The Best Cheap Car Insurance and Average Costs for 24-Year-Olds
Unfortunately, no matter how good a driver you are, car insurance will almost always be more expensive for younger drivers than it is for older drivers. This is because younger drivers are statistically more likely to get in accidents than older drivers. While the car insurance rate hike is most severe for teenage drivers, drivers in their 20s still experience higher premiums than those in their thirties and above.
While getting car insurance as a 24-year-old isn’t cheap, there are plenty of strategies that can help you save money and get the best rates possible. We’ve ranked the top insurance companies for 24-year-olds to help drivers find the least expensive auto insurance that meets their needs.
Car insurance costs an average of $1,543 annually for 24-year-olds.
Drivers should be sure to shop around to get the best possible rates.
A clean driving record and discounts will also help you save on car insurance.
How Much Does Car Insurance Cost for a 24-Year-Old?
Car insurance for a 24-year-old driver costs an average of $1,543 per year. While car insurance premiums are based partly on age, they’re also influenced by a variety of other factors, including gender and driving history. To get the best car insurance for your particular situation, you should be sure to shop around and compare rates and coverage between different providers.
The average annual premium for a 24-year-old driver is $1,543.
Cheapest Car Insurance Companies for 24-Year-Old Drivers
Age is one of the main factors that influence car insurance costs, and new drivers almost always pay more. While 24-year-old drivers won’t pay premiums as steep as their younger peers, their insurance rates are still higher than those of older drivers. Rates can also vary by gender, as well as whether or not drivers have accidents or tickets in their driving history.
GEICO offers the cheapest insurance rates for 24-year-old drivers at $1,293 for comprehensive and collision coverage per year on average, while Nationwide offers the highest at $1,757 per year on average. Rates can also vary depending on location and your personal situation, so it pays to shop around and compare rates since you could be saving hundreds of dollars per year.
Cheapest Companies for an Individual 24-Year-Old Policy
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- 2.State Farm$1,508
Car Choice Matters When Insuring a Young Driver
Car choice is one of the most significant factors affecting car insurance costs, especially for younger drivers. Some types of cars, like used cars and basic sedans, are much cheaper to insure than luxury vehicles. For example, car insurance for a Toyota Camry costs an average of $1,543 for 24-year-old drivers, while car insurance for a Ford Mustang costs an average of $2,501. That’s a huge difference — and all because of the kind of car you choose to drive.
Strategies to Save Money on Car Insurance for a 24-Year-Old
While car insurance is typically more expensive for 24-year-olds than it is for older drivers, there are still plenty of ways to reduce your monthly premiums and find the cheapest car insurance available to you. These include shopping around for the best rates, maintaining a clean driving record and taking advantage of specific discounts. Young adult drivers can also significantly reduce auto insurance costs when added to a family insurance policy.
Compare Quotes for the Best Policy
When shopping around for insurance products, it’s essential to shop around and compare auto insurance quotes in order to ensure that you’re getting the best deal possible. Depending on your individual situation, rates from different insurers can vary by hundreds of dollars annually, so it pays to consider all of your options before making a final decision.
Ensure a Clean Driving Record
Accidents and tickets have the potential to dramatically increase car insurance costs for 24-year-olds. With this in mind, it’s important to try to maintain a clean driving record to get the best possible deals. But if you have accidents or other violations in your driving history, it’s still a good idea to check and see if you might qualify for better rates. Some providers may even offer accident forgiveness for a first-time offense.
Find Companies That Offer Discounts
Many car insurance companies offer discounts for students and other groups. For example, GEICO offers car insurance discounts for students who maintain a 3.0 average or better. Depending on the insurer, there may also be discounts available for honor society membership, alumni association, sorority or fraternity membership and more.
Young drivers can also often secure a lower rate by completing a defensive driving course. This course will not only save drivers on car insurance, but it can also help them to prevent accidents in the future by promoting safe driving habits.
Lower the Coverage Amount
One simple way to lower your car insurance rates is to reduce your coverage amount. If you own an inexpensive car, you may want to consider liability-only car insurance in order to reduce your monthly costs. That said, lowering your coverage amount can cost you more money in the long run if you end up in an accident or if something happens to your car. In general, you should try to purchase as much car insurance coverage as you can comfortably afford.
Choose a Sedan Over a Sports Car
Certain cars cost more to insure, especially for younger drivers. Sports cars and luxury vehicles can often come with much higher monthly insurance premiums for 24-year-olds. For example, for this age group, insuring a Toyota Camry costs an estimated $1,543, while insuring a Ford Mustang costs roughly $2,501 — an increase of almost a thousand dollars per year.
Why Is Car Insurance So Expensive for a 24-Year-Old?
Car insurance is expensive for 24-year-olds primarily because younger drivers are riskier drivers. While you might be an incredibly safe and responsible driver, statistically speaking, young people are more likely to get in accidents that require insurance companies to pay out.
Traffic Statistics for 24-Year-Old Drivers
While 24-year-olds have lower accident, injury and fatality rates than drivers in their teens, they still get into accidents more often than older drivers. For example, according to the AAA Foundation for Traffic Safety, drivers aged 20 to 24 get into an average of 572 accidents per 100 million miles driven. Of those, 157 result in injuries, and 2.15 result in fatalities. In comparison, drivers in their 60s get into an average of only 241 accidents per 100 million miles driven, with 67 resulting in injuries and 1.04 resulting in fatalities.
Traffic Accidents by Age Group Per 100 Million Miles Driven
Young drivers are more at risk than older drivers when it comes to traffic accidents and fatalities. Even safe, responsible drivers often simply have less experience on the road than older drivers, which can contribute to an increased rate of accidents. This is even more clearly illustrated when you examine the number of driver deaths per capita: there are 6.3 driver deaths for every 100,000 drivers within the 20–24 age range. As drivers reach their late 20s, 30s, and 40s, that number drops. Even so, no matter your age, you should always try to drive safely and implement defensive driving practices.
MoneyGeek collected data for young drivers in this age range in order to determine the average cost of car insurance. You can learn more about our methodology here.
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About the Author
- AAA Foundation for Traffic Safety. "Rates of Motor Vehicle Crashes, Injuries and Deaths in Relation to Driver Age, United States, 2014-2015." Accessed January 18, 2021.