Best Car Insurance for Young Adults

There's no way around it - young adults pay more for car insurance. But there are ways to save. Read on to find the best car insurance companies for young drivers.

High cost aside, young drivers need car insurance. Accidents can lead to serious financial woes, including:

• Costly repairs
  
• Property damage
  
• Medical expenses
  
• Lawsuits

Getting the right car insurance policy can shield you from these challenges. But for young people with limited experience, car insurance rates tend to be higher.

Insurance for teens will cost the most. But even young adult drivers can have higher rates.

Your insurance rate typically won't start to go down until age 25, and only if you've kept a clean driving record.

But there are ways even for inexperienced drivers to cut costs. Read on for a list of some of the best car insurance for young adults.

• Best Car Insurance Companies for Young Adults
  
  • Best for Customer Service
    
  • Cheapest Car Insurance for Young Drivers
    
  • Most Convenient Car Insurance
    
  • Most Tech-Friendly
    
  • Most Comprehensive
    
  • Best for Military Personnel
• Why Do Young Adults Pay More for Auto Insurance?
  
• How Can I Lower My Insurance Premiums?
  
• Choosing the Right Coverage for You
  
• Cheapest Cars to Insure

Best Auto Insurance Companies for Young Adults

© CreditDonkey

We've rated several popular auto insurance companies for young drivers based on the following criteria. See who made the cut below.

Best Car Insurance for Customer Service

Amica
Ranked "Highest in Customer Satisfaction Among Auto Insurers in the New England Region" from J.D. Powers' 2018 U.S. Auto Insurance Study. In fact, they've earned this for six years in a row.

Discounts

• Good Driving: For drivers who have gone three years or more without an at-fault accident.

• Student: Full-time high school or college students between 15 - 25 can qualify for a student discount for maintaining good grades.

• Defensive Driving Course: Anyone who has attended a defensive driving course can qualify for a discount.

• Infrequent Driver: Students who go away for college and only drive their vehicle when they're home can get a discount.

• Legacy/Family: Drivers under age 30 can get a discount if their parents have been with Amica for five years.

• Multiple Vehicles: Customers can save 25% when they insure multiple vehicles.

GEICO
The insurance company has earned 97% customer satisfaction ratings, according to their website. Customer service representatives can be reached around-the-clock every day of the year.

Discounts

• Good Student: Full-time students between ages 16 and 24 with a "B" average or better can get a discount of up to 15% off their premiums.

• Student & Alumni Organizations: GEICO has discounts for various alumni associations and student organizations - you can find a list here.

• Defensive Driving: Complete GEICO's Defensive Driving course and receive a discount.

You can do most business on their website or mobile app, like make a payment, review or change coverages, and file a claim.

Cheapest Car Insurance for Young Drivers

Metromile
Founded in 2011, Metromile offers benefits for young people who don't drive often. Customers are charged a base fee, plus a set rate for every mile driven. (You can get a quote through their website.)

Discounts

• Pay-per-Mile: Customers pay a base fee and a set amount per mile driven; plug in their "Pulse" device under your dashboard, which measures the distance you drive.

• Rental Reimbursement: Taking a road trip with friends? Book a car rental and Metromile will reimburse you for your rental fees.

• Smart Driving App: View all mileage tracked from your Metromile's "Pulse" device and get valuable info on your car's health, location, and even city-wide road accessibility alerts.

Metromile may be the cheapest car insurance option on the list. If you drive less than 10,000 miles per year, their pay-per-mile system is a great option.

Liberty Mutual
Teens and young adults get perks on their auto insurance policies, like 24-hour roadside and claims assistance, new vehicle replacement, and lifetime repair guarantee.

Discounts

• Good Student: Available to full-time students with a "B" or better average - discounts vary by state and/or policyholder.

• Multi-Car: Get discounts by adding a teenager's car to your insurance policy.

• Safety Features: Get a break on your premiums if your car is equipped with advanced safety features like anti-lock brakes, electronic stability control, and/or adaptive headlights.

• Away-at-School: If your teen lives on campus at least 100 miles from home and drives only occasionally, you could qualify.

In addition, customers who remain accident-free for 5 years—whether insured with Liberty Mutual or another insurance company—are eligible to add accident forgiveness coverage. This option prevents your insurance rate from increasing after your first accident.

