11 Best Car Insurance for New Drivers under 25 in the US

Last updated on June 28th, 2023 at 05:11 pm

If you looking for some of the best car insurance for new drivers under 25 in the US then this post is for you. Car insurance costs for young drivers are among the highest. Even at the age of 25, your vehicle insurance costs are higher than the national average.

Drivers under the age of 25 should compare vehicle insurance providers and their average prices to get inexpensive coverage. Various factors influence your auto insurance price, but young drivers can save money on their policy.

Why is it so expensive to insure a driver under 25?

Compared to more experienced drivers, young drivers are more likely to drive distracted, not wear a seat belt, and exceed the speed limit. Young drivers are riskier to insure than older drivers, car insurance for drivers under 25 is more expensive.

According to statistics, car accidents are the second highest cause of mortality for youths in the United States. Incorporating a teenage driver into a parent’s vehicle insurance policy might result in a rate rise of up to 130 percent every year.

Parents who add a teen driver to their coverage spend $2,300 in yearly premiums. When one driver reaches the age of 25, their risk lowers as they get more knowledge. Full coverage insurance costs $2,036 a year for a 25-year-old driver in the United States. Although this is greater than the national average for full coverage, which is $1,555 per year, many vehicle insurance companies offer lower prices. Related Article

11 Best Car Insurance for New Drivers under 25

According to our study, Geico, Nationwide, and State Farm are among the best car insurance for new car owners. Our research began with Quadrant Information Services’ average premium data.

Taking into account that your cost may be affected by circumstances like whether you are on a parent’s plan, married, and whether you own or rent your house. We gathered prices based on single young people who rent their property and have insurance plans to establish the average cost of vehicle insurance for young adults across the United States.

1. State Farm

State Farm may be a decent alternative for vehicle insurance for young people if you prefer working with a local agent. The firm offers a nationwide network of 19,000 agents that can assist you with your vehicle insurance requirements.

The average annual premium for minimum coverage from 20 – 25 is $558 – $1,014. State Farm insurance for average annual premium for full coverage cost $1,695 – $2,908.

2. Geico

Geico provides affordable auto insurance for young drivers with a few years of driving experience. The firm also provides a variety of incentives, including student discounts that may be able to help you save money on your insurance.

Geico’s average annual premium for minimum coverage costs from $428 – $715, and the average annual premium for full coverage costs $1,676 – $2,724.

3. Nationwide

Nationwide may be an excellent choice if you’re searching for vehicle insurance with many customization possibilities. To help adolescents and young drivers develop customized auto insurance, the firm offers a variety of coverage add-ons, such as roadside assistance and gap insurance.

The nationwide average premium for minimum coverage costs $602 -$1,201, and the average annual premium for full coverage costs $1,669 – $3,265.

When young individuals join Nationwide’s Smart Ride program, they may be able to save money on vehicle insurance. An app is used to measure acceleration, braking, idle time, mileage, and nighttime driving in the usage-based insurance rating scheme.

4. Allstate

With Allstate’s unique Drivewise program and other benefits, teens and young adults may save money. Allstate has its headquarters in Illinois and has been in business since 1931. It provides insurance in all 50 states and the District of Columbia, giving clients a wide range of options.

Pros

Long-term roadside assistance
Options for exclusive coverage
A good variety of deals are available.

Cons

There is an additional charge for roadside assistance.
Substandard customer service
Policy periods are for six months.

Allstate’s flagship Drivewise program can save up to 40% on your insurance by demonstrating safe driving through a telematics-based system. With below-average rankings, Allstate does not always excel in customer service.

5. Erie

Even though Erie has a tiny service area, young drivers in those states may obtain some of the cheapest auto insurance prices available. Erie has created a name for itself by providing low-cost insurance to teenagers and young drivers, a population often subjected to substantially higher auto insurance prices.

Erie was founded in 1925 and is now a Fortune 500 firm that caters to a niche clientele on the East Coast. Only Washington, DC, and 12 states (Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin) provide insurance products.

Pros

The website is simple to use
Car insurance at a low cost
A wide range of coverage choices is available.

Cons

There is no mobile app available
State availability is limited
There are no claims made on the internet.

Rate Lock and Auto Plus are two unique Erie offerings. The Auto Plus package offers numerous popular advantages, such as a waived or reduced deductible, enhanced insurance limits, transportation expense reimbursement, and Rate Lock. Ways to getting Car Insurance First Month Free No Deposit

6. USAA

As a military-only insurer, USAA provides a variety of alternatives for adolescents and young drivers to save money on vehicle insurance while simultaneously giving some of the greatest customer services in the business.

In 1922, the United States Automobile Association (USAA) was established. Its headquarters are still in San Antonio, Texas, but it now serves all 50 states.

To get vehicle insurance or any other product from USAA, you must first become a member, which means you must be an active-duty military member, a veteran, or a family member who qualifies.

Pros

Military resources to be added
Outstanding customer service
Financial and banking services are accessible.

Cons

Membership in USAA is required
There is no local agent network
Only the military community is included.

USAA provides various savings opportunities, including discounts for anything from safe driving to low mileage. You can also get savings when you get outstanding marks in school and finish an authorized defensive driving course. Military-related discounts, such as parking your car on post and heritage discounts if your parents are also policyholders, are available via USAA.

7. Amica

Amica doesn’t cut corners when it comes to saving money, offering various discounts, including a large accident forgiveness policy for your teen or young driver. Accident forgiveness, which is included in Amica’s Platinum Choice Auto package, is a sought-after feature that gives new and inexperienced drivers some leeway.

