Cheapest car insurance for teenagers and young adults (2023)

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By

Andrew HurstAndrew 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 Editor & Auto Insurance ExpertAnna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
Expert reviewedExpert reviewedThis article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.Learn more about oureditorial review process.

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.

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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

Collapse table

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.

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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

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.

Farm Bureau logo

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.

Company

Annual monthly cost

Annual average cost

USAA*

$165

$1,983

Farm Bureau

$168

$2,012

NJM

$169

$2,022

GEICO

$179

$2,147

MAPFRE

$202

$2,420

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.

State Farm logo

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.

Company

Annual monthly cost

Annual average cost

State Farm

$273

$3,270

USAA*

$281

$3,376

GEICO

$295

$3,540

American Family

$334

$4,010

Nationwide

$414

$4,965

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.

GEICO logo

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.

Company

Annual monthly cost

Annual average cost

USAA*

$91

$1,093

GEICO

$106

$1,274

Amica

$125

$1,502

NJM

$126

$1,514

Farm Bureau

$127

$1,527

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.

USAA logo

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.

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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.

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

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.

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 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.

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

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.

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 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.

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 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.

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

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

Collapse table

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

Collapse table

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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

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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.

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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 our

editorial 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 and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

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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