Best Car Insurance for Young Drivers in 2024

When deciding on a policy for a young driver, understanding the average cost of car insurance can offer great insight. State Farm emerged as the best car insurance for young drivers in MoneyGeek's study, with policies costing an average of $2,300 per year. The best car to insure for young drivers is the Jeep Patriot.

MoneyGeek analyzed policies for drivers aged 16 to 25 to find the best auto insurance companies for young drivers nationally and by state. These providers were ranked using a weighted rating system, considering affordability, claims ratings, customer satisfaction and financial stability.

The best car insurance companies for young drivers on an individual policy are:

• State Farm: MoneyGeek score of 86
• Travelers: MoneyGeek score of 85
• GEICO: MoneyGeek score of 85

To identify the best insurers, MoneyGeek used a five-point scoring system that evaluated companies based on:

• Customer satisfaction
• Claims rating
• Financial stability
• Affordability
• Coverage

The average rates shown are for individual full coverage policies with 100/300/100 liability limits and a $1,000 deductible. It's also important to note that teens under 18 cannot legally purchase their own policy without a parent or guardian agreeing to co-sign.

Finding the best car insurance provider for young motorists can help parents and drivers feel safe and secure on the road. Understanding the average cost of car insurance can provide you with a benchmark to work with as you decide on a provider and policy.

If you have an accident or a ticket on your driving record, insurers will view you as a risky driver and may increase your premiums. Some providers are more forgiving than others, while some have discounts available to help lower your premium.

A full coverage car insurance policy is often the best insurance option for young drivers.

It includes collision insurance, which pays for repairs to your car if you cause an accident, and liability insurance, which covers damage and injuries to others if you're at fault. Liability alone might not be enough as it doesn't pay for damage to your own car.

Collision insurance can save you money in the long run, especially if you don't have a lot of savings. Comprehensive insurance is also included in a full coverage policy and covers damage from non-collision incidents such as theft or natural disasters.

Together, these coverages provide robust protection, which is valuable for inexperienced drivers.

Liability-only insurance offers the lowest financial protection — but it’s also the cheapest. Generally, liability-only insurance involves following your state’s required minimums, which is a good option for those looking to find the most affordable car insurance for young drivers.

State Farm offers the best car insurance for young drivers between 16 and 20 years old, while those between 21 and 25 years old may find that GEICO is the best option.

The average premiums by age are for an individual policy with 100/300/100 liability limits, comprehensive and collision coverage and a $1,000 deductible.

Age affects how much you pay for car insurance. Younger drivers often pay more because they don't have much experience and are seen as riskier to insure. This bears out in the statistics: 16- to 19-year-olds are involved in 8.9% of all crashes and 6% of fatal ones, even though they represent less than 4% of licensed drivers.

But as you get older and avoid accidents and tickets, your costs will likely decrease. For example, 25-year-old car insurance is less than half of the cost for a 16-year-old. 

If you're a new or young driver, driving safely can help lower your cost, too. Taking part in defensive driving courses or driver's education can also make a difference.

While MoneyGeek analyzed the best car insurance for young drivers nationally, remember that the best options can vary by state and driver profile. The best insurer for you will depend on your needs and preferences, like whether you prioritize good customer service, a more affordable plan or a certain type of coverage or discount.

If you’re looking for the best car insurance for young drivers in your state, explore the table below and click on your state to learn more.

Where you live also plays a role in car insurance costs for young drivers. Different areas have different risks and rules. For example, there might be more accidents in busy cities, so insurance will likely cost more. Insurance might also be higher in places with higher rates of theft. Local laws can affect costs, too. Some areas require more insurance coverage than others. Plus, repair costs and medical fees can vary by location.

It's wise to shop around and compare quotes from different insurers in your area. Ask about discounts for good grades, safe driving or taking a driver's education course. Working with an insurance agent who knows your local area can also help you find the best coverage at the right price.

Remember, the best insurance option for young drivers isn't always the cheapest one; it's the one that offers the right protection for your unique needs and budget.

Young drivers often have two options when getting car insurance: being added to their family’s policy or having an individual policy.

Being added to a family policy is often the simplest and most affordable way for young drivers to get car insurance. While this will still increase the primary policyholder’s insurance cost, it’s often cheaper than getting an individual policy — especially if it’s coupled with discounts. In addition, teens under 18 cannot legally get their own policy unless a parent or guardian acts as a co-signer.

Use the table below to find the best insurer for adding a young drivers to a family policy by age and desired coverage level.

Aside from your driving history and profile, insurers also look at the car you drive when determining rates — the car's year, make, model and value all play a role in the cost of premiums.

MoneyGeek reviewed the affordability of common car models to find the cheapest car to insure and the best insurance provider by model. Our study found that the best affordable car to insure for young drivers is the Jeep Patriot — new or used. For this model, State Farm is the best insurer.

Insurers use a variety of factors to determine car insurance premiums — which is why the average cost of car insurance can vary. Generally, insurers base policy costs on your personal information, vehicle details and the coverage you want.

The personal information insurers consider includes your:

• Age: Younger drivers often face higher premiums due to lack of experience.
• Gender: Some insurers may use gender as a factor, although this practice is controversial and banned in some states.
• Location: Where you live can affect the likelihood of accidents, theft or vandalism.
• Credit Score: In some states, a higher credit score may lead to lower premiums.
• - Driving Record: A clean driving record can significantly reduce your premiums.
• Driving Frequency: How often you drive can also impact your risk level and, consequently, your premiums.

In terms of vehicle information, insurers look at:

• Model: Luxury or high-performance cars may cost more to insure.
• Make: Some brands might be more expensive to repair, leading to higher premiums.
• Year: Newer cars might have higher repair costs, affecting insurance rates.

Combined, these details help insurers assess your level of risk as a driver. Some factors may be more important than others, depending on the insurer's specific criteria.

Since different insurers might weigh these factors differently, it's wise to compare quotes, especially if you're looking for the cheapest car insurance for new drivers. Shopping around and understanding what affects your premiums can help you find the most affordable option that meets your needs.

Car insurance providers offer young drivers several ways to save on insurance through discounts. Stacking discounts can help young drivers get the cheapest full coverage car insurance.

Some of the most common discounts include:

These are just some of the most common insurance discounts that young drivers can take advantage of. The best part is that most major insurance providers allow you to stack discounts, meaning you can combine multiple discounts for even greater savings.

Many of these discounts are within easy reach. Options like opting for paperless billing or setting up automatic payments are simple changes you can make right now to save on insurance costs. By being proactive and exploring these opportunities, young drivers can significantly reduce their auto insurance premiums without sacrificing essential coverage.

You can purchase insurance online or through an agent. Here are steps to getting the best car insurance for young drivers:

MoneyGeek answered common questions you might have about finding and securing the best car insurance for young drivers aged 16 to 25.