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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.

MoneyGeek Logo IconBest Young DriverCar Insurance
2023

Best Car Insurance for Young Drivers

Best Car Insurance for Young Drivers

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.


1
State FarmBest Car Insurance for Young Drivers
Score:4.5

4.3/5

Customer Satisfaction

4.5/5

Financial Stability

4/5

Claim Satisfaction

5/5

Affordability

Geek Quick Take
Geek Quick Take

Out of the five providers MoneyGeek examined, State Farm ranks as the best overall car insurance provider for young drivers. Aside from ranking highly across MoneyGeek’s criteria, State Farm policies also cost the least at an average of $3,081 per year for drivers ages 16 to 25.

State Farm offers a wide array of discounts to make policies even cheaper. These include discounts for completing a driver’s education or defensive driving course, installing anti-theft devices and even having at least a 3.0 GPA.

Read our State Farm review.

2
State Farm
Score:4.5

4.3/5

Customer Satisfaction

4.5/5

Financial Stability

4/5

Claim Satisfaction

5/5

Affordability

Geek Quick Take
Geek Quick Take

Out of the five providers MoneyGeek examined, State Farm ranks as the best overall car insurance provider for young drivers. Aside from ranking highly across MoneyGeek’s criteria, State Farm policies also cost the least at an average of $3,081 per year for drivers ages 16 to 25.

State Farm offers a wide array of discounts to make policies even cheaper. These include discounts for completing a driver’s education or defensive driving course, installing anti-theft devices and even having at least a 3.0 GPA.

Read our State Farm review.

3
GEICO
Score:4.4

4.2/5

Customer Satisfaction

5/5

Financial Stability

3.9/5

Claim Satisfaction

4.7/5

Affordability

Geek Quick Take
Geek Quick Take

GEICO ranks second among the best car insurance providers for young drivers and ranks first in terms of financial stability. The company offers policies to drivers ages 16 to 25 at an average of $3,156 per year.

GEICO also offers various discounts on its auto insurance policies — many of which young drivers can qualify for. Some are related to driving behavior, such as completing a defensive driving or driver’s education course, while some are related to the vehicle, such as having an anti-theft system or a new car.

Read our GEICO review.

4
GEICO
Score:4.4

4.2/5

Customer Satisfaction

5/5

Financial Stability

3.9/5

Claim Satisfaction

4.7/5

Affordability

Geek Quick Take
Geek Quick Take

GEICO ranks second among the best car insurance providers for young drivers and ranks first in terms of financial stability. The company offers policies to drivers ages 16 to 25 at an average of $3,156 per year.

GEICO also offers various discounts on its auto insurance policies — many of which young drivers can qualify for. Some are related to driving behavior, such as completing a defensive driving or driver’s education course, while some are related to the vehicle, such as having an anti-theft system or a new car.

Read our GEICO review.

5
Allstate
Score:4

4/5

Customer Satisfaction

4.5/5

Financial Stability

3.9/5

Claim Satisfaction

3.9/5

Affordability

Geek Quick Take
Geek Quick Take

Allstate ranks third, scoring highly in financial stability and charging an average of $3,445 for drivers ages 16 to 25. Aside from being a reliable provider, the company also offers a range of discounts.

In particular, Allstate has student-related discounts. The company offers a discount if a student attends school 100 miles away from where the car is located or if a student completes the teenSMART driver education program. Full-time students with qualifying grades can also get a discount, potentially lowering rates.

Read our Allstate review.

6
Allstate
Score:4

4/5

Customer Satisfaction

4.5/5

Financial Stability

3.9/5

Claim Satisfaction

3.9/5

Affordability

Geek Quick Take
Geek Quick Take

Allstate ranks third, scoring highly in financial stability and charging an average of $3,445 for drivers ages 16 to 25. Aside from being a reliable provider, the company also offers a range of discounts.

In particular, Allstate has student-related discounts. The company offers a discount if a student attends school 100 miles away from where the car is located or if a student completes the teenSMART driver education program. Full-time students with qualifying grades can also get a discount, potentially lowering rates.

Read our Allstate review.

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Best Car Insurance for Young Drivers With Accidents

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.

carInsurance
MoneyGeek Top Pick
State Farm

The best and cheapest car insurance for high-risk drivers is State Farm, offering the most affordable policies in 27 states. State Farm ranks highly in financial stability for filing a claim and offers the most affordable policies.

While MoneyGeek’s analysis found that State Farm is the best and most affordable, remember that what’s best and cheap for you will depend on your needs.

Best Full Coverage Car Insurance for Young Drivers

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.

carInsurance
MoneyGeek Top Pick
GEICO

GEICO has consistently offered the best and cheapest full coverage car insurance. Besides offering low rates, the company maintains a strong reputation for excellent customer service and financial stability.

