CARS REVIEW

Best Car Insurance for Young Adults | Bankrate

Young drivers pay some of the highest average auto insurance rates due to lack of experience and increased likelihood of filing a claim. however, it is possible to find low rates for young drivers, and bankrate can help. Our research highlights five companies that are among the best for young drivers, shows average premiums for various ages, and explains which discounts could help you lower your premium even further.

best car insurance for young adult drivers

Bankrate’s research revealed that Geico, Nationwide, Progressive and State car owners are among the best car insurance companies for young adults. We begin our analysis by looking at average premium data from quadrant information services. Knowing that auto insurance rates are rising in 2022, we focused on finding companies with low average rates for young drivers. We also consider coverage options, specific discounts for young drivers, policy features, and third-party ratings to help you find a provider that offers affordable rates and adequate coverage.

Remember your rate may depend on factors such as whether you’re on a parent’s policy, married, owning a home or renting. to determine the average cost of car insurance for young adults in the us In the US, Bankrate analyzed data to add drivers to their parent’s policy and drivers to their own policy.

car owners

best for discounts

car owners could be a good option if you are looking for a company with many discount options. The company offers three exclusive savings programs for young drivers, as well as a host of other discounts that could help you save.

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Car owners offer young drivers three different savings opportunities. If you’re a full-time student with a “B” letter grade average or higher, you may qualify for the nice student discounts. students who are out of school more than 100 miles from home and do not have a vehicle with them are eligible for the off-campus student discount. auto-owners also offers its teen tracking discount, which uses your vehicle’s gps system to assess driving habits.

more information: car owners insurance review

geiko

the best for low rates

geico offers competitive auto insurance rates for young drivers with a few years of experience. The company also offers a long list of discounts, including student discounts, that could help lower your premium.

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Recent college graduates can also get discounts for membership in alumni associations and joining fraternities or sororities. young adults who are active duty members of the us uu. Armed forces could get up to 15 percent off, along with additional savings when they deploy.

more information: geico insurance review

nationally

the best for personalized policies

If you’re looking for an auto insurer with lots of customization options, Nationwide might be a good fit. The company offers numerous coverage add-ons, such as roadside assistance and gap insurance, to help create personalized car insurance for teens and young drivers.

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

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Young adults can save money on auto insurance when they enroll in the nationwide smartride program. the program uses an app to track acceleration, braking, idle time, mileage, and night driving. Drivers get a 10 percent discount on certain types of coverage just for signing up for this telematics program and could get up to 40 percent off certain types of coverage based on their driving habits.

more information: national insurance review

progressive

best for digital tools

While its premiums aren’t the lowest on our list, the progressive may appeal to young drivers who prefer to manage their insurance needs digitally. In addition, progressive offers several discounts that could help you get a lower rate.

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Progressive’s robust mobile app includes options to pay your bill, view your policy information, request changes, request roadside assistance, file and track a claim, and start a new quote. The company’s website is also robust, with an online portal for clients and lots of information about progressive products.

more information: progressive review of insurance

state farm

best for local agencies

If you like working with a local agent, State Farm might be a good option for young adult auto insurance. The company has a network of 19,000 agents throughout the United States. who can help you with your auto insurance needs.

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

Youth often need help getting through the challenges of college life or leaving the nest to live on their own. state farm makes life a little easier for young adults with an exceptional roadside assistance program. this covers jump-starts, fuel delivery, lockout service, towing, and up to an hour of roadside mechanical work.

more information: state agricultural insurance review

average cost of car insurance for young drivers

A driver’s age is one of the most important factors affecting rates, except in Hawaii or Massachusetts, where age is not allowed as a factor in calculating insurance premiums. While teenagers tend to pay the highest rates, drivers between the ages of 20 and 25 still pay hefty average premiums. at age 20, for example, drivers pay 56 percent more for full coverage than the national average premium of $1,771 per year. after age 25, rates generally begin to normalize.

Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

average cost of car insurance for young drivers by state

Location is another critical factor in determining auto insurance premiums. Each state has different insurance laws, including different minimum coverage requirements, which can affect the rates set by each auto insurance company. Also, your risk of being in an accident can vary by location, including state, city, or even zip code.

The following table illustrates the average annual full coverage premium for young adults, broken down by state.

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Rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

*hawaii and massachusetts prohibit the use of age as a qualifying factor, but other factors may apply causing rates to fluctuate.

How are young driver rates determined?

