Best Cheap Car Insurance for Young Adults

GEICO offers the cheapest individual car insurance for young adults at $111 monthly. Nationwide provides the cheapest family policy rates starting at $117.

Find out if you are overpaying for car insurance below.

By Mark Fitzpatrick

Edited by Rae Osborn

Contributions by 6 experts

Updated: September 15, 2025

Advertising & Editorial Disclosure

Young drivers seeking the best car insurance for young adults at the lowest possible rates will find the most value by comparing both family policy additions and individual coverage options across multiple insurers. Whether you need good affordable car insurance for young adults or the best and cheapest car insurance for young drivers, our analysis reveals exactly where to find premium coverage without premium prices.

If you're looking for teen rates or rates for drivers with little experience regardless of age, MoneyGeek also analyzed the cheapest car insurance for teen drivers and the best cheap car insurance for new drivers.

Key Takeaways

GEICO offers cheapest individual policies at $111 monthly for young adults.

Nationwide provides best family policy rates from $117-$181 monthly for 20-25 year-olds.

Strategic discount stacking and vehicle choice saves young drivers 30-50% annually.

Best Cheap Auto Insurance for New Drivers Under 25

GEICO offers the lowest individual policy rates starting at $111 monthly for 25-year-olds, while Nationwide provides the most affordable family policy options with rates ranging from $117 to $181 monthly for adding young adults to existing coverage.

Category	Company	Cheapest Monthly Rate	Why it's the Best
Best Overall	GEICO	$111	Lowest individual and proven claims reliability
Best for Individual Policies	State Farm	$189	Competitive individual coverage with excellent service
Best for Family Policy Addition	Nationwide	$117	Lowest cost to add young adults to existing family coverage across all age ranges
Best for College Students	Geico	$111	Maintains affordable coverage while away at school with flexible policy terms
Best Discount Programs	State Farm	$152	Up to 25% good student discounts plus Drive Safe & Save telematics savings

Cheapest Car Insurance for Young Adults on a Family Policy

Nationwide delivers the cheapest family policy rates for adding young adults to existing coverage. Young adults can save hundreds annually by joining a parent's Nationwide policy rather than purchasing individual coverage, with rates that decrease substantially each year. The most dramatic rate reduction occurs between ages 20 and 21, with monthly premiums dropping $49 from $181 to $132. This $588 annual savings reflects improved driving experience and reduced risk assessment.


20	Nationwide	$2,170	$181
21	Nationwide	$1,582	$132
22	Nationwide	$1,604	$134
23	Nationwide	$1,658	$138
24	Nationwide	$1,565	$130
25	Nationwide	$1,406	$117

*The quotes provided assume a policy covering two parents and a young driver. These average costs reflect full coverage, including comprehensive and collision insurance, with liability limits of $100,000 per person for bodily injury, $300,000 per accident for bodily injury, $100,000 per accident for property damage and a $1,000 deductible.

WHEN FAMILY POLICIES ARE BEST

Family policies deliver substantial savings for young adults under 22, typically reducing annual insurance costs by $1,000 or more compared to individual coverage. These savings result from group discounts, established family insurance relationships, and shared risk pools that benefit all policy members. You can add a young adult to your family policy when they meet these criteria:

Live in your household (college students away qualify)
Are related by blood, marriage, or legal guardianship
Regularly use covered vehicles
Don't own their primary vehicle (co-owned cars may qualify)

Cheapest Car for Young Adults With an Individual Policy

GEICO and State Farm offer the cheapest car insurance for young adults on individual policies. GEICO provides the most affordable rates from ages 21-25 with monthly premiums ranging from $152 to $111, while State Farm offers the cheapest option at age 20 with $189 monthly rates for young adults seeking quality coverage and independence.


20	State Farm	$2,272	$189
21	GEICO	$1,824	$152
22	GEICO	$1,692	$141
23	GEICO	$1,529	$127
24	GEICO	$1,452	$121
25	GEICO	$1,336	$111

*The quotes above include comprehensive and collision coverages, along with liability limits of $100,000 per person for bodily injury, $300,000 per accident for bodily injury, $100,000 per accident for property damage and a $1,000 deductible.

