Updated May 17, 2019 4:11 PM PT

Best Car Insurance for Young Adults

Read more about Car Insurance

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.

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Why Young Adults Need Good Car Insurance

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

  • Costly repairs
  • Property damage
  • Medical expenses
  • Lawsuits

The right car insurance can shield you from these financial challenges. But for young people with limited driving experience, car insurance rates tend to be higher.

Teenagers usually pay the most. But even young adult drivers pay more until they've built a solid driving record.

Still, there are ways even for inexperienced drivers to pay less. Read on for a list of some of the best car insurance companies for young adults.

Nearly every state has minimum auto insurance requirements. As a driver, you'll almost certainly need some kind of coverage.

Best Companies for Young Adults

© CreditDonkey

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

Best for Customer Service

Amica
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 students ages 15 - 25 who maintain good grades may qualify for a student discount.

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

  • Infrequent Driver: Students who go away for school and only drive their vehicle when they're home may qualify.

  • Legacy/Family Plan: Young adults can save money if they're on a family plan and their parents have been with Amica for five years.

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

Additionally, Amica customers may receive discounts when they pay their bill in full, set up automatic payments, or opt-in to receive paperless billing.

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

DISCOUNTS

  • Good Student: Full-time students with a "B" average or better can get up to 15% off their premiums.

  • Student Organizations & Conferences: GEICO offers various discounts - you can find a list here.

  • Alumni Associations: Just graduated? Join your university's alumni association and get a discount on your rates.

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

You can do most business on their website or mobile app, including:

  • Pay your bill
  • Review/Change coverages
  • File a claim

Cheapest Car Insurance for Young Drivers

Metromile
Founded in 2011, Metromile offers benefits for young people who don't drive very much. Customers pay a base fee then a set amount per mile driven. (You can get a quote through their website.)

DISCOUNTS

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

Due to savings through their pay-per-mile system, Metromile may be the cheapest insurance option on the list.

Metromile is currently available in seven states:
  • California
  • Illinois
  • New Jersey
  • Oregon
  • Pennsylvania
  • Virginia
  • Washington

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

DISCOUNTS

  • Good student: Full-time students with a "B" or better average qualify - discounts vary by state and/or policy-holder.

  • Multi-car: Save money when you add a teenager's car to your policy.

  • Vehicle Safety Features: Receive 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 the home and drives only occasionally, you may 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 rates from increasing after your first accident.

Liberty Mutual allows customers to receive a quote through an agent or directly on their website.

Most Convenient Car Insurance

Progressive
Progressive claims to have plans that cover just about anything. Their deductible savings bank feature offers 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 Tool: Customers can customize coverage by answering a handful of questions. Progressive will generate a quote including the lowest and highest possible prices as well as coverage options.

  • Teen Driver: Just for having a teen driver on a policy, Progressive will throw in a discount.

To Receive a Quote from Progressive:

Call: 1-855-347-3749
Online: Visit Progressive's website here.

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

Did You Know? Nationwide also offers insurance specifically for classic car owners.

DISCOUNTS

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

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

  • 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 of safe driving on the plan, you will receive a deductible reduction. Eventually, you may not even need to pay a deductible if you get into an accident.

To Receive a Quote from Nationwide:

Call: 1-877-669-6877.
Online: Visit Nationwide's webpage here.

Most Tech-Friendly

Esurance
Owned by AllState, Esurance tries to make its service as simple as possible. Using the app, customers can take photos for claims, update a policy, add a car, and pay their bill.

DISCOUNTS

  • Switching from Another Provider: Esurance's Switch and Save® program offers discounts just for transferring from a different 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 may qualify in some states.

  • Drivesense app: The app logs driving and offers tips and personalized feedback. Log 50 trips per term for customized discounts.

The Drivesense® discount is only available in 22 states.

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

DISCOUNTS

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

  • Safe driving practices: Drivers can receive up to 13% cash back for safe driving practices like keeping speeds below 80 miles per hour and limiting late night road trips.

  • Good Grades: Full-time students with a "B" average are eligible.

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

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

To Receive a Quote from Allstate:

Call: 1-866-761-6818
Online: Visit Allstate's website here.

Most Comprehensive

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

DISCOUNTS

  • Good Student: Students with high grades can receive 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 may qualify. The discount increases over time - you may save as much as 15%.

  • Driver Training: If all vehicle operators complete a driver safety program by age 21, a discount may be applied to the customer's account.

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

State Farm provides numerous other types of insurance, such as business insurance, health insurance, homeowner's insurance, and more. You can save money by bundling your insurance needs.

Best for Military Personnel

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

Unlike many 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.

  • Defensive Driver Training: Complete an approved defensive driving training course.

  • Safe Driving: Go 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 discount.

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

  • Annual Mileage: Drive fewer miles in a year than in the previous year.

  • Multiple Vehicles: Insure multiple vehicles.

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

  • Family Plan: Encourage your family to join your plan.

  • Military Installation: Garage your vehicle on a military base.

  • Bundles: Bundle your auto insurance with homeowner's, renter's, or valuable personal property insurance.

To Receive a Quote from USAA:

Call: 1-800-531-8722
Online: Visit the USAA's website here.

Why Do Young People Pay More for Auto Insurance?

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, young adults are also more likely to engage in unsafe behavior like:

  • Speeding
  • Drinking and driving
  • Driving while distracted

Two out of three teens admit to using apps and roughly 27% text while driving, according to a National Safety Council.

More than one-tenth of all fatal accidents involving drivers under the age of 20 were caused by distracted driving.

There are ways young drivers can save money on car insurance. Start by figuring out what coverages you need and what features are important to you. Then compare quotes and coverages from multiple companies.

How Can I Lower My Insurance Premiums?

Choosing the right insurance company is important. But your current auto insurer may offer discounts you don't know about.

Here are some common ones to look for:

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

  • Family Plan Discounts: Most insurers offer a discount for being a part of a family plan. If you and your family can agree on an insurance provider, you will most likely save money.

  • Good Student Discounts: Good grades can result in discounts, sometimes significant ones. Keep those grades up and you might be able to save cash.

  • Driver Training Discounts: Ask your provider about approved driving courses. If you complete one, you may get a discount.

  • Apps that Monitors Driving: Be sure to ask your insurance provider if they offer apps or other technologies that can monitor your driving. If you drive safely, you'll reap benefits.

Bottom Line

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

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

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

More from CreditDonkey:


Average Cost of Car Insurance


Metromile Review


Rent to Own Cars

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