Updated: August 19, 2025
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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.
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.
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 |
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.
*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.
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:
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.
*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.
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:
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.
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.
| 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 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.
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:
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.
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):
Moderate Budget ($100-200/month):
Comfortable Budget ($200+/month):
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 |
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 |
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.
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.
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.
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.
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.
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.
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.
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.
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.
MoneyGeek answers common questions about cheap car insurance for young drivers to help you find a policy with the best rate.
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.
State Farm and GEICO offer the best cheap car insurance after an accident.
Car insurance usually gets cheaper at 25, but rates still depend on your driving record and other factors.
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.
Due to their lower value, older cars are typically cheaper to insure for young drivers. Skipping comprehensive and collision coverage can further reduce costs.
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.
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.
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.
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%.
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.
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.
Some of the discounts available for young drivers are as follows:
However, it is important to remember that car insurance is one of the necessities you need to budget for. Plan for this expense and car maintenance and car payments to ensure that you can enjoy the freedom of owning and operating a car.
Even with discounts, young drivers will likely pay a higher premium than older drivers. However, as they develop a good driving record, their premiums may go down. Until that happens, young drivers may obtain a lower premium by taking a safe driving course. Not only may that result in lower premiums, but it will also make them safer drivers, which should help them avoid accidents and injuries and develop a good driving record, which may result in lower premiums in the future.
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Ask an expertWhy 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:
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:
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.
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.
