GEICO offers the cheapest individual full coverage rate for 25-year-olds at $111 a month. Nationwide has the lowest cost for adding a young adult to an existing family policy, with rates from $117 to $181 a month. For 20-year-olds, State Farm's individual rate of $189 a month and Nationwide's family rate of $181 a month are the top options.
Cheapest Car Insurance for Young Adults
Updated: September 4, 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 rate with proven claims reliability |
Best for Individual Policies | State Farm | $189 | Competitive individual coverage backed by strong customer service |
Best for Family Policy Addition | Nationwide | $117 | Lowest cost to add a young adult to an existing family policy |
Best for College Students | Geico | $111 | Keeps coverage affordable while a student is away at school, with flexible policy terms |
Best Discount Programs | State Farm | $152 | Up to 25% off with good student discounts, plus telematics savings through Drive Safe & Save |
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's family policies offer the cheapest rates for adding a young adult driver to existing coverage. Joining a parent's Nationwide policy costs less than buying individual coverage, and the rate keeps dropping each year the young driver stays on it.
The steepest drop happens between ages 20 and 21: the monthly premium falls $49, from $181 to $132, for $588 in savings a year. Insurers generally price this drop based on driving history and risk data building up over time.
Family policies have another discount for college students. Allstate, State Farm and Progressive all set the same cutoff for their student-away-at-school discount: 100 miles from home. Students who study farther than that and leave the car at home can knock 10% to 25% off the family rate. Bring the car to campus, though, and the discount disappears.
*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 Insurance 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 offers the cheapest car insurance for young adults in 28 states, with monthly premiums as low as $78 in Hawaii. State Farm has the lowest rates in 19 states, including California, Texas and Illinois.
| 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 |
*Premiums shown reflect full coverage with a $1,000 deductible and liability limits of $100,000 per person and $300,000 per accident for bodily injury, plus $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 in car insurance rates narrows with age: 9% at age 20, down to just 2% by age 25. Car insurance grows more affordable for both young men and women as they gain driving experience.
Best Car Insurance Discounts for Young Drivers
Stacking multiple discounts can bring young adults 30% to 50% in total premium savings, according to MoneyGeek's cheapest car insurance for young adults analysis. State Farm's good student reward saves up to 25%, safe driver programs offer up to 30% off, and telematics discounts adjust rates based on 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
Cheap options for young adults include the Subaru Outback at $107 a month, the MINI Cooper at $110, the Subaru Forester at $111 and the Honda CR-V at $113, according to MoneyGeek's cheapest cars to insure analysis. Strong safety ratings and low theft rates keep these models cheap to repair and insure.
| 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
The cheapest car insurance for young adults comes from balancing the right coverage with the discounts and provider choices that actually lower cost. Choosing wisely can cut premiums by hundreds of dollars a year. Follow these steps to find the most affordable policy:
- 1Compare family vs. individual policies
Family policies cost 30% to 50% less than individual coverage for eligible young drivers. Living in a parent's household or attending college as a full-time student qualifies you to stay on their policy at the lower group rate. Most insurers set no age cutoff for this: eligibility depends on your address and where the car is registered, not your age. That eligibility ends the moment your address or the car's registration changes, so confirm your status with the insurer before assuming the discount still applies.
- 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 to your budget for the best balance of financial protection and affordability:
Tight budget (under $100 a month):
- Liability-only coverage at state minimums, plus 25%
- Deductibles: $1,000, or $500 without an emergency fund
- Skip comprehensive/collision on cars under $3,000
Moderate budget ($100 to $200 a month):
- Liability: 100/300/100 minimum
- Deductibles: $500 to $1,000
- Add comprehensive/collision on cars worth $3,000 or more
Comfortable budget ($200+ a month):
- Liability: 250/500/100 or umbrella policy
- Deductibles: $250 to $500
- Protect assets with higher coverage limits
- 3Purchase a cheap car to insure
Vehicle choice affects insurance costs for young drivers. A car with strong safety ratings, advanced safety features and low theft rates can save $800 to $1,500 a year compared with a sports car, luxury vehicle or a model with expensive replacement parts.
- 4Choose higher deductibles
Your deductible choice affects your monthly premium. Raising it from $250 to $1,000 saves $200 to $400 a year. A higher deductible works if you have three to six months of expenses saved, drive an older vehicle with lower value or keep a clean driving record. Choose a lower deductible instead if you have limited emergency funds, drive frequently in high-risk areas or own a newer, high-value vehicle.
- 5Stack multiple discounts
Several discounts add up to major savings for young adults. A B average earns 10% to 25% off through good student discounts. Telematics programs like GEICO DriveEasy and State Farm's Drive Safe & Save cut rates 10% to 30% for safe driving. Defensive driving course completion adds 5% to 15% off. Bundling auto insurance with renters coverage saves another 5% to 25%.
- 6Get quotes online
Car insurance calculators compare rates across multiple insurers and apply available discounts automatically. Many match the pricing of a traditional agent, and you can buy a policy on the spot.
- 7Take a safe driving course
Defensive driving courses and safe driving programs cut your rate right away. Some states require insurers to offer this discount, and some insurers add incentives for ongoing safe driving education.
- 8Limit driving time and mileage
Some insurers offer 10% to 25% off for driving under 7,500 miles a year. Usage-based programs and telematics devices track driving habits and offer personalized rate cuts to young drivers who limit nighttime driving, avoid peak traffic hours and keep annual mileage low.
- 9Pay the premium in full
Paying annually eliminates the installment fees that add $50 to $150 to your yearly cost. Insurers that require monthly billing often let you set up electronic funds transfer (EFT) instead, which cuts or removes those processing fees.
- 10Shop around annually
Young adult rates change as you gain experience and hit age milestones. Request new quotes every year, and again after a birthday, a move, graduating college or six months of claim-free driving.
- 11Consider usage based insurance
Telematics devices and apps track hard braking, rapid acceleration, nighttime driving and total mileage. Insurers use this data to set personalized rates, often rewarding young drivers with safe habits.
MONEYGEEK EXPERT TIP
You don't have to wait for your policy to expire to switch car insurance companies. Requesting a rate review mid-policy often turns up savings.
Why Is Car Insurance so Expensive for Young Adults
Insurers set premiums using statistical risk data, and young adults show higher claim rates tied to specific, measurable factors.
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.
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.
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.
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.
In most states, insurers can factor credit history into your rate. Young adults often have limited credit history, and this can mean higher premiums until they build a stronger financial profile.
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. GEICO's individual rate starts at $111 a month at age 25, and State Farm leads at age 20 with a $189 monthly rate. Nationwide has the best value for family policy additions, ranging from $117 to $181 a month depending on age.
Choosing a car 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%.
Switching from family to individual coverage starts to pay off around ages 22 to 23. Age 25 marks the clearest savings point for young adults building their own insurance history.
Car Insurance for Young Adults: FAQ
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.
State Farm and GEICO offer the best cheap car insurance after an accident for young drivers.
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.
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%.
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.
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 is a licensed Property and Casualty (P&C) Insurance Producer in Connecticut and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.