and Idaho offer full coverage below $1,050. Hawaii prohibits age as a rating factor.
Where you live plays a significant role in determining your car insurance costs.
Factors like state regulations, accident rates and local demographics can greatly influence premiums. Living in an area with high accident frequency or more uninsured drivers can lead to higher rates, while regions with lower risk factors tend to offer more affordable insurance options.
| Alabama | Family Policy Annual Premium$1,762 | Family Policy Monthly Premium$147 |
| Alaska | Family Policy Annual Premium$1,582 | Family Policy Monthly Premium$132 |
| Arizona | Family Policy Annual Premium$1,775 | Family Policy Monthly Premium$148 |
| Arkansas | Family Policy Annual Premium$1,466 | Family Policy Monthly Premium$122 |
| California | Family Policy Annual Premium$2,062 | Family Policy Monthly Premium$172 |
| Colorado | Family Policy Annual Premium$2,054 | Family Policy Monthly Premium$171 |
| Connecticut | Family Policy Annual Premium$1,741 | Family Policy Monthly Premium$145 |
| Delaware | Family Policy Annual Premium$1,900 | Family Policy Monthly Premium$158 |
The cheapest car insurance companies for 24-year-olds on a family policy are:
If you're a 24-year-old who owns a car or lives independently, insurers generally expect you to have your own car insurance policy.
To minimize expenses, compare car insurance quotes and reassess your policy periodically. With more driving experience and potentially a stronger credit score, the insurance provider you initially chose might no longer offer the most cost-effective option for your current situation.
Remember, even in the midst of an existing policy, you have the flexibility to switch to a different car insurance company if you discover a more advantageous deal.
| Nationwide | Family Policy Annual Premium$1,565 | Family Policy Monthly Premium$130 |
| GEICO | Family Policy Annual Premium$1,579 | Family Policy Monthly Premium$132 |
| Travelers | Family Policy Annual Premium$1,705 | Family Policy Monthly Premium$142 |
| State Farm | Family Policy Annual Premium$1,757 | Family Policy Monthly Premium$146 |
| Allstate | Family Policy Annual Premium$1,869 | Family Policy Monthly Premium$156 |
| Progressive | Family Policy Annual Premium$2,273 | Family Policy Monthly Premium$189 |
| Farmers | Family Policy Annual Premium$2,691 | Family Policy Monthly Premium$224 |
Adding a 24-year-old to a family policy costs $1,891 annually, offering a cost-effective solution for those sharing a plan with relatives. It's ideal for young adults living at home or with siblings on the road. Young adults away at college can stay on a family policy as long as the family home is their permanent residence.
On the other hand, an individual policy, costing $3,063 per year, suits those seeking independence in their coverage, such as living away from home or preferring not to share a policy with family members.
Each option presents unique benefits tailored to different living and financial situations. For 24-year-old drivers, choosing between an individual and a family car insurance policy depends on their specific needs.
| $1,891 | Individual Premium$3,063 | Increase in Premium$1,172 |
Age greatly influences car insurance rates because young drivers are statistically more likely than older drivers to get into car accidents.
The trend of car insurance rates by age and gender reflects that as drivers grow older and gain more road experience, they are less likely to have accidents and file claims.
A 16-year-old usually faces the steepest rates, often around $5,486 annually, due to their novice status and higher accident probability. However, once drivers pass the age of 25, there's a marked decline in rates, with premiums averaging $1,426 per year.
Age is an important factor, but a 24-year-old's driving history, credit score, location and other factors all have an impact on insurance premiums.
Driving History
A 24-year-old's driving record is a crucial factor. A history of accidents, traffic violations or DUIs significantly increases rates, reflecting higher risk.
Type of Vehicle
The car's make, model and age influence premiums. High-performance or luxury vehicles generally cost more to insure due to higher repair costs and theft rates.
Location
Geographic location affects rates. Areas with high vehicle crime or accident rates typically see higher premiums due to an increased risk of theft and collisions.
