It's seldom enjoyable or economical to get auto insurance whether you're a teen or a young adult. This is true for anybody wanting to increase coverage under a parent's current policy, but it is especially true for young adults who must independently obtain low-cost auto insurance.
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| The best automobile insurance for new drivers in (2022) |
Having said that, the finest auto insurance for young drivers provides affordable, high-quality protection for the entire family. However, if you're searching for the best affordable auto insurance for young adults, you'll need to evaluate policies and plans in addition to looking into any possible discounts. You should choose which forms of vehicle insurance you actually require and which you can live without in the meantime.
To assist you in finding the best vehicle insurance for teen drivers in 2022, we compared more than 20 of the industry's top auto insurance providers. You can stop browsing and begin your search here if you're ready to purchase a policy or start evaluating all of your alternatives.
Best Auto Insurance for Younger Drivers: Our Picks
- Nationwide: Best for Teen Drivers
- American Family: Best for Usage-Based Discounts
- Allstate: Best for Good Students
- State Farm: Best for Safe Vehicle Discounts
- Geico: Best Discounts Overall
- USAA: Best for Military
You can read more about the top auto insurance providers in our rating, their policy options, and any unique initiatives they have for young drivers, in the reviews below.
Young drivers may choose from a variety of coverage choices from Nationwide, and the company also offers discounts that can significantly lower the cost of insurance. Young drivers have the option of purchasing liability-only insurance, as well as collision, comprehensive, and even rental vehicle reimbursement coverage, which kicks in while a car is being repaired after an accident.
For young drivers, accident forgiveness is yet another optional feature. With the help of this extra insurance, young or inexperienced drivers may avoid having their insurance rates skyrocket following their first vehicle accident in which they were at fault.
For teen and young drivers, Nationwide offers a number of significant reductions, including:
- If you are a full-time student and a Nationwide client, you can obtain a premium discount if you maintain a grade point average of 'B' or above.
- Employer-Sponsored Plan Discount: If you work for a company that participates in a Nationwide discount plan, you may be eligible for a discount.
- Multi-Policy Discount: You can save money by combining your vehicle insurance with additional policies, such as renter's insurance.
- Nationwide also provides a SmartRide discount if you fulfill safe driving standards as established by the usage of a plug-in device. It is a usage-based insurance product that allows you to receive a discount for driving safely.
Another highly rated insurance provider that provides coverage to young drivers and teens who are added to a family plan is American Family Insurance. This firm provides all of the standard insurance coverage you'd expect, including liability, collision, comprehensive, uninsured and underinsured motorist coverage, and rental car reimbursement. They also provide optional emergency roadside assistance, which is easily accessible via the MyAmFam smartphone app.
This firm also provides a Safe Driver Discount Program for Teens, which uses a mobile app to monitor your teen's driving behavior. Families can receive a 10% reduction on their auto insurance costs if their teen drives at least 3,000 miles while using the app.
Other significant young driver discounts include:
- Away at School Discount: This discount is available when a young driver is attending college or university and their vehicle is parked at home.
- Students with high grades may be eligible for a discount on their vehicle insurance payments.
- Multi-Product Discount: Save money on vehicle insurance by bundling multiple products with American Family.
- Young Volunteer Discount: This discount is available to drivers under the age of 25 who complete 40 hours of volunteer work for a non-profit organization every year.
Best for Good Students: Allstate
Another insurance company with a renowned Accident Forgiveness program is Allstate. You won't see a spike in your monthly vehicle insurance premiums following your first accident, even if enrolling in this program doesn't initially help you decrease your premium. Allstate also offers a Safe Driving Bonus program in the meantime. You will get a cheque in the mail every six months if you want to add this option to your insurance. This is how Allstate encourages defensive driving behaviors.
Also keep in mind that Allstate offers excellent student discounts to drivers under the age of 25. This means young people in college can receive a discount on their own policy, but it also means high school kids and teens with outstanding grades can assist their parents in securing reduced auto insurance premiums.