Most Convenient Car Insurance for Young Drivers

Progressive
Progressive aims to have plans that cover just about anything. Their deductible savings bank feature gives customers $50 discounts on comprehensive and collision deductibles for every claim-free, 6-month term.

Discounts

• Snapshot: Progressive's app or plug-in device offers discounts based on how safely customers drive. On average, Snapshot awards users with a $130 discount.

• Name Your Price: Customers can customize insurance coverage by answering questions about their needs. You'll get quotes for the lowest and highest possible rate as well as coverage options.

• Teen Drivers: If parents add a teen driver to their policy, Progressive will throw in a discount.

Nationwide
This insurance company offers a variety of coverage options and ways to save. Some policy options include accident forgiveness, uninsured motorist insurance, and gap insurance.

Discounts

• Safe Driver: Customers who have not had an at-fault accident or major violation for five years are eligible.

• SmartRide® App: Nationwide's safe-driving app offers 10% just for signing up and offers even more discounts with demonstrated safe behavior.

• Good Student: Available to full-time high school or college students with a "B" average. Homeschooled students are also eligible if they score within the top 20% in standardized tests (PSAT, SAT, or ACT).

• Anti-Theft System: Just provide Nationwide with the paperwork.

Nationwide is also known for its popular vanishing deductible program. For every year as a safe driver on the plan, you will receive a deductible reduction. Eventually, you might not even need to pay a deductible if you get into an accident.

Most Tech-Friendly Car Insurance

Esurance
Owned by Allstate, Esurance tries to make its service as simple as possible. Using the app, customers can take photos for claims, update policies, add a car, and make payments.

Discounts

• Switch and Save: Esurance offers discounts just for transferring from a different insurance company.

• Billing: Pay your bill in full to earn a discount.

• Good Student: Full-time students under 25 with at least a "B" average can save up to 10% on their policy.

• Safety Features: If you have factory-installed airbags, automatic seatbelts, anti-theft devices, and/or anti-lock brakes, you could qualify in some states.

• DriveSense App: The app logs driver behavior and offers tips and personalized feedback. Log 50 trips per term for customized discounts.

Allstate
The insurance company offers features like the Drivewise® app, which keeps parents alerted about their teen's driving behavior. Customers who opt in will get 5% cash back just for signing up.

Discounts

• TeenSMART® Program: This advanced driver training course helps teens lower their insurance premiums.

• Safe Driving: Drivers can get up to 13% cash back for good driving practices like keeping speeds below 80 mph and limiting late night road trips.

• Good Grades: Full-time students under age 25 with a "B" average are eligible for a good student discount.

• Away-at-School: Students who reside at a school more than 100 miles away from the home policyholder can qualify.

Allstate also offers several other perks like accident forgiveness, additional coverage, rental car reimbursement, and claims satisfaction guarantees.

Most Comprehensive Car Insurance for Young Adults

State Farm
State Farm provides multiple policy options for auto insurance, including Collision and Comprehensive, Rideshare driver, and travel expenses. They also insure motorcycles, motorhomes, boats, and off-road vehicles.

Discounts

• Good Student: Students with good grades can get a 25% discount. Maintain them and you can hang on to the discount until you turn 25.

• Steer Clear: New drivers or those under 25 who have gone three years free of at-fault accidents can qualify. The discount will increase over time - you could save as much as 15%.

• Driver Training: If all drivers in your home under 21 years old complete a driver safety course, a discount could be applied to your account.

• Drive Safe & Save: State Farm will use information from your smartphone or your vehicle's OnStar® device to calculate a discount for being a safe driver.

Best Car Insurance for Military Personnel

USAA
The United Services Automobile Association provides benefits, products, and discounts for U.S. military members and their families.

Unlike many auto insurance companies, USAA offers free payment plans to customers. It also provides car replacement assistance, payment plans that align with a military pay schedule, and other discounts.

Discounts

• Driver Training: Complete a driver training program prior to age 21 to qualify for lower rates.

• Defensive Driving: Complete an approved defensive driving course.

• Safe Driving: USAA rewards you for going five years or more without an at-fault accident.

• Good Student: Like most other insurance companies, full-time students with at least a "B" average can earn a good student discount.

• New Vehicle: Insure a vehicle that's less than three years old.