WHEN INDIVIDUAL POLICIES ARE BEST

Individual policies become cost-competitive with family coverage, with GEICO's $141/month rates often matching family policy costs. Ages 24+: Individual coverage typically wins, with GEICO rates dropping to $111/month by age 25, saving $50-70 monthly while building independent insurance history.Consider individual coverage when you:

Live independently and don't regularly use family vehicles
Want to establish credit history through insurance payments
Need different coverage levels than family members
Reside permanently in another state for work or school

Cheapest Car Insurance for Young Adults by State

GEICO leads as the cheapest car insurance for young adults in 28 states, offering the most affordable rates nationwide with monthly premiums as low as $78 in Hawaii. State Farm provides the cheapest coverage in 19 states, including high-population areas like California, Texas, and Illinois where young drivers can save hundreds annually.


AK	GEICO	$2,637	$220	94
AL	GEICO	$2,386	$199	88
AR	GEICO	$2,913	$243	91
AZ	GEICO	$1,788	$149	88
CA	State Farm	$3,087	$257	90
CO	State Farm	$3,239	$270	91
CT	GEICO	$3,521	$293	91
DC	GEICO	$2,029	$169	91
DE	State Farm	$3,263	$272	88
FL	GEICO	$3,029	$252	88
GA	State Farm	$4,200	$350	87
HI	GEICO	$941	$78	94
IA	GEICO	$1,532	$128	91
ID	State Farm	$1,643	$137	86
IL	State Farm	$3,354	$279	89
IN	GEICO	$1,713	$143	85
KS	Allstate	$2,548	$212	87
KY	State Farm	$2,451	$204	89
LA	State Farm	$6,573	$548	89
MA	GEICO	$1,949	$162	91
MD	Allstate	$4,226	$352	81
ME	GEICO	$1,382	$115	91
MI	GEICO	$7,832	$653	85
MN	State Farm	$2,910	$242	86
MO	Allstate	$1,772	$148	90
MS	State Farm	$3,076	$256	89
MT	State Farm	$2,042	$170	86
NC	GEICO	$1,154	$96	88
ND	GEICO	$1,862	$155	91
NE	Allstate	$1,955	$163	90
NH	Allstate	$1,747	$146	93
NJ	GEICO	$2,375	$198	91
NM	State Farm	$2,824	$235	94
NV	GEICO	$3,450	$287	88
NY	Allstate	$6,346	$529	87
OH	GEICO	$1,684	$140	85
OK	Allstate	$2,519	$210	90
OR	GEICO	$2,613	$218	85
PA	State Farm	$3,555	$296	88
RI	State Farm	$2,315	$193	89
SC	GEICO	$2,168	$181	88
SD	State Farm	$1,985	$165	86
TN	GEICO	$2,314	$193	88
TX	GEICO	$2,301	$192	88
UT	GEICO	$2,485	$207	88
VA	Nationwide	$2,019	$168	84
VT	Nationwide	$2,039	$170	90
WA	GEICO	$2,074	$173	85
WI	State Farm	$2,336	$195	87
WV	State Farm	$1,962	$164	88
WY	State Farm	$2,040	$170	86

*The premiums listed are for full coverage with a $1,000 deductible. Liability limits include $100,000 per person for bodily injury, $300,000 per accident for bodily injury and $100,000 per accident for property damage.

Cheapest Car Insurance for Young Adults by Age and Gender

Farmers Mutual Insurance consistently offers the cheapest car insurance across all ages and genders, with rates ranging from $83 monthly for 25-year-old females to $127 for 20-year-old males. The biggest rate drops occur between ages 20-21, when young adults save $73 monthly for males and $62 monthly for females as insurers recognize improved driving maturity.

Data filtered by:Results filtered by:

Age

Select

Age:20

Gender

Select

Gender:Male

Coverage Level

Select

Coverage Level:State Minimum Liability Only


Farmers Mutual Ins Co of NE	$637	$53
National General	$1,511	$126
Geico	$1,554	$129
Auto Owners	$1,570	$131
Travelers	$1,843	$154
State Farm	$2,045	$170
Amica	$2,483	$207
Progressive	$2,532	$211
Allstate	$2,547	$212
Farmers	$3,214	$268
Nationwide	$3,281	$273

THE GENDER GAP EXPLAINED

The gender gap also narrows significantly with age, from 9% at age 20 to just 2% by age 25, making car insurance more affordable for both young men and women as they gain driving experience.

