Best Car Insurance for Young Drivers in 2023

When deciding on a policy for a young driver, understanding the average cost of car insurance can offer great insight. In MoneyGeek's study, the best car insurance for young drivers is State Farm, with policies costing an average of $3,081 per year. The best car to insure for young drivers is the Honda CR-V.

MoneyGeek analyzed policies for drivers aged 16 to 25 to find the best auto insurance companies for young drivers both nationally and by state. These providers were ranked using a weighted rating system, considering affordability, claims ratings, customer satisfaction and financial stability.

Finding the best car insurance provider for young motorists can help parents and drivers feel safe and secure on the road. To identify the best insurers, MoneyGeek used a five-point scoring system that evaluated companies based on customer satisfaction, claims rating, financial stability and affordability. The average rates shown are for a policy 100/300/100 in coverage and a $1,000 deductible.

When deciding on a policy for a young driver, understanding the average cost of car insurance can offer great insight. This can provide you with a benchmark to work with as you decide on a provider and policy.

If you have an accident or a ticket on your driving record, insurers will view you as a risky driver and may increase your premiums.

Some providers are more forgiving than others, while some have discounts available to help you lower your premium.

A full coverage policy is the best car insurance a young driver could buy. This ensures that the driver has enough to cover an at-fault accident, which is good for inexperienced drivers.

Liability-only insurance offers the lowest financial protection — but it’s also the cheapest. Generally, liability-only insurance involves following your state’s required minimums, which is a good option for those looking to find the most affordable car insurance for young drivers.

Age is a significant factor in determining premiums. This is because insurers view younger drivers as higher risk, given their lack of experience on the road. This is proven in the numbers: 16- to 19-year-olds account for 8.9% of drivers in all crashes and 6% of drivers in fatal crashes.

However, insurers will lower your premium as you age and remain accident- and ticket-free. In the meantime, demonstrating a consistent ability to drive safely can help lower your premiums if you are a new or young driver. You may also participate in defensive driving courses or a driver’s education program.

The average premiums by age are for a policy with 100/300/100 liability limits, comprehensive and collision coverage and a $1,000 deductible.

While MoneyGeek analyzed the best car insurance for young drivers nationally, remember that this can vary by state and driver profile. The best insurer for you will depend on your needs and preferences, like whether you opt for good customer service, a more affordable plan or if you value a certain type of coverage or discount.

If you’re looking for the best car insurance for young drivers in your state, explore the table below and click on your state to learn more.

To identify the best car insurance for young drivers by state, MoneyGeek created a five-point scoring system that evaluated providers based on customer satisfaction, financial stability, claims ratings and affordability. The average premiums analyzed were for policies with 100/300/100 in liability limits, comprehensive and collision coverage and a $1,000 deductible.

Aside from your driving history and profile, insurers also look at the car you drive. The car's year, make, model and cost play a role in the cost of premiums.

To find the cheapest car to insure, MoneyGeek reviewed the affordability of common car models to find the best cars for insurance and which provider is best for that model.

Our study found that the cheapest car to insure is the Honda CR-V — new or used. For this model, GEICO is the cheapest insurer.

Insurers use a variety of factors to determine car insurance premiums — which is why the average cost of car insurance can vary. Generally, insurers base policy costs on your personal information, vehicle details and the coverage you want.

The personal information insurers consider includes your:

• Age
• Gender
• Location
• Credit score (in some states)
• Driving record
• Driving frequency

In terms of vehicle information, insurers look at:

• Model
• Make
• Year

Combined, these details tell insurers your level of risk as a driver or the likelihood of you getting into an accident. However, some factors may hold more weight than others, depending on the insurer. This is why it’s smart to compare quotes to find the most affordable option when looking for the cheapest car insurance for new drivers.

Young drivers often have two options when getting car insurance: being added to their family’s policy or having an individual policy.

Being added to a family policy is often the simplest and most affordable way for young drivers to get car insurance. While this can still increase the cost of the original policyholder’s insurance, it’s often more affordable than getting an individual policy — especially if it’s coupled with discounts. However, depending on the insurer, being on a family plan may have restrictions.

Being on an individual policy can be more expensive, but this will depend on where you live, among other factors. If you live in a state where auto insurance is generally cheaper, while your family lives in a state where it’s more costly, it might be more beneficial for you to get your own policy. Additionally, if you plan on getting more than one type of policy, such as auto and life insurance, you can get a discount for bundling.

Deciding between a liability-only and full coverage policy can be a difficult decision for young drivers — especially if you prioritize affordability.

Full coverage car insurance (which includes comprehensive and collision coverage) is usually the best choice for young drivers. This is because it grants the highest level of financial protection — which is crucial for young and inexperienced drivers with higher crash rates.

While full coverage can cost more than liability-only policies, there are some cheap full coverage insurance providers that MoneyGeek has identified, such as GEICO and State Farm.

Car insurance providers offer young drivers several ways to save on insurance through discounts. Some of the most common discounts include:

• Driver’s education: Complete a driver’s education course from a qualified provider.
• Defensive driving: Complete a qualified defensive driving course.
• Good student: Reach and maintain a certain GPA, at the provider’s discretion.
• Live-out student: Study in another state.

Keep in mind that the availability of discounts will depend on the insurer and your state. If you aren’t sure what your provider offers, reach out to one of their agents to ask if they have any student or young driver-specific discounts.

You can purchase insurance online or through an agent. However, doing it online is easy and takes only a few steps. Here are steps to getting the best car insurance for young drivers:

MoneyGeek answered common questions you might have about finding and securing the best car insurance for young drivers aged 16 to 25.