The following are some of the finest young driver auto insurance discounts offered by Allstate:
- Young drivers who place a gadget in their car and allow Allstate to monitor their driving behavior may be able to get a discount on their total auto insurance.
- Multi-Policy Discount: When young drivers acquire several Allstate policies, such as auto insurance combined with renter's insurance, a multi-policy discount may be available.
- Discount for Responsible Payers: The next year you get coverage, you can receive a discount for responsible payers if you pay your premiums on time for a complete year.
- Drivers under the age of 25 who achieve one of three requirements—getting high grades or finishing a program for young drivers—are eligible for the Smart Student Discount.
Best for Safe Vehicle Discounts: State Farm
Young drivers under the age of 25 can participate in State Farm's Steer Clear program. This program is only available to young drivers who have not had any at-fault accidents or moving offenses during the previous three years, and it requires drivers to utilize a smartphone app that monitors their driving. When participants in this program drive carefully over time and prevent collisions, they can reduce their vehicle insurance costs by up to 20%.
State Farm offers inexpensive prices for young drivers who are driving independently in addition to making it simple to add a young driver to a family auto insurance policy. This firm also provides a variety of discounts that are related to vehicle safety rather than the age of the driver, such as discounts for passive restraints and discounts for installing an approved anti-theft system on a car.
State Farm also provides other savings for young drivers, including:
- Drive Safe & Save Discount: This application computes your discount using data from your smartphone or the OnStar or SYNC communication service in your car.
- Young drivers who successfully complete a defensive driving course may qualify for discounts of 10% to 15% off their yearly auto insurance costs.
- Discount for Students Living Away While Attending School: If you are a student under the age of 25 who is residing away from home while attending school, you may be eligible for this discount.
- Good Student Discount: To be eligible for this discount, you must maintain a minimum GPA of 3.0. It can reduce your vehicle insurance costs by as much as 25%.
Best Overall Discounts: Geico
One of the vehicle insurers with the most competitive pricing is Geico, which also provides a number of discounts and programs for teen drivers. To begin with, this provider has a family pricing scheme that enables young drivers within the same family to receive the same insurance prices as experienced drivers. Thus, young drivers have the opportunity to build a solid driving record without having to pay the exorbitant rates characteristic of new drivers.
For drivers of all ages, Geico also has an Accident Forgiveness Program. This reduction only applies to one family member on a single policy, however, it prevents premium increases in the case of an accident if someone is at fault.
The following are some other GEICO promotions that are well-liked:
- Good Driver Program: With the Five-Year Accident-Free Good Driver Discount, young drivers can save up to 22% on their auto insurance costs.
- Government Employee Discount: Federal employees may also take advantage of this discount through participating employers. It may lower your premium by as much as 12%.
- Military Discount: If you're in the armed forces, you can get up to 15% off your rates.
- Drivers between the ages of 16 and 24 who are full-time students and have a "B" average or higher are eligible for the good student discount.
Best for Military: USAA
You can also be qualified for vehicle insurance via USAA if you're in the military or have a qualifying family member. This firm has one of the greatest ratings of any insurance provider, and it provides young drivers and adolescent drivers with a variety of programs and savings.
For instance, USAA provides a program called SafePilot that enables anybody to save up to 30% on their auto insurance rates if they successfully complete a safe driving course and reside in a qualifying state. Families with teenagers on their policies may also assist their children in saving money for when they move out. In fact, a 10% family discount is available to adult children of USAA auto insurance customers.
Below is a list of other USAA discounts for young drivers:
- Driver Training Discount: If you're under 21 and ready to finish a defensive driving or driver training course, you may be able to reduce the cost of your auto insurance.
- Safe Driving Discount: By preserving a clean driving record for at least five years, you can lower your premiums.
- High Student Discount: Students between the ages of 16 and 25 who maintain good marks in school are entitled to a discount for young drivers.
