Cheapest car insurance for teenagers and young adults (2023)

Best cheap car insurance for young drivers

Adding a young driver to your car insurance can be expensive, but our analysis found that the cheapest car insurance companies for young drivers who join an existing policy are USAA, followed by Farm Bureau and NJM. 

But USAA is only available to members of the military and their families, and Farm Bureau and NJM have limited availability. That’s why GEICO is our best overall pick for the cheapest car insurance for most teenagers and young adults.

Company	Average monthly cost	Average annual cost
USAA*	$141	$1,686
Farm Bureau	$154	$1,850
NJM	$154	$1,853
GEICO	$155	$1,856
Auto-Owners Insurance	$188	$2,260
Nationwide	$200	$2,400
MAPFRE	$202	$2,420
American Family	$203	$2,440
Amica	$217	$2,608
Travelers	$218	$2,612

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USAA is only available to drivers who are in the military or a part of a military family

Methodology: Why young drivers and their parents can trust our picks

To find the cheapest insurance for teenagers and young adults, we analyzed the cost of auto insurance for young adults using rates from 130 companies. Quotes were provided by Quadrant Information Services from every ZIP code in the country.

Our average rates reflect the combined mean cost of full-coverage car insurance for drivers ages 16 through 21 with the following limits:

• Bodily injury liability: $50,000 per person, $100,000 per accident
• Property damage liability: $50,000 per accident
• Uninsured/underinsured motorist: $50,000 per person, $100,000 per accident
• Comprehensive: $500 deductible
• Collision: $500 deductible

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Cheapest car insurance for different young drivers

We found the best and cheapest car insurance for a few different types of teens and young adults, but rates will vary, so the best way to find cheap car insurance is to compare quotes from different companies.

• Cheapest for adding a teenager to a policy: Farm Bureau

• Cheapest for teenagers who get their own policy: State Farm

• Cheapest overall for young adults: GEICO

• Cheapest for young drivers in the military: USAA

Cheapest for adding a teenager to a policy: Farm Bureau

Farm Bureau

4.2

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Cheapest for adding a teenager to a policy

Average cost:

$168 per month

Farm Bureau has the lowest average rates for adding teenagers to an existing policy. Farm Bureau is a smaller insurance company with regional affiliates in every state, so young drivers and their parents should consider it when looking for cheap insurance.

• Annual cost: $2,012 per year

• Complaints for service: Very low

Get quotes

We found that Farm Bureau has the cheapest rates for young drivers 16 to 21 years old who join an existing policy. On average, car insurance for teenagers is $168 per month with Farm Bureau . That’s $1,315 cheaper per year than average for teens who join an existing policy.

Farm Bureau also offers a special safety discount to young drivers (25 years and younger) who complete a video about roadway safety and log 30 hours of supervised driving.

While Farm Bureau offers the cheapest average car insurance rates for teenagers, its additional coverage options don’t leave a lot of room for customization. Drivers can get replacement cost coverage for newer cars as well as roadside assistance coverage, but not gap insurance or other useful add-ons.

Cost of adding a teenage driver to an existing insurance policy.

Cheapest for teenagers who get their own policy: State Farm

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Cheapest for teens who get their own insurance

Average cost:

$273 per month

While it’s not the absolute cheapest auto insurance for teens, State Farm has the best rates for most young drivers who want their own policies, and it’s available in nearly every state.

• Annual cost: $3,270 per year

• Complaints for service: Low

Get quotes

State Farm is our pick for the best and cheapest car insurance for teens and young drivers who get their own car insurance instead of joining an existing policy.

It’s normally thousands of dollars a month for teens to get their own car insurance (especially for the newest drivers), State Farm costs an average of $273 per month for a standalone policy. That’s $2,224 cheaper per year than average.

And teen drivers can reduce their car insurance costs by up to 25% with State Farm’s good student discount. Teens drivers can also save up to 15% on their insurance by completing State Farm's Steer Clear program, which includes educational quizzes and videos. Both discounts are open only to drivers under 25.

