Best car insurance for teens & young drivers (2024)

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Andrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Edited by

Anna SwartzAnna SwartzSenior Managing EditorAnna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.
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Reviewed by

Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

Updated

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Best cheap car insurance for young drivers

USAA ($165 a month) is the cheapest car insurance company for households that include teens and young adults (under 22), but in order to qualify, someone on the policy must be affiliated with the military.

Farm Bureau, which has a wide network of state affiliates, or GEICO, available nationwide, are other cheap options for young drivers. Since car insurance costs are different for every young driver (and their family), it’s best to compare rates from at least a few companies before settling on a policy.

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. Rates 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.

Do young drivers have to join an existing policy?

Yes, typically young drivers have to join an existing policy if they’re a part of the same household as an insured parent or guardian. Insurance companies usually require parents to add their children to an insurance policy once they have their license.

Like with any other licensed driver in a household, you can choose to list your teen as an excluded driver on your policy if you don’t want to add them to the coverage, but that means they can’t drive your car. And if a teen or young adult buys their own car insurance, they don’t have to join an existing policy.

Best and cheapest for teens: Farm Bureau

Farm Bureau

Farm Bureau Financial Services logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.7

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

All 50 states

Bundle home & auto

Mobile app

Good student discount

Offers classic car insurance

Usage-based discount

Why we chose itchevron icon

Farm Bureau has the best cheap car insurance for teens, thanks to its low rates and outstanding customer service. Keep in mind that the coverage Farm Bureau offers can vary by state.

Pros and conschevron icon

Pros

  • Cheap rates

  • Offers new car replacement

  • Special discount for drivers under 25

Cons

  • Not a ton of coverage options

More detailschevron icon

State availability

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

The best auto insurance for teens (and their families) is Farm Bureau, at $168 per month, or $2,012 a year. Since teens usually don’t buy their own car insurance, we measured the cheapest car insurance companies for teens by looking at policies for households that included drivers 19 and under.

Besides its cheap rates for both teens and young adults (not to mention its discounts for young drivers), Farm Bureau also receives far fewer complaints than average, according to the National Association of Insurance Commissioners.

Here are Farm Bureau’s rates for different teenage drivers:

Age 

Average monthly cost

Average annual cost

16

$204

$2,442

17

$176

$2,115

18

$149

$1,789

19

$142

$1,702

Average Farm Bureau car insurance rates for policies that include a teenage driver.

Best and cheapest for young adults: GEICO

GEICO

Logo for GEICO insurance company

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.7

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers classic car insurance

Offers motorcycle insurance

Usage-based discount

Mobile app

All 50 states

Good student discount

Why we chose itchevron icon

GEICO has some of the best car insurance rates for young adults who need to get their own insurance policy. GEICO is available everywhere, offers plenty of discounts, and ranks pretty well for customer service.

Pros and conschevron icon

Pros

  • Available in all 50 states

  • Easy-to-use digital tools

  • Plenty of discounts

Cons

  • Only sells through GEICO agents

  • Doesn’t underwrite its other products

More detailschevron icon

State availability

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

GEICO has the best car insurance for young adults (drivers under 22). On average, GEICO costs $175 per month, or $2,099 a year for full-coverage. That’s $1,169 per year cheaper than average.

GEICO doesn’t have the lowest overall insurance rates for young adults, but it’s the cheapest company that also offers coverage to the general public. GEICO also receives a fewer-than-average number of complaints from customers, which can be important if your newly-licensed driver has to make a claim.

Here are GEICO's rates for young adults:

Age

Average monthly cost

Average annual cost

20

$201

$2,415

21

$149

$1,783

Cost of car insurance for young adults who get their own policy.

Cheapest insurance for teens and young drivers by age

The cheapest car insurance company for young drivers varies by age. Young drivers should re-shop their car insurance every year to continue to get the best rates.

Age

Cheapest company

Average monthly cost

Difference from average rate

16

NJM

$190

-$2,083

17

NJM

$175

-$1,643

18

Farm Bureau

$149

-$1,337

19

GEICO

$138

-$1,170

20

GEICO

$122

-$1,061

21

GEICO

$90

-$844

Collapse table

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Cheapest auto insurance for 16-year-olds

We found that NJM (New Jersey Mutual) has the cheapest car insurance for 16 year olds. On average, an NJM policy that includes a newly licensed 16-year-old costs a total of $190 per month.

But since NJM is only available in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania, it won’t be an option for everyone. GEICO, available in every state, is the next-cheapest car insurance company for families with 16-year-old drivers.

Company

Annual monthly cost

Annual average cost

NJM

$190

$2,279

MAPFRE

$202

$2,420

Farm Bureau

$204

$2,442

USAA*

$225

$2,704

GEICO

$231

$2,773

Cheapest auto insurance for 17-year-olds

NJM ($175 a month) and Farm Bureau ($176) both have cheap car insurance for 17-year olds. GEICO has cheap coverage for 17-year-old drivers where NJM isn’t available.

Company

Annual monthly cost

Annual average cost

NJM

$175

$2,101

Farm Bureau

$176

$2,115

USAA*

$180

$2,162

GEICO

$193

$2,310

MAPFRE

$202

$2,420

Cheapest auto insurance for 18-year-olds

The cheapest car insurance company for 18-year-old drivers is USAA, at an average cost of $135 a month. Since USAA is only available for people who are in the military or a part of a military family, GEICO is overall the cheapest car insurance company for 18-year-olds.