Full coverage insurance includes comprehensive and collision coverage and 100/300/100 liability limits. While this may cost more, it does grant extra protection for young drivers on the road.

Best Liability-Only Car Insurance for Young 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.

carInsurance
MoneyGeek Top Pick
GEICO

GEICO consistently offers the best and cheapest liability-only car insurance for young drivers across the U.S. This applies even for drivers who have a ticket or an accident, or increased liability.

Note that we define minimum state insurance as a policy that meets only a state's minimum requirements, whereas an increased liability policy has limits of 50/100/50.

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MONEYGEEK EXPERT TIP

Whether you’re a parent insuring a teen, a student or a new driver, MoneyGeek has great resources to help you find the car insurance you need. Review some of our studies on the best auto insurers below.

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Best Car Insurance for Young Drivers by Age

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.

Best Car Insurance for Young Drivers – by Age
Age
Company
Annual Premium
Affordability
Customer Satisfaction
Claim Satisfaction
Coverage Offerings
Financial Stability

16

State Farm

$3,732

3.79

3.93

2.10

2.50

5.00

17

State Farm

$3,312

3.58

3.93

2.10

2.50

5.00

18

State Farm

$2,966

3.59

3.93

2.10

2.50

5.00

19

State Farm

$2,531

2.76

3.93

2.10

2.50

5.00

20

State Farm

$2,272

2.91

3.93

2.10

2.50

5.00

21

GEICO

$1,824

2.98

3.77

2.16

2.50

5.00

22

GEICO

$1,850

3.04

3.77

2.16

2.50

5.00

23

GEICO

$1,655

3.21

3.77

2.16

2.50

5.00

24

GEICO

$1,571

3.19

3.77

2.16

2.50

5.00

25

GEICO

$1,448

2.93

3.77

2.16

2.50

5.00

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

Best Car Insurance for Young Drivers by State

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.

Best Car Insurance for Young Drivers – by State
State
Provider
Annual Premium
Customer Satisfaction
Affordability
Coverage Offerings
Claim Satisfaction
Financial Stability