Cheapest large car insurance companies for teens who get their own policy

Cheapest for young adults who join a policy or get their own: GEICO

GEICO

4.6

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Cheapest for young adults who are added to a policy or get their own

Average cost:

$106 to $175 per month

GEICO is the best insurer for most young adults, whether they join an existing policy or get their own. As the second-largest car insurance company in the nation, there’s a good chance most can take advantage of its low rates.

• Annual cost: $1,274 per year

• Complaints for service: Average

Get quotes

The best car insurance for young adults who want cheap coverage comes from GEICO. On average, car insurance for young adults who join an existing policy costs $106 from GEICO, which is $1,995 cheaper per year than usual.

Young adults who are full time college students can also earn cheaper car insurance by keeping their grades high. 

GEICO also has affiliate discounts for more than 500 groups, including colleges, universities, and on-campus Greek organizations, so you may be able to lower your rates further if you’re a member of a participating organization.

Cost of adding a young adult to an existing insurance policy.

We also found that young adults who would rather get their own policy (or who can’t join a family plan) can get insured by GEICO for an average cost of $175 per month. That’s much lower than average ($1,169 cheaper per year, in fact).

Cheapest for young drivers in the military: USAA

USAA

4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Cheapest for young adults who are affiliated with the military

Average cost

$91 to $165 per month

USAA has cheap car insurance rates for young drivers (both teens and young adults) who join an existing policy, and it’s also the most affordable option for young adults in the military who get their own coverage.

• Annual cost: $1,093 to $1,861 per year

• Complaints for service: Average

Get quotes

If you're a young driver who is in the military or a part of a military family, USAA may be the best and cheapest company for you. 

We found that USAA is $1,344 cheaper per year than average for teenagers who join a policy, and $2,175 cheaper for young adults. Young adults who get their own insurance can also save $1,407 annually compared to average with USAA.

USAA also has a few special perks for drivers who are currently enlisted in the military, including a 15% discount for garaging your car on base. You can also get a good student discount, too.

Cheapest car insurance for teens and young adults by age

Car insurance rates vary by age, so the company with the cheapest overall average rates for teens and young drivers isn’t necessarily the cheapest company for every age group.

Cheapest auto insurance for 16-year-olds

We found that NJM is the cheapest insurance company for 16-year-old drivers who join an existing policy. On average, it costs $190 per month to add a newly licensed 16-year-old to an NJM policy.

Since NJM is a regional insurance company that’s only available in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania, it won’t be an option for everyone. Farm Bureau, USAA, and GEICO also have cheap insurance for adding a 16-year-old driver to a policy.

Cheapest auto insurance for 17-year-olds

The cheapest car insurance for 17-year-old drivers is also NJM, though Farm Bureau is only one dollar more per month on average. Both companies cost around $175 per month for 17-year-old drivers.

Cheapest auto insurance for 18-year-olds

The cheapest car insurance for 18-year-old drivers is USAA, which has an average monthly cost of $135. Since USAA is only available for people in the military or a part of a military family, 18-year-olds may also find cheap rates with Farm Bureau or GEICO.

Cheapest auto insurance for 19-year-olds

The cheapest car insurance company for 19-year-old drivers is USAA, but if you’re not eligible for coverage, GEICO also has cheap car insurance rates for 19-year-olds.

Cheapest auto insurance for 20-year-olds

It gets much easier for young drivers to find cheaper insurance once they’re in their 20s. We found that the company with the best rates for 20-year-olds who join an existing policy is USAA, or GEICO if you’re not a part of the military.

Cheapest auto insurance for 21-year-olds

USAA has the cheapest rates for car insurance coverage for 21-year-olds. For young adults of this age group not affiliated with the military or a part of a military family, GEICO is the cheapest auto insurance company.