How to Get Cheap Car Insurance for Young Adults

Finding the best cheap car insurance for young adults involves strategic decisions about coverage, providers, and policy types. The most affordable car insurance for young people combines adequate financial protection with smart cost-saving techniques that can reduce premiums by hundreds of dollars annually. Take the steps below to find the most affordable policy:

1
Compare Family vs. Individual Policies
Family policies deliver the most significant savings for eligible young drivers, costing 30-50% less than individual coverage. If you live in your parents' household or attend college as a full-time student, you can typically remain on their policy and benefit from lower group discount rates.
2
Figure out how much coverage you need
Your coverage needs depend on your financial situation and what you can afford to lose. Match your coverage limits with your budget for the best balance of protection and affordability:

Tight Budget (Under $100/month):
- Liability: State minimums plus 25% more
- Deductibles: $1,000 or $500 if no emergency fund
- Skip comprehensive/collision on cars under $3,000
Moderate Budget ($100-200/month):
- Liability: 100/300/100 minimum
- Deductibles: $500 to $1,000
- Add comprehensive/collision on cars worth $3,000+
Comfortable Budget ($200+/month):
- Liability: 250/500/100 or umbrella policy
- Deductibles: $250 to $500
- Protect assets with higher coverage limits
3
Purchase a cheap car to insure
Your vehicle choice significantly impacts insurance costs for young drivers. Choosing cars with strong safety ratings, advanced safety features, and low theft rates can save young drivers $800-1,500 annually compared to sports cars, luxury vehicles, and models with expensive replacement parts.
4
Choose higher deductibles
Strategic deductible selection significantly impacts your monthly premiums. Increasing your deductible from $250 to $1,000 typically saves $200-400 annually. Choose higher deductibles when you have three to six months of expenses saved, drive an older vehicle with lower value, or maintain a clean driving record. Lower deductibles make sense for young drivers with limited emergency funds, frequent high-risk area driving, or newer, high-value vehicles.
5
Stack multiple discounts
The best car insurance discounts for young adults combine for substantial savings. Good student discounts reward B averages with 10-25% savings, while telematics programs like GEICO DriveEasy or State Farm Drive Safe & Save offer 10-30% reductions for safe driving habits. Defensive driving course completion provides 5-15% discounts, and bundling auto insurance with renters coverage delivers additional 5-25% savings.
6
Get quotes online
Car insurance calculators provide instant rate comparisons across multiple insurers while automatically applying available discounts. These digital platforms often match the pricing offered by traditional agents while allowing immediate policy purchase and faster processing.
7
Take a safe driving course
Defensive driving courses and safe driving programs provide immediate discounts while building skills that prevent future accidents and violations. Many states mandate insurance discounts for course completion, and some insurers offer additional incentives for ongoing safe driving education.
8
Limit driving time and mileage
Low-mileage drivers can qualify for significant insurance discounts, with some insurers offering 10-25% savings for driving under 7,500 miles annually. Usage-based insurance programs and telematics devices track your actual driving habits, rewarding young drivers who limit nighttime driving, avoid peak traffic hours, and maintain lower annual mileage with personalized rate reductions.
9
Pay the premium in full
Annual premium payments eliminate monthly installment fees that typically add $50-150 to your yearly costs. If paying the full annual premium isn't feasible, many insurers offer electronic funds transfer (EFT) options that reduce or eliminate processing fees compared to traditional monthly billing methods, helping you avoid unnecessary charges while maintaining budget flexibility.
10
Shop Around Annually
Young adult insurance rates change as you gain experience and reach age milestones. Review your coverage annually and request new quotes after major life changes like birthdays, moving, graduating from college, or achieving six months of claim-free driving.
11
Consider usage based insurance
Low-mileage discounts and telematics programs reward young drivers who limit their driving time or demonstrate safe driving behaviors. These programs monitor factors like hard braking, rapid acceleration, nighttime driving, and total mileage to provide personalized rates that often result in significant savings for responsible drivers.