Company

Annual monthly cost

Annual average cost

USAA*

$135

$1,621

Farm Bureau

$149

$1,789

GEICO

$154

$1,848

NJM

$160

$1,923

Auto-Owners Insurance

$194

$2,333

Cheapest auto insurance for 19-year-olds

USAA has the best auto insurance rates for 19-year-old drivers. If you’re not eligible for USAA coverage, GEICO also has cheap car insurance rates for 19-year-olds.

Company

Annual monthly cost

Annual average cost

USAA*

$120

$1,445

GEICO

$138

$1,656

Farm Bureau

$142

$1,702

NJM

$149

$1,786

Amica

$176

$2,114

Cheapest auto insurance for 20-year-olds

It gets much easier for young adults 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 affiliated with the military.

Company

Annual monthly cost

Annual average cost

USAA*

$106

$1,269

GEICO

$122

$1,465

Farm Bureau

$135

$1,614

NJM

$138

$1,650

Amica

$151

$1,808

Cheapest auto insurance for 21-year-olds

USAA has the cheapest car insurance coverage for 21-year-olds. GEICO is the company for young drivers who aren’t affiliated with the military or a part of a military family.

Company

Annual monthly cost

Annual average cost

USAA*

$76

$917

GEICO

$90

$1,082

Progressive

$98

$1,180

Amica

$100

$1,195

Farmers

$100

$1,205

Cheapest car insurance for teenagers in every state

While the national average cost of car insurance for teens is $3,166 per year, average rates for teens will be different depending on where you live, and so will the cheapest companies.

A heatmap of the United States showing where it's cheapest and most expensive for teens to get car insurance by joining a family policy.

We found the cheapest insurance company in every state for adding a teenager to an existing policy and for teenagers who get their own coverage.

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

Collapse table

Cheapest car insurance for young adults in every state

The national average cost of car insurance for young adults (ages 20 to 21) is $3,268 per year, but average rates for these drivers can be much different depending on the company.

A heatmap of the United States showing where it's cheapest and most expensive for a young adult to get their own insurance.

We found the company with the cheapest car insurance company in every state for adding a young adult to an existing policy and for young adults who get their own car insurance 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

Collapse table

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Why does car insurance cost more for young adults?

It can be harder for young drivers to find cheap car insurance because of their lack of driving experience. Since young drivers are more likely to get into accidents while they get used to the road and they don’t yet have enough time behind the wheel to prove they’re safe drivers, their rates are higher.

The good news is that as young drivers age, their rates will get lower (as long as they avoid accidents and tickets). That’s why car insurance is cheaper for young adults than it is for teens, and why middle-aged drivers pay even lower rates. Typically, young adults see their rates average out by the time they turn 25 and are no longer in a high-risk age group.

How to get the lowest insurance rates for young drivers

It’s much easier for young drivers to find cheap car insurance if they join an existing policy. This can reduce the cost of a young driver’s premiums by $1,728 per year, on average.

Young drivers can also lower their car insurance costs by:

  • Comparing rates before buying: You can find who has the best car insurance rates for young drivers by comparing quotes before getting car insurance.

  • Re-shopping yearly: Instead of automatically renewing your policy every year, shop around to see if you could be getting better rates somewhere else.

  • Dropping some coverage: Young drivers with old cars may not need full coverage, especially if their car would cost more to insure than it would to replace.

  • Trying out per-mile insurance: Young drivers who don’t use their cars much could benefit from a policy that sets rates based on how much they drive.

  • Keeping a clean driving record: As long as young drivers avoid accidents and moving violations, their rates will go down with more driving experience.

Insurance discounts for young adults and teenage drivers

Discounts can make it easier for young drivers to find cheap car insurance. Nearly every car insurance company offers general discounts (like savings for bundling, requesting a quote early, and paying your premiums all at once). 

Some auto insurance companies also have discounts that are only for teens and young adults, like:

  • Affiliation discounts: Some companies offer discounts to young drivers who are a part of certain fraternities or sororities, clubs, and universities.

  • Driver’s education discount: Young drivers, especially newly-licensed teen drivers, can get a discount by completing a driver’s education or safety class.

  • Good student discount: Lots of companies offer discounts to young drivers who are high-school or college students and maintain good grades.

  • Student away at school discount: Families with young drivers may get a discount if their child attends school at least 100 miles away without a car.

How does car insurance work for young drivers?

Car insurance works the same for young drivers as it does for drivers who have more experience behind the wheel. The main difference is that young drivers simply pay much more for car insurance than older drivers.

After an accident, car insurance will protect teens and other young drivers from having to pay for medical bills or damage themselves like any other driver.

Good car insurance is especially important for teens because of their inexperience driving. It’s also especially important for young drivers who don’t have enough income or savings to pay for a car accident out of pocket – which may be a lot of young people.

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]

That’s why families with young drivers generally need as much liability insurance as they can afford (that’s what covers the costs after an at-fault accident), even if they don’t have full-coverage insurance.

A graphic explaining full-coverage car insurance. Full coverage means a car insurance policy that includes comprehensive and collision coverage in addition to liability coverage.

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Frequently asked questions

What is the best car insurance for young drivers?

Farm Bureau and GEICO have the best car insurance for young drivers, but which one is better (and cheaper) depends on whether or not the young driver gets their own policy or joins a family policy.

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

Your insurance will almost always get more expensive after adding a young driver to a policy. But the amount that your premiums go up depends on your company.

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

Drivers under 25 years old pay more for car insurance because they're more likely to make expensive claims. Even if they’re safe drivers, they haven’t been driving long enough to have the record to prove it.

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References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. Census Bureau

    . "

    Selected Characteristics of People 15 Years and Over, by Total Money Income, Work Experience, Race, Hispanic Origin, and Sex.

    ." Accessed May 11, 2022.

Author

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Editor

Anna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

Expert reviewer

Ian Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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