• Annual Mileage: Keep your mileage per year lower than the previous year.

• Multiple Vehicles: Insure multiple vehicles for savings on your premium.

• Vehicle Storage: Let USAA know if your vehicle is in storage and you could qualify for a discount.

• Family Plan: Cut costs on insuring new drivers by adding them to your family plan.

• Military Installation: You can save up to 15% on comprehensive insurance when you garage your vehicle on a military base.

• Bundles: Bundle your auto insurance with home, renters, or valuable personal property insurance.

Why Do Young People Pay More for Auto Insurance?

© CreditDonkey

Insurance companies consider several factors when pricing auto insurance, such as vehicle value, location, and driving history.

However, young people don't have a driving history yet. Insurance companies charge higher premiums to cover the unknown risk.

Statistically, a young driver is also more likely to engage in unsafe behavior like speeding, driving under the influence, and driving while distracted.

Two out of three teen drivers admit to using apps while driving and roughly 27% text at the wheel, according to the National Safety Council.

Once you've built up a safe record for several years, your premium will start to go down.

If you're a young driver, there are ways you can make your car insurance more affordable. Start by figuring out what coverages you need and what features are important to you. Then compare rates and coverages from multiple companies.

How Can I Lower My Insurance Premiums?

Choosing the right auto insurance company is important. But your current auto insurer likely has other discounts available that you don't know about.

Here are some common ones to look for:

Good Driver Discount
Drive safely. Avoid driving while distracted or late at night, as this is when driving is most dangerous. Many insurers offer discounts for claim-free or no-fault periods.

Family Plan
Most insurers offer a discount for being a part of a family plan. If everyone in your home can agree on a car insurance company, you will most likely save money.

Good Student Discount
Getting good grades can result in discounts, even significant ones. Keep those grades up and you could reduce your premiums.

Driver Training Discount
Check with your provider for approved courses. If you complete one, you could get a discount.

Driver Monitoring Apps
Make sure to check with your auto insurance provider if they offer apps or other technologies that can monitor your driving. If you drive safely, you'll reap benefits.

You can also increase your deductible to keep your premium low. But keep in mind that you'll have to pay more upfront before your insurance pays out in a claim.

Choosing the Right Coverage For You

If you're in the market for affordable car insurance, you might be tempted to buy just the minimum coverage requirement for your state.

Having the minimum insurance could work out perfectly fine if you drive an older car. But if your car is new, you might want to consider additional coverage to protect it:

Liability Insurance
Your state likely requires bodily injury liability and property damage liability coverage. If you cause an accident that hurts someone else or their property, this insurance will cover their injuries or damages.

Collision Insurance
Collision covers damages to your car in case of an accident, regardless of who was at fault.

Comprehensive Insurance
Comprehensive insurance covers damages to your car that isn't caused by a collision. This includes:

• Falling tree branches
  
• Theft
  
• Vandalism

Uninsured Motorist Insurance
If you get in an accident with a driver who doesn't have insurance, your uninsured motorist coverage can cover the damages. Some states even let you use uninsured motorist coverage for hit-and-run accidents.

It's important to compare prices for the additional coverage, and see if the rates make sense for your car's value.

Cheapest Cars to Insure

Being a good driver sometimes isn't enough to get you low rates. Did you know the type of car you drive can affect insurance rates too? Getting a reliable car with plenty of safety features can reduce your premium.

A speedy sports car is fun to drive, but insurance companies view it as a higher risk. You might want to avoid fast or expensive cars if you want cheap insurance.

Instead, you can try to opt for cars that have features like a security system and anti-lock brakes.

Safe picks include:

• Toyota Prius
  
• Subaru Outback
  
• Honda Odyssey
  
• Jeep Wrangler
  
• Mazda CX-3

What the Experts Say

As part of our series on car insurance, CreditDonkey asked a panel of industry experts to answer readers' most pressing questions. Here's what they said:

Bottom Line

Comparison shopping is key when shopping for a car insurance policy. It could save you thousands during your first several years of driving.

Young adults will usually spend more on auto insurance policies, so it's doubly important to research your options. Sometimes you can lower your current insurance rates just by getting a cheaper quote from a competitor.

Make sure to research quotes every year or two even if you're happy with your current plan.

Additional Resources