Alabama

Nationwide

$3,725

3.13

5.00

3.75

2.39

4.00

Alaska

GEICO

$3,740

3.77

5.00

2.50

2.16

5.00

Arizona

Travelers

$3,448

3.58

5.00

3.75

2.51

5.00

Arkansas

Nationwide

$3,742

3.13

4.89

3.75

2.39

4.00

California

Capital Insurance Group

$3,307

4.77

4.16

1.25

3.31

3.00

Colorado

GEICO

$7,501

3.77

4.17

2.50

2.16

5.00

Connecticut

GEICO

$9,381

3.77

5.00

2.50

2.16

5.00

Delaware

State Farm

$3,848

3.93

5.00

2.50

2.10

5.00

District of Columbia

GEICO

$3,748

3.77

5.00

2.50

2.16

5.00

Florida

Nationwide

$7,774

3.13

5.00

3.75

2.39

4.00

Georgia

Allstate

$5,197

3.27

5.00

3.75

1.95

4.00

Hawaii

State Farm

$742

3.93

5.00

2.50

2.10

5.00

Idaho

State Farm

$1,613

3.93

5.00

2.50

2.10

5.00

Illinois

Auto-Owners Insurance Co

$2,299

3.70

4.21

3.75

3.31

5.00

Indiana

GEICO

$5,026

3.77

4.85

2.50

2.16

5.00

Iowa

State Farm

$2,128

3.93

5.00

2.50

2.10

5.00

Kansas

Nationwide

$2,196

3.13

5.00

3.75

2.39

4.00

Kentucky

Nationwide

$3,613

3.13

5.00

3.75

2.39

4.00

Louisiana

State Farm

$6,282

3.93

5.00

2.50

2.10

5.00

Maine

Travelers

$2,925

3.58

4.02

3.75

2.51

5.00

Maryland

Progressive

$4,137

3.31

4.89

3.75

2.35

4.00

Massachusetts

State Farm

$1,824

3.93

5.00

2.50

2.10

5.00

Michigan

Auto-Owners Insurance Co

$3,074

3.70

4.37

3.75

3.31

5.00

Minnesota

Nationwide

$3,858

3.13

5.00

3.75

2.39

4.00

Mississippi

Progressive

$4,495

3.31

5.00

3.75

2.35

4.00

Missouri

GEICO

$8,008

3.77

5.00

2.50

2.16

5.00

Montana

State Farm

$2,411

3.93

4.75

2.50

2.10

5.00

Nebraska

Auto-Owners Insurance Co

$2,545

3.70

3.85

3.75

3.31

5.00

Nevada

Nationwide

$5,065

3.13

5.00

3.75

2.39

4.00

New Hampshire

Nationwide

$3,068

3.13

4.11

3.75

2.39

4.00

New Jersey

GEICO

$2,639

3.77

5.00

2.50

2.16

5.00

New Mexico

Nationwide

$3,300

3.13

4.95

3.75

2.39

4.00

New York

GEICO

$7,426

3.77

3.78

2.50

2.16

5.00

North Carolina

State Farm

$1,341

3.93

5.00

2.50

2.10

5.00

North Dakota

Nationwide

$2,212

3.13

5.00

3.75

2.39

4.00

Ohio

Auto-Owners Insurance Co

$2,255

3.70

4.47

3.75

3.31

5.00

Oklahoma

Allstate

$5,471

3.27

5.00

3.75

1.95

4.00

Oregon

Nationwide

$3,648

3.13

5.00

3.75

2.39

4.00

Pennsylvania

Auto-Owners Insurance Co

$4,232

3.70

4.14

3.75

3.31

5.00

Rhode Island

State Farm

$2,495

3.93

5.00

2.50

2.10

5.00

South Carolina

Auto-Owners Insurance Co

$3,274

3.70

5.00

3.75

3.31

5.00

South Dakota

Allstate

$6,846

3.27

5.00

3.75

1.95

4.00

Tennessee

Nationwide

$3,638

3.13

5.00

3.75

2.39

4.00

Texas

State Farm

$2,863

3.93

4.81

2.50

2.10

5.00

Utah

Auto-Owners Insurance Co

$3,481

3.70

4.40

3.75

3.31

5.00

Vermont

State Farm

$1,804

3.93

4.79

2.50

2.10

5.00

Virginia

Auto-Owners Insurance Co

$2,571

3.70

4.41

3.75

3.31

5.00

Washington

Capital Insurance Group

$2,970

4.77

4.31

1.25

3.31

3.00

West Virginia

Nationwide

$3,424

3.13

5.00

3.75

2.39

4.00

Wisconsin

Auto-Owners Insurance Co

$2,214

3.70

4.22

3.75

3.31

5.00

Wyoming

Allstate

$5,116

3.27

5.00

3.75

1.95

4.00

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.

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Best Cars to Insure for Young Drivers

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.

Car
Company
Annual Premium

1.

Honda CR-V

GEICO

$1,172

2.

Subaru Outback

GEICO

$1,207

3.

Honda Fit

GEICO

$1,210

Everything You Need to Know About the Best Car Insurance for Young Drivers

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.

Family vs. Individual Policy

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.

Best Car Insurance Policy for Young Drivers

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 Discounts for Young Drivers

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.

Best Way to Get Car Insurance for Young Drivers

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:

1

Choose the right car

The year, make and model of your car plays a role in the cost of insurance. MoneyGeek found that the Honda CR-V is the cheapest model to insure, followed by the Subaru Outback, Honda Fit and Ford Escape.

Keep in mind that sports cars are often more expensive given their high horsepower, so it might be better to opt for a car that’s reliable, has anti-theft systems and modest horsepower.

2

Understand your coverage needs

Young drivers have a higher likelihood of getting into an accident, which means it might be best to have a full coverage policy. MoneyGeek recommends getting full coverage insurance with 100/300/100 liability limits. This way, the financial consequences may be reduced even if you get into an accident.

3

Compare quotes

To find the best insurer, it’s smart to compare quotes. Insurers weigh your details differently, which means no two quotes are alike. Comparing quotes lets you find the cheapest and best offer.

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Common Questions About 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.

Experts' Advice on the Best Car Insurance for Young Drivers

  1. Adding a young driver to an existing car insurance policy with an experienced driver is cheaper. If a young driver doesn't have that option, what are some ways to ensure they get the best rates?
  2. A liability-only policy is attractive for many young drivers because of the lower price. How do you explain the difference between liability and full coverage policies to these individuals?
  3. What common discounts do insurers offer to make policies cheaper for young drivers?
  4. Are telematics policies especially attractive or unattractive for young drivers?
Jie Ying
Jie Ying

Assistant Professor of Finance at Southern Illinois University Edwardsville

Dr. Yibing Du
Dr. Yibing Du

Clinical Assistant Professor at The University of Texas at Arlington

Patrick van Esch
Patrick van Esch

Assistant Professor of Marketing and Professional Sales at Kennesaw State University

Leo Chan, Ph.D.
Leo Chan, Ph.D.

Associate Professor of Finance at Utah Valley University

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark 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 economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.


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