Less experienced drivers are much more likely to be involved in an accident and file a claim than those who have been on the road for years. The insurance rate reflects this increased probability. As such, there is a need to obtain car insurance for young drivers.
Auto insurance is essential for all drivers (it’s even required in 48 states), but it’s especially important for new drivers, whose lack of years makes them more likely to be involved in an accident. Finding the right policy, on the other hand, can be difficult. What type of protection do you require? How to strike a balance between cost and coverage? Is collision insurance really necessary? It’s a lot, but we’re here to help.
Find the best auto insurance rates and deals for new and young drivers. Affordable insurance policies are available for good students and for teenagers who have been in accidents.
Table of Contents
What is Young Driver Insurance?
However, many young drivers are believed to be at higher risk of accidents and therefore more expensive to insure due to their age and lack of experience. According to Green Pass Training, one in four 18-24 year olds is in a car accident within two years of passing their driving test.
This means that regardless of whether you are a cautious driver or not, your rates will almost certainly be high because they are influenced by the actions of other drivers.
What factors influence car insurance costs?
When you compare the best car insurance for young adults or teens, you’ll find that most providers base their prices on the same factors. Most of the cost is determined by these factors:
- Age: Young drivers have less experience behind the wheel and therefore pose a higher risk.
- Credit Score: Because creditworthiness is a good indicator of liability, premiums go up as credit scores go down. Unfortunately, most young adults lack credit history, which puts them at a disadvantage.
- Vehicle – Choosing a vehicle with a high safety rating and innovative safety technology can help you save money. Auto insurance companies also evaluate the type of vehicle to estimate the cost to repair or replace.
- Her cousin is heavily influenced by her location. If she lives in a metropolis, she will experience higher rates of car theft than if she lives in a rural area. The amount of coverage required varies by state.
Finally, the insurance company takes into account the level of protection you want. You will pay more if you choose the most expensive plan. Your deductible will also affect the cost of your premium.
13 best car insurance for young drivers
The best vehicle insurance companies for young drivers are listed below.
1. StateFarm Insurance
Cost: $456 per month
One of the leading car insurance companies for young drivers is State Farm. It is the largest vehicle insurer in the country and a recognized insurance brand. The monthly cost of this insurance quote was $456. As a result, in our research, it was neither the cheapest nor the most expensive car insurance for young drivers.
State Farm Insurance offers over 25% discount for good students (ages 16-25 with a 3.0 GPA), as well as savings for those who have completed driver’s training and college students who are in school and do not have easy access to a car
State Farm offers rideshare insurance in addition to the normal coverages you’d expect from a major insurer. This is necessary for anyone driving for a service like Uber, which may appeal to a college student looking for a way to supplement their income. In addition, the organization provides 24-hour roadside assistance, providing added peace of mind for both parents and young drivers.
Advantage
- There is a wide range of discounts available for younger drivers.
- Customer service ratings that are above average
- Rideshare coverage is available.
Disadvantages
- This product is only available through agencies.
- Offers fewer optional coverages than some competitors.
2. Statewide Insurance
Cost: $761 per month
For young drivers looking to save money, Allstate is another alternative. As well as saving money, it also helps drivers improve their driving skills, which is very important during this formative period. As a result, it has also proven to be the best option for high school students.
Teens and college students can save in a variety of ways with this company. A smart student discount is available for drivers under the age of 25. Students can save money by maintaining a 2.7 grade point average or attending a school that is at least 100 miles from where the car is parked.
The only drawback is that it is one of the most expensive car insurance providers for young drivers.
Advantage
- Offers the teenSMART driver program, which requires a 2.7 GPA to qualify for a student discount.
- Offers usage-based insurance based on mileage
Disadvantage
- Customer service scores are below average.
3. GEICO Insurance
Cost: $174 per month
Although no auto insurer spends more money on advertising than GEICO, it is one of the best insurance companies for college students and teens.
GEICO had one of the most affordable listings in our review, at $174 per month.
Up to 16 primary discounts can be added to that economic rate. There is also a 15% discount for good students. The company’s DriveEasy app encourages safe driving practices while offering the opportunity to earn additional policy reductions.
GEICO also offers discounts to students and graduates of numerous universities in addition to these basic discounts. Greek clubs and alumni organizations from dozens of universities can take advantage of the association’s discounts.
Advantage
- Discounts for student organizations.
- Coverage Calculator is an award-winning smartphone app.
Disadvantages
- Claim ratings are below average.
- Local agents are hard to find.
4. Progressive Insurance
Cost: $297 per month
Progressive may seem like a newbie in the insurance industry. However, the company has been around since 1937 and operates in all 50 states. It’s our recommendation for the best teen and college student discounts.
Progressive has plenty of savings options for teens and college students, which we like. Their nice student discount saves you 10% on average. For people who are out of school, the company also offers a young driver discount and a remote student discount. Customers who opt for a paperless policy or pay their semi-annual payment in full may be eligible for further savings.
Advantage
- Additional options to save money
- There are numerous claim alternatives available.
Disadvantages
- Customer service ratings are lower than certain competitors.
- Rates may vary depending on the sales channel.
5. Amica Insurance
Cost: $647 per month
Amica’s customer service is well known. Customers are likely to be satisfied with the company’s claims service as a result of all this. While our quote of $647 per month was one of the most expensive in our research, the company offers a variety of discounts to help teens and college students save money.
Discounts are available to individuals under the age of 21 who have completed a driver’s education course, students ages 15-25 who maintain a B average in school, and college students who are out of school and do not have access to a car . They also provide a loyalty discount to those under 30 whose parents have had an Amica auto policy for at least five years.