Cheapest car insurance for teenagers in every state

The cheapest car insurance for teenagers depends also on where they live. We found the insurance company in every state with the best rates for teenagers who join an existing policy and who get their own coverage.

Most often at the statewide level, USAA, GEICO, or Farm Bureau have the cheapest rates for adding a teen to a car insurance policy. For those who can’t, USAA and State Farm are most likely to have the lowest rates.

State	Cheapest to add a teen	Cheapest for teens who get their own policy
Alabama	USAA	COUNTRY
Alaska	USAA	Umialik
Arizona	GEICO	GEICO
Arkansas	USAA	Farm Bureau
California	Wawanesa	Wawanesa
Colorado	National General	American National
Connecticut	General Electric	State Farm
Delaware	California Casualty	State Farm
District of Columbia	GEICO	Erie
Florida	GEICO	GEICO
Georgia	USAA	Auto-Owners
Hawaii	USAA	GEICO
Idaho	American National	American National
Illinois	Pekin	Pekin
Indiana	USAA	USAA
Iowa	West Bend Mutual	State Farm
Kansas	Farm Bureau	American Family
Kentucky	GEICO	State Farm
Louisiana	Farm Bureau	USAA
Maine	Auto-Owners	Auto-Owners
Maryland	USAA	USAA
Massachusetts	USAA	USAA
Michigan	Farm Bureau	GEICO
Minnesota	Farm Bureau	Farm Bureau
Mississippi	USAA	USAA
Missouri	USAA	USAA
Montana	USAA	State Farm
Nebraska	Farm Bureau	Farmers Mutual of Nebraska
Nevada	GEICO	COUNTRY
New Hampshire	MMG	Auto-Owners
New Jersey	GEICO	GEICO
New Mexico	USAA	USAA
New York	GEICO	American Family
North Carolina	Farm Bureau	State Farm
North Dakota	USAA	American Family
Ohio	Grange Mutual	USAA
Oklahoma	American Farmers and Ranchers	American Farmers and Ranchers
Oregon	USAA	COUNTRY
Pennsylvania	Nationwide	GEICO
Rhode Island	GEICO	USAA
South Carolina	State Auto	American National
South Dakota	USAA	State Farm
Tennessee	USAA	State Farm
Texas	Farm Bureau	Farm Bureau
Utah	Farm Bureau	GEICO
Vermont	USAA	Auto-Owners
Virginia	USAA	Farm Bureau
Washington	PEMCO	State Farm
West Virginia	USAA	State Farm
Wisconsin	West Bend Mutual	USAA
Wyoming	USAA	USAA

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Cheapest car insurance for young adults in every state

We also found the cheapest car insurance in every state for young drivers in their 20s. Again, we found the best rates for drivers who join an existing policy and those who get their own.

In most states, USAA and GEICO have the lowest average rates for young adults who get their own policy.

State	Cheapest to add a young adult	Cheapest for young adults buying their own policy
Alabama	USAA	GEICO
Alaska	USAA	GEICO
Arizona	GEICO	GEICO
Arkansas	USAA	USAA
California	Wawanesa	Wawanesa
Colorado	GEICO	American National
Connecticut	GEICO	GEICO
Delaware	USAA	USAA
District of Columbia	USAA	USAA
Florida	UAIC	GEICO
Georgia	USAA	USAA
Hawaii	USAA	GEICO
Idaho	American National	American National
Illinois	GEICO	Pekin
Indiana	GEICO	USAA
Iowa	West Bend Mutual	State Farm
Kansas	USAA	USAA
Kentucky	GEICO	GEICO
Louisiana	Farm Bureau	USAA
Maine	USAA	GEICO
Maryland	USAA	USAA
Massachusetts	Farmers	USAA
Michigan	Farm Bureau	GEICO
Minnesota	Farm Bureau	Farm Bureau
Mississippi	USAA	USAA
Missouri	USAA	USAA
Montana	USAA	USAA
Nebraska	Farm Bureau	USAA
Nevada	GEICO	GEICO
New Hampshire	USAA	Auto-Owners
New Jersey	GEICO	GEICO
New Mexico	USAA	USAA
New York	GEICO	American Family
North Carolina	Utica	GEICO
North Dakota	USAA	USAA
Ohio	Grange Mutual	USAA
Oklahoma	GEICO	USAA
Oregon	GEICO	COUNTRY
Pennsylvania	Nationwide	GEICO
Rhode Island	Travelers	USAA
South Carolina	State Auto	American National
South Dakota	Allstate	Kemper
Tennessee	USAA	GEICO
Texas	Redpoint Mutual	Farm Bureau
Utah	GEICO	GEICO
Vermont	USAA	State Farm
Virginia	USAA	USAA
Washington	USAA	USAA
West Virginia	GEICO	USAA
Wisconsin	GEICO	USAA
Wyoming	USAA	American National

