Cheapest car insurance for teenagers and young adults (2023)
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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.
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.
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.
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
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.
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
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.
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.
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.
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.
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.
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.
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.
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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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
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.
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.
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.