MONEYGEEK EXPERT TIP

You don't have to wait for your current policy to expire to look for a better deal. Switching car insurance companies could help you save money and better meet your needs.

Best Car Insurance Discounts for Young Drivers

Young adults can stack multiple discounts to achieve 30-50% total premium savings on their car insurance. The best discounts for young people include good student rewards that save up to 25% with State Farm, safe driver programs offering up to 30% reductions, and telematics monitoring that rewards careful driving habits.

Discount	Nationwide	GEICO	State Farm
Good student discount	Yes	Up to 15%	Up to 25%
Student away at school discount	No info	Yes	Yes
Safe driver discount	Yes	Up to 26%	Up to 30%
Defensive driving discount	Yes	Up to 10%	5–15%
Low-mileage discount	Yes	Yes	Yes
Multiple vehicle discount	Yes	Up to 25%	Up to 20%
Home and auto bundle	Up to 15%	Up to 25%	Up to 17%
Drive Safe Telematics	SmartRide® - tracks driving habits	DriveEasy – tracks driving habits	Drive Safe & Save™ – tracks driving habits
Accident-free discount	Up to 10%	Up to 26%	Yes

Cheapest Cars to Insure for Young Adults

The cheapest cars to insure for young adults include models like the Honda CR-V at $113 monthly, Subaru Outback at $107 monthly, MINI Cooper at $110 monthly, and Subaru Forester at $111 monthly. These vehicles combine strong safety ratings, advanced safety features, low theft rates, and reasonable repair costs that keep premiums affordable.


Subaru Outback	$1,279	$107	$387
MINI Cooper	$1,321	$110	$344
Subaru Forester	$1,333	$111	$333
Honda Fit	$1,346	$112	$320
Honda Odyssey	$1,350	$112	$316
Honda CR-V	$1,354	$113	$312
Toyota Tacoma	$1,394	$116	$272
Mazda CX-5	$1,401	$117	$264
Ford F-150	$1,402	$117	$264
Ford Escape	$1,404	$117	$262

Why is Car Insurance So Expensive for Young Adults

Insurance companies base premiums on statistical risk data, and young adults face significantly higher rates due to measurable factors that increase claim likelihood. Understanding these reasons can help you take steps to minimize their impact on your affordable car insurance for young adults search.

Accident Statistics Drive Higher Premiums

Young drivers aged 15 to 20 made up 5.1% of licensed drivers in the United States in 2021, yet they made up 8.5% of total drivers in all fatal crashes and 12.6% of drivers in all crashes according to NHTSA data. The fatal crash rate per mile driven for 16-19 year-olds is nearly three times the rate for drivers ages 20 and over based on analysis of data by the Insurance Institute for Highway Safety.

Limited Driving Experience

rom April 2016 to March 2017, drivers 16 to 19 years old had the highest crash rate per 100 million travel miles as compared to all other age groups, except 80 years and older, according to NHTSA analysis.

Higher Likelihood of Risky Behaviors

In 2023, 37% of male drivers 15-20 and 33% of male drivers 21-24 involved in fatal crashes were speeding Distracted Driving Dangers and Statistics | NHTSA, according to NHTSA's Speeding Safety campaign data. Teenage motor vehicle crash deaths occurred most frequently from 9 p.m. to midnight, accounting for 20% of fatalities, followed by 6 p.m. to 9 p.m. at 16% the Insurance Institute for Highway Safety found.

Expensive Vehicle Preferences

In 2023, 37% of male drivers 15-20 and 33% of male drivers 21-24 involved in fatal crashes were speeding according to NHTSA's Speeding Safety campaign data. Teenage motor vehicle crash deaths occurred most frequently from 9 p.m. to midnight, accounting for 20% of fatalities, followed by 6 p.m. to 9 p.m. at 16% the Insurance Institute for Highway Safety found.

Credit and Financial History Factors

In most states, insurance companies can consider credit history when determining rates. Young adults often have limited credit history, which can result in higher premiums until they establish stronger financial profiles.

