U.S Best Cheap Car Insurance For Young Adults

• Inexperience behind the wheel. Young adult drivers often have less driving experience than older demographics. This could lead to poor judgment in challenging driving situations, making them more prone to accidents.
• Higher accident rates. Statistically, young adults, particularly those between 16 and 25, are more likely to be involved in car accidents.
• Riskier driving behaviors. Young adults are more likely to engage in risky driving behaviors such as speeding, distracted driving, and not wearing seat belts.
• Credit history and financial stability. Young adults often have limited or no credit history, which insurers sometimes use as a factor in determining rates.

How Young Drivers Can Save on Car Insurance

Young drivers can do more than score a discount to reduce insurance costs. Buying the right car, choosing the proper coverages, and setting appropriate deductibles are critical things to do upfront.

Keeping a claim-free history with no at-fault accidents, watching your credit score, and being a good driver by avoiding moving violations (such as speeding) will help to keep your car insurance cheap as well.

Choose the right car

Insurance rates vary depending on the make, model, and year of your vehicle. High-performance vehicles, luxury cars that are expensive to repair, and vehicles with high theft rates will cost more to insure than other models. Comparing quotes before getting a new car can prevent you from locking yourself into a vehicle that is costly to insure.

Review your coverage

Young drivers may need different levels of insurance coverage. Our guide to how much car insurance you need walks you through the various available coverages and how to determine what you need.

Nearly all states require some amount of liability car insurance. If you’re financing or leasing your vehicle, your lender may require certain coverages, such as comprehensive, collision and gap insurance. Remember, state and lender minimums may not be enough to give you peace of mind. In some cases, you may want more.

Pick the right deductible

A low deductible might sound like a great idea, but it’ll typically result in you paying a higher premium. In many cases, you’ll want to choose the highest deductible you can reasonably afford and that your lender and state will allow. Remember, don’t choose a deductible higher than the amount you have available in savings to cover an emergency. You must pay your deductible when you file a claim before your insurer will kick in their part.

Keep a claim-free record

An at-fault accident can increase your car insurance rates dramatically. That’s why you want to be diligent about maintaining a clean driving record.

Some insurance companies offer accident forgiveness for your first at-fault incident, but not all do. Read the fine print of any policy you’re considering to learn the specifics of the accident forgiveness clause.

Pay your bills on time

If you want affordable car insurance, you should be diligent about making sure your bills are paid on time and outstanding debts are dealt with in a timely manner. In most states, auto insurance companies can use your credit score when setting your premiums. The lower your score, the higher your premium might be.

Methodology: How We Collected Our Car Insurance Rates

Any automobile insurance coverage purchased is tailored to the person behind the wheel. Insurers evaluate your age, where you reside, your driving record, and a variety of other factors when determining whether to renew your coverage and how much it would cost. The vehicle insurance prices that various drivers pay are as diverse as their driving habits.

So, how did we get these data for comparison? U.S. News and World Report collaborated with Quadrant Information Services to examine a report on insurance premiums in all 50 states from the majority of the leading national vehicle insurance companies. (Not all auto insurance companies operate in every state.) Quadrant collected publicly accessible rate data that auto insurance file with state regulators, which should not be taken as binding quotations.

The rates for our study are based on profiles of male and female drivers aged 17, 25, 35, and 60. The cars utilized are the 2018 and 2023 Honda Civic, the 2018 and 2023 Toyota RAV4, and the 2018 and 2023 Ford F-150, with yearly mileages of 6,000 and 12,000 respectively. Low, medium, and high coverage levels were employed, as well as bad, fair, and good credit categories. Clean driving histories, as well as records with one accident, one speeding infraction, and one DUI, were all considered in the calculations for certain driver archetypes.

To determine the rates utilized in our analysis, we calculated the average premium for male and female drivers aged 17, 25, 35, and 60 who drive 12,000 miles per year, have medium coverage, good credit, and a clean driving record.

The prices in our analysis should not be regarded the “average” rates offered by individual insurers. They are just used for comparison reasons. Because auto insurance premiums are determined by a variety of individual characteristics such as age, location, driving record, vehicle type, and so on, your rates will most likely differ from those displayed here.

Key Takeaways

• USAA has the rates for young adult drivers, regardless of gender, according to our study. Nationwide comes in second for young adult females and Erie is second for young adult males.
• On average, young adult drivers pay lower car insurance rates than teenage drivers because they have more experience behind the wheel.
• Young adults seeking cheap car insurance may be able to save on coverage by comparing quotes, maintaining a clean driving record, and exploring discounts.