Inexpensive Insurance Options For Young Drivers

Young drivers are considered a high risk to insure due to their lack of driving experience and higher likelihood of reckless driving and accidents. This makes it difficult to find cheap insurance options. The best way to get the cheapest car insurance for young drivers is to add them to a parent's or guardian's policy. This is because insurers offer discounts for insuring multiple cars under the same policy. Young drivers can also benefit from good student discounts, defensive driving course discounts, and low mileage insurance options. If you're looking for your own policy, Erie, Auto-Owners, USAA, and Geico offer the lowest rates for teen drivers.

Cheapest providers for young drivers

The cheapest option for insuring a young driver is usually to add them to a parent's or guardian's policy. This is because young drivers are considered to be risky to insure due to their lack of driving experience and higher likelihood of reckless driving and accidents. However, this is not always the case, and it is worth shopping around for multiple quotes to find the cheapest rate.

According to Bankrate, Progressive, Geico, Auto-Owners, State Farm, and Nationwide tend to offer low-average premiums and robust coverage options for young drivers. Progressive may be a good option for those who prefer to handle their insurance digitally, with their robust and user-friendly mobile app and website. Auto-Owners also offers three dedicated savings programs and a range of other discounts.

Erie has the lowest sample rates for teen drivers, followed by Auto-Owners, USAA, and Geico.

There are also a number of ways to save on insurance for young drivers, including taking advantage of discounts such as good student discounts, low mileage options, and defensive driving course discounts.

Discounts for young drivers

The cost of insuring a young driver is typically higher than average due to their lack of driving experience and the increased likelihood of reckless driving and accidents. However, there are several ways to reduce these costs by taking advantage of discounts offered by insurance companies. Here are some of the most common discounts for young drivers:

Good Student Discounts

Many insurance companies offer discounts for full-time students who maintain good grades. For example, Allstate offers a good student discount for unmarried drivers under 25 who have at least a B- average. Similarly, Nationwide Insurance offers a discount for students between the ages of 16 and 24 who average at least a "B" in school. State Farm also offers up to a 25% savings for students with good grades up to the age of 25 or their last year of school.

Defensive Driving or Driver Safety Training Discounts

Some insurance companies offer discounts for young drivers who complete defensive driving or driver safety training courses. For example, Geico, State Farm, Allstate, and Travelers offer premium discounts upon completion of required driver safety training courses. AAA also provides access to an online, eight-hour course called teenSMART that can add a 24% discount to their plan.

Student Away-at-School Discount

If a young driver attends college away from home and leaves their car behind, they may be eligible for a lower rate or a student-away discount. Geico, for instance, offers savings through its away-at-school status for young adults who live at college at least 100 miles away and do not have a vehicle.

Low Mileage Discounts

For young drivers who do not drive many miles each year, usage-based insurance or low mileage car insurance options may be a good way to reduce costs. Evaluating your annual mileage and considering alternatives such as public transportation can help in determining if these options are a good fit.

Family or Multi-Car Discounts

Adding a young driver to a parent's or guardian's existing policy is often the cheapest option. This is because young drivers are considered risky to insure, and having them on a family policy can result in significant cost savings. Additionally, many insurers offer discounts for insuring multiple cars under the same policy.

Cheapest option: parent's policy

One of the cheapest options for insuring a young driver is to add them to their parents' policy. This can often result in significant savings compared to purchasing a separate policy for the young driver.

There are a few things to keep in mind when going this route. First, the young driver must be a resident of the same household as the parents. This is a requirement for being listed as a driver on the policy. Second, the parents' policy must have a good driving record and a history of no claims. This will help keep the overall cost of the policy down.

Adding a young driver to a parents' policy can increase the cost of the policy, but it is still often cheaper than purchasing a separate policy for the young driver. It is important to shop around and compare rates from multiple insurance companies to find the best deal. Some companies may offer discounts for young drivers who are listed on their parents' policy, so be sure to ask about any available discounts.

Another thing to keep in mind is the level of coverage that the young driver will need. If they are driving an older car that is not worth much, then comprehensive and collision coverage may not be necessary. However, if the young driver is financing or leasing a car, then these types of coverage may be required by the lender or leasing company.

Overall, adding a young driver to their parents' policy can be a great way to save money on car insurance. By shopping around, comparing rates, and taking advantage of any available discounts, young drivers and their parents can find a policy that fits their budget and provides the necessary coverage.

Cheapest rates by state

The cheapest option for car insurance for young drivers is usually to be added to a parent's or guardian's policy. Young drivers are considered risky to insure due to their lack of driving experience and higher likelihood of reckless driving and accidents.

• Taking a state-approved driving improvement class can save young drivers around 5% on their premiums in most states.
• Most car insurance companies offer a student away-from-home discount for students who are away at college, averaging 18%.
• Keeping a clean record can get you lower rates.
• Pay-as-you-drive or pay-per-mile insurance can also reduce rates. Most car insurance companies offer discounts if you allow a telematics device to be placed in your vehicle to monitor your driving habits.
• Good student discounts are available from most insurance companies, requiring a 3.0 GPA or above, and can save you 10% to 15%.
• Passing a defensive driving course can also get you a discount of around 10%.

According to The Zebra's Customer Satisfaction Survey, USAA is the best insurance company for young adult drivers. If you don't qualify for USAA, GEICO is another affordable option for coverage. State Farm is the best national insurance company for teens and young drivers, with a top AM Best score, low complaint ratio, and excellent ranking in customer surveys. However, they do not have the cheapest rates for teens, so you might pick another option if price is your main consideration. The cheapest car insurance companies include GEICO, Progressive, State Farm, and Travelers, according to NerdWallet's 2025 analysis.

Cheapest rates by age

The cost of car insurance is determined by a variety of factors, including age, driving record, vehicle type, and location. Generally, younger drivers pay higher insurance rates than older drivers due to their lack of driving experience and higher risk of accidents. Here is a breakdown of the cheapest rates by age:

Teens

Teens pay the most for car insurance due to their inexperience. Erie has the lowest sample rates for teen drivers, followed by Auto-Owners, USAA, and Geico. Adding a teen driver to an existing policy can also result in lower rates compared to purchasing a separate policy. Geico, for example, offers discounts and personalized solutions to help mitigate the expenses.

Early 20s

According to Bankrate, the national average premium for 20-year-old drivers is $5,458 per year for full coverage. USAA, State Farm, and GEICO are recommended as the best insurance companies for those in their early 20s, combining affordability, relevant discounts, and programs tailored to younger drivers.

Mid to Late 20s

By age 23, insurance rates may decrease as young adults begin to establish themselves independently. The national average full coverage premium for 22-year-old drivers is $4,186 per year.

It's important to note that insurance rates fluctuate frequently, and individual circumstances can vary. Shopping around, comparing quotes, and inquiring about discounts are recommended ways to find the cheapest rates.

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