Credit History
Insurers use credit data — of which credit scores are a part — to create a proprietary credit-based insurance score to rate drivers. Lower scores can result in higher premiums, as they are associated with a higher risk of filing claims. While student loans may impact this score, maintaining regular payments and managing credit card balances can help 24-year-olds maintain a healthy credit score, potentially leading to lower insurance rates.
Annual Mileage
The distance driven annually impacts rates. Higher mileage increases the likelihood of accidents, thus increasing insurance costs.
Coverage Level
The chosen coverage level directly affects premiums. More robust coverage options, like collision and comprehensive, lead to higher costs.
To find the best cheap car insurance for 24-year-olds, actively compare quotes to find the best rates and choose a vehicle that's cheap to insure, focusing on safety and lower repair costs.
Shop Around
Actively shop around and compare insurance quotes from multiple providers. As a 24-year-old, you may find significant price variations between insurers, making comparison shopping a quick way to identify more affordable options.
Choose a Practical Car
Opt for a vehicle that's cheaper to insure. Generally, cars with good safety records, lower repair costs and less likelihood of theft can help reduce insurance costs for young drivers.
Increase Deductibles
Consider raising your car insurance deductibles if you can afford higher out-of-pocket costs in the event of a claim. Higher deductibles usually lead to lower premiums, offering immediate savings. Collision and comprehensive coverages are subject to separate deductibles, but liability coverage does not have a deductible.
Maximize Discounts
Look for car insurance discounts specifically applicable to your age group, such as good student and distant student discounts or savings for completing a defensive driving course. These can provide immediate reductions in premiums. State Farm's Steer Clear discount program is specifically targeted to drivers under age 25
Maintain a Good Driving Record
Strive to keep your driving record clean. Avoiding accidents and traffic violations is crucial for keeping insurance costs down, especially for a young driver.
Build a Good Credit History
Work on establishing and maintaining a good credit score and credit history. Pay bills on time, manage debts wisely and understand how student loans impact your credit. A solid credit history can lead to better insurance rates over time.
Review and Update Coverage Regularly
As circumstances change, review and update your insurance coverage. This ensures that you're not paying for unnecessary coverage, which is particularly important as you gain more driving experience and your risk profile evolves.
Understanding your driving habits and risk factors and balancing the desired coverage with your budget is key to finding the best policy for your specific needs and lifestyle.
Evaluate Your Driving Needs
As a 24-year-old, assess your driving habits, car type and location to understand your risk level. This helps in choosing coverage that matches your lifestyle.
Learn About Insurance Options
Get to know the various insurance coverages like liability, collision and comprehensive. This information will help you decide which types are most suitable for your circumstances.
Plan for the Future
Consider any upcoming life changes, such as relocating or changing vehicles, as these can impact your insurance needs.
Balance Coverage and Budget
Look at your financial situation to determine a comfortable coverage level. Choose a policy that offers sufficient protection without overstretching your budget.
Whether you're a young professional exploring coverage options or a new driver researching policies, we navigate various aspects to guide you through the complexities of car insurance for 24-year-olds.
The cost of car insurance for a 24-year-old varies. Adding a 24-year-old to a family policy covering multiple drivers and vehicles costs an additional $1,891 annually, on average, for full coverage. An individual full coverage premium for a single driver is approximately $3,063 per year. Prices depend on factors like driving history, car type, and chosen coverage. Comparing quotes is crucial to finding affordable options.
Car insurance at 24 is generally cheaper than for teens due to increased driving experience and lower accident frequency than teens. However, it's still higher compared to drivers over 25. Insurers often view 24-year-olds as less risky than teenage drivers but still more prone to accidents than older, more experienced drivers, leading to moderately high premiums.
For a 24-year-old seeking car insurance, the cheapest option for full coverage appears to be Nationwide at $1,565 per year. On the other hand, if looking for just state minimum liability coverage, GEICO offers a more affordable option at $351 annually. Remember, rates can vary based on individual circumstances, so compare quotes for the best deal.
First-time car insurance is costly because insurers see new drivers as high-risk due to their lack of driving history and experience. Without a proven track record on the road, first-time drivers are statistically more likely to be involved in accidents, leading insurers to charge higher premiums to offset this increased risk. Looking for discounts or usage-based telematics programs can help you lower costs.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