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Average cost of auto insurance for young drivers by state

The cost of car insurance for young drivers is usually much higher than what most people pay for coverage. That means in states where car insurance is already expensive, insuring a young driver can be even more of a financial burden.

The average cost of car insurance for young drivers who join an existing policy is $2,653 per year, and $4,381 per year for those who get their own car insurance.

State	Average for teens	Average for young adults
Alabama	$4,012	$2,511
Alaska	$3,214	$2,216
Arizona	$3,397	$2,231
Arkansas	$3,137	$2,091
California	$3,652	$2,576
Colorado	$3,076	$2,015
Connecticut	$3,061	$1,899
Delaware	$3,818	$2,322
District of Columbia	$3,964	$2,604
Florida	$5,020	$3,245
Georgia	$3,676	$2,420
Hawaii	$1,613	$1,533
Idaho	$2,063	$1,343
Illinois	$2,774	$1,909
Indiana	$2,168	$1,524
Iowa	$1,766	$1,242
Kansas	$2,594	$1,761
Kentucky	$4,327	$2,893
Louisiana	$4,873	$3,310
Maine	$2,612	$1,808
Maryland	$3,676	$2,646
Massachusetts	$3,792	$2,615
Michigan	$4,182	$3,002
Minnesota	$2,323	$1,693
Mississippi	$3,293	$2,195
Missouri	$2,954	$2,049
Montana	$3,400	$2,223
Nebraska	$2,518	$1,728
Nevada	$4,397	$2,892
New Hampshire	$2,510	$1,763
New Jersey	$3,780	$2,355
New Mexico	$2,558	$1,696
New York	$4,689	$3,248
North Carolina	$1,984	$1,233
North Dakota	$2,242	$1,454
Ohio	$1,942	$1,313
Oklahoma	$3,313	$2,225
Oregon	$2,556	$1,691
Pennsylvania	$3,385	$2,289
Rhode Island	$4,242	$2,676
South Carolina	$3,298	$2,268
South Dakota	$2,530	$1,775
Tennessee	$2,816	$1,849
Texas	$3,219	$2,167
Utah	$3,035	$1,883
Vermont	$2,374	$1,635
Virginia	$3,245	$2,137
Washington	$3,816	$2,466
West Virginia	$3,725	$2,575
Wisconsin	$1,937	$1,228
Wyoming	$2,926	$2,000

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Why does car insurance cost more for young adults?

Car insurance is much more expensive for teenagers and young adults because they have much less experience behind the wheel, which means they’re more likely to get into an accident than someone with many years of driving experience. 

The average cost of coverage for young drivers who join a policy is $85 more each month than it is for drivers who are 30, 35, and 45 — though it’s thousands of dollars more expensive for young adults who get their own insurance.

But your rates start to get close to the national average as you get older and avoid accidents and tickets. This means that, for every year that you build a safe driving record, it becomes easier to find cheap car insurance.

