FAQ

What is the best car insurance for young adults

Young drivers pay some of the highest average auto insurance rates due to lack of experience and increased likelihood of filing a claim. however, it is possible to find low rates for young drivers, and bankrate can help. Our research highlights five companies that are among the best for young drivers, shows average premiums for various ages, and explains which discounts could help you lower your premium even further.

best car insurance for young adult drivers

Bankrate’s research revealed that Geico, Nationwide, Progressive and State car owners are among the best car insurance companies for young adults. We begin our analysis by looking at average premium data from quadrant information services. Knowing that auto insurance rates are rising in 2022, we focused on finding companies with low average rates for young drivers. We also consider coverage options, specific discounts for young drivers, policy features, and third-party ratings to help you find a provider that offers affordable rates and adequate coverage.

Reading: What is the best car insurance for young adults

Remember your rate may depend on factors such as whether you’re on a parent’s policy, married, owning a home or renting. to determine the average cost of car insurance for young adults in the us In the US, Bankrate analyzed data to add drivers to their parent’s policy and drivers to their own policy.

car owners

best for discounts

car owners could be a good option if you are looking for a company with many discount options. The company offers three exclusive savings programs for young drivers, as well as a host of other discounts that could help you save.

See also: How Insurance Companies Settle Cases

See also: What Is Term Life Insurance? – Forbes Advisor

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Car owners offer young drivers three different savings opportunities. If you’re a full-time student with a “B” letter grade average or better, you may qualify for the nice student discounts. students who are out of school more than 100 miles from home and do not have a vehicle with them are eligible for the off-campus student discount. auto-owners also offers their teen tracking discount, which uses your vehicle’s gps system to assess driving habits.

more information: car owners insurance review

geiko

the best for low rates

geico offers competitive auto insurance rates for young drivers with a few years of experience. The company also offers a long list of discounts, including student discounts, that could help lower your premium.

See also: How Insurance Companies Settle Cases

See also: What Is Term Life Insurance? – Forbes Advisor

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Recent college graduates can also get discounts for membership in alumni associations and joining fraternities or sororities. young adults who are active duty members of the us uu. Armed forces could get up to 15 percent off, along with additional savings when they deploy.

more information: geico insurance review

nationally

the best for personalized policies

If you’re looking for an auto insurer with lots of customization options, Nationwide might be a good fit. The company offers numerous coverage add-ons, such as roadside assistance and gap insurance, to help create personalized car insurance for teens and young drivers.

See also  How to find the best health insurance plan for you and your family : Shots - Health News : NPR

See also: How Insurance Companies Settle Cases

See also: What Is Term Life Insurance? – Forbes Advisor

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

young adults can save money on auto insurance when they enroll in the national smartride program. the program uses an app to track acceleration, braking, idle time, mileage, and night driving. Drivers get a 10 percent discount on certain types of coverage just for signing up for this telematics program and could get up to 40 percent off certain types of coverage based on their driving habits.

more information: national insurance review

progressive

best for digital tools

While its premiums aren’t the lowest on our list, the progressive may appeal to young drivers who prefer to manage their insurance needs digitally. In addition, progressive offers several discounts that could help you get a lower rate.

See also: How Insurance Companies Settle Cases

See also: What Is Term Life Insurance? – Forbes Advisor

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Progressive’s robust mobile app includes options to pay your bill, view your policy information, request changes, request roadside assistance, file and track a claim, and start a new quote. The company’s website is also robust, with an online customer portal and lots of information about progressive products.

more information: progressive review of insurance

state farm

best for local agencies

If you like working with a local agent, State Farm might be a good option for young adult auto insurance. The company has a network of 19,000 agents throughout the United States. who can help you with your auto insurance needs.

See also: How Insurance Companies Settle Cases

See also: What Is Term Life Insurance? – Forbes Advisor

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Youth often need help getting through the challenges of college life or leaving the nest to live on their own. state farm makes life a little easier for young adults with an exceptional roadside assistance program. this covers battery jump-starts, fuel delivery, lockout service, towing, and up to an hour of roadside mechanical work.

more information: state agricultural insurance review

average cost of car insurance for young drivers

A driver’s age is one of the most important factors affecting rates, except in Hawaii or Massachusetts, where age is not allowed as a factor in calculating insurance premiums. While teenagers tend to pay the highest rates, drivers between the ages of 20 and 25 still pay hefty average premiums. at age 20, for example, drivers pay 56 percent more for full coverage than the national average premium of $1,771 per year. after age 25, rates generally begin to normalize.

See also: How Insurance Companies Settle Cases

See also: What Is Term Life Insurance? – Forbes Advisor

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

average cost of car insurance for young drivers by state

Location is another critical factor in determining auto insurance premiums. Each state has different insurance laws, including different minimum coverage requirements, which can affect the rates set by each auto insurance company. Also, your risk of being in an accident can vary by location, including state, city, or even zip code.

See also  FHA Mortgage Insurance: Why It's Necessary And So Expensive | Bankrate

The following table illustrates the average annual full coverage premium for young adults, broken down by state.

See also: How Insurance Companies Settle Cases

See also: What Is Term Life Insurance? – Forbes Advisor

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

*hawaii and massachusetts prohibit the use of age as a qualifying factor, but other factors may apply causing rates to fluctuate.

How are young driver rates determined?

Young adult car insurance rates are determined in the same way as for older drivers. several qualifying factors that determine auto insurance premiums, including:

  • Age: Generally, drivers who are 25 years old or younger pay more for car insurance because their lack of driving experience can put them at greater risk of causing accidents than older drivers. They are also more likely to file a claim because they are typically not as financially established as older drivers. State regulations in Hawaii and Massachusetts do not allow insurance companies to use age as a rating factor.
  • vehicle make and model: some cars are cheaper to insure than others. Before you buy a vehicle, getting a quote from your insurance company can be a good idea to make sure you can afford the coverage.
  • Credit: Most states allow insurance companies to use your credit-based insurance score when calculating your policy rate. People with bad credit generally pay much higher rates than consumers with good credit scores. Regulations in California, Hawaii, and Massachusetts prohibit the use of credit as a factor in determining auto insurance rates. auto insurance companies in michigan can’t use your actual credit score, but they can use factors that go into your credit score.
  • Gender: Men tend to pay higher rates than women for car insurance, even if they have a clean driving record. men are statistically more likely to have accidents than women, and those accidents tend to be more serious. California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania prohibit the use of gender as a rating factor.
  • Location: If you live in an area with a high probability of accidents or damage from natural disasters, theft, or vandalism, you may pay more for coverage. Also, each state has different insurance laws, which can affect premiums.
  • Mileage: The more you drive, the more likely you are to have an accident due to being on the road more often. People who only use their cars occasionally can pay lower rates than people who travel more often.
  • Types and Number of Coverage Types: Drivers who purchase only the minimum required types of coverage, such as bodily injury and property damage, generally pay less for auto insurance than drivers They also buy collision and comprehensive coverage. Lenders will generally require you to purchase comprehensive and collision insurance, and most insurance experts recommend purchasing more than the minimum amount required to better protect your finances. your deductible for certain types of coverage will also affect how much you pay.
  • Because these variables will change your rate from carrier to carrier, it can be helpful to get several quotes before deciding on an auto insurer.

    discounts for young drivers

    Nearly all auto insurance companies offer discounts to drivers, and some even offer specific discounts for young drivers. Finding a company that offers the right discounts for your driving habits may be the best way to get affordable car insurance.

CATEGORY: FAQ

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button