The plan includes thoughtful extras such as deductible-free glass repair and replacement, new car replacement, credit monitoring, and unlimited rental car reimbursement. This is a simple method to combine numerous services into one handy bundle while benefiting from an accident forgiveness program for adolescents and young drivers searching for the whole package.

Pros

High levels of consumer satisfaction
Generous discount packages
Newer drivers will be forgiven if they have an accident.

Cons

The local agent network is limited
There is no ridesharing insurance
Only a limited number of discounts are available.

Amica received the top place for 2021, despite having a small network of local agents in only a few states and Washington, DC. For its tech-savvy consumers, extra services like live chat help and online purchase make the difference, bringing ease not typically seen among insurers.

8. Progressive

Progressive provides a range of discounts and strategies for young drivers to save money on vehicle insurance. As a result, we recommend the firm for the finest discounts for teenagers and college students.

Progressive may appear to be a newbie to the insurance industry. However, the firm was established in 1937 and operated in all 50 states. It’s our recommendation for the finest adolescent and college student discounts.

Pros

Additional money-saving options
There are several claim alternatives available
Teenagers and college students receive discounts.

Cons

Rates may differ depending on the kind of sale (agent or website)
Customer service ratings are lower than those of certain rivals.

Aside from savings, Progressive has a Name Your Price service that helps clients choose the best coverage for their budget. Furthermore, the company’s rate comparison service claims to make vehicle insurance purchasing a bit easier.

On the company’s website, you may find these money-saving options. Progressive’s overall customer satisfaction rating is mediocre. Progressive plans can be purchased on the company’s website, over the phone, or via one of the company’s more than 30,000 local independent agents.

9. Mileauto

MileAuto is a company that provides pay-per-mile vehicle insurance. It can assist those who drive their cars for less than the average miles to save a lot of money on insurance. As a result, it’s our choice for the finest firm for affordable coverage for teenagers and college students.

The pay-per-mile coverage offered by MileAuto is part of a growing trend in vehicle insurance. It’s a trend that might save a lot of money for adolescents or college students who drive far less than the usual miles—perhaps because they keep their automobiles parked for lengthy periods.

Pros

Tracks mileage without the use of a black box in the vehicle
Policies with full coverage are available
Low-mileage drivers can save a lot of money.

Cons

For people who drive a lot, this may not be the best solution
It’s available in six different states
The website is lacking in information
Only a few discounts are available.

MileAuto provided a $94 monthly base fee + $0.11 per mile during our study. If an automobile is driven 100 miles per week, the total monthly premium will be $142. That’s far less than the prices given by the majority of the standard vehicle insurance we looked into.

10. Liberty Mutual

Car insurance is something that Liberty Mutual has a lot of expertise with. Personal Injury Protection, Lifetime Repair Guarantee, and Better Car Replacement are just a few of the add-ons available from this reputable supplier.

Liberty Mutual’s Uninsured Motorist Coverage is a unique add-on that compensates for car repairs and other expenditures if another uninsured motorist causes an accident. You may save money with Liberty Mutual if you drive an electric or hybrid car or avoid speeding fines.

You may also save money by just obtaining a quotation online. These factors may add up to significant savings over time, making Liberty Mutual an excellent choice for young drivers.

11. Esurance

Allstate owns Esurance, but the firm has built a solid reputation on its own. Esurance provides a wide choice of products and an easy-to-use online platform that allows users to get a policy in minutes, making vehicle insurance as convenient as possible.

Customers may save money with Esurance by making payments online. Discounts are also available for policy packages. Gap insurance, which offers coverage if your automobile is totaled in an accident and you owe more money than your car is worth at the time of the loss, is another advantage of Esurance.

2 Cheapest Car Insurance for New Drivers Under 25

While the cost of automobile insurance is crucial, young drivers should seek an insurance provider that offers more than simply a low price. Customers receive varying degrees of service and pleasure from different insurance providers.

Some insurance providers provide additional benefits to young drivers, such as accident forgiveness and roadside assistance. The five cheapest auto insurance for new drivers are listed below.

1. Travelers

Travelers are towards the bottom of our top vehicle insurance providers list. Although many of its pricing is cheap, this company lags behind competitors in client loyalty and satisfaction.

Although the company’s typical prices for the young adult driver profiles in our survey aren’t the cheapest in our study, they are nonetheless reasonably priced.

In our research, the typical rate for a young adult female driver is $1,348 per year, while the study premium for a male consumer is $1,398. The sample prices for young adult drivers are $140 and $156 less per year than the average of the nine companies.

2. USAA

USAA is ranked first in our list of the top car insurance providers in the country. In addition to providing affordable automobile insurance for young adults, USAA has a positive reputation among its member customers for claims processing. Over 85 percent of USAA customers say they are likely or very likely to renew their policies when they expire.

In our research, USAA has the best prices for young adult drivers. A male young adult driver’s auto insurance coverage with USAA might cost $1,086.

According to our statistics, a girl of this age earns an average of $1,033 each year. Compared to the typical average pricing for this age group in our rate survey of the nation’s top insurance firms, both represent a savings of more than $400.

Conclusion

Automobile insurance for teenagers and college students can be costly and complicated. The good news is that many insurance companies provide discounts and other options for young people to save money while still obtaining the coverage they require. State Farm is our pick for the best overall vehicle insurance for teenagers and college students. It offers compelling overall pricing, savings options, simplicity, and financial stability.