GEICO offers the lowest individual full coverage 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. For 20-year-olds specifically, State Farm's $189 monthly individual rate and Nationwide's $181 family rate are the cheapest options available.
Cheapest Car Insurance for Young Adults
Updated: April 10, 2026
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Most Affordable Car Insurance for Young Adults: Key Takeaways
GEICO offers the cheapest individual car insurance for young adults starting at $111 monthly for 25-year-olds with clean driving records. At age 20, State Farm provides the lowest individual rate at $189 monthly, making it the strongest starting point for drivers just entering the market.
Nationwide provides the best family policy rates for young adults, ranging from $117 monthly at age 25 to $181 at age 20. Staying on a parent's policy saves most young drivers $1,000 or more annually compared to buying individual coverage before age 23.
Combining good student, telematics and defensive driving discounts cuts young adult premiums by 30% to 50% annually. Choosing a vehicle with strong safety ratings, like the Subaru Outback at $107 monthly, compounds those savings further.
Cheapest Car Insurance for Young Adults: 20 to 25
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 |
Young drivers get the best rates on auto insurance by comparing both family policy additions and individual coverage. GEICO and State Farm consistently rank as the cheapest car insurance companies for young adults across most states, with rates that drop sharply at ages 21 and 25.
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.
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 save hundreds annually by joining a parent's Nationwide policy rather than purchasing individual coverage, with rates that decrease each year.
The biggest 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.
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 to 25 with monthly premiums ranging from $152 to $111, while State Farm offers the cheapest option at age 20 with $189 monthly rates.
*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.
Cheapest Car Insurance for Young Adults by State
GEICO is 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 | 90.12 |
| CO | State Farm | $3,239 | $270 | 91.4 |
| 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 | 86.9 |
| 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 | 87.02 |
| KY | State Farm | $2,451 | $204 | 89 |
| LA | State Farm | $6,573 | $548 | 89 |
| MA | GEICO | $1,949 | $162 | 90.66 |
| 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 | 90.71 |
| 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 | 88.87 |
| 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 | 86.55 |
| 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.
Car insurance rates continue dropping through your 30s. Drivers who maintain a clean record between ages 25 and 30 often see an additional 10% to 15% reduction, with cheap car insurance for 30-year-olds available from many of the same insurers that lead for young adults.
Cheapest Car Insurance for Young Adults by Age and Gender
Farmers Mutual consistently offers the cheapest car insurance across all ages and genders, with rates ranging from $83 monthly for 25-year-old women to $127 for 20-year-old men. The biggest rate drops occur between ages 20 and 21, when young adults save $73 monthly for men and $62 monthly for women as insurers recognize improved driving maturity.
Some states prohibit or limit the use of gender in determining insurance rates. Rate differences may not apply in all locations.
Data filtered by:
20
Male
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 narrows with age, from 9% at age 20 to just 2% by age 25, making car insurance more affordable for young men and women as they gain driving experience.
Best Car Insurance Discounts for Young Drivers
Young adults can stack multiple discounts to achieve 30% to 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 |
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 these steps to find the most affordable policy:
- 1Compare Family vs. Individual Policies
Family policies deliver the most savings for eligible young drivers, costing 30% to 50% less than individual coverage. If you live in your parents' household or attend college as a full-time student, you can remain on their policy and benefit from lower group discount rates.
- 2Figure 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 financial protection and affordability:
Tight budget (under $100/month):
- Liability: Cheap liability-only insurance at 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 to $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
- 3Purchase a cheap car to insure
Your vehicle choice affects insurance costs for young drivers. Cars with strong safety ratings, advanced safety features and low theft rates can save young drivers $800 to $1,500 annually compared with sports cars, luxury vehicles and models with expensive replacement parts.
- 4Choose higher deductibles
Strategic deductible selection affects your monthly premiums. Increasing your deductible from $250 to $1,000 saves $200 to $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.
- 5Stack multiple discounts
The best car insurance discounts for young adults combine for major savings. Good student discounts reward B averages with 10% to 25% savings, while telematics programs like GEICO DriveEasy or State Farm Drive Safe & Save offer 10% to 30% reductions for safe driving habits. Defensive driving course completion provides 5% to 15% discounts, and bundling auto insurance with renters coverage delivers additional 5% to 25% savings.
