What are the best car insurance companies for young drivers? Young drivers, especially ones who just got their driver’s license and are new to the world of driving tend to get into car accidents and even have accidents that are usually more severe. And that is because of their less experience behind the wheel. However, due to that, to save these young drivers from unforeseen expenses of accidents that might occur in the future and damage their car.
Different auto insurance companies charge them some of the highest premiums to reduce the risk that comes with inexperience. Therefore, if you are a young driver seeking auto insurance for your vehicle and to protect yourself. You are on the right page as we have surfed the internet and compiled the best car insurance you can get based on customer reviews and the company’s ratings.
Car insurance also known as auto insurance is a contract between you and your preferred insurance company that protects you from financial loss during accidents or theft. In exchange for the premium payment, you make the insurance company pays for your losses as stated in your policy. So, are you looking to get the best car insurance for yourself, as a teen/young adult, or your teen/young adult as a parent? But you are not sure of which to go for. Read through this article to see the best you can get.
5 Best Car Insurance for Young Drivers
There are so many good and reliable car insurance companies you can get a policy from as a young driver, but some of the best out of all would be made known to you right here in this article. So, without much ado, let’s take a look at the 7 Best car insurance companies you can get an insurance policy from this year 2023. They include;
Auto-Owners
If you are looking for the best Insurance company that offers lots of discounts, then Auto-Owners are one to consider. Auto-Owners insurance is one of the top insurance providers in the United States. They offer a wide variety of discounts and coverages to tend to your needs.
The company was established in 1916 and ever since then has been known for its exceptional financial strength and stability earning the company one of the nation’s largest insurance providers with close to 3 million policyholders.
With an Auto-Owners insurance policy, you could save a lot with the slew of discounts they offer. Even aside from that, they also offer three saving programs dedicated to young drivers. Here is a table showing the average annual premium for minimum and full coverage below.
| Age | Average Annual Premium for Minimum Coverage | Average Annual Premium for Full Coverage |
| 20 | $595 | $2,073 |
| 21 | $545 | $1,953 |
| 22 | $584 | $2,096 |
| 23 | $531 | $2,004 |
| 24 | $491 | $1,884 |
| 25 | $439 | $1,692 |
For the ages 20 to 22, the rates are for the insured on their parent’s policy and it reflects the total amount for three drivers and a vehicle. While the ages 23 to 25, show the young drivers on their policy that is insuring a vehicle. Furthermore, Auto-Overs offers three savings opportunities.
One, if you are a full-time student with a “B” grade or a better letter grade, you might qualify for their good student discounts. The second is for students who school over a hundred miles away from home and do not have a vehicle, they are eligible for the student-away-at-school discount.
While the last is the Teen monitoring discount. This uses the GPS of your vehicle to evaluate your driving habits. So, enjoy these discounts as well as other perks by getting an auto insurance policy for your car, and yourself as a young driver.
USAA
One of the best car insurance companies is the USAA and it also holds the top spot in the United States. USAA offers competitive auto rates and joining them to get a policy is free. There are also several perks this insurance company offers. And their services are open to both current, and former military and their family.
Amazingly, aside from the mentioned, they do offer affordable car insurance rates for young adults. As a male young driver can pay about $1,280 per year for his car insurance policy through USAA. While a female can pay an average rate of about $1,219 per year.
Compared to the average prices for this age group, both represent savings of more than $500. So, what are you waiting for? Insure your vehicle with USAA and get to enjoy several other perks aside from the discount it offers giving you an affordable monthly/yearly payment.
Geico
If you are interested in an insurance company that provides low rates, then Geico is sure the best for you. Geico is a reliable and reputable insurance company that has been trusted since the year 1936. The company offers a competitive car insurance rate for young drivers that has few years of experience.
Aside from that, they also offer varieties of discounts which also include student discounts that could help you reduce your premium. Besides, they happen to be one of the insurance companies that offer the cheapest policies for young drivers. Here is a table below that shows young drivers’ ages and their average annual premium for minimum and full coverage.
| Age | Average Yearly Premium for Minimum Coverage | Average Yearly Premium for Full Coverage |
| 20 | $569 | $1,961 |
| 21 | $459 | $1,613 |
| 22 | $469 | $1,656 |
| 23 | $499 | $1,776 |
| 24 | $473 | $1,684 |
| 25 | $425 | $1,521 |
Also, Young drivers using Geico that are active-duty members of the United States Armed Forces could earn about a 15% discount alongside additional savings when deployed.
State Farm
Another reliable company you can get an insurance policy from for yourself and your car is State Farm. State farm although doesn’t have the lowest rates available but their policy is still very much affordable. Besides, it is cheaper than average.
Also, if you are cool about working with a local agent or getting an auto insurance policy from a local agent, then State Farm is a good choice. Moreover, the company has a network of over $19,000 agents throughout the United States that can help you obtain an auto insurance policy and meet your needs. Here is a table that shows the average annual premium for minimum and full coverage below;
| Age | Average Yearly Premium for Minimum Coverage | Average Yearly Premium for Full Coverage |
| 20 | $735 | $2,161 |
| 21 | $675 | $2,015 |
| 22 | $700 | $2,088 |
| 23 | $646 | $1,999 |
| 24 | $585 | $1,853 |
| 25 | $523 | $1,637 |
American Family
American Family Insurance also known as AmFam is a very good insurance company you can get an auto insurance policy from. Aside from auto insurance, the company also offers life, home, and more insurance policies. AmFam offers varieties of discounts for young drivers and it receives fewer complaints than expected for a company of that size. That’s why it is considered one of the best you can visit for your car insurance.
Also, as usual, Rates go down once a driver has attained the age of 25. But at American Family, young drivers can get lower rates by joining the Teen Safe Driving Program they offer. So, if you want to enjoy the best this car insurance company has to offer, you can just visit their official platform and get your car insurance quote.
Frequently Asked Questions
What does car insurance cover?
Car insurance covers damages done to your vehicle. It also protects you financially if you are responsible for someone else’s car damages or injuries. With your car insurance, you can pay medical bills for accidents caused by the insured car for either you or your passenger.
What is the Cheapest Car Insurance Company for Young Drivers?
For the state level, the two cheapest and best affordable coverage for a teen are Geico. Besides, Geico happens to be the cheapest insurance policy offering company in 20 states while All states are the cheapest in about 17 states.
Why is Car Insurance Cheaper at 25?
Why car insurance is usually cheaper when a young driver turns 25 because as the driver grows, he/she gains driving experience which avoids accidents and claims. So, when you turn 25, your insurance company would consider you as less risky to insure then you get lower rates.
Conclusion
The above listed are the best companies you can visit to get the Best Car Insurance for Young Drivers. However, the best is not limited to the above. Here are some other reliable and reputable car insurance companies you can visit to obtain an auto insurance policy. They include; Nationwide, Progressive, AAA, Farmers, Travelers, and many more.