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.
Cheap Car Insurance for Young Drivers
Updated: December 21, 2024
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Key Takeaways
Adding young drivers to a family policy is the most affordable option for car insurance, with Nationwide charging $2,718 annually ($226 per month) for a 16-year-old.
For young drivers on a family policy, rates can range between $1,406 to 2,718 annually, depending on the rate and age of the driver.
For individual policies, State Farm provides the cheapest option for young drivers, with a premium of $3,732 annually ($311 per month) for a 16-year-old.
Why trust MoneyGeek? MoneyGeek analyzed quotes using data from state insurance departments and Quadrant Information Services to compare the cost of car insurance for drivers aged 16-21 for family and individual policies to show how much quotes can vary by carrier as well as geographic location.
Cheap Car Insurance for Young Drivers
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.
Cheap Car Insurance for Young Drivers on a Family Policy (Ages 16–25)
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.
Cheap Car Insurance for Young Drivers on an Individual Policy (Ages 16–25)
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.
Family vs. Individual Policy for Young Drivers
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.
Cheap Car Insurance for Young Drivers by State
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.
Data filtered by:Results filtered by:
Select
State:Alabama
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Age:18
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Gender:Male
| GEICO | $2,303 | $1,177 |
| Allstate | $3,080 | $1,533 |
| Travelers | $3,252 | $2,153 |
| State Farm | $3,460 | $3,483 |
| Auto-Owners Insurance Co | $3,581 | $3,382 |
| Nationwide | $3,632 | $1,770 |
| Farmers | $6,422 | $2,440 |
| Progressive | $9,451 | $3,500 |
MONEYGEEK HAS STUDIES ON THE BEST CHEAP INSURANCE FOR YOUR SPECIFIC AGE.
Pages:
- The Best Cheap Car Insurance and Average Costs for 16-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 17-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 18-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 19-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 20-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 21-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 22-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 23-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 24-Year-Olds
- The Best Cheap Car Insurance and Average Costs for 25-Year-Olds
Cheap Cars to Insure for Young Drivers
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.
How to Make Car Insurance Cheaper for Young Drivers
To save money, you can join a family plan, choose the right coverage, and even take a safe driving course. It's also good to compare quotes and update your policy regularly to get the best deal.
- Utilize online calculators to get instant quotes. Most major insurers have websites that allow you to sign up for a policy immediately after sending a quote. Shopping online is the quickest way to comparison shop and collect quotes.
- Online calculators offer the same car insurance discounts you would get from a captive agent. Good student discounts can be combined with other discounts to help you get cheap insurance for students.
- Insurance can be costly for young drivers starting out on the road. But don't worry because your premiums should begin to decrease as you gain more experience behind the wheel.
- You don't have to wait for your current policy to expire to look for a better deal. If you explore your options and switch car insurance companies, you might find a more affordable solution that fits your needs
Use a family policy
If the young driver meets eligibility requirements, a family policy is usually cheaper than an individual policy. Each carrier has its criteria, so asking around might help you find which company can offer a family policy.
Figure out how much coverage you need
Not everyone needs every coverage type, but knowing how much car insurance you need isn’t always obvious. Consider your unique needs to determine what your policy should look like before you start getting quotes.
Purchase a cheap car to insure
Finding cheap car insurance for new drivers can be challenging, but knowing the factors affecting rates can help you qualify for the cheapest premiums. Choosing a cheap car can make rates more affordable and give you more coverage options.
Get quotes online and maximize discounts
Take a safe driving course
In some states, taking a safe driving course can help you get cheap insurance for teens. Practicing safe driving habits can also make you eligible for safe driving discounts and other incentives.
Limit driving time and mileage
The more time young drivers spend on the road, the more likely they will get into an accident, which can drive up rates. Some carriers also factor mileage into rates, which might increase how much you pay.
Pay the premium in full
Paying premiums every month can help your budget, but this often comes with installment fees, which means your insurance costs are higher. Instead, consider paying the premium in full for more savings.
Shop around for insurance once a year or after every milestone
Common Questions About Cheap Car Insurance for Young Drivers
MoneyGeek answers common questions about cheap car insurance for young drivers to help you find a policy with the best rate.
Where is the cheapest car insurance for young drivers?
Young drivers looking for the cheapest car insurance should consider State Farm, GEICO or Nationwide. These carriers have been found to offer the best rates for teen and young drivers.
What company has cheap car insurance for young drivers with an accident?
Young drivers with an accident may find it harder to get cheap car insurance than those with a clean driving record. We found that State Farm and GEICO offer the best cheap car insurance for drivers with a bad driving record.
Is insurance cheaper when you turn 25?
Typically, insurance is cheaper when you turn 25. However, whether you’ll get cheap car insurance for 25-year-olds depends on your driving record and other factors.
Are newer cars cheaper to insure for young drivers?
Newer cars aren’t always cheaper to insure for young drivers, especially expensive new cars, which tend to have higher insurance premiums. But, some newer models have advanced safety features that could make them eligible for more discounts than older models.
Are old cars cheaper to insure for young drivers?
Old cars are usually cheaper to insure for young drivers since they usually have a lower value than newer cars. You may also be able to save on insurance rates if you don’t have to carry comprehensive and collision coverage.
Is multi-car insurance cheaper for young drivers?
Compared to an individual policy, multi-car insurance is usually cheaper for young drivers, as are policies that can be bundled together for additional savings, like auto and home insurance with the same carrier.
Ask the experts:
Are there any specific cars that you recommend for young drivers to insure, in order to get cheaper premiums?
President and CEO at GDI Insurance Agency, Inc.
Young drivers need to consider the type of car they drive when looking for affordable car insurance premiums. It is a well-known fact that high-performance and luxury cars have higher insurance premiums. Here are a few cars that young drivers can consider insuring:
- Honda Civic
- Toyota Corolla
- Mazda 3
- Hyundai Elantra
- Kia Forte
- Nissan Versa
These cars are cheaper to insure since they have lower horsepower and are considered safe due to their great safety ratings. Insuring a cheaper car with fewer safety features can be an excellent way to lower premiums and save on car insurance.
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About Mandy Sleight
Mandy Sleight is a licensed property, casualty, life and health insurance agent with 20 years of experience in the industry. She has worked for major insurance companies like State Farm and Nationwide, and most recently as the Operations Coordinator for a startup employee benefits company.
Sleight holds a business administration and management degree from the University of Baltimore and a master's in business administration from Southern New Hampshire University. She uses her vast knowledge of insurance and personal finance to create easy-to-understand and engaging content to help readers make smarter choices with their budgets and finances.