Insurance rates for cars can differ significantly, particularly for those under 35. Find the most affordable rate by comparing the top auto insurance companies catering to young people.
It’s not a secret that young drivers pay a premium to insure their cars. Some companies, however, offer affordable rates, attractive young driver discounts, and excellent service. After careful examination, Bankrate’s editorial team for insurance discovered that Geico, Nationwide, and State Farm have the lowest-cost insurance options that young drivers can get across the U.S.
We analyzed why the three firms are ideal for young adults, the average cost you will have to pay, and any discounts that could be available.
More About the Cheapest Car Insurance Companies for Young Adults
Although the cost of car insurance can be a significant aspect, young drivers must consider more from the insurance company that offers a reasonable price. Different insurance companies offer customers who have different degrees of satisfaction and service. Certain insurance companies provide young drivers extra benefits like roadside assistance and accident forgiveness. Here’s a look into the five cheapest insurance companies for autos for young adults.
USA
In our list of the top car insurance providers, USAA holds the top position. Along with cheap rates for car insurance, specifically for teenagers, USAA has an excellent reputation with its customers for handling claims. More than 85% of USAA customers claim they’re likely or most likely to purchase a new policy when they are due.
USAA offers the best rates for young drivers, according to our study. Male young adults can expect to pay $1,086 yearly for their insurance coverage through USAA. Our research shows that women of this age spend $1,033 a year. In our study of rates for the largest insurance companies in America, they save more than $400 compared to the typical representative prices for this age range.
The auto insurance company provides active military members and retired veterans, former military personnel discharged with honor, and qualifying family members. Therefore, only some people are eligible for membership.
Geico
Geico is at the top of our list in our top auto insurance firms’ rankings. Geico’s customers are generally satisfied with how they handle their insurance policy claims. Most of them would recommend Geico to those looking for insurance for their cars. Based on our research, Geico’s rates are one of the most affordable.
Geico is among the least expensive insurers we’ve tested for young drivers. Although rates for all drivers may differ according to many aspects, a male driver in the young age group could expect to pay $1185 per year. Females in their teens would have to pay $1,228. The male study rate is about $400 less than the average national rate for our profile of young adults, and the female’s speed is over $250 lower than the average national.
State Farm
State Farm earns a spot within the top third of the top auto insurance firms. Customers praise the simplicity of making claims, the swift resolution of their claims, and the customer service provided by the company. A few survey respondents point to their time at State Farm as helping get the best rates and customer service.
The young adults looking for an insurance policy will likely be disappointed to learn that State Farm does not have the lowest rates; however, they are less than the typical. Young adult female drivers in our study could be looking at an annual rate of $1,262 for coverage for a male’s insurance policy. In contrast, a female’s will cost around $1,396. These rates are approximately $225 and $158 less. They are significantly lower than the typical rates for this age group from the nine companies included in our study.
Travelers
Our list of the top auto insurance providers places Travelers near the lowest on the table. The company is behind its rivals in terms of customer loyalty and satisfaction. Still, many of the rates it offers are affordable.
The representative rates of the company for young adult drivers in our study aren’t among the highest in our research. However, they’re still reasonable. The rates for representative drivers are lower at $140 and $156 each year compared to the average of nine companies that offer younger adult drivers. In our study, female young adults represent $1,348 a year, and our male sample is charged $1,398.
Nationwide
Nationwide ranks in the top quartile of our ultimate auto insurance firms. These are due mainly to customers who received excellent service from the company regarding claims processing and customer support.
Regarding the cost of young adult drivers, Nationwide’s pricing is slightly higher than the national averages, as determined by our research. Still, it’s also among the most affordable. Female drivers of young age receive a rate of $1,497, which is about 10 dollars more than the average of the companies we studied. The median rate for young adult males is $1,608, approximately $54 higher than the mean.
Car Insurance Discounts for Young Adults
After you’ve finished your teenage years and moved into the age of young adulthood, a variety of discounts on auto insurance will go off the radar. This student discount for new drivers and the money you save through high grades won’t be accessible to you any longer. Also, any values you are eligible for under the driver’s coverage in the multi-car policy of your parents. Some companies provide discounts for good students to students in college. After graduation, the deal you earn due to being a successful student will be gone.