- Family Discount: If you add an adolescent or young adult to an existing family policy, you will pay less for vehicle insurance.
Guide to Car Insurance
You should comprehend the specifics of vehicle insurance for young drivers before choosing a new coverage. For instance, you should look into the various forms of auto insurance and the typical cost of auto insurance based on the coverage you choose, your location, and other criteria.
How does young driver auto insurance operate?
Even while young driver auto insurance functions the same as coverage for everyone else, it is generally more expensive. Young drivers really have a lot less experience driving, and as a result, they continuously suffer accidents at a far greater rate. Car insurance providers increase the prices they charge for the same types of coverage to reflect the higher degree of risk.
However, if people have been driving safely for at least two years and are at least 25 years old, their auto insurance prices often start to decline. The cost of auto insurance may be significantly reduced by getting married, owning a home, maintaining a high credit score, and completing other significant life goals.
As previously mentioned, the typical rate for new drivers varies based on your location, whether you continue to be covered by your parent's insurance, and other considerations. However, a new analysis by The Zebra reveals that particular age groups, especially some specific age groups below 25, tend to pay substantially higher premiums overall.
The study's 2022 statistics show that "teen" drivers spend the highest, with the average 16-year-old driver paying $6,034 per year for their own auto insurance policy. The average yearly expense for all teens comes to $4,796 per year.
From there, until a motorist turns 60, each age group enjoys lower vehicle insurance costs. At that point, rates start to increase. The following graph displays the typical vehicle insurance rate by age group in 2022:
How to cut the cost of auto insurance
There are several actions you can take to get more reasonable car insurance premiums, regardless of whether you opt to lease or purchase a car or if you're presently driving an old beater while you wait for the best moment to buy a new automobile. The following is a list of some of the most effective money-saving techniques:
- Avoid traffic infractions and accidents. Your auto insurance premiums may increase even more if you are involved in an accident or receive many tickets. You must keep a clean driving record over the long term if you want to be able to receive the best auto insurance rates.
- Be prepared to take driving lessons. If you finish a defensive driving course or a course for young drivers, you could be eligible to reduce the cost of your auto insurance. Be careful to inquire about which of these possibilities may qualify you for a discount from your auto insurance provider.
- Examine all available deals. If you don't check, you may be eligible for auto insurance reductions you aren't even aware of. Check to see whether your insurance provider gives discounts for loyalty, bundled policies, car safety, and other factors that might help you save money.
- Obtain high marks. You may qualify for a reduction in your vehicle insurance costs if you're a college student and you can keep up a decent grade point average. The majority of excellent grade discounts are awarded to students who can maintain a GPA of 3.0 or higher (or equivalent).
- Keep as much as you can on your parent's auto insurance policy. In general, adding a young adult to an existing policy results in cheaper prices for vehicle insurance. In light of this, delaying the purchase of your own auto insurance coverage as long as you can be beneficial.
These are just a few student vehicle insurance discounts; more may be available, depending on the provider you pick. Ask whatever discounts you could qualify for when you compare prices for your vehicle insurance.
Important: If you spend money on a reliable auto warranty, you could also reduce the cost of owning a car. The finest auto warranties demand a down payment or ongoing payments, but they can spare you from future expensive auto repairs.
How We Discovered the Most Affordable Auto Insurance for New Drivers
We searched for carriers with an 'A' rating or above for financial soundness from A.M. in order to identify the top auto insurance companies available today. Best. Additionally, we searched for businesses that promote young drivers by offering discounts and special programs, as well as those that provide highly regarded mobile apps. Finally, we only took into consideration auto insurance providers having a Better Business Bureau rating of "A" or above (BBB).
The Best Auto Insurance for Youn
- Nationwide: Best for Teen Drivers
- American Family: Best for Usage-Based Discounts
- Allstate: Best for Good Students
- State Farm: Best for Safe Vehicle Discounts
- Geico: Best Discounts Overall
- USAA: Best for Military
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