Young adult car insurance rates are determined in the same way as for older drivers. several qualifying factors that determine auto insurance premiums, including:

  • Age: Drivers under the age of 25 generally pay more for car insurance because their lack of driving experience can put them at greater risk of causing accidents than older drivers. greater. They are also more likely to file a claim because they are typically not as financially established as older drivers. hawaii and massachusetts state regulations do not allow insurance companies to use age as a rating factor.
  • vehicle make and model: some cars are cheaper to insure What others. Before you buy a vehicle, getting a quote from your insurance company can be a good idea to make sure you can afford coverage.
  • Credit: Most states allow that insurance companies use your credit-based insurance score when calculating your policy rate. People with bad credit generally pay much higher rates than consumers with good credit scores. Regulations in California, Hawaii, and Massachusetts prohibit the use of credit as a factor in determining auto insurance rates. auto insurance companies in michigan can’t use your actual credit score, but they can use factors that go into your credit score. washington is in the process of determining if credit should be used as a qualifying factor in the future.
  • gender: men generally pay higher rates than women for insurance of the car, even if you have a clean driving record. men are statistically more likely to have accidents than women, and those accidents tend to be more serious. california, hawaii, massachusetts, michigan, north carolina, and pennsylvania prohibit the use of gender as a rating factor.
  • location: if you live in an area with a high probability of accidents or damage caused by natural disasters, theft, or vandalism, you may pay more for coverage. also, each state has different insurance laws, which can affect premiums.
  • mileage: the more you drive, the more likely you are to have an accident due to being on the road more time. frequently. people who only use their cars occasionally can pay lower rates than people who travel more often.
  • types and number of types of coverage: drivers who buy coverage only minimum required types, such as bodily injury and property damage liability, generally pay less for car insurance than motorists who also buy collision and comprehensive lenders will generally require you to purchase comprehensive and collision insurance, and most Insurance experts recommend buying more than the minimum amount required to better protect your finances. your deductible for certain types of coverage will also affect how much you pay.

Because these variables will change your rate from carrier to carrier, it can be helpful to get several quotes before deciding on an auto insurer.

discounts for young drivers

Nearly all auto insurance companies offer discounts to drivers, and some even offer specific discounts for young drivers. Finding a company that offers the right discounts for your driving habits may be the best way to get affordable car insurance.

  • Multi-car discounts: Most auto insurers offer a small discount when you add multiple cars to a single policy. does not fully offset the cost of insurance for each vehicle, but in general, vehicles are cheaper to insure together.
  • multi-policy discount: for drivers who rent an apartment and having a car, combining your auto and renters insurance can be a way to make both policies more affordable.
  • alumni association discounts: many insurance companies Auto dealers offer alumni association discounts for recent college graduates.
  • Good student discount: Most companies offer discounts for students who maintain a certain GPA. grades or grade point average. These student discounts are intended for full-time high school and college students and can save hundreds of dollars each year in insurance premiums.
  • Young Driver Safety Training: Many companies offer discounts to students who have taken a driver education class or an approved driver training course. most courses cover traffic rules and teach young drivers how to drive defensively.
  • Usage-Based Grading Discounts: Grading based on use is a relatively new way to lower your car insurance. but it could be a way to get additional discounts. Companies offering these telematics programs require policyholders to use a mobile app or plug-in that monitors driving habits such as acceleration, braking, speed, and travel distance each time they drive.
  • Distance student discount: Many auto insurers offer discounts for students who attend school away from home if they don’t bring a vehicle with them during the school term. must be included in your parent’s policy to take advantage of this discount.
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frequently asked questions

    • can I save money by adding a young driver to my auto insurance policy?
      • Should I buy my teenager a new or used car?
        • How much will my auto insurance increase when I add a young driver to my policy?
          • what is the best car insurance discount for a teenager?

            methodology

            bankrate uses quadrant information services to analyze 2022 rates for all zip codes and carriers in all 50 states and washington, d.c. rates are weighted based on the population density of each geographic region. Rates quoted are based on male and female drivers ages 20-25 with a clean driving record, good credit, and the following total coverage limits:

            • $100,000 bodily injury liability per person
            • $300,000 bodily injury liability per accident
            • $50,000 property damage liability per accident
            • $100,000 uninsured motorist bodily injury liability per person
            • $300,000 uninsured motorist bodily injury per accident
            • $500 deductible per collision
            • $500 comprehensive deductible

            To determine the minimum coverage limits, Bankrate used a minimum coverage that meets each state’s requirements. our base drivers own a 2020 toyota camry, commute five days a week, and drive 12,000 miles a year. drivers are tenants on their own insurance plans, except for distant student discount rates, in which case drivers are on their parent’s plan.

            These are sample rates and should only be used for comparison purposes.

            Age: Rates were calculated by evaluating our baseline profile with ages 20-40 applied. Depending on age, drivers may be renters or owners. rates for ages 20-22 are for those insured on the parent’s policy and reflect the total cost of three drivers and one vehicle. rates for ages 23-25 ​​reflect young drivers on their own policy, insuring a vehicle.

            Due to state regulations, age is not a contributing factor in qualifying in Hawaii and Massachusetts.

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