Advantage
- Both customer service and complaints are highly valued.
- Various discounts are available for teens and college students.
Disadvantages
- There are no local agents.
- One of the most expensive in our research.
6. USA Insurance
USAA has a long history of providing insurance and other financial services to members of the United States military and their families. For military children or students on active duty or in the reserves, the company is a wonderful auto insurance option.
The company’s list of teen and college student discounts isn’t as long as some of its competitors. However, they do offer a discount to good students and new drivers who have completed basic driver training.
Children of USAA members can also save an additional 10% with their family discount.
Advantage
- Focus on serving the troops and their families in the United States.
- If the vehicle is stored on a military base, you will receive a discount.
- Customer satisfaction scores are higher.
Disadvantages
- There are fewer student discounts than competitors.
- To receive a quote, you must be a USAA member.
7. Auto Mile Insurance
Cost: $94.64 + $0.11 per mile per month
Mile Auto’s pay-per-mile coverage is part of a growing trend in auto insurance. It’s a trend that can potentially save a lot of money for teens or college students who drive far fewer than the usual number of miles, perhaps because they leave their cars parked for long periods of time.
Mile Auto charges consumers a monthly base payment for pay-per-mile insurance. The corporation then keeps track of how many miles are driven each month and charges pennies per mile.
Advantage
- Drivers with low mileage can save a lot of money.
- No need to put a black box in the car to track mileage. Full coverage insurance are available.
Disadvantages
- There are six states where this product is available.
- There are some offers available.
- For people who drive a lot, this may not be the best solution.
- The website lacks information.
8.Erie Insurance
Since 1925, Erie Insurance has provided auto insurance. The firm is known for its excellent claims settlement record and overall customer service. In fact, in its 2020 US Auto Claim Satisfaction Study, JD Power ranked Erie the number seven insurance company in the country.
Erie Insurance has a great website for a small insurance company that allows customers to do a lot with their coverage. You can use the site to get a car insurance quote, locate a local Erie insurance agent, pay your premium, file an auto glass claim, and more.
Erie has recently launched a mobile app for Android devices. You can manage your billing, track claims, and more from there.
Advantage
- Financial stability and reliability have a long history.
- Young drivers can get good rates.
- Discounts for drivers under the age of 21
Disadvantages
- Not available in all states
- There is no way to file a claim online.
9. Smart insurance
Best Young Adult Auto Insurance Companies – Savvy makes getting estimates from multiple companies simple and fast. You’ll select your current insurance carrier from a dropdown menu, enter your login credentials, and allow Savvy to connect to your current policy.
A third-party site that specializes in helping organizations like Savvy collect such details while keeping your information secure secures the connection.
One of the best features of Savvy is that it automatically gets your current premium amount as a reminder. To compare rates, you don’t need to know the amount or look for it!
You will be given a list of providers that can beat your current rate, as well as dollar amounts if available. Before you can see the quote, you may need to go to the provider’s website and fill in some additional information.
10. Gaby Insurance
Gabi is an expert in quick quote comparisons. He simply creates an account, connects with his insurance provider and compares up to 20 different rates from some of the best insurers in the industry.
The platform makes it easy to save money on auto insurance. You can also get insurance through Gabi if you are a renter or homeowner. Even if you want to buy a policy through them, rate quotes are free and there are no charges for using the service.
However, one of Gabi’s best features is that it keeps saving you money even after you’ve signed up. Gabi will let you know if she finds a cheaper offer elsewhere at the time of your insurance renewal. Your rates will stay low as a result of this. Gabi consumers, on the other hand, save an average of $961 per year.
11. Liberty Mutual Insurance
This is another great car insurance option for young drivers. Due to its complete coverage and advantages, this insurance is the best vehicle insurance for teenagers. Liberty Mutual’s lifetime repair guarantee, accident forgiveness, roadside assistance, rental car reimbursement and other car insurance benefits can be beneficial for young drivers.
Above all, Liberty Mutual has a good reputation in the insurance industry. It has an A+ rating with accreditation from the Better Business Bureau (BBB) and an A financial strength rating from AM Best.
12. AAA Insurance
Roadside assistance and car rental discounts aren’t the only things AAA is known for. You can get reduced insurance prices with your membership, even if your teen is on the policy.
AAA auto insurance is rated A+ BBB and is widely considered the industry leader. Several AAA auto insurance savings are available with coverage, including pet coverage, new vehicle replacement, and accident forgiveness, among others.
Frequently asked questions about car insurance for young drivers
What features does car insurance cover?
Auto insurance must cover the following features:
Liability
Control
Collision
Uninsured Motorist
Coverage Medical Payments Coverage
What factors influence car insurance costs?
Most of the cost is determined by these factors:
Age
Credit score
Vehicle
Your premium is heavily influenced by your location
What are the best car insurance for young drivers?
The best car insurance for young drivers includes:
- State Farm
- Allstate
- Progressive
- Sabi
- Savvy
- USAA
- Erie Insurance
- Amica
- GEICO
- Gabi
- AAA
- Liberty Mutual
- Auto Mile
Conclusion
Car insurance is often expensive, especially for young people with a short driving record. These auto insurance companies offer the best discounts, the lowest rates, and the easiest applications.
References
- https://www.thebalance.com/best-car-insurance-for-teens-and-college-students-4158717
- https://www.forbes.com/advisor/car-insurance/best-cheap-car-insurance-for-teens/
- https://www.moneyunder30.com/best-car-insurance-for-young-adults
- https://www.investopedia.com/best-car-insurance-companies-for-teens-and-young-drivers-4788362
