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Compare car insurance for drivers under 25
Balance coverage and service with cheap car insurance to find the right policy for you.
If you’re under 25 years old, you’ll pay more for car insurance than older drivers, although your rates drop slightly once you reach age 25. To find the best deal on your car insurance policy, balance a moderate level of coverage that fits how much you drive and compare a variety of insurance companies.
Car insurance costs for drivers under 25
If you’re between ages 22 to 25, your car insurance premium can average $43–$50 a month, according to Finder’s rate analysis. That’s a yearly cost of $520–$602 for liability-only coverage. Of these ages, 25-year-olds hold the cheapest rate because insurers often drop prices at this age.
Also, all drivers under 25 should compare multiple companies since every person gets a unique quote based on their driving history, car and state. Overall, Safeco offers the cheapest rates for 22- to 25-year-olds, costing $25 a month.
Cheap car insurance for a 25-year-old
At age 25, you’ll see insurers like Mercury drop rates to compete for your business, with rates averaging $7 a month or 14% lower than when you were 22 years old.
But Safeco, USAA and Allstate remain the cheapest, widely available insurance companies.
|Company||Cheapest annual rate|
Cheap car insurance for a 24-year-old
Once you reach age 24, more insurers like Progressive drop their rates, although the cheapest insurers keep their rates steady.
|Company||Cheapest annual rate|
Cheap car insurance for a 23-year-old
At age 23, you see the same wide gap between insurers as well as similar monthly rates as 22-year-olds.
|Company||Cheapest annual rate|
Cheapest car insurance for a 22-year-old
At age 22, you’ll notice a wide gap in insurance rates, with Safeco costing nearly $50 a month cheaper than Progressive. The cheapest insurers that serve most states are Safeco, USAA and Allstate.
|Company||Cheapest annual rate|
Compare car insurance quotes for drivers under 25
Compare policies from a variety of insurers and select Get quotes to see their costs customized for you.
What to consider when buying car insurance
After finding several policies that suit you, it’s time to compare prices by getting quotes. Remember that your goal is to find the car insurance that’s right for you. This might not always be the cheapest.
- Meet all requirements. You need at least the minimum coverage required by your state, but in most cases, you should consider higher liability limits in case a legal matter comes up. Car loans also require you to add comprehensive and collision coverage.
- Consider when to buy extras. If you drive an older car with no loan, you may not want the added cost of comprehensive and collision coverage, which pays for damage to your car. But consider extra protection for new, classic, luxury or modified cars.
- Look at different insurers. Research each company’s reputation, their claims record and their level of customer service. And when getting quotes, choose the same coverage to make sure you’re comparing the same policies.
- Compare premiums. Since your insurance costs are probably high, prioritize companies that offer low rates along with solid coverage and service.
- Understand what’s excluded. Know the situations when your insurance company won’t pay, and ask questions if you don’t understand an exclusion listed on your policy. For example, you might have coverage for theft as long as you keep your car locked.
The biggest areas that help you save as a young driver are the amount of coverage you have, a violation-free driving record and low mileage. To keep your premiums low, you can:
- Set the right limits. You set limits on your coverage that protect you for a maximum amount of damage, like $25,000. Higher limits add to your premiums, so set liability limits in between what’s required and the highest limits.
- Consider your deductible. You have to pay this flat fee before your insurer pays for a claim. You can choose a higher deductible like $1,000 to lower premiums, if you can afford the extra cost after an accident.
- Keep your car secure. Park in a garage or driveway, and add security such as an antitheft alarm or tracking device. This lowers the chance that someone else will hit or steal your car.
- Get rewarded for low mileage. If you don’t plan to drive a lot, look for a pay-as-you-drive policy, or ask for a low-mileage discount on your policy.
- Monitor your credit. Most insurers consider your credit score when setting your premium.
- Stick with your parent’s policy. If possible, stay on your parent’s car insurace for as long as you’re allowed, such as if you’re living with them or continuing college. Or you can add another responsible driver that lives with you to your policy, such as your roommate or partner.
- Limit who can drive your car, and preferably limit it to those who are over 25. You may avoid accidents and insurance rate increases from a friend crashing your car.
Why is car insurance expensive for younger drivers?
Age isn’t just a number. Insurance companies see younger drivers as more of a risk, so you pay higher rates based on your age. Drivers under 21 are the highest risk group since studies show that they tend to get in more accidents and make more claims than older, more experienced drivers.
But the older you get and the more experience you get behind the wheel, the lower your rates get. Expect cheaper insurance with every birthday you celebrate.
Discounts for drivers under 25
If you’re under 25 and just finished school, you may lose your student discount. But there are many more car insurance discounts available from most insurance providers you can probably qualify for.
- Defensive driving. Most insurers reward you with a 5% to 10% discount if you take a refresher driving course.
- Buy online. Get up to 20% off for getting an online quote or signing up for your new policy online.
- Multicar discount. If you have more than one driver in your home, you can save money by putting all drivers on the same policy.
- Bundling discount. Save as much as 25% or 30% by combining insurance policies like renters and car insurance with the same provider.
- Claims-free discounts. Not filing a claim for a number of years can keep your premiums down.
- Safety discounts. A good driving history and antitheft devices help to lower your insurance premium, and some insurers offer savings for cars with driver assistance or daytime running lights.
- Good student. If you’re finishing up college or continuing your education, major insurers like Allstate and Geico offer discounts for students up to 24 or 25 years old.
- Paid in full discount. If you are financially able to pay for your policy in full, you are likely to get a discount.
- Telematics discount. Only pay for how well and how much you drive with a usage-based discount.
No matter how old you are, there are different types of car insurance coverage to choose from that generally stay the same. And one of them, liability coverage, is mandatory in most US states.
Liability covers bodily damage and property damage to the other driver and passengers if you’re found to be at fault in an accident. However, liability does not cover damages to your own car nor the cost of your own injuries. Coverage for damage to your own car falls under collision.
The other two main categories include comprehensive, and uninsured and underinsured. Comprehensive covers damage caused by almost anything other than a collision. Uninsured and underinsured pay for damages if you’re hit by a driver without enough insurance to cover the costs.
It is usually wise to add additional coverage on top of the minimum liability coverage, depending on your price range and coverage needs.
|Coverage||Injuries to you||Injuries to others||Damage to your car from an accident||Damage to other cars or property||Damage to your car from theft or fire|
What to watch out for
The main pitfall is that you could forget to update your policy after important changes or that you could mislead your insurer to lower rates. Consider these pitfalls.
- Your situation changes. Tell your insurer that you moved, changed cars or any other updates in how you use your car to avoid hangups with your coverage later.
- Lying to or misleading your insurer. Your insurance could be voided if it’s discovered that you lied on your insurance form.
- Listing someone else as the primary driver, if it’s your car. This is called fronting, and insurers consider it lying on your policy.
- Modifying your car. Tell your insurer about your mods before adding them. Some mods can increase your insurance rate or require you to add custom parts and equipment coverage.
While younger drivers often pay more for car insurance, you can still save on insurance rates even if you’re under 25. Compare your car insurance options to find the best deal on insurance for your car.
Questions about car insurance for drivers under 25
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