Safety Equipment Usage

Among teen drivers and passengers 16–19 years of age who were killed in car crashes in 2020, 56% were not wearing a seat belt at the time of the crash the CDC reports. Additionally, 43.1% of U.S. high school students did not always wear a seat belt when riding in a car driven by someone else in 2019 according to Teen Drivers | Motor Vehicle Safety | CDC Injury Center.

WHEN DO INSURANCE RATES FOR YOUNG DRIVERS GO DOWN?

While young adult insurance rates start high, they typically decrease significantly at key age milestones. Most insurers reduce rates at ages 21, 25, and with each year of claim-free driving experience. By age 25 with a clean record, many drivers see their premiums drop by 20-30% or more.

Best Cheap Car Insurance for Young Drivers: Bottom Line

The best cheap car insurance for young adults comes from strategic provider selection and smart policy timing. GEICO offers the most affordable individual policies for drivers ages 22-25 starting at $111 monthly, while Nationwide provides the best value for family policy additions at $117-181 monthly depending on age. Choosing the right car, like a Honda CR-V, and taking advantage of discounts, such as safe driving courses, can help lower premiums.

The transition from family to individual policies typically makes financial sense around age 22-23, with age 25 marking the point where individual coverage becomes definitively more affordable for young adults seeking independence and quality coverage.

Car Insurance for Young Adults: FAQ

MoneyGeek answers common questions about cheap car insurance for young drivers to help you find a policy with the best rate.

What is the cheapest car insurance for young adults?

GEICO offers the cheapest individual car insurance for young adults, with rates starting at $111 monthly for 25-year-olds with clean driving records. For family policies, Nationwide provides the most affordable rates at $117-181 monthly, depending on the young driver's age.

What company has cheap car insurance for young drivers with an accident?

State Farm and GEICO offer the best cheap car insurance after an accident.

Is insurance cheaper when you turn 25?

Car insurance usually gets cheaper at 25, but rates still depend on your driving record and other factors.

Are newer cars cheaper to insure for young drivers?

Newer cars aren’t always cheaper to insure for young drivers, especially expensive ones with higher premiums. However, newer models with advanced safety features may qualify for more discounts.

Are old cars cheaper to insure for young drivers?

Due to their lower value, older cars are typically cheaper to insure for young drivers. Skipping comprehensive and collision coverage can further reduce costs.

Is multi-car insurance cheaper for young drivers?

Multi-car policies are usually cheaper for young drivers than individual ones. Bundling auto and home insurance with the same insurer can lead to additional savings.

Which car insurance company is cheapest for young drivers?

The cheapest car insurance company varies by age and policy type. GEICO leads for ages 21-25 on individual policies, while State Farm offers the best rates for 20-year-olds. For family policies, Nationwide consistently provides the lowest rates across all young adult age groups.

What cars have the cheapest insurance for young adults?

The cheapest cars to insure for young adults include the Subaru Outback ($107/month), MINI Cooper ($110/month), and Subaru Forester ($111/month). These vehicles save young drivers $333-387 annually compared to average rates due to strong safety ratings and low theft rates.

How can young adults get cheap car insurance rates?

Young adults can secure cheap car insurance by joining family policies when eligible, maintaining good grades for student discounts up to 25%, choosing higher deductibles, and selecting insurance-friendly vehicles. Stacking multiple discounts can reduce premiums by 30-50%.

When does car insurance get cheaper for young adults?

Car insurance rates typically decrease at key milestones: age 21 (average $588 annual savings), age 25 (20-30% rate reduction), and with each claim-free year. The most dramatic rate drops occur between ages 20-21 when insurers recognize improved driving maturity.

Car Insurance for Young Drivers: Expert Advice

Ask the experts:

What common discounts do insurers offer to make policies cheaper for young drivers?

Clinical Assistant Professor at The University of Texas at Arlington

Besides the student/young driver incentive programs offered by the insurance companies, adding a student/young driver to an existing policy of a more experienced driver could lower the policy cost for student/young drivers. Contacting a local agent is another way to secure a more affordable rate than purchasing a policy online for most insurers.

Have a question?

