If you are under 25 years old and have questions about auto insurance, this guide is for you. We will discuss car insurance for under-25-year-olds, including discounts you may be eligible for and the level of coverage you need.
We want you to have great car insurance coverage at a great price, which is why our expert team reviewed all the major insurance providers. We then used that information to find the best insurance providers in the industry. Now, you can get free quotes from local providers by simply entering your zip code into our quote box below.
Can I Get Quality Insurance If I’m Under 25 Years Old?
If you are under 25 years old, you will have slightly higher insurance rates than other adults. This is because insurance companies typically consider young drivers high-risk.
The idea that younger or teen drivers are high-risk stems from several factors, one of which is their lack of driving experience, as they have only had their driver’s license for a few years. That lack of experience can make it harder for new drivers to respond to certain situations on the road quickly. Younger drivers also tend to have a higher likelihood of driving while distracted, which can lead to accidents as well.
The good news is that you can still find quality insurance that fits your budget. You may have to look around a little, but you can find a policy that offers affordable rates and quality coverage. Do not choose a cheap car insurance policy with poor coverage, as it may end up costing you more in the long run.
The important thing to remember is that there are good options for quality car insurance for under-25-year-olds. You just have to research companies and compare rates to find the best choice.
What Kind of Auto Insurance Coverage Do I Need If I’m Under 25?
Nearly every single state has a minimum coverage requirement for your insurance. Most states require liability insurance, but some also have other requirements. You should always make sure that you meet your state’s minimum level of coverage requirements.
The following information will help you better understand the various types of coverage available today. Remember that full coverage auto insurance will combine all types of coverage.
Liability Auto Insurance
Liability coverage can pay for property damage and injuries that affect others if you are responsible for an accident. For example, if you hit a pole and damage it, the insurance would pay to repair or replace the pole. It would also pay for the medical bills of someone injured in the accident.
Collision Auto Insurance
Collision auto insurance can pay for damage to your vehicle when you hit another car. It will typically pay to repair or replace your car.
Comprehensive Auto Insurance
Comprehensive insurance adds even more coverage in the case of an accident with another vehicle. It can also provide coverage in situations that don’t involve a collision. Some policies, for example, cover accidents involving animals, damage from certain weather conditions, and vandalism.
Other Recommended Coverage
Depending on the state you live in, you may also need to get personal injury protection insurance (PIP). This can cover loss of income and medical expenses after an accident.
Some states also require uninsured or underinsured motorist coverage. These are typically bundled together and provide coverage if you are not at fault in an accident but the other party does not have insurance. This type of coverage can also cover hit-and-runs.
Even if those insurance policies are not required in your state, you may want to consider adding them. However, this is a personal decision that must be made based on your particular finances and car.
What Factors Determine Auto Insurance Rates for Drivers Under 25?
Insurance companies use a long list of factors to determine what car insurance premiums to offer. Some of those factors include age, location, gender and driving record, among others.
Driving Record
Insurance companies know that young adults have a higher risk of getting into an accident. That is why your age affects your rate. Your driving record also plays a role in your coverage rates, as it lets insurance companies see if you have had any previous accidents.
If your driving record includes collisions or traffic violations, you are more likely to have a higher insurance rate. If you have a clean driving record, you can expect a lower rate. You may even be eligible for a safe driver discount.
Credit History
Most car insurance companies also look at your credit history when trying to determine rates. This can be challenging for drivers under 25 years old, as you are less likely to have established a solid credit history or a good credit score. That may negatively affect your rate.
Commute Length
Insurance companies tend to offer lower insurance premiums to those who put fewer miles on their cars. This means that if you have a shorter commute, whether to school or work, you may pay less for insurance.
Auto Insurance Discounts for Drivers Under 25 Years Old
Taking advantage of discounts is among the best ways to ensure that you get the best car insurance rates as a young driver.
Some of the discounts young drivers may be able to get on their insurance include:
- Good student discounts
- Discounts for being a student away at college
- Military discounts
- Discounts for completing driver’s ed or a defensive driving course
- Safe driver discounts
- Discounts for accumulating low mileage
- Discounts for safety features in your car
- Discounts for having security features in your car, such as anti-theft devices
- Discounts for bundling your insurance, such as with another insurance policy
- Discounts for electronic billing
- Discounts for paying the entire policy ahead of time
Although it is not a discount, you can also save money by driving a reliable car. Opting for a reliable vehicle instead of a sports car or something more expensive will help keep your cost of car insurance low. You should also remember that your deductible affects your annual premium.
Our Recommendations for Auto Insurance for Young Drivers
The most effective way to get the best car insurance for under-25-year-olds at the best rate is to compare quotes from multiple insurance providers. We make that comparison easy with our simple-to-use quote box. Just enter your zip code below to see local car insurance quotes.
We suggest considering policies from GEICO, USAA, and State Farm.
GEICO: 9.1 out of 10.0
After careful research, GEICO is our team’s pick for best overall. The company has a high industry reputation of 9.5 out of 10. It also earned ratings of 9.0 for cost, coverage, and customer experience.
USAA: 8.9 out of 10.0
For those in the military or with families in the military, USAA is a great option. This company has cost and customer experience ratings of 9.0 out of 10, along with a coverage rating of 8.5 and an industry reputation rating of 9.5.
State Farm: 8.5 out of 10.0
State Farm is our choice for the best student discounts. It has a 9.5 rating for industry reputation, along with an 8.0 rating for cost and customer experience. Our team awarded it 8.5 for coverage.
FAQ: Auto Insurance for Drivers Under 25 Years Old
How much insurance coverage do I need as a young driver?
As a young driver, you need to meet your state’s minimum coverage requirements. This will likely include liability insurance.
What kind of discounts are available for drivers under 25 years old?
Drivers under 25 years of age may qualify for good student discounts, discounts for students away at college, bundling discounts and discounts for safety features on their car.
Which companies offer the best rates for young drivers?
Our team found that GEICO, USAA, and State Farm offer the cheapest car insurance rates for young drivers.
How can I save money on my car insurance as a driver under 25?
You can save money by comparison shopping to get better rates. You can also make sure to take advantage of all the available discounts.
Methodology
The Detroit Bureau collects data from every major car insurance provider to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, auto insurance rate estimates generated by Quadrant Information Services, customer satisfaction, and ratings from industry experts. Each insurer is given a weighted score in four categories, as well as an overall score out of 10.0.
We recommend auto insurance companies based on these rankings, but we also encourage you to perform your own research and compare quotes to find the best coverage.