There are several auto insurance discounts younger drivers might be eligible to get. One of the most significant discounts you could qualify for is the multi-policy discount. Many insurance companies will offer substantial discounts when insured for your car by the same insurer you have for homeowner’s or renter’s coverage. Combining your policies with your family member or spouse could be eligible for discounts for multi-vehicle insurance or multi-line. But, it is essential to consider whether their driving record, credit score, or the car’s features can hurt the rates you pay.
College graduates should inquire with the alum department at their school to find out whether they have any relationships with insurance firms. Several alum associations offer discounts for being an active member.
An affinity discount is when an insurance company for cars provides discounts for drivers to employees, members, or customers. A few examples of young drivers who might be eligible include discounts for those affiliated with auto clubs (such as AAA) and employers, credit unions, or the military. Certain insurance companies offer discounts for customers who hold specific jobs, like teachers, first responders, and nurses.
Allowing Vehicle Tracking
Many insurance companies offer discounts to customers who consent to have monitors of driver behavior installed inside their automobiles. The trackers not only allow for usage-based insurance premiums, which can be beneficial for young drivers who do not spend long at the driving wheel, but they can track incidents of harsh brakes, fast acceleration, and the number of times the latest safety features are activated. Young adults with very little mileage and who can be excellent drivers benefit most from these pay-as-you-drive and tracking programs.
How Young Drivers Can Save on Car Insurance
Qualifying for discounts isn’t always the only way young drivers can lower the amount they have to pay for car insurance. Buying the right vehicle, deciding on the appropriate coverages, and setting the applicable deductibles are important actions to take in the beginning. Making sure you have a clear history of no claims, no accidents at fault, observing your credit score, and being a safe driver by not committing moving violations (such as driving too fast) can help keep your insurance for your car low.
Choosing the Right Car
Different types of vehicles result in different rates for auto insurance. The most powerful vehicles, the luxury vehicles, which are costly to fix, and vehicles with high theft rates, will be more expensive to cover than the other models. Inquiring with an insurance professional, or requesting a quote online before purchasing, could keep you from buying a vehicle that will cost you a lot to cover.
Choosing Proper Coverages
Different drivers in their teens require different amounts of insurance protection. This guide on how much auto insurance you need takes you through the various options and the best way to determine your required coverage. Knowing that each state has its kinds and levels of auto insurance coverage is vital. Most lenders and leasing companies have the exact requirements. Therefore, they can ensure that the collateral (your vehicle) backing the loan is adequately secured. Be aware that the state and lender’s standards are the minimum amount of coverage you must be able to. You’ll require more than the minimum coverage in certain situations, even at the cost.
Picking the Right Deductible
A low deductible, which you must pay in the event of an accident, is a good idea. Still, you have to weigh the costs of the insurance policy against the amount you’ll have to pay to have a low deductible. In most instances, you’ll need to pick the most expensive deductible you can afford and one that your lender and the state will permit.
The deductible you pay should be, at most, the sum available in savings to cover an eventuality. If you save a little money, having an amount of $1,000 for a deductible is better if you have $500 in your savings.
Keep a Claim-Free Driving Record
One of the major causes of high insurance premiums for young drivers is the high at-fault rate. Suppose you’ve been through your time as a novice driver and later a teenager with a clean driving record. In that case, your insurance rates will likely decrease dramatically as you enter adulthood. You can enjoy the lower rates if you keep your driving record free of any mistakes. Certain insurance companies offer accident forgiveness after your first incident at fault. However, not all of them do. Studying the details of any insurance policy you’re contemplating is essential to understand precisely what the “accident forgiveness” clause means for the insurer.
Pay Your Bills on Time
When you graduate from school and establish your own home, it’s straightforward to skip the payment on a bill or two. If you’re seeking low-cost car insurance, you should be able to take advantage of all charges, especially for loans or credit cards. Insurance companies will consider your credit score when determining your rates in most states. Your score will be lower the higher they will require you to pay your premium at the time.
Don’t Get Traffic Tickets.
It may seem simple, but it’s essential to stay clear of tickets for traffic violations if you want to keep your insurance rates low. Be aware that any violations you encounter in your rental car, your friend’s vehicles, vehicles not in your state, or even
your bike can affect your driving history. Teen drivers cited in the early years of driving will have a lousy track record of keeping their rates up for their beginning as adults.