Ask a question, it’s free

Ask an expert

Cheapest Car Insurance for Young Adults: Our Methodology

Why Trust MoneyGeek?

We analyzed data from state insurance departments and Quadrant Information Services to compare car insurance costs for drivers aged 16 to 21. Examining family and individual policies highlighted how quotes vary by provider and location.

Study Overview

Car insurance rates depend on age, driving record, claims history, ZIP code, coverage and insurer. MoneyGeek reviewed thousands of quotes to help young drivers and their parents find affordable options by comparing rates on family and individual policies for various ages.

Data Sources

We analyzed data from Quadrant Information Services and state insurance departments by company, state and driver age.

Driver Profile

Our sample driver profile ensured accurate quotes. Key details included:

No driving violations
2010 Toyota Camry
Ages 16 to 25 for age-specific quotes
Family policy rates with two 50-year-old parents
Individual policies for young drivers only

Coverage Levels and Deductibles Explained

Average rates are based on 100/300/100 coverage with a $1,000 deductible for comprehensive and collision coverage.

A 100/300/100 coverage level provides per-claim limits of:

$100,000 per person for bodily injury liability
$300,000 per accident for bodily injury liability
$100,000 per accident for property damage liability

A $1,000 deductible means the policyholder pays the first $1,000 of a claim before the insurer covers the rest.

Learn more about MoneyGeek's methodology.

Cheap Car Insurance for Young Drivers: Related Articles

Auto Insurance

Adding a Child to Car Insurance in 2025

Auto Insurance

Adding a Driver to Insurance in 2025

Auto Insurance

Cheapest Car Insurance for College Students (2025)

Auto Insurance

Cheapest Car to Insure for Teenagers (2025)

Auto Insurance

Cheapest Cars to Insure in 2025

Auto Insurance

Cheapest Multi-Car Insurance in 2025

Auto Insurance

Insuring Two or More Cars in 2025

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

Read Full Bio »

Best Cheap Car Insurance for Young Adults

Key Takeaways

Compare Auto Insurance Rates

Best Cheap Auto Insurance for New Drivers Under 25

Cheapest Car Insurance for Young Adults on a Family Policy

WHEN FAMILY POLICIES ARE BEST

Cheapest Car for Young Adults With an Individual Policy

WHEN INDIVIDUAL POLICIES ARE BEST

Cheapest Car Insurance for Young Adults by State

Cheapest Car Insurance for Young Adults by Age and Gender

THE GENDER GAP EXPLAINED

How to Get Cheap Car Insurance for Young Adults

Compare Family vs. Individual Policies

Figure out how much coverage you need

Purchase a cheap car to insure

Choose higher deductibles

Stack multiple discounts

Get quotes online

Take a safe driving course

Limit driving time and mileage

Pay the premium in full

Shop Around Annually

Consider usage based insurance

MONEYGEEK EXPERT TIP

Best Car Insurance Discounts for Young Drivers

Cheapest Cars to Insure for Young Adults

Why is Car Insurance So Expensive for Young Adults

Accident Statistics Drive Higher Premiums

Limited Driving Experience

Higher Likelihood of Risky Behaviors

Expensive Vehicle Preferences

Credit and Financial History Factors

Safety Equipment Usage

WHEN DO INSURANCE RATES FOR YOUNG DRIVERS GO DOWN?

Best Cheap Car Insurance for Young Drivers: Bottom Line

Compare Auto Insurance Rates

Car Insurance for Young Adults: FAQ

What is the cheapest car insurance for young adults?

What company has cheap car insurance for young drivers with an accident?

Is insurance cheaper when you turn 25?

Are newer cars cheaper to insure for young drivers?

Are old cars cheaper to insure for young drivers?

Is multi-car insurance cheaper for young drivers?

Which car insurance company is cheapest for young drivers?

What cars have the cheapest insurance for young adults?

How can young adults get cheap car insurance rates?

When does car insurance get cheaper for young adults?

Car Insurance for Young Drivers: Expert Advice

What common discounts do insurers offer to make policies cheaper for young drivers?

Have a question?

Cheapest Car Insurance for Young Adults: Our Methodology

Cheap Car Insurance for Young Drivers: Related Articles