Cheapest Car Insurance for Young Adults

MoneyGeek found that Nationwide and GEICO offer the cheapest car insurance for young drivers for a full coverage family policy. On their own individual policy, young drivers can get cheap coverage from State Farm and GEICO.

Nationwide and GEICO offer the most affordable insurance for young drivers added to family policy. Meanwhile, State Farm and GEICO are the cheapest providers for young drivers with individual policies.

If you’re looking for cheaper car insurance for young drivers, adding them to a family or parent policy typically results in the lowest possible cost of insurance. Nationwide and GEICO offer the most affordable rates for young drivers added to a parent's policy.

To add a driver to your insurance, they must have the same address as the policyholder.

Each quote is for two parents on the same policy with the young driver and full coverage insurance, including comprehensive and collision coverage and liability rates of:

• $100,000 per person for bodily injury
• $300,000 per accident for bodily injury
• $100,000 per accident for property damage
• $1,000 deductible

The young driver's age, among other factors, will determine which carrier offers the cheapest rates.

If a young driver isn’t eligible for a family policy, the next best option is an individual policy. With this, the cheapest providers for an individual policy are State Farm and GEICO.

Each quote includes comprehensive and collision coverage, plus:

• $100,000 per person for bodily injury
• $300,000 per accident for bodily injury
• $100,000 per accident for property damage
• $1,000 deductible

The rates displayed in the table are for young drivers on an individual policy.

Adding a young driver to a family policy with a multi-car or multi-policy bundling discount is usually the best way to get the lowest rates. However, eligibility requirements or restrictions might mean your teen driver doesn’t qualify for a family policy.

A young driver will need to sign up for their own insurance if:

• They live away from home
• The car is titled under their name

College students who live at school but keep their parents' address as their primary residence may be able to stay on the family plan. However, they might need individual student car insurance if they take a vehicle to school with them and live a certain distance from home, especially in another state.

Eligibility requirements and restrictions can vary by state and the insurance company. Checking with the insurer on its requirements can help you decide on a family vs. individual policy for young drivers and which company best fits their needs.

Each state regulates insurance differently, and each geographic region can have different rates. To find the best cheap car insurance for young drivers, check rates for your age group in your state.

The premiums are based on full coverage, with a $1,000 deductible, for comprehensive and collision coverage. Quoted liability limits are 100/300/100, or:

• $100,000 per person for bodily injury
• $300,000 per accident for bodily injury
• $100,000 per accident for property damage

Newly licensed drivers who are 16 years old often have the highest premiums, especially if they need an individual policy. In addition, the cost of car insurance for young drivers can differ by gender, as males are typically considered higher risk and tend to pay higher premiums. Once you hit 25, most insurers consider you a less risky driver, so you will likely get cheaper rates. However, male drivers are still regarded as high risk and usually pay higher premiums.

Your car matters as much as your age regarding how much you pay for insurance. Picking the right car can help you save money. If your vehicle has safety features, is used, and doesn't need a lot of coverage, you can pay less for insurance.

If you're a young driver looking for affordable coverage, the car you pick can change how much you pay. Some cars that usually have good rates are the:

• Honda CR-V
• Subaru Outback
• Honda Fit

The Honda CR-V is the cheapest SUV, new car, and used car to insure. The Subaru WRX is the cheapest sports car to insure.