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Compare car insurance for drivers under 25

How to get cheap car insurance if you're under 25.

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Drivers under 25 tend to pay more for car insurance than older drivers, but that doesn’t mean finding affordable coverage is impossible. Following a few steps and staying on top of your insurance policy makes getting coverage that fits your budget a lot easier.

Car insurance quotes for drivers under 25

Comparing car insurance quotes can be difficult, especially since every driver will get a unique quote based on their driving history, vehicle and state. To get an idea of how wildly quotes can vary, compare sample quotes by age for drivers under 25.

Cheap car insurance for a 25-year-old

CompanyCheapest annual rate
Safeco$304
Mercury$306
USAA$347
Esurance$457
21st Century$531
Grange$590
Allstate$653
Progressive$658
AAA$671
Capital$682
Average$520

Cheap car insurance for a 24-year-old

CompanyCheapest annual rate
Safeco$304
Mercury$385
Esurance$457
USAA$459
Grange$590
Allstate$653
Progressive$658
AAA$671
Capital$682
Geico$721
Average$558

Cheap car insurance for a 23-year-old

CompanyCheapest annual rate
Safeco$304
Mercury$385
Esurance$457
USAA$459
Grange$590
Allstate$653
AAA$671
Geico$721
State Farm$757
Progressive$877
Average$587

Cheap car insurance for a 22-year-old

CompanyCheapest annual rate
Safeco$304
Mercury$385
Esurance$457
USAA$459
Grange$590
Allstate$653
AAA$671
State Farm$757
Geico$866
Progressive$877
Average$602

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How can I pay less for car insurance if I’m under 25?

While insurance for drivers under 25 can be more expensive than it is for older drivers, there are ways you can reduce the cost of your premiums. These include:

  • Buy a smaller, less expensive car, rather than a sports model or highly modified vehicle. If finding the cheapest car insurance is your number one priority, then this is your number one tip.
  • Resist the urge to make claims just because you can. It might save you money in the short term, but it will wipe out any no claims bonus you may have and mark you as a risky driver, which increases your premiums.
  • Consider increasing your deductible to reduce your premium, but make sure you can afford it if you have to make a claim.
  • Restrict the number of people who can drive your car, and preferably limit it to those who are over 25, with the exception of yourself.
  • Park in a garage, not on the street, and add security such as an alarm, tracking device or antitheft device for lower premiums.
  • If you don’t plan to drive a lot, look for a pay-as-you-drive policy.
  • Monitor your credit. Most insurers consider your credit score when setting your premium.

Why is car insurance so expensive for younger drivers?

Age isn’t just a number. Insurance companies see younger drivers as more of a risk, so they pay higher rates based on their age. Drivers under 21 are the highest risk group, since studies have shown they tend to get in more accidents and make more claims.

But the older you get and the more experience you get behind the wheel, the lower your rates tend to get. Expect cheaper insurance with every birthday you celebrate.

Discounts for drivers under 25

If you’re under 25 and just finished school, you’ve probably lost your student discount. But there are many more car insurance discounts available from most insurance providers you can probably qualify for.

  • 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 10% to 15% by combining insurance policies with the same provider.
  • Claims-free discounts. Not filing a claim for a number of years can keep your premiums down.
  • Safety discounts. If you have a good driving history, you can be rewarded with a discount. Antitheft devices will also help to lower your insurance premium
  • 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.

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I’m under 25, what are my coverage options?

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.

CoverageInjuries to youInjuries to othersDamage to your car from an accidentDamage to other cars or propertyDamage to your car from theft or fire
Liability
  • No
  • Yes
  • No
  • Yes
  • No
Collision
  • No
  • No
  • Yes
  • No
  • No
Comprehensive
  • No
  • No
  • No
  • No
  • Yes
Uninsured
  • Yes
  • No
  • Yes
  • No
  • No

Car insurance terms for young drivers

Wondering what goes into your car insurance policy? Learn some of the common phrases you’ll see when comparing policies.

  • Coverage. This refers to what is covered by a particular insurance policy. For example, a third party damage policy will only provide you with financial compensation if you have to pay for the repairs of someone else’s property, while a comprehensive policy will do this and pay out in the event of certain damage to your car.
  • Limits. Limits are the maximum amount something is covered for. For example, you might get car insurance that covers you for up to $5,000 worth of accidental damage. This means the insurance company will pay for up to $5,000 of repairs, but not more
  • Exclusions. These are the conditions under which the insurance company won’t pay out. For example, you might be covered for car theft, with an exclusion for unlocked vehicles. This means you can make a claim if your car is stolen, but if it was unlocked at the time of theft the insurance company won’t pay out.
  • Deductible. These are flat fees you must pay when making a claim. You can choose a higher deductible for lower premiums, or a lower amount for higher premiums.
  • Premiums. This is the main cost of your car insurance policy. The premium is the regular, ongoing amount you pay to have an active policy. It can usually be paid monthly, yearly, every six months or on a different schedule.

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Choosing a policy

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.

  • Use an online comparison site to compare quotes from a number of different insurers. Use these quotes to establish a ballpark price range for your insurance needs. If you receive a quote offering you a suspiciously good price, try to find out why and make sure it’s not missing something important.
  • Always read the fine print in the Product Disclosure Statement (PDS) and understand the terms and conditions. Know what’s included and what is excluded from your coverage.
  • Compare car insurers as well as their policies. Research their reputation, their claims record and their level of customer service on their websites and social media platforms.

What kind of coverage do different cars need?

One of the best ways to keep the cost of car insurance down is to drive a cheap car to insure, or drive your current car as long as safely possible.

Under 25 car insurance for cheap cars

  • Consider dropping comprehensive coverage, especially if the deductible is higher than your car is worth.
  • Consider third party property insurance or collision coverage only so your insurance payments are less than your car’s worth.

Under 25 car insurance for expensive cars

Dos and don’ts for drivers under 25

  • Do tell your insurer if your circumstances change, or they might use this as a reason to refuse to pay a claim later.
  • Do add a second responsible driver to your policy if you have one, as this may help reduce your premium.
  • Do drive safely at all times. A consistently safe driving record will help your no claim and safe driver discounts and decrease the cost of your premiums.
  • Don’t lie to or mislead your insurer. Your insurance could be voided if it’s discovered that you lied on your insurance form.
  • Don’t nominate an older driver as the first driver if it is your car. That would be deceptive.
  • Don’t modify your car without telling your insurer. Even then it’s best to stick with legal modifications that they approve of — a sunroof rather than a spoiler or sports exhaust, for example — or you can expect raised premiums.

Bottom line

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.

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Under-25 car insurance FAQs

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