- 6Get 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.
- 7Take 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.
- 8Limit driving time and mileage
Low-mileage drivers can qualify for insurance discounts, with some insurers offering 10% to 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.
- 9Pay the premium in full
Annual premium payments eliminate monthly installment fees that add $50 to $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.
- 10Shop 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.
- 11Consider 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 savings for responsible drivers.
MONEYGEEK EXPERT TIP
A mid-policy rate review often turns up savings. Switching car insurance companies is straightforward and doesn't require waiting for your current policy to expire.
Why is Car Insurance So Expensive for Young Adults
Insurance companies base premiums on statistical risk data, and young adults face higher rates due to measurable factors that increase claim likelihood. Understanding these reasons can help you minimize their impact on your search for affordable car insurance for young adults.
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 to 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
From April 2016 to March 2017, drivers 16 to 19 years old had the highest crash rate per 100 million travel miles compared with 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 to 20 and 33% of male drivers 21 to 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.
Expensive Vehicle Preferences
In 2023, 37% of male drivers 15 to 20 and 33% of male drivers 21 to 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 to 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 the CDC Injury Center.
WHEN DO INSURANCE RATES FOR YOUNG DRIVERS GO DOWN?
While young adult insurance rates start high, they decrease 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% to 30% or more.
Best Cheap Car Insurance for Young Drivers: Bottom Line
GEICO and State Farm offer the cheapest car insurance for young adults, with GEICO's individual rates starting at $111 monthly at age 25 and State Farm's $189 monthly rate leading at age 20. Nationwide provides the best value for family policy additions at $117 to $181 monthly depending on age.
Choosing a vehicle like the Honda CR-V or Subaru Outback and stacking discounts like safe driving courses and good student rewards can cut premiums by 30% to 50%.
The switch from family to individual coverage makes financial sense around ages 22 to 23, with age 25 marking the clearest savings point for young adults building independent insurance history.
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 to $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 for young drivers.
Is insurance cheaper when you turn 25?
Car insurance gets cheaper at 25, with rates dropping 20% to 30% for drivers with clean records. Your driving record and other factors still affect your final rate.
Is multi-car insurance cheaper for young drivers?
Multi-car policies cost less for young drivers than individual policies. Bundling auto and home insurance with the same insurer can lead to additional savings of 10% to 25%.
What cars have the cheapest insurance for young adults?
The cheapest cars to insure for young adults include the Subaru Outback ($107 monthly), MINI Cooper ($110 monthly) and Subaru Forester ($111 monthly). These vehicles save young drivers $333 to $387 annually compared with average rates due to strong safety ratings and low theft rates.
When does car insurance get cheaper for young adults?
Car insurance rates decrease at key milestones: age 21 (average $588 annual savings), age 25 (20% to 30% rate reduction) and with each claim-free year. The biggest rate drops occur between ages 20 to 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.
Clinical Assistant Professor at The University of Texas at Arlington
Some of the discounts available for young drivers are as follows:
- Good Student Discounts: Offered to young drivers who maintain high academic performance.
- Driver’s Education Discounts: This is a discount for completing a recognized driver's education course.
- Defensive Driving Course Discounts: Completing a defensive driving course may qualify you for a discount.
- Multi-Car Discounts: Young drivers can get this if they are part of a family with multiple cars insured by the same provider.
- Low Mileage Discounts: Young drivers can get this if they don't drive long distances regularly.
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.
Clinical Assistant Professor at The University of Texas at Arlington
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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Cheapest Car Insurance for Young Adults: Our Methodology
Sticker shock hits young adults when they see car insurance quotes: rates can triple or quadruple when adding a young driver to a family policy. We gathered thousands of quotes to show both parents and young adults which insurers offer the most competitive rates and whether staying on a family policy or getting individual coverage saves more money.
We analyzed data from Quadrant Information Services and state insurance departments, reviewing quotes across all 50 states to compare how rates vary by provider, location and whether young drivers choose family or individual policies. Car insurance rates depend on age, driving record, claims history, ZIP code, coverage level and insurer, so we controlled these variables to isolate which companies truly offer the best value for young adults.
Cheap Car Insurance for Young Drivers: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.