Insurance discounts for young adults and teenage drivers

Although it can be difficult for teens and young adults to find cheap auto insurance, it's possible to get lower insurance rates by qualifying for discounts. Every major insurance company offers discounts, and many of these are specifically for young drivers.

Some of the most common car insurance discounts for young drivers include:

• Good student discount: Lower your insurance costs by ranking near the top of your class, maintaining a high grade point average, earning a place on the honor roll, or by getting a high enough score on a standardized test as a homeschooled student.

• Student away at school discount: Insurance companies offer discounts for families with students who live at least 100 miles away from home without a car. 

• Driver's education discount: You could save on car insurance if you complete an eligible driver’s ed or safety program through your state DMV or an accredited group. 

• Affiliation discounts: It's common for insurers to partner with certain universities, fraternities, sororities, on-campus organizations, and other student groups as a way to attract young drivers. If you're a part of any eligible organization, you could save on coverage.

• Usage-based discounts: Usage-based discounts allow young people who are safe drivers to find cheaper rates. After a trial period where your driving habits are monitored, you can receive a discount from your insurance carrier. 

→ Read about many of the most common discounts offered by insurance companies

How to get the lowest insurance rates for young drivers

The best way to find the company offering teens and young adults the cheapest insurance rates is by joining an existing policy. We found that this can reduce the cost of a young driver’s insurance premiums by an average of $1,728 per year.

Young drivers can also lower their car insurance costs by:

• Comparing rates before buying: Getting quotes from more than one insurance carrier will make it a lot easier for young drivers to find the cheapest insurer for their age, experience, and location.

• Re-shop yearly: Don’t automatically renew your policy every year. Instead, shop around a little to see if you could be getting better rates somewhere else.

• Dropping some coverage: If you drive a used car that isn’t worth much, it might be smart to drop full coverage. Comprehensive and collision are among the most expensive parts of an insurance policy, and don’t make sense if your car wouldn’t cost much to replace.

• Keeping a clean driving record: While car insurance for young drivers is expensive, your rates will go down over time until age 25 — as long as you avoid accidents, tickets, and other moving violations. If you don't, your rates may increase by thousands of dollars.

How does car insurance work for teen drivers?

After an accident, car insurance protects teens and other young drivers from having to pay for bodily injury or property damage themselves. Good car insurance is especially important for teens because of their inexperience driving.

According to the U.S. Census Bureau, 15.8 million or 60% of people younger than 25 years old with an income made less than $25,000 in 2020. [1]

This means that compared to their older counterparts, young drivers are less likely to have the money to pay someone’s medical bills or replace a totaled car. 

For this reason, we recommend getting as much car insurance as you can afford. If they can’t afford full-coverage insurance, teen drivers should at least get as much liability coverage as they can to avoid paying for expensive medical bills, lawsuits, and repairs for damaged property on their own.

→ Read about how much insurance you need

Frequently asked questions

What is the best car insurance for young drivers?

The best car insurance for young drivers is USAA, Farm Bureau, or GEICO depending on whether you’re a teenager or a young adult, where you live, and whether you buy your own insurance or join an existing policy.

Where can you get cheap car insurance for a new driver?

Many new drivers who join an existing policy can get cheap car insurance from GEICO, which has the lowest rates among large insurers for 16-year-olds. New drivers who get their own insurance can get the best rates from COUNTRY Financial.

How will adding a young driver to my policy affect my premium?

No matter where you live, car insurance premiums get more expensive when you add a young driver to an existing policy. However, depending on the insurance company, you may earn a multi-car discount if you’re adding another vehicle to the policy too.

Why is car insurance so high for people under 25 years old?

People under 25 pay more for car insurance than older drivers because of their lack of experience driving a car. Compared to older people, newer drivers are more likely to receive tickets, get into accidents, and make expensive claims. Even if they’re safe drivers, they don’t have a driving record yet, so they can’